Are You Prepared to be an Independent Agency Owner?

 In Becoming an independent insurance agent

Common mistakes of an independent agency owner

Perhaps the most ironic mistake that captive agents make when becoming independent is forgetting that they are business owners and entrepreneurs. The sooner you realize that you are the boss, the quicker you can readjust your attitude and your work ethics, and set your business up for success.

Independent agents make their own set of rules

Captive agents often become frustrated with their limited ability to truly serve their clients. Working for one insurance provider means that you are stuck with one type of service, and if your clients are in need of something else, you either have to let them go elsewhere, or convince them that your insurance is the best. Often, this leads captive agents to start an independent agency so that they are no longer limited when it comes to serving their customers.

Tips for independent agents

You have to spend money to make money. That means hiring the right team to set your agency up for success.

Of course, going independent means that you have to research all of the insurance providers so that you can provide competitive quotes and multiple options for each client. Independent agents often feel a great sense of freedom when they are “released from captivity,” so to speak. This is both a blessing and a curse.

Independent agents have the freedom to offer multiple quotes

The freedom to serve the client, not the company, is the biggest reward. Selling insurance is very personal. The more you can cater to you clients’ needs, and not have to worry about a monthly quota by your captive company, is the number one reason people choose to become independent. But, before you can serve your client, you need to think like a business owner and get a few things in order:

  • You need a business plan
  • You need capital to start an independent agency
  • You need producers to make money for your independent agency
  • You need a marketing team
  • You need an accountant
  • You need infrastructure
  • You will have to find all new clients
  • You will not have a steady income for the first few years
  • You need to build up a relationship with multiple carriers
  • You need to join a network of like-minded independent insurance agents
  • You need to learn the fundamentals of starting a business
Starting an independent insurance agency in Colorado

Every independent agency owner needs a plan of action before anything else. If you don’t know why you are starting an agency, maybe being independent isn’t right for you.

Starting an independent agency in Colorado

If you want to make the switch from captive agent to independent, start your business with AAI and be a part of a network of successful independent agents in Colorado who can give advice and guidance, as well as get access to exclusive Business Development Group programs and seminars teaching you the basics of starting a business.

At AAI, you will be independent, but not alone!

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