EVERY ENTREPRENEUR NEEDS A BUSINESS MENTOR! Just like everybody needs a good reliable sounding board, second opinion, and sometimes just emotional support when the times get tough (and they will). A business mentor is someone with more entrepreneurial business experience than you who serves as a trusted confidante and willing to support your entrepreneurial aspirations—being a mentor to an up-and-coming entrepreneur is one way of giving back to our community. We hope that our help, support, guidance, assistance, and information can have a measurable impact on our mentees.
MENTORSHIP AND COACHING
We provide entrepreneurial mentorship and coaching to people who are transforming their hobbies into a business or starting any new business. Clients and entrepreneurs are mentored by successful professionals and seasoned entrepreneurs in the Financial Industry. This process is a collaborative at-will relationship but is very vital for entrepreneurs just starting in any business. The dreams and success of our mentees are of the utmost importance in their overall growth, learning, and career development.
In our mentorship and coaching program, there is an emphasis on organizational goals, mindset shifts, and professional development advice. We guide all our new clients and help them reach their goals. Our goal is for our clients to be more productive in their business, learn new skills, develop greater confidence, and make better decisions for their overall business growth. Most importantly we help our mentees with business set-up and management.
HOW TO START A LIFE INSURANCE BUSINESS
A licensed life insurance agent/professional/producer talks with current and prospective clients to determine their
- Life insurance demands.
- Retirement plans
- Longterm care plans
- College planning for their kids
- Wealth and health management. The broker then work with various insurance companies to identify the policy type that best meets the customer’s coverage and financial needs.
Learn how to start your own Life Insurance Business and whether it is the right fit for you.
10-steps to start a life insurance brokerage
These steps will help you plan your new business, register it properly, and get it legally compliant.
STEP 1: Plan your Business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How long it will take you to break even?
STEP 2: What are the costs involved?
While it’s possible to start the business with as little as $1,000, Start-up costs vary and include the following:
- Licenses – $250-$500
- Office space – Many new agents opt to eliminate all costs associated with opening an office by working out of their home during the first few years.
- Software/Apps – Initial costs range anywhere from $50-$200 depending on the capabilities you desire, with a monthly fee thereafter. While it might be tempting to manage your business without an AMS, it is not recommended. Most software packages are designed to ensure legal compliance and keep the agency on track with marketing, sales, and customer service. A list of AMS solutions, along with their ratings, can be found here.
- Insurance – Meet with an insurance professional to ensure your business needs are met. Business insurance, E&O, and a surety bond are all sound investments. Policy premiums for these policies vary from state to state, with industry experience significantly impacting the annual premium.
- Website – In today’s environment, it’s critical that you build an online presence. Depending upon the capabilities you desire, budget $500 to $2,000 for your site build.
STEP 3: What are your ongoing expenses?
Your ongoing expenses will vary depending on your business structure and long term goals. In addition to standard overhead costs associated with running an office, owners should budget for the following:
- Software/Apps – Monthly fees range from $50 to $300, depending upon organizational needs.
- Continuing education – Check with your state to determine continuing education requirements. Many of these courses can be taken online, or during attendance at an industry convention. Encourage your staff members to grow in their careers by funding their continued education.
STEP 4: Who is the target market?
There are a variety of reasons for purchasing life insurance that goes beyond paying a death benefit when the insured dies. Get to know the products you sell on a deeper level. Once you’ve gained a clear understanding, identifying the target market will come naturally. Life insurance products typically appeal to a diverse customer base.
STEP 5: How do you make money?
Your business will generate revenue for each policy sold. Upon initial application acceptance, the writing agent receives a commission check for a percentage of the total policy premium. You can also expect to receive a smaller commission for every time a customer renews his or her insurance policy. You will also make money from bonuses and special campaigns managed by the InSurance carriers or Companies you partnered with.
STEP 6: How much can you charge customers?
The insurance carrier sets both premiums and commission, which vary from policy to policy. Commission on policy sales averages between 30% and 70%, with some agents earning 100% of the premium for the first year. Renewal commission is significantly lower, averaging around 5%.
STEP 7: How much profit can a life insurance business make?
Business profits will vary from year to year, depending on your goals and how hard you work towards achieving those goals. With the first few years being the most difficult, after 2-3 years, many life insurance business owners report an average of $400,000 in annual profits.
STEP 8: How can you make your business more profitable?
While it is possible to make a living selling permanent and term insurance only, diversity is the key to success. Consider getting the proper licenses to offer financial products such as annuities and variable life policies. Health insurance, particularly policies such as Medicare supplements and Long-term care policies, would help diversify your business portfolio and boost the business’s profit.
STEP 9: What will you name your business?
Choosing the right name is very important. Read the detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.
This is obviously a very simplified version of how to start a life insurance business. There is a lot more detail to go into– You will learn the ins and outs of how to run a profitable life insurance business, while working from home, having the flexibility to work from anywhere, and make a great living.
You can do it too! It takes time, patience, and strategy in working on the right thing at the right time. Email me to get signed-up.