You can make a good living as an independent insurance agent. You can make an even better living as the owner of an independent insurance agency with multiple agents working under you. If you’ve built a successful insurance career as a solo operation, it’s time to think about how you can grow you agency.
Starting an Agency
When you started out as an agent, you may have wanted to learn the ropes before you tried to venture out on your own. That’s smart – but don’t put things off for too long. Once you’ve learned the ins and outs of insurance and developed your own book of business, it’s time to consider establishing your own agency.
By opening your own agency, you’ll have more control over your career, as well as the potential to earn more. You’ll also build an asset that you can eventually sell, and that could fund your retirement. Starting your own agency makes sense – but it will require some work:
- Get licensed. By this point, you probably have the insurance licenses you need to see insurance. However, now that you’re opening up your own agency, you should also think about registering your business. Instead of operating as a sole proprietor, you may have better protection operating as an LLC or corporation. Depending your state’s rules, you may need to obtain a business license and/or register with the state.
- Secure insurance. As an insurance agent, you know the value of coverage. Errors and omissions insurance is important for insurance agencies. You may also need general liability and property insurance, especially if you have an office. It’s also worth considering cyber insurance. Agents have a lot of sensitive data, and data breaches are a growing threat.
- Take care of your back office. There’s a lot that goes on behind the scenes. You’ll probably need an accountant and tax advisor to ensure that your finances are in shape. Look into services that meet your needs. Also consider what technology systems you’ll use to handle customer management, quotes, enrollment and other critical tasks. Some investment in the right tools will make it easier for your agency to grow and thrive.
- Establish your presence. A physical presence can help you establish your agency as a legitimate business, and it gives you a place to meet with clients. Whether or not your have a physical office, you’ll need an online presence, including a website and social media platforms. And don’t forget to create new business cards.
Expanding Your Agency
Once you have an agency, you’ll want to think about bringing more people on board.
- Support staff. If all you’re time is going to handling administrative tasks and answering phones, you may not have much time left to grow your business. Hiring on customer service representatives or other support staff could alleviate some of the burden so you can focus more of your energy on building client relationships.
- Agents. Recruiting other agents is another great way to grow your agency. Depending on how you set up your downline, this can be a way to increase your earnings while also helping other agents learn the ropes and get started with their own insurance careers.
When bringing other people into your agency, you’ll need to figure out how compensation will work. An administrative assistant might expect to be an employee with a salary and benefits, while an agent might expect to be an independent contractor who earns commissions.
You’ll also need to think about training. Are you willing to take on someone with no experience and help them gain the skills – and in the case of agents, the licensing – they need to thrive? Or are you looking for someone who already has experience?
Are You Ready to Take the Next Step?
According to Indeed, the average annual salary for an insurance agent is $76,265, while the average salary for an agency owner is $127,695. If you’ve learned everything you can as an insurance agent working on your own or under someone else, it’s time to think about taking the next step in your career.
It can be scary, but with the right support, you can succeed. PTT provides contracts and support for Medicare, life and ancillary products, as well as marketing programs, lead support and training opportunities to help with business growth – not to mention a network of great people. When you partner with PTT, you’ll also get errors and omissions coverage. Learn more.