Home-based independent insurance agent

The insurance companies pay you commission. Clients pay premiums to the insurer, usually not a fee to you. Typical clients are individuals, families, freelancers and small local businesses.

Commission on each new policy and, usually, smaller commissions when clients renew. Income starts slowly and grows as your book of renewing clients builds up.

• Explaining complex products in plain language
• Sales and follow-up
• Careful with paperwork and compliance

• A state producer license is generally required to sell insurance; check your state's rules for each line of cover (life, health, property and casualty)
• You usually need appointments with each insurer before you can sell its products
• Errors and omissions insurance, which protects you if a client says you gave wrong advice
• Commission chargebacks if a client cancels early; read contracts closely
• Check state rules on advertising, lead buying and continuing education, and any HOA or lease limits on working from home

Startup costs are typically estimated at around $1,000 to $5,000, depending on licensing and exam costs, errors and omissions cover, software and the home office setup you choose.

Monthly revenue is typically estimated at around $800 to $4,000, depending on how many policies you place and for which lines of cover. Insurers pay commission, and early cancellations can lead to chargebacks, so read contracts closely.

Check your state's producer license rules for each line of cover, such as life, health, and property and casualty. Also check whether you need appointments with each insurer, errors and omissions insurance, state advertising and continuing education rules, and any HOA or lease limits.