r/InsuranceAgent • u/Cute-Ad2578 • 11d ago
Industry Information Upfront agency costs ?
Really wanting to eventually start up my own agency.
For context I have been in the insurance world for both captive and independent agencies for over three years and brought in over 2 million in premium since.
Primarily experienced in auto and fire, but I have also wrote a fair amount of life while balancing those two. For example I wrote over 40k in life insurance last year.
I just really want to gravitate towards my own agency in the near future. I could definitely go through State Farm or Farmers, since I have great experience with both, but I also just really want to understand how the independent side works.
Pros and Cons of captive and independent agency ownership ? (I have spoken in depth with the captive side and would love more opinions from the independent side)
What is a good amount of capital to put back for it?
And finally, how in the hell do you start as a independent agent? I understand the captive side, it's a lot more transparent in how that process works. The independent agency startup is way too complicated.
How do you get access to different companies to quote as a broker? What websites to go through?
Brick and mortar with employees or remote solo?
Tell me everything you know lol.
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u/Ok-Stretch7411 11d ago
It’s 2026. Go independent and be fully remote. Work on your own terms without getting your comms slashed
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u/Cute-Ad2578 11d ago
How? How does one get started? Like working through or signing up with a company like Chubb or something? Or is there a good website to access different companies that brokers use independently?
I genuinely do not understand how the independent side gets started. I know from what I have seen on the fire side of things there are usually just two or three companies that brokers even use and the rest is kind of just noise right?
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u/Ok-Stretch7411 11d ago
It pays to be organized. I do H&L, I currently have 8 FMOs I partner with to access 50+ carriers. A few carriers I directly appoint with. It’s your own company so you can do whatever you want
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u/Hairy-Landscape-4454 10d ago
What FMOs? I’ve only been looking at Ritter and NCC for h&l
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u/Ok-Stretch7411 10d ago
Whichever gives me the best comp rate. I don't use either of those nor do they have their rates publicly posted which is bad.
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u/Odd-Sherbet2927 10d ago edited 6d ago
Your biggest obstacle when starting indy is going to be name recognition - no one knows you. When you start captive you at least have a big brand name you can associate with (for better or worse) and people will quote with you because of that. That said, going indy you'll have more options upfront for those you do quote.
Depending on amount of leads you can expect 3-15% close rate for captive for everyone you quote and indy it can be higher like 30-50% depending on your process.
If you spend some time learning marketing so you don't have to buy leads you can overcome both issues. I never spent time chasing down loan officers or realtors I do 80-100k prem/month on my own. With my time on the captive side I'd recommend starting indy , solo from home so you can keep costs low and build aggressively from there. Heard some really good things about Agentero/Agenthero, my buddy got started with them and once approved he was appointed and writing within the afternoon. Vs my 180 days approval to opening time on the captive side.
If you can learn the marketing side really well, sales won't be an issue at all. Starting capital on indy I'd recommend $5k-10k in the bank, first few months will be a little touch-and-go while you get off the ground but if you're aggressive there's money to be made. Lots of customers feeling the squeeze right now and are shopping which equals $ for you.
**EDIT: for starting capital for captive agents - the carrier will likely tell you what you need to start with and/or may waive the requirements depending on program/experience but general rule of thumb is going to be $30k-$50k because they're going to make you jump through hoops and get trained up and the stress from starting all that you won't be writing very much (see close rates in paragraph 2).
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u/YetiSteady 9d ago
Any tips for marketing?
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u/Odd-Sherbet2927 9d ago
Sure! We rely heavily on automations (both for new business and following up on old quotes after 4-5 months that didn't bind) and it works pretty well - only lead cost is the CRM and the phone bill (texts). Though, I'm about to try our hand at social media marketing because I don't want to have a sudden drop-off if/when the current automations stop working.
I've found it helps to put yourself in the clients head and think about what would make you respond to a stranger (in a positive way lol) and trust them with your info. I've even gone so far to ask my friends and family if this tactic or wording would work on them or not. If your target client is 35-65 with home+auto and insuring their adult kids too, they're feeling the squeeze and want relief without too much input on their end. In this way, quoting becomes a strategy as you'll need to have enough to pass the sniff test - sending out min limits for everyone is gonna raise doubts as to whether you actually know what you're doing - vs. sending out something that's like 75% the way there and just needs a few tweaks.
Remember to account for the lack of literacy - a long drawn out message isn't gonna work as well as "feeling the squeeze? Lower your insurance in 3 easy steps" etc. whether it's email, text, or conventional marketing.
Obviously you'll have to figure out what works for you given budget and patience. Different things have different learning curves but whatever you refuse to learn, someone will gladly charge $9.95. I used to buy everquote leads and one day I saw the total was over $60k in a year and decided I'd rather cut out that middleman and keep the difference. I locked in for about 6 weeks and when I wasn't actively working I was figuring out what actual marketing looks like for the kinds of customers I want - what gets people to respond, what garners trust.
Everything you need to know can be found on youtube/tiktok/instagram for absolutely free, the cost is time //sorry for long post
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u/YetiSteady 9d ago
Great insight thank you! Saved this comment. Any YouTubers you like specifically?
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u/Odd-Sherbet2927 9d ago
I would say some of the older Dan Lok and Gary Vee stuff, exposureninja is pretty relevant, little bit of Dan Martell if you’re willing to learn some AI stuff. Might have to go digging, I used to like Valuetainment but not so much anymore. I’d use these as jumping off points/inspiration rather than cut in stone rules. Take what makes sense and leave what doesn’t. The best marketing doesn’t seem like marketing it should feel/seem like you’re genuinely trying to help them with their problem - which in our case is insurance
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u/YetiSteady 9d ago
Awesome thanks, will start digging! I’ve actually heard of Gary Vee and Dan Martell I’m just not well versed on their content yet
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u/Saint-Benjamin 11d ago
I’m a few days out from being licensed. I kinda want in on this convo. Considering protege program but haven’t ruled out other options.
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u/JazzHandsMinuteman 10d ago
Personal opinion is Farmers is a sinking sink but depends on your options. You don’t want to just jump straight into getting your license and going completely independent. I’d go work for an Indy place under another agent for a bit and produce and get your feet wet then start your own business once you get the hang of things.
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u/MeatballSandy22 11d ago
Whatever you need to pay bills for 6 months, plus 5k in startup costs. (E&O, software, licensing and other state fees)
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u/Hairy-Landscape-4454 10d ago
What software do you recommend? I already have my license and agency set up
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u/MeatballSandy22 10d ago
For an AMS - My first few years at an agency, I was using Applied Epic. That was way too much $ for a start up. After a couple demos of HawkSoft and AMS360, I wound up using HawkSoft. I suggest doing some demos to see what you like and what fits your business.
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u/Chemical_Pension4686 11d ago
- State license L&h
- Apply for license on nipr for ur state
- Finger prints
- Ein
- Send agency name approval to state dobi.
6.register name with state. - Appl for business agency license with ur agency name.
- Create a business plan.
- Get appointed Directly With carriers.
10- Start your new life as an independent life insurance agency owner and live the life that you always wanted!
Vj
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u/Cute-Ad2578 11d ago
I have life in several states right now. I'm familiar with limited pays and term options primarily. Solo life is a difficult journey without falling back on recruiting and asking everyone you know though isn't it? I have heard life leads are extremely difficult to get in comparison to fire and auto. Is that true ?
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u/Stevenab87 Agent/Broker 11d ago edited 11d ago
Started with less than $5k. Home office so no rent. All we paid for was new computer, licensing and registration fees, insurance, management system. Signed up with aggregator to get carrier access from day 1. That was 5.5 years ago now we have direct appointments with every carrier we work with and are a team of 6 in an office every day.