Are you an insurance broker who is thinking of starting a small scale business? Here is how you can make good money selling insurance directly from your home.
If you are looking for a business idea that you can start from home and make passive income, then you should read through this write-up. The insurance niche has always and will ever remain a lucrative niche to make money from. With insurance being mandatory these days, you can start making massive money today from selling insurance packages to people. How do you get started making money selling insurance from home? Before I go into the step-to-step details on how you can start this business, let us look at some of the benefits of starting a home insurance business.
Why You Need To Start Selling Insurance From Your Home Today
- Easy To Start: You don’t need a college degree to start making money selling insurance. It is really very easy to start this home-based insurance business. All you need is to learn the little ropes in the business. You also need to work hard (especially as a newbie) and smart. In all, you can setup your insurance business within a week. That is how easy it is to get started.
- Small Capital Base: This business is one cool business you can start with less than $3,000 and make money over and over again.
- Be Your Own Boss: One other interesting aspect of running a home-based insurance business is that you get to be your own boss. You can work at your own pace, rest anytime you want to, and most especially, you get to spend enough time with your family and loved ones.
- Passive Income: You get paid a commission for every successful lead you get in this business. Not just that, but as long as your lead continues to use that insurance company, you get paid every month. Imagine having like a hundred active leads and you get paid $100 for them monthly without much work from your side.
Table of Content
How to start a home-based insurance business
Learn The Ropes
The first step to take is to learn the ropes. You need to get informed on what it takes to start up a home based insurance business and grow it into something big. The good thing about information these days is that it is out there for you. How do you get the information you need to get started? Spend some time at the library and read up books by successful insurance business owners. You can also spend money on insurance related conferences and seminars.
2. Pick A Specialty
You need to make a choice on the type of insurance to start with. You can make your choice from Auto, life, health, credit, property, or stock insurance.
3. Get An Insurance License
The next step is to get your insurance license. You are required to take a number of hours of classes on insurance and sit for an exam before you are issued with an insurance license. The cost of the exams depends mostly on the type of insurance and the state. In California for instance, to get a license as an Automobile insurance agent, you need to pay $50 to sit for the license exams. Also, you pay $170 as the filing fees for the insurance. The insurance license is renewable at the cost of $170.
4. Find An Insurance Company
With many insurance companies out there, it can be quite stressful getting the right insurance company to work for. How do you find a good insurance company? The best way to do so is to look at reviews from people who have used and are still using the company’s services. Get to google.com, type in the name of the insurance company and add ‘reviews’ to it. You can also get reviews from sites like yelp.com. Once you find the perfect company, reach out to them and undergo the whole registration process for becoming a sales agent for the company. It is important to discuss your commission and payment at the negotiation stage; although most companies pay 10% commission upwards per lead that converts.
5. Setup Your Home Office
You need to make your home office look official (to motivate you to work) and comfortable too. Some of the basic items you need to set up your home office include: i) A Landline: You will be making lots of calls to your leads. You need a telephone service provider with the cheapest possible call rate. You can get a basic monthly call plan for $80 from companies like Verizon wireless. ii) A Desk and Chair: You can find a used office table and chair from $300 on eBay.
iii. Stationery: This includes your pen, pencil, notepad, diaries, organizer, etc. You can invest $50 to get a full set of these.
Iv: Filing Cabinet: Unless you are planning to go completely digital, you will need to get a filing cabinet for your office. A used filing cabinet can go from $80 from EBay.
6. Client Management Software (CMS)
You need a CMS to keep track of your business as your client base grows. A basic CMS plan starts from $12 a month.
7. A Website
The world is now a digital small village. You need a website to take advantage of online leads. A basic website can help you coordinate the online aspect of your business.
8. Scout for Leads
The most important aspect of this business is to find leads that you can convert to paying clients. You can go to insurancesplash.com to find leads for your insurance business and most of them are free.
With your leads in place, it is time to start reaching out to them. Your leads most probably receive at least five cold calls from other insurance agents. How do you stand out from other insurance agents? You can standout by making your prospects know that it is all about them, and not just about you selling them something. Instead of using lines like ‘I have a good insurance cover for your automobile’ rather say ‘Do you know that it is possible for you to insure your car with less than $50 bucks this month?’
Finally, you basically need even less than $3,000 to start your own home based insurance business. Also note that in order to become successful in this business, you need to put in the hard work, get a mentor and connect with other successful business owners in the niche.
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