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Steps on how to become an independent insurance agent

If you want to know how to become an independent insurance agent, you need a helpful guide. Dig in to our website to learn about this topic and more https://agencyheight.com/become-an-independent-insurance-agent/

howtobecomeanindependentinsuranceagent
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Steps on how to become an independent insurance agent

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  1. How to become an Independent Insurance Agent​ A step by step guide​

  2. Introduction​ • Sell one or more types of insurance, such as life, health, andproperty & casualty​ • Are not locked into specific products or carriers, which grants them flexibility​ • Earnings are from sales commissions​ • But before they make money on renewals, they should own theiragency

  3. How do you start an independent insuranceagency?​ 1. Buy a book of business​ 2. Become an independent agent through an agency model

  4. 1. Buy a book of business​ • You canbuy a book of business from an existing insurance agency;But it is a costly​ • It would cost you more if the business is already a profitable one​ • In the end, the agency will be handed to you

  5. 2. Become an independent agent through an agency model​ • Agency models are crafted to aide your independent agency with appropriate support and responsibilities​ • The model provides all the operational assistance that your agency needs​ • The agency models​: a) Franchise model b) Insurance FMO model

  6. a) Franchise model​ • Allows you to ownan insurance agency where yougrow your book as much as you want​ • Provides you with all the operational assistance that you need​ • There will be a high fee to pay to the franchisor​ • Doesn’t give the independent insurance agents enough room to growdue to the non-compete clause from the contract​ • Know that a 2-year non-compete clause may bring your agency to anabrupt end and decide if you should stop working with them

  7. b) Insurance FMO model​ • Is rising in popularity because it gives the agents much of the same services as the franchise model​ • The same advantages as the franchisorsinclude a higher level of freedom​ • There is a commission split with agents​ • On average, the split is 70/30 between the FMO and the agent​ • But on Covered by Sage, it is 80/20 for the first year and 50/50 for renewals

  8. FMO in Covered by Sage​ • Is a little over a year old with ample backing and capital​ • Provides an excellent opportunity for agents on the east coast​ • Also offer full servicing assistance, marketing & lead generation support in addition to the high commission splits​

  9. Conclusion​ • Choose the right option for your agency according to your goals and mission​ • Understand which one of these models will encourage the growth ofyour company and its values​ • An agency needs a nourishing environment to grow into its full potential​ • A thorough review of the agency models reveals that the FMO model could be your best chance of dominating the insurance industry​

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