Anyone here an insurance agent?

[cbsmokin]

I actually listened to the "become an agent" call the other night. As stated you can start your own agency if you have $50k liquid and your series 6 and 63 licenses. You can also buy out someone else's business for whatever they want for it, but you still need the 50K on top of it. Seems like a hefty investment to only retain 10% of policy premiums. It must be worth it though or people wouldn't do it.

[forgop]

Originally Posted by cbsmokin

I actually listened to the "become an agent" call the other night. As stated you can start your own agency if you have $50k liquid and your series 6 and 63 licenses. You can also buy out someone else's business for whatever they want for it, but you still need the 50K on top of it. Seems like a hefty investment to only retain 10% of policy premiums. It must be worth it though or people wouldn't do it.

Here's the deal...within the next month, I'll be auctioning off some farm ground and would expect to have plenty of cash to make an investment into something like this ($50k would be no problem in addition to having no personal debt for a mortgage, student loans, car payments, etc). I would prefer to start up my own company than ever having to go to work for someone else again if I could. One of the things I considered doing with this money was looking into a franchise of some sort, but I wasn't sure of the industry to get into.

Is the 10% the only amount retained for the entire office? Just curious in case I ever got to the point of having a salesman and a secretary.

[Blueface]

Originally Posted by forgop

Here's the deal...within the next month, I'll be auctioning off some farm ground and would expect to have plenty of cash to make an investment into something like this ($50k would be no problem in addition to having no personal debt for a mortgage, student loans, car payments, etc). I would prefer to start up my own company than ever having to go to work for someone else again if I could. One of the things I considered doing with this money was looking into a franchise of some sort, but I wasn't sure of the industry to get into.

Is the 10% the only amount retained for the entire office? Just curious in case I ever got to the point of having a salesman and a secretary.

You are expected to hire your own staff. Don't know the particulars of the current contract so don't want to mislead you.
I can tell you this, sales agents for Allstate are in high demand. So much so, there is a handsome reward for this agent or anyone that ultimately gets you hired if they referred you.
You are going to get a commission on new business and a different compensation on renewals.
You will have to adhere to specific guidelines that will result in measuring your loss ratio. That will be an indicator of the quality of business you bring in. You just can't write anyone or anything to make money because if your loss ratio goes to high or above the limit, you are literally shut down from being able to write anything and have to survive on renewals.
Talk to them at length if genuinely interested. See what the new contract entails. See if you qualify based on criteria you must meet to proceed forward.
See what is in your area in terms of agencies. See if your location to be is convenient. See if a book is currently for sale or expected to be by the time you secure your licensing.
Most agents with a will to do well and eagerness to work hard do in fact do very, very well for themselves.