Inusrance Agency Ownership?

I have a question regarding agency ownership, through a job search engine I applied to Farmers Insurance, they have this programs that you have to get 2 insurance licenses (P&C) and NASD 6,63 series & work in their office for up to 12 months, during this time they don't pay you at all & you should pay your own costs of licensing, tests, phone, notebook even marketing & all you make is through commissions if you have any sales but if you achieve a level of sales after a year you are able to open your own office and become a full time agent but For the next two years, you can receive financial assistance from Farmers in the form of matching commissions, staff subsidy, and office rent subsidy... I want to ask those who are into insurance business how do they feel about this process, is it the normal way that others do? this is the estimate that they gave about the income:
1st Year: $35,000 - $50,000
2nd Year: $60,000 - $90,000
3rd Year: $100,000 +
Are these close to reality numbers?

This is normal, and a bit more generous than some do it.

Yes, those are realistic income expectations for agents that do this for three years. BUT. Keep in mind, 95% wash out in the first six months. They either don't want to work the 80 hour weeks you need to work, or they can't sell, or they hate insurance. That's why you have to prove yourself first before opening the office on your own.

Farmers IS Farmers.....and typically, they have ONE group of companies - Farmenrs (and now they have acquired Bristol West for non-standard auto.)

My friends that are Farmers agents tell me that they are "under the gun" to write more and more life and invetment type products, hence the need for the NASD license.

Normally, these companies will want to assure that you have the finances to support yourself for the first couple of years and normally want to see $50-60K in assets....did they mention that?

Since insurance is a commission based business, and commissions received are based on premiums sold, the more you sell, the more you make. There are three things you need to remember about an insurance agency: 1) location 2) location 3) location. Where you are located can make all the difference in the world! I know some independent agents in small towns that do well, I know some large independent agents in large towns that do better....only because they have a larger market. So you could be a big fish in a small pond, or a little fish in a big pond.

The mention income but did they mention commission levels? If you figure an average of 12%, to make $35K a year, you're looking at about $290K in sales......

Not trying to talk you out of it....but, do you have ANY insurance experience? You might consider finding an independent agent in your town, discuss your goals with them and see it they're hiring. It might be a way to get licensed, learn the ropes and perhaps even have in-roads to purchasing the agency you go to work for.....and then, if it all works out, you like the job and the job likes you - maybe then would be the time to apply to one of the direct writers.

The overall insurance market is pretty soft right now and should remain this way for another 18 months to 2 years. Insurance companies are vying for more market share and lowering premiums to get more competitive - so, if they lower rates, they've reduced your income.

Good luck with your choices and I hope this helps!

It is very difficult to make it as an agent under Farmers Insurance.

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