6 Things you should know before you start in the Insurance Business

6 Things you should know before you start in the Insurance Business

 

so you want to be in the insurance business. Maybe someone has talked to you about the benefits of being a life or health producer or even property and casualty. Insurance is one of the most rewarding careers and lucrative careers.

A person can choose. I know insurance agents right now that are making more money than doctors and lawyers and are just simply high school graduates at that. The fact of the matter is, if you're motivated self-determined, and have the ability to build rapport and authority with people, you can make really good money and help a lot of people in the insurance profession.

The question becomes: should you become a captive agent or a free agent? What is the difference? What are the benefits that are? Why I want to cover right now number one: a captive agent has a lot of their Commission's.

Taken out there in the office, the management, all this hierarchy, the money, the Commission's, that the company pays goes through five and six hands before it gets down to the producer. So you have to understand being a captive agent.

Polit does have some benefits. You do lose a lot of your commission as a free agent, an independent agent. If you will it's, you probably one other layer like a field marketing organization which is called FMO or independent marketing organization, which is called IMO.

You have that layer and then you so the hands that it has to filter through are much less, which means most of the time not all the time. But the norm is an independent agent. A free agent has about twice as much Commission's paid out.

So if one policy is paying you 50 % Commission's on the annualized premiums, free-agent would probably be making a hundred percent or more so that's. Number one [ Music, ] number two: if you're, an independent free agent, you can sell anyone's product as a captive agent.

You can only sell the company that you have a captive contract with. You can only sell their products whilst the problem, not every company. I don't care. What the rating is. I don't care. How long they've been around on the kill.

What their reputation is. Every company has great products and weaker products. Some companies have a great whole life product. Other companies, I have a better Universal Life product. Other companies have really strong great term life insurance products.

Others have better annuity programs. Every company has strong and weak portfolios as an independent free agent. You can pick and choose. I'm gonna represent Company A's. Whole life, I'm gonna represent company B's term life.

I want to represent company C's, annuities so forth, and so on. So you're, not stuck with one company only offering one product line as a free agent. You can have multiple lines offering the best product for the best category.

For your client, the client always wins and that [ Music ] number three. As a free agent, you're independent. You manage yourself there's, no Rara meetings and have to go to conferences and meetings and training and how much you're gonna write this week.

What are you doing? What's? Your activity? None of that as a captive agent, most captive agencies require certain office times being there having to be it. You're. The way you manage your business where you go when you come and go how you market now listen.

There are state and federal regulations that tell you and inform you how you can advertise and how you can market products. However, these big captive agencies, because they don't even want to, for instance, most captive agencies won't.

Allow you to advertise on social media. You can there's, no law against advertising on social media. There are laws against what you can say and guarantee returns and all that nonsense, but you can advertise and say: hey! I'm this.

I'm that I'm here. Call me if I can help there's, nothing wrong with that. There's, no law against it. However, a lot of captive agencies handcuff you and how you can do business, which gives free agents a competitive edge.

So, even if you go into a captive agency, you are losing market share, because there's. A guy out there, like Terry Wilson, that's, going to call they're gonna advertise gonna. Do everything legally, but going to be able to reach your clients in ways that you can't? Because your company doesn't want the risk.

You saying something: improper on social media or somewhere else and getting them in trouble because they're, a huge target with the FCC number four health and retirement benefits. This is where captive agents do better.

Most captive agencies will give their employees because you are an employee of theirs. They will give them benefits retirement plans. They will give them health benefits as an independent free agent. You are self-employed.

What benefits? Do you get what you provide for yourself, so you do have to take that into consideration? I would argue because you're able to do bet better business. That is you're able to market a lot more extensively and without the shackles of a large company, and because your commissions are twice as much you can afford to buy your own benefits and that really doesn't become a quote.

Unquote benefit, however, I have clients that came to me and said, Terry. I want to get into the insurance business, but I & # 39. Ve got this health issue. It's, a pre-existing condition and for whatever reason, ACA or whatever didn't work out.

Then that client right there I would say. Okay here, is a captive agent agency. I refer people to and I think it would be a benefit. [, Music, ] Phil - I alluded to it earlier about being shackled and being controlled and being managed by corporate structure, but I have to go back to it.

It's a huge thing for me time. I have no set office hours. I will come in at noon sometimes and knock off at 3, o'clock. I've done at other agents because I'm, not paid on time. I'm paid on production in execution.

That's. What Commission is all about captive agency because they're running an office. They have office hours and have people coming there. They're, going to make you be there at a certain time and produce and blah blah blah and have certain activities you don't have that as a free agent.

So if you like that structure, maybe you need that to be able to produce in a captive agency is right for you. However, if you're self-motivated, you can manage your own schedule. Then I like the independent free agency.

Sixth and finally, I go on vacation all the time you can't. Do that as a captive agent. You are an employee in that environment, which means you're, going to have two three four six, whatever weeks a year, that they give you for the privilege of working for them and getting a paid commission.

So I like the free agency, a platform for that reason as well. I don't have to justify it. I don't have to rationalize it. I don't. Have to beg for it. I just go because I am self-employed and there's, a lot of programs out there.

You know that old adage work for yourself, but not by yourself. You as an independent agent can still get in agencies that are all independent. That gives you the support you want. Without the control there's, some captive agencies will provide here's.

What I would recommend, if you are going to go to a captive agency number one, the benefits better be great and number two, each never I mean never at the prospect cold call buys leads because how are they justifying having 50 % of your commission? How do they justify it? If I'm having to go out and generate my own leads if I'm having to go out and buy leads if I'm having to go out and hustle to find a new client, then what are they Earning that 50 % off of my commissions for that's.

Why? I tell people you assume at the very minute you learn the skill set of learning how to get in front of people that need won't design kind of forge. Your products, goods, and services - you are a free man or woman.

You need no one because I don't care. If your insurance, real estate, direct sales, restaurant retail ministry, coaching it doesn't matter, everything requires two people in a moment. You can get in front of the right people to offer your goods and services is a moment you need, and no one and that's.

What we offer at tw3. I recruit people in the insurance business all the time and based on what their desires are that I just went through. I say: hey become independent here's, the way you can get a contract, and here's, a platform.

You can generate your own business or go and become a captive agent because of your special needs, but I want to encourage you if you do decide to go. Camping. Make sure that agency that you're going captive with is providing the value that warrants the loss of commission that you're.

Giving up this is terry materials in cotop10.com.


Share this:

Newest Post