If you’re thinking of claiming your independence as an insurance agent, you’ll want to know some things up front. Why do people make the choice to become independent insurance agents? How much money do they make? Are they overall happy with their choice? While the answers are different for everyone, there are some ways to get a picture of what life can look for you if you decide to follow the path to independence.
Our income calculator tool is designed to give you a realistic estimate of what you could earn as an after joining SIAA as an independent agent. In the likely event that you would earn more after making the change than you do currently, you could find that your higher average salary and professional freedom contribute to a more fulfilling career.
This blog will outline some of the things to consider when thinking about making the change. And we’ll help you use our income calculator to get an accurate and informative estimate of how your earning potential could increase.
Why Should You Become an Independent Insurance Agent?
In order to feel truly proud of the work they do, most people need to feel that they have the freedom to make their own decisions. This freedom allows you to rest assured knowing that you’ve pursued the best options you have, without anything standing in your way.
Being an independent insurance agent is no different. Of the two types of insurance agents, captive agents are limited in what they can do for themselves and for their clients. This causes real differences in their level of job satisfaction, not to mention their earnings.
If you’re currently a captive agent, think of going independent as doing all the same work you’ve been doing, but for yourself. Working for yourself means truly reaping the rewards of your hard work, growing your agency, and increasing your income. You simply can’t do this when you’re tied to a single insurance company; you have to play by their rules. That means you have to accept less: fewer carriers, fewer potential clients, and ultimately less income.
Despite the lack of freedom and opportunity that comes with remaining a captive agent, we understand the appeal. It’s more predictable. It feels safer. You know the insurance policies your parent organization offers inside and out. Who knows what it will really be like after you make the leap to becoming an independent agent?
What if we told you that we have a way of telling you exactly how much you’ll earn by going independent and joining us ? Our income calculator does exactly that. It only takes a minute to find out just how much more you could make.
Going Independent isn’t Necessarily Easy
The benefits of becoming an independent insurance agent are great, but it would be dishonest to ignore the challenges. Without a parent insurance company, independent agencies don’t have the luxury of a well-known brand to stand behind. It means there’s more work involved in marketing and earning the trust of clients.
For independent insurance agents, commission rates are a major form of compensation, which means that starting out with few clients can be especially tough. There are also startup costs associated with licenses and affiliations that captive agents don’t have to worry about. For a more in-depth comparison of the pros and cons, check out our blog post on the subject.
So while becoming an independent agent will earn you more in the long run, it may cost you more upfront. Still, if you have the willpower and are ready to work hard for it, it could be the career change of a lifetime. And if you think you might be ready to make that change, why not find out just how much more you’d be making?
How to Calculate Your Income as an Independent Agent
Your bottom line is always going to be a key consideration when making career choices. If you’re seriously considering becoming an independent insurance agent, one of the things you’ll want to know is how your income is likely to change. The good news is that our income calculator is quick and easy to use. In just four steps, you can get a quality estimate of the earning potential you would have as an independent agent with SIAA. We’ll show you how.
Step 1: Total Premium & Average 1-year commission
The first step is simple. All you need to enter is the total amount of premiums you take in from your clients, as well as the average first year premium.
Step 2: Average renewal commission & Profit Sharing %
After entering your premium and first year commission, you’ll be prompted to enter the average renewal premium and the profit sharing percentage you’ll expect to earn.
Step 3: Average retention ratio %
Next you’ll need to provide your average retention ratio and profit-sharing percentage. This is the last of the hard data you’ll need. All that’s left is your contact information so we can get you your results.
What Can Also Affect Your Salary as an Independent Agent?
Our income calculator provides a good estimate, but it can’t account for absolutely everything. There are other factors that may affect your income as an independent agent. A few examples could include:
- The type or types of insurance products you sell — life insurance agents often enjoy a higher median salary than agents selling property insurance.
- The location of your agency, for reasons such as the cost of living or the average age of potential customers in the area
- The details of the commission structure you use
If you want to know more about a certain factor that can affect your income, why not reach out and ask? You can contact us any time.
SIAA Provides Steady Support to Independent Insurance Agents
Our income calculator should give you a glimpse into what life as an independent insurance agent can be like at SIAA. We know it’s a big risk, but we’re in it together, and that’s why we succeed. We provide support in many forms, including tools like this one which save you the trouble of running the numbers yourself.
A higher salary for insurance agents who work for themselves is only one of the benefits of choosing independence. At SIAA you get to be completely independent without losing the kinds of benefits you would expect from a large insurance carrier. In fact, you’ll get even more than that. So why not find out how much you could make today?