Carmine

Handsome commissions of between 20 and 35% make it possible for anyone with the right skill set and motivation to build a successful business in the insurance industry. Whether you choose to purchase a franchise or start your business from scratch, this business has the potential to produce a handsome return while at the same time, helping others manage their risks effectively.

Before The Start-Up, Let's Not Get Ahead Of Ourselves
Insurance agent requirements differ from country to country, so it's important to do research before getting started. Your local department of commerce or searching on Google is good place to get started. In most countries you will need a license to sell insurance. This usually involves taking a relatively short course and examination.

Finally, to be successful you will need excellent sales skills. Most of your working day will be spent consulting with clients and making sales. Its very important that you are relaxed around strangers and can sell your policies without making potential clients feel pushed or uncomfortable.

The Start-Up
There isn't much required to get started. You will need a small home office with a work space, desk, comfortable chair, computer, printer, office software and business stationary such as business cards, letterheads and an invoice template. If you're on a tight budget you might consider downloading Open Office instead of buying Microsoft Office as your software suite.

The choice of going it alone or buying an insurance franchise will largely depend on your budget. Franchises sell for between $50,000 and $75,000 (USD). If you can afford it, this is a much easier route to take. Training, licensing, branding and support to name a few will all be provided for you. If you don't have the budget or would simply prefer to start your own business, the independent option is for you. As an independent insurance agent you will still need to be affiliated with an insurance company. Do extensive online research into the features and benefits each insurance company has to offer before signing up to a program. Feedback from actual agents is the best information to look for, information like this is often found on forums, user groups such as Yahoo Groups and perhaps even the occasional blog.

Making It Work
The key to success in this highly competitive industry is to specialize in a small portion of the market. You could for instance focus on small business insurance or commercial property insurance, the options are endless. Businesses rarely fail from being too focused; don't be afraid to focus on a very small niche in the industry. Home business insurance vs. small business insurance would be a good example of this.

Marketing
Once you're established, word of mouth will account for a large part of your new business. Until that time you will need to work hard to establish yourself in this very competitive industry. Advertise your services in local classifieds, community publications, on billboards, with a sign outside your house, online by developing a website with useful content and by cold calling.

Target your advertising efforts directly at your chosen niche. If for instance you specialize in insurance for boat owner's, focus your efforts by advertising in places this target market is likely to frequent. Places such as shipping publications or yacht clubs.

Don't Forget
Don't forget to account for hidden expenses such as membership dues to industry associations and omissions insurance.

Andrew Misplon is co-owner of The Work Pad - Work at Home Ideas and Advice The Work Pad is a content site dedicated to work at home entrepreneurs. Our original content is written in house and includes a complete database of work at home ideas. Go beyond just finding a job and use our Excel at Home articles to achieve success at home.