How Much Will I Make in Year 1 Starting a New Insurance Agency?

[@colinmaddox8567]

I'm 24 as well. Just passed all my exams! Over here with State Farm out of Belgrade MT. Loving it!

[@TinoTatum]

Congrats. I just passed my 2-15 and 2-20, and I am looking forward to starting next week. It's a brand new agency, and I am the first hire. How has it been so far? I am not sure what to expect. My agent is an independent coming captive, so he still is learning the state farm backend

[@crypto9.068]

Looking forward to coordinate

[@horizonagencysystems6164]

Great video. Chris I love your authenticity and the fact that you don't chest beat. How much will I make....well, that's sort of a how long is a piece of string right...? The first couple years are hard, I appreciate that you're straight forward with your audience on that. I have agents ask me that question every day, and they often aren't sure what type of business they want to right. It makes answering the question difficult. Commercial lines, especially large revenue accounts may take several years to close. Personal lines is a bit more commoditized but you need to stack one brick at a time in order to make a decent income. Appreciate the content Chris!

[@christheinsuranceguy]

I appreciate the feedback. You’re right, it’s a large industry and it takes years to become an expert. Sounds like you’re well on your way to the top!

[@Hugo__IV]

Your videos are gold!! Thank you for doing them.

[@christheinsuranceguy]

Hugo Lopez I’m glad it’s helpful man!

[@theresawebb9454]

WOW ! You're in an awesome position to make your agency happen!

[@rosamanzanares3782]

Chris, awesome videos. Easy to understand - Love that you are sharing all your mistake in the past to help us out. So my question is did you start as a Independent Agent when you first got your license?

[@christheinsuranceguy]

Nope I got my license first and worked for an agency for about 3-4 years first

[@shermanehylton4518]

Thank you for the information I appreciate you, I am looking to start my own agency.

[@christheinsuranceguy]

That's awesome Shermane. Let me know if there's ever any questions I can help with.

[@MiahCG]

Can I work for you?

[@OneLightYearAway]

Congrats man! BTW we are appointment setting team. We can get you CONFIRMED appointments not just leads!

[@BigLowKuntry]

I’m a new subscriber! I’ve been thinking about starting my own agency. I don’t even know where to start

[@njoysuccessnow]

24 years old? Wow! You have decades of wisdom ahead of your time. You'll be fine.

[@christheinsuranceguy]

I appreciate that Chad! Just looking to bring as much value as I can

[@angelamonique9694]

Thanks so much for “keeping it real”. I’m in the process of starting my own agency and I’d like to know is it good to join a cluster group?

[@christheinsuranceguy]

Always gotta keep it real! Joining a cluster group definitely helps with carrier access early on. I don't see too many other ways to get going without it. Happy to elaborate if you email me [e-mail]

[@ezeddie32]

Hi Chris. Great content. Whatever your thoughts on starting as a Franchisee owner vs as an independent. 25k startup fee, monthly 10% royalties, no book of business. Avg 10-12 % on premiums. Fairly robust local marketing.

[@christheinsuranceguy]

Who is the franchisee? Feel free to message me on Instagram if that’s better for privacy

[@JuanSanchez-yy2uu]

Thanks for your videos getting started this year

[@christheinsuranceguy]

Good luck lmk if there’s ever something I can do to help!

[@babyboy1971]

Chris, thanks for the inspiration. I’m in the process of transitioning into insurance at age 51. I’ve had a ton of other jobs & professions that range from being a professional actor doing television commercials, to high end retail sales, telemarketing, copywriting for advertising agencies, public relations work, even working in the medical field… All sorts of things. I’m excited to begin my career in the insurance business. I do have one question for you… I’m hoping you’ll answer. When just starting out do you recommend Life and Health or Property and Casualty? I feel much more drawn to the idea of life insurance because it’s some thing that I have strongly believe in and I also know there could be a lot of opportunity in Medicare these days but I’m curious about property and casualty as well. If you were just starting out which would you choose? Or did you choose? I have also thought about going into real estate but it just seems so saturated and insurance seems like a highly underserved field where I can really help people. I love helping people, especially older folks. I’m also in California, btw. Keep up the great content, it’s very inspiring

[@christheinsuranceguy]

Hi Fonovan, first off it’s awesome that you’re making the jump. Insurance is an amazing business and the opportunities are endless. I personally chose to start with the property and casualty route because it has a more sustainable renewal income. The life insurance has great commissions up front, but very low on the back end. My belief is that it’s best to build the p&c foundation and then pívot the life and health once you have your foot in the door with customers. That’s where my focus has been in the last couple of years. Feel free to shoot me an email or DM on Instagram. That’s the best way to get ahold of me

[@tetolindimarco4316]

hey Chris, your videos are really really amazing, i am 16 and i was brainstorming ideas on how to make money and one of my ideas was make my own insurance company. i know starting with no experience is horrible and i am not planning on starting right now i just want to brainstorm for future. i was wondering, at the beginning you have to invest as much time as you can, but do you work part time or full time? thank you and i am going to start saving up to take the course you have available.

[@christheinsuranceguy]

That’s awesome that you’re thinking about this at such a young age. I highly recommend going all in full time if you decide to take the leap. You’ll also need at least a couple thousand dollars to start up and make sure you can cover expenses

[@gregmach3]

That’s great man. I was 18 when I started insurance. That was last year. I worked for a Texas based insurance company, and I made $12.75 an hour with 5% commission. I made about $480 a week after taxes. I got my experience.. and I got hired at USAA! I’m 18 years old working at USAA bro. I started making about $46k a year. Bought 2 Mercedes in that time(which I really really don’t recommend to do when you start making money). Recently, my sister started working for a software company. She recommended me to look into the sales position. I actually got the job! I’m now an Account Executive for a software company at 19(one of the biggest CRM platforms currently). I’m making $50k plus about $15k in commission yearly. This probably just looks like bragging.. but no. I never made good grades in school. I was that kid that had to cheat on every test cause I didn’t know what I was looking at, but I knew about real life advantages. I took a business class in HS. I also took a Money Management class as well. THOSE classes were the ones I needed in life.. not the XY tables or whatever. The point is, experience is everything. Start out at a small insurance company, depict on wether you like it or not, and move up from there. It’s a slow, hard process.. but it’s super possible. You can do it bro. Work hard.

[@couriouszen]

love this, im starting on your path @@gregmach3

[@dawitl6796]

Great information. ! thanks. Do I need to be sponsored by insurance company to get a new insurance agency business.?

[@tonyh1345]

I didn’t know that you were forced to pay yourself to maintain compliance. I thought a single member LLC could keep everything in the LLC. Do you pay yourself hourly or a chunk of each sale?

[@christheinsuranceguy]

I pay myself on a monthly salary. Not sure if what my CPA told me at the time is completely accurate since my LLC is taxed as an SCorp. Tax law is not my strength, I would definitely check with your CPA!

[@leightonschmitt9794]

I set up my agency the same way as Chris did, an LLC taxed as an S-Corp. It has tax benefits that save thousands a year. But you're required to to take a "reasonable salary" for your position. But the amount you have to pay yourself is based on the agency profits, so it'll be little or nothing when you start. I'm not a CPA either, this is not tax advice!

[@brandon32114]

Thank you, set to open april 2021

[@christheinsuranceguy]

Brandon All3n that’s awesome brandon! Would love to see the progress

[@couriouszen]

not sure where to start but hopefully i can be in the same boat as you

[@t.g.3921]

What about your advertising and market exposure strategy? Video please! Really enjoy your videos. Have a 4-40 CSR Personal Lines insurance license with experience in FL. My aunt has a 2-20 All Lines license with experience in FL and we're thinking about starting our agency!! ❤

[@christheinsuranceguy]

Hi, my advertising and market exposure was very organic when I started my agency which kept my costs low. I focused on in person marketing and sending little gifts to Loan officers and Realtors. That helped me build my foundation but there are definitely other digital ad strategies (FB, Linkedin, Google, etc.) that will work, they just cost money which I didn't have lol.

[@crypto9.068]

Can we coordinate

[@belindamartinez1002]

I appreciate your response. Thank you!

[@Hugo__IV]

What group allowed you to work from home?

[@christheinsuranceguy]

I’m not 100% sure if they are allowing it at the moment. I’d definitely suggest talking to a rep for the groups that you’re interested in. I would imagine that they would allow it with the pandemic

[@WeSRT4]

Chris, I've noticed that you're using Mac for your insurance business. I had heard that windows was kind of necessary for insurance systems. Is this not true?

[@christheinsuranceguy]

It is somewhat true. A few systems don’t work well with Mac. But overall, we’ve had no real major issues so I’m sticking with Mac haha

[@andranik_torosyan]

Can you use the money you pay yourself to reinvest into the business? What am I missing?

[@christheinsuranceguy]

Of course! You don’t need to pay yourself but at a certain point you definitely should

[@JacobN2525]

Hey bro are ur commitions continues after uve been payd the first one

[@oziosmans]

Excellent narration presentation 👌❣

[@christheinsuranceguy]

Thank you so much Ozi! Doing my best

[@MARGARITA90001]

DO RECOMMEND GETTING BOTH 220 AND 215 LICENSE AND OFFER BOTH PRODUCTS?

[@christheinsuranceguy]

Yes definitely. I’d say 220 first because renewals are a good foundation. Then 215 because life insurance offers big commissions upfront

[@MARGARITA90001]

@@christheinsuranceguy thank you for the prompt reply.

[@christheinsuranceguy]

@@MARGARITA90001 happy to help!

[@detroitdawg81]

Any good lead sources? Online web?

[@rizwanakarizzy8771]

Hey I wanna sell trucker insurance where can I get started?

[@christheinsuranceguy]

You probably should start an independent agency and get appointed with trucking carriers. That’s where you need to startt

[@rizwanakarizzy8771]

@@christheinsuranceguy see that flew over my head:( I know some trucking carriers but what do you mean by appointed with and specifically what kind of independent insurance agency? thanks

[@Crystal2pistolz]

@@rizwanakarizzy8771 get a commercial license to advise, quote and sell the insurance

[@miguel29mvr]

Why do you charge so little broker fee

[@christheinsuranceguy]

Good question, I want to do what's best for my customer even if that means taking home less money.

[@gursimranboparai279]

Great video

[@christheinsuranceguy]

Thanks what did you like about it?

[@anthonyh2540]

40 thousand a year? With 10 percent ?

[@christheinsuranceguy]

$400,000 in premium sold usually comes out to $40k in commissions.

[@johnlively819]

Is that 40k in commissions monthly after your first year?

[@christheinsuranceguy]

@@johnlively819 $40k in commission the first year is paid on an annual basis. This means roughly $4k/month

[@anthonyh2540]

@@christheinsuranceguy you get renewals too tho right

[@anthonyh2540]

@@christheinsuranceguy if you build your book to 3 mil continously renewing

[@aaronbedgood]

How you doing now?

[@christheinsuranceguy]

Doing well man. Book is almost at $3mil. Can’t complain

[@joshjudyperkins2473]

You pay for what you get that’s all you have to say

[@christheinsuranceguy]

Agreed!

[@randylouis5936]

24 you look about 35 jesus

[@christheinsuranceguy]

Ouch

[@barbarashoemaker7258]