Three Things You Should Know About Starting Your Own Insurance Agency
If you enjoy selling, you should consider a career in insurance. One good reason for this is that insurance is something people will buy in both good economic times and also during a downturn in the economy. There is a lot of money to be made selling insurance, especially once you get to the point where you have your own insurance agency. If you want to know how to start an insurance agency, here are a few tips:
Learn the requirements for licensing in your state
Regardless of which state you plan on selling in, you will need a license to sell insurance. You will need to pass a test, but more importantly there will be pre-licensing educational requirements. Most states will require you to attend an accredited insurance school or program. Because of the growth of the internet, there are many online programs available. These can be ideal for someone who finds it difficult to fit a traditional campus environment into their schedule. However, the online program will need to be approved by your state.
Decide to work for someone else or work for yourself
If you have done well in your courses, you should have no problem passing your state's insurance examination. After this, your next step is to find employment. Although there are benefits to selling insurance on your own, there are also advantages to working for another agency. You will be able to see first hand exactly how an insurance agency works. This will be valuable experience when you start your own agency. However, you will likely need to work full-time. If you decide to work for yourself, you can work part-time while keeping your regular job. In addition, you can work out of your home, and this keeps your start-up costs low as well as your overhead. This takes the risk out of become an insurance agent. You can slowly build up a client base, and when you are ready you can quit your regular job.
Expanding your agency
Most states do not require any additional licenses for working as a sole proprietor, and you are usually allowed to hire staff that does not sell insurance. Once you get to the point where you are selling enough insurance that you wish to have another sales agent, you will need to understand the rules for your state. Often you will need to apply for a license to practice as an agency that is defined as more than one insurance agent.
Insurance is steady work, and you can make a lot of money once you start your own agency. The time it takes to become an agent isn't necessarily very long, but how successful you are will depend upon your selling skills and how hard you work.