Let’s say you have a good-paying career today. You earn a good paycheck every other week. You get paid on January 1st, again on the 14th, again on the 28th and so on.
Next year, you’ll earn the same pay, or maybe slightly more on January 1st, again on the 14th, again on the 28th and so on.
What if I told you that you could own a business in which you earned money on January 7th and the 21st this year, and, next year, you earned the same or more on top of nearly all you earned on those dates last year?
You can, and here’s how.
Being an insurance agent is one of the few careers in which you enjoy “residual income,” or income that you will continue to receive after you’ve completed the income-producing work.
Let’s say it’s January 2022. You sell, for illustrative purposes only, 100 policies and you earn commission for those policies. You continue to sell 100 policies for every month through 2022.
When you enter 2023, you continue to sell 100 policies a month and earn New Business commission on those policies, but now, you’re also receiving Renewal Business commission on the policies you sold last January that are renewing in 2023. Same thing in February, same thing in March.
In 2023, you are adding your New Business sales on top of the 1,200 policies you sold in 2022. And, you do the same in 2024, 2025 and so on, for the length you operate your agency.
This table assumes that every policy you sell will renew year-after-year (they won’t, for a variety of reason), and it also assumes that you will sell the same number of policies each year (you won’t, if over time you are able to make sales faster and faster, you will grow your book faster, too). It does, however, illustrate how your book of business, and therefore your revenue, can grow each year.
Are there other businesses in which you can earn residual income? Sure, but it’s a lot easier to become a top-producing insurance agent than it is to become a gold record performer earning royalties.
Check it out.
by Leslie Wright
Chief of Staff
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