The Best Business Opportunity for under $500

Insurance Industry

best-business-opportunity

When you think of starting your own business, you often give up just thinking of the overhead capital required to get started. Oftentimes, a business doesn’t see a profit until five years in. There’s not many opportunities to create a business for under $500, especially one that takes only a few weeks to start and can give a potential six figure + return in its first year. 

The insurance industry is a business opportunity that many are skeptical of. It seems too good to be true, at least that’s what I thought when I was first introduced into the idea. 

In most states, you can get your life insurance license in as little as a week, and start earning commissions generally within two-three weeks. Did you know that the financial services industry is the #1 industry for producing millionaires? That may take you by surprise as it did me, I always thought you had to be a doctor or a real estate mongrul to earn that type of income. 

Financial services may sound boring, but it’s a “boring” industry that has a substantial amount of economic opportunity. So what does this industry have to offer and how do you get started?

The insurance industry has many components, for this article let’s just focus on creating a life insurance agency. To get started you will need to take a pre-licensing course, online at your own pace. Most states require a 20 hour online course, where you read over insurance laws and regulations and answer corresponding questions. This course is generally $50. Once you pass that, you will earn an exam ticket to be able to take your state exam, this is usually done at a local testing center on a computer. State exams vary in difficulty, but are similar to the pre-licensing course questions. State licensing costs vary, with some states being as low as $35 and others being closer to the $200 range. 

With the state license completed, you’re pretty close to starting. You will want to partner with an agency/imo that can offer you training and a lead platform. It’s worth it to be partnered with someone that can teach you the ropes, as it will catapult your growth in the industry much faster. 

The life insurance industry offers a very attractive commission platform, most carriers will pay you an advanced commission upon policy approval. Approvals are usually acquired the same day you meet with a client, and the commissions are direct deposited to you within 1-3 days. The average final expense policy is near $50/month landing you a $300-$500 commission a few days after writing it. It’s easy to see the economic opportunity there, picture if you write two policies a day. Not only are you helping and impacting the community and their families, your getting paid well for your service!

The scalability of the insurance industry is also very attractive. As an individual producer you can earn a substantial income, but you can also build an agency with team members that will scale your business to new heights. It’s worth it for an insurance carrier to pay you to train and develop agents, then it is for them to hire employees. As an agency owner you can earn an “override” commission for developing a team. This is a somewhat complicated aspect but let me give you an idea on its potential. For every agent you train and develop, you’ll earn around $500/month in override commissions. This isn’t a commission taken from your agent, but rather a separate one that the insurance carriers are willing to pay you. If you have a high producing team, the income can be much more. It’s important to note that this isn’t passive income, you are directly responsible for your agent’s success and must be a active coach and mentor to them at all times. 

I’m not sure of many industries that you can be all in for under $500 and earning those potential perks. The financial services industry is a hidden gem, often taking a back seat to the real estate industry. There’s a fantastic upside potential if your willing to put the work in, if you want more information or are interested in getting partnered with us feel free to hit the “contact” button above and we will be in touch.

-Ryan Wimmer