These savings leave more of your money to run and market your agency.
To help you make the most of your budget, let’s look at the most common expenses new insurance agents incur when starting an insurance agency.
1. Marketing Costs
The most important investment you can make is in an attractive and user-friendly website for your agency. This will allow your customers to learn more about your products and services and give you a destination to direct prospects to.
Other insurance marketing strategies include:
- Sending direct mailings (however, only about 1% of people respond)
- Sponsoring school plays and other local events by advertising in the program
- Investing in memberships to associations or networking organizations
- Networking within specific groups, for example, restaurant owners
- Hiring a service that makes phone calls and directs business to you
- Creating a Google Business Profile and investing in Local Service Ads
Consider a mix of immediate and long-term marketing tactics. Networking might seem like a slow-growing option, but it is definitely worthwhile. Learn which marketing methods work for you and spend your resources accordingly.
2. Office Space
Having an office is NOT a requirement to work with Firefly Firefly. However, some agents prefer to have a dedicated office space.
Most importantly, ensure you have a space to focus on growing your business without distraction. For many, a home office works fine. For others, a separate space or office share is a better option for their insurance startup.
3. Phone and Internet Service
Successful insurance agents need an effective communication system. This means establishing an online presence on Facebook, Linkedin, and through an agency website. These all require a solid internet connection so that you don’t miss out on a potential lead.
You’ll also need a dedicated professional phone line so that missed customer calls don’t go to your personal voicemail. Our work-from-home article outlines several phone service options, including adding a business line to your existing phone. Whatever solution you choose, make sure that you keep your business communications separate and professional.
4. Staff
Growing your agency could mean hiring additional people. Ideally, you hire those whose strengths offset your weaknesses. For example, if you’re bad at cold calling, car changes, customer service, or billing, you could hire staff members who excel at these tasks. The right balance of skills will keep your agency functioning and profitable.
But most new agents avoid that cost. They focus on marketing and writing business and only add staff when they have enough cash flow to cover it.
5. MVR Reports
Motor vehicle reports (MVRs) are quick background checks on drivers or households. Carriers require them before you can write an account. These reports typically cost money, but if you follow Firefly’s process, you’ll rarely have to pay to run one. You’ll learn about them in your initial training.
