Many of you may think, “How do independent insurance agents get paid?” Well, your question is worth a consideration. But you need to know that these are the people that are in full control their business. They don’t have to report to any boss but are most certainly expected to fulfil their targets every month. The more they work, the more number of policies they will sell. This serves to earn more money when other agents might struggle. It is hard to sell insurance policies but if you follow proper approach then success is yours.
You first need to know “what are independent insurance agents?” Here’s how they can be described best.
Agents that are free to work with more than one insurer at a time are known as independent agents. They have the licenses to sell insurance products on life, health, car and home. So, they can sell the best coverage to their clients at the right price. This is due to the fact that these agents are the front face of several insurers.
You may have question in your mind as to how do independent insurance agents get paid. Well, it is the insurers that pay them. By now you are aware that an independent insurance agent is the one who sells policies for more than one insurer. But the earnings which he accrues will depend on the region in which he works and his performance.
Thinking, “How do independent insurance agents make money?” just read on to know more!
It is known that an independent agent earns more than a captive agent who works for one insurer as a sales staff member. This is due to the fact that he is his own boss. The commission slabs will be much higher for independent agents than they are for the captive agents. Insurers don’t have to pay a salary and so, they also save money.
However, as an independent agent works for two or even more insurers, he may need to have an office. So, he will have to spend money on rent, taxes, social security and Medicare. All these are the costs that he must bear on his own. And if he hires a staff for managing sales and office then the costs will increase.
You may wonder, “How do independent insurance agents work?” The job of an independent agent could be very much similar to that of a captive agent. They have to get leads, do sales calls, visit lead prospects and sell policies. And he has to build good relationship with a client as that helps in getting referrals. But these agents will work for several insurers and so, they need to do a lot of study and compare different options. That helps in providing clients the best policies at the right price.
Thus, in a way, an independent agent manages his own insurance business. You may be thinking, “Do independent insurance agents charge a fee?” No. They do not charge anything for the services which they provide. Their day to day work includes selling of insurance products, managing clients and finances, daily admin tasks and handling self-employment taxes. But they have to get new clients everyday to get more business and hence, boost their earnings. So, even if the rewards are good, it needs hard work.
To be an independent insurance agent, you will need to follow a step wise process as under:
1. First you need to be a high school or diploma pass out - If you are then you must check your state requirements
2. Next you need to get a license to sell insurance products - property and casualty, life, health and car, accident coverage.
3. Set up an office, contact insurers and start your insurance sales agency. You can have staff for sales and admin work. Sell products for different insurers and make clients.Buy now