How Much is Realistic for a 1st Year Agency Owner?

[Milkman1265]

How much did you make during your first year?

and your 2nd?

trying to see what is average with new agency owners.

 

[donamese]

P&C? Life? Medicare? Annuities? Multiple products?

How many producers do you have?

More info would be needed to even guestimate. Are you taking a large spread? Providing leads or just training?

 

[Bertolinoins]

Are you trying to take home as much as possible as quickly as possible or are you truely trying build an agency (join cluster, comparative rater, management system, office, marketing, networking with referral sources, etc)?

 

[Milkman1265]

P&c only trying to build an agency for long term

 

[Chazm]

There's a thread in the "Getting Started" section with a poll that'll answer your question

 

[CaptiveGuy]

If you are spending a ton of money to grow right away you may not take home more than $30k or $40k the first year. I had a mortgage and car payments to make so I ran lean my first year didn't get an admin until year two and hiring a licensed csr coming up on the end of my second year.

I took home net $66k my first year indy but overhead and production will make it hard to find a true average. You can starve for 2-3 years then live nice off of the renewals after that so the first year doesn't matter too much.

 

[JohnWalker]

If you are spending a ton of money to grow right away you may not take home more than $30k or $40k the first year. I had a mortgage and car payments to make so I ran lean my first year didn't get an admin until year two and hiring a licensed csr coming up on the end of my second year.

I took home net $66k my first year indy but overhead and production will make it hard to find a true average. You can starve for 2-3 years then live nice off of the renewals after that so the first year doesn't matter too much.

I agree, it really depends. you can take home all of it or almost nothing by reinvesting it. If you spend money on your business it doesn't count as income and its not taxed. I used that opportunity to reinvest about 90% back into the business.

I didnt have many financial obligations my first year so this year I'm upgrading all my equipment and systems, increasing my marketing budget, and I just hired my 3rd employee. I like the idea of being able to invest my money pre-tax. You get more value that way.

 

[Milkman1265]

start up agency, no direct carriers to start, working with mga/wholesalers making 5%-10% depending on product, but usually 10 across the board.

access to all preferred and surplus line basically there isnt anything you CANT write. how much money would you be able to bring in first year and second?

lets forget about income and just talk about revenue for the company.

 

[NinjaNic]

If P&C guys would just embrace life sales to p&c clients, they wouldn't starve the first year. Pick a handful of companies to sell and offer a free analysis with each auto/home/commercial bid. why make just $50 a month renewal on new P&C business, when you can make $50 and $900 for a life sale...and your client is more sticky.

*not a p&c guy, but worked with plenty of them.

 

[Milkman1265]

oh it doesnt matter, but i just wanted to see the norm of start ups and expectations.

kinda want to find the line between, your lazy go out and do more selling and your way too aggressive slow down before you burn out.

just curiousity