How much does an insurance agent typically make their first year?

Question

I am thinking of pursuing a career as a Property and Casualty or a Life Insurance agent, but I have heard it is tough the first couple of years. Is it possible to make a decent amount of money your first year? Which insurance route is the best to go? Which companies are the best to work for?

Answer 1

It varies between agents. Some agents learn quickly and are good at what they do, so they make probably $20,000 their first year. As their client base increases, they make more money. The problem is that they have to constantly work to earn lots of money.

To me, being in sales is a great way to earn part time income.

Answer 2

Oooo Good one
If you try the health & life route that can be tough. I tried that and the only companies that exclusively hires H&L agents must go door to door selling life insurance policies to businesses and households.
It what be better to go the casualty route first then add H&L as your business expands. That way you can work for an car insurance or realtor company offering services. There are many car insurance brokerage firms that could use new agents inthe field. Earning potential is there but it takes alot of word of mouth referrals so the fisrt couple of years will be tough. I have no $$ amount because depending on which part of the country you are the demographics and laws are different. It's not a money maker unless you get your own agency.

Answer 3

After 34 years, I can tell you, I'd hate to have to start it again. The first year, even two years, can be difficult unless you're with a career company that pays you a starter allowance.

In exchange for the allowance, you do give up A LOT of independence. After all, if they're investing $40,000 into you they want to know that you're going to work hard to make it a good investment. They will monitor you, teach you, watch you, listen to you, criticize you, etc etc. BUT! They know what works, so DO IT! You'll have numbers to hit and activities required, but DO IT! It works.

I have built and run several training programs within companies, and experience says 2/3 will fail in the first year. Almost half of those remaining will fail in the second year. After the second year, it gets MUCH easier.

Given the choice, probably Property and Casualty (like Nationwide or Liberty Mutual or Sentry or Farmers) would be a little easier to start, because everyone NEEDS auto and/or home insurance. Offer life and mutual funds and variable products to existing clients who already know and trust you. The P&C will provide a base of meat and potatoes. The life, annuities and mutual funds will provide your vacations and Christmas gifts.
-VFAH, CLU