The decision between starting an independent insurance agency or an insurance broker franchise can be a tough one. That’s because there are several pros and cons to each option.
For example, independent insurance agencies are typically less expensive to start up and offer more flexibility in terms of the products they can offer. However, franchises often have more name recognition and support from the franchisor.
So the independent insurance agency franchise debate isn’t always clear-cut. Rather, it depends entirely on your individual situation. And in this article, we’ll review the benefits of each to help you make an informed decision.
What’s the Difference Between an Independent Insurance Agency and a Franchise?
Independent insurance agencies are like the little mom-and-pop shops of the insurance world.
The main characteristics of an Independent insurance agency are:
- They are owned by a single entity, which means they have more control over their products and how they do business.
- They also establish relationships with different carriers, so they can offer their clients a wide range of options.
On the other hand, franchises are owned by larger companies, and they usually operate within stricter guidelines. This gives them less flexibility in terms of product offerings and how they do business. But it also means that they have the backing of a well-known brand, which can give them an edge in the marketplace. That brand will often market itself on a national scale, so franchisees have one less thing to worry about.
How to Choose Between an Independent Insurance Agency or Franchise
So, when it comes to choosing between an independent insurance agency or franchise, it really depends on what you’re looking for. If you want more control and more choices, then an independent agency is probably your best bet. But if you’re looking for a safety net from a big brand name, then a franchise is the way to go.
There are other considerations, too, however. Like money, for example. Because, as an entrepreneur, maximizing your profits is one of your top priorities. It’s the reason that you’re going into business in the first place. So how do independent insurance agents stack up against franchisees in terms of earning potential?
How much do insurance franchise owners make?
In general, insurance franchise owners make solid middle-class incomes. And some of them even rake in the big bucks each year.
According to Glassdoor, the average insurance franchise owner’s salary in the U.S. is just over $75,000 per year. Of course, this is an average, and it doesn’t take into consideration location or any other factors. And some insurance franchise owners do extremely well for themselves, making upwards of $200,000 per year.
After all, insurance is a huge – $700 billion – industry, and there’s a lot of money to go around.
How much you make, however, also depends on what type of insurance you sell.
What Type of Insurance Should You Sell as a Franchise Owner?
In the United States, the auto insurance industry alone is worth billions of dollars. And it’s not just car insurance – there are also homeowner insurance franchises, health insurance franchises, life insurance franchise opportunities, and more. So why should you get in on the action by owning a franchise?
Here are a few benefits:
For starters, as a franchise owner, you’ll have a lot of flexibility in terms of your work schedule. You set your own goals and make the rules for your franchise. Secondly, insurance is a recession-proof industry, so you can be confident that there will always be a demand for your product. And lastly, as an insurance agent, you’ll have the opportunity to help people in their time of need – whether they’ve been in an accident or their home has been damaged by a natural disaster. There’s no doubt that owning an insurance franchise can be a rewarding and profitable experience.
Independent Insurance Agency or Franchise? A Recap
If you haven’t yet decided between an independent insurance agency or franchise, here’s a brief recap on the main differences.
When it comes to insurance, there are two main types of agencies: Independent and franchise.
An independent insurance agency is an agent that is not affiliated with any particular company. This means that they can offer a variety of products from different insurers. However, it also means that they may not have as much negotiating power when it comes to getting the best rates.
A franchise insurance agency is an agent that is affiliated with a specific company. This gives them more negotiating power when it comes to rates, but it also means that they can only offer products from their particular company.
So, which is better? It really depends on your individual needs. But if you’re looking for things like an established name and business model, free marketing resources, insurance training, and a national network, then franchising is a no-brainer.
Getting Started: How to Become an Insurance Franchise Owner
If you’re thinking about becoming an insurance franchise owner, there are a few things you should know.
First, you’ll need to find a reputable franchisor that offers an insurance brokerage for sale that aligns with your goals and interests. Next, you’ll need to investigate the costs associated with starting and running a franchise, including the initial franchise fee and ongoing royalty payments. Finally, you’ll need to create a business plan and submit it to the franchisor for approval. Once you’ve completed these steps, you’ll be on your way to owning your own insurance franchise.
Are you in search of the best independent auto insurance franchise? Well, look no further.
In Conclusion: How to start an independent insurance agency
By teaming up with a recognized Insurance franchise, you can take advantage of the support and backing options that we provide. These include site selection assistance, advertising support, an insurance training program, and more.
Freeway Insurance gives entrepreneurial insurance professionals the opportunity to be their own boss and make a difference in their community.
Learn more about our insurance franchise program today.
