I have been working up to 60 hours a week for an agency making them so much money yet I am making so little I have been considering starting my own book of business however I am unsure of how to get started and what the requirements are and how to get started if anyone can help me get started I would be so grateful
Independent Agent
- Thread starter ktm31696
- Start date
CrainGroup
New Member
I think everyone is going to need a little bit more about what you sell to clearly answer that question.
For example, it's much easier to start up an agency from scratch if you are only selling group benefits or life insurance. It's much more difficult and expensive to start up a property and casualty agency.
What are you selling? Also, when you say you are making A lot of money for them that can be subjective as we all have different opinions on what is a lot of money.
If that is the direction you choose to go it is important that you create a business plan for yourself outlining both your short and long term goals. You also have to realize that as you grow that plan needs to adjust to your growth.
Another point that you have to address is how are you capitalized. Meaning how much money have you allocated for leads, advertising, etc. This is the achilles heal with most new agents or agents that want to start their own agency. Make sure you have the funds to sustain. Whatever you allocate add on X% more as a safety net. Best of Luck
Another point that you have to address is how are you capitalized. Meaning how much money have you allocated for leads, advertising, etc. This is the achilles heal with most new agents or agents that want to start their own agency. Make sure you have the funds to sustain. Whatever you allocate add on X% more as a safety net. Best of Luck
agentmarino007
New Member
- 2
I hope it is okay to jump in here on the same request...
I am actually looking into the same thing and need direction, when you say X% extra to be allocated on top of what you set aside can you be more specific?
Also to do this, are any other licenses required? if yes, which ones and how many?
Currently I have a 215 license, AHIP certified, licensed in almost 15 states, contracted with Mutual of Omaha, Humana, Cigna, Aetna for the health side. On the life side, I am contracted with MOO, Foresters, AIG, Great Western, Baltimore Life, Phoenix, Columbian Financial Group, Transamerica Premier, National Guardian Life and about to contract with more this week.
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I posted questions and info on me below but also, how do you make a business plan when you don't know what the steps are A-Z when considering a move in this direction? and where do you find a business plan?
thank you
I am actually looking into the same thing and need direction, when you say X% extra to be allocated on top of what you set aside can you be more specific?
Also to do this, are any other licenses required? if yes, which ones and how many?
Currently I have a 215 license, AHIP certified, licensed in almost 15 states, contracted with Mutual of Omaha, Humana, Cigna, Aetna for the health side. On the life side, I am contracted with MOO, Foresters, AIG, Great Western, Baltimore Life, Phoenix, Columbian Financial Group, Transamerica Premier, National Guardian Life and about to contract with more this week.
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I posted questions and info on me below but also, how do you make a business plan when you don't know what the steps are A-Z when considering a move in this direction? and where do you find a business plan?
thank you
To answer on how to get started unfortunately, you have to be a bit more specific. How to get started in life insurance or medicare? Are you in the underage market or the senior market?
What’s your current contract levels? Can you get releases where you current are or are you stuck not writing for 6 months?
What’s your marketing budget? Do you have a part-time job? Have you set-aside savings?
We need a bit more information to help.
Also as far as starting a business plan and finding out what you need and getting more information on how to build one. I would go here: https://www.sba.gov/starting-business/write-your-business-plan
What’s your current contract levels? Can you get releases where you current are or are you stuck not writing for 6 months?
What’s your marketing budget? Do you have a part-time job? Have you set-aside savings?
We need a bit more information to help.
Also as far as starting a business plan and finding out what you need and getting more information on how to build one. I would go here: https://www.sba.gov/starting-business/write-your-business-plan
- 6,457
I would recommend you start by giving your situation some consideration.
Quantify what the "so much" money figure you are envious of is. When you consider the portion of that you are getting, consider any benefits, such as medical insurance and vacation time if those are applicable, in addition to cash received and tax withholding. Remember about the additional social security taxes you will pay if you are self employed.
At a basic level, I think the elements of a manufacturing business are employees, equipment and capital. When I try to transfer that to your situation, I think of questions like:
Are there any co-worker support functions you have that are of use to you?
What sort of equipment do they provide?
How is their capital being used to help you obtain sales?
Agency name recognition.
Advertising.
Provision of leads.
And so on.
After you identify a bunch of that stuff, then consider if you are really willing to take it all on yourself, how you will take it on-and at the start do it with a cash flow which is less than that "so much money" number you are providing the agency.
I'm not saying don't do it, but you need to understand some stuff about you and your situation before you do.
Warrior
Super Genius
- 150
To start an independent agency, you need to research your demographics of what you are selling and who you plan to sell to. IF you are selling P&C for example, you may want to place your office where you can be seen by many on foot and drive by and in a location that places you with people who are buying homes and where schools are. A target market is what you need to look for.
Then you need to see how much rent is plus NNN. Triple net (NNN) is what the landlord charges to keep up with trash removal, mowing, other maintenance. Then there is insurance for your office and signage, phones, desks, phone and internet service, utilities, E&O Insurance, etc. All this before you ever pay for marketing.
What kind of marketing are you going to do? Mailers? If so, then you need to send them out 2x per month to at least 2000 people. Very pricey. Cold calls? Well, that too can be expensive if you choose to buy lists, which in today's law of calling people is a must to make sure you are not calling someone who is on the Do Not Call List. Otherwise you will set yourself up with a large fine of $10k for each occurrence. Door to door is good if you are good at getting to the point of why you are at their door. Then you need to have a bag of goodies to give to them, such as pens, note pads, candy, business cards. Events are good such as farmers markets and the like. Cheap or Free is what you need to do for the fist 3 years to build up clientele. It will cost upwards of $2500-$8000 per month for everything you need to manage the business. Not to mention hiring a front office person to answer the phone while you are on appointments.
The reality is, in selling P&C, you need to sell 2 families a home and 2 autos per day to get $8000 net per month in commissions. Then you need to plan for charge backs. In case someone cancels their policy for whatever reason, you have to pay that commission back if it is under a certain amount of months.
I took out a signature loan for $30,000 to put toward my small 750sf office. It was a great boone to have that money to build my agency. I am happy that I did it and am building up my agency quite well going independent. Before I went and got the loan, I had to make sure I could afford the monthly payments along with the other monthly commitments I had. Insurance agents are like lawyers, there is one on every corner. You need to set yourself apart and give something different than any other agency.
Food for thought. I wish you well!
Then you need to see how much rent is plus NNN. Triple net (NNN) is what the landlord charges to keep up with trash removal, mowing, other maintenance. Then there is insurance for your office and signage, phones, desks, phone and internet service, utilities, E&O Insurance, etc. All this before you ever pay for marketing.
What kind of marketing are you going to do? Mailers? If so, then you need to send them out 2x per month to at least 2000 people. Very pricey. Cold calls? Well, that too can be expensive if you choose to buy lists, which in today's law of calling people is a must to make sure you are not calling someone who is on the Do Not Call List. Otherwise you will set yourself up with a large fine of $10k for each occurrence. Door to door is good if you are good at getting to the point of why you are at their door. Then you need to have a bag of goodies to give to them, such as pens, note pads, candy, business cards. Events are good such as farmers markets and the like. Cheap or Free is what you need to do for the fist 3 years to build up clientele. It will cost upwards of $2500-$8000 per month for everything you need to manage the business. Not to mention hiring a front office person to answer the phone while you are on appointments.
The reality is, in selling P&C, you need to sell 2 families a home and 2 autos per day to get $8000 net per month in commissions. Then you need to plan for charge backs. In case someone cancels their policy for whatever reason, you have to pay that commission back if it is under a certain amount of months.
I took out a signature loan for $30,000 to put toward my small 750sf office. It was a great boone to have that money to build my agency. I am happy that I did it and am building up my agency quite well going independent. Before I went and got the loan, I had to make sure I could afford the monthly payments along with the other monthly commitments I had. Insurance agents are like lawyers, there is one on every corner. You need to set yourself apart and give something different than any other agency.
Food for thought. I wish you well!
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