How Much Do Insurance Agency Owners Make?

The median pay of insurance agency owners ranges between $76,000 and $139,000, according to Glassdoor. 

Yet there are many factors that can push your earnings beyond these figures.

Let’s take a closer look at the pay breakdown of insurance agency owners and what can influence your salary.

In 2024, the median total pay for an insurance agency owner in the United States is $101,001 per year, according to Glassdoor. That figure includes an average salary of $69,825 and an average additional pay amount of $31,176. Additional pay can come in the form of cash bonuses, commissions, tips and profit sharing.

Here’s a closer look at the average pay breakdown: 

• Base pay: $52,000 to $96,000 per year

• Additional pay: $23,000 to $44,000 per year

Other salary sites report different figures. For example, the Bureau of Labor Statistics says insurance agents made a median salary of $59,080 in 2023. If you own your own agency and are the sole employee of this agency, this figure may represent what you can expect for a salary.

Talent.com places the average insurance agency owner's salary at around $75,500.

In reality, there are many factors that can influence how much you make as an insurance agency owner.

Factors That Influence Your Insurance Agency Owner's Salary

As an insurance agency owner, your salary is influenced by various factors. Understanding these variables can help you strategize to maximize your income.

1. Location of the Agency: The geographical location of your insurance agency plays a significant role in determining your salary. Urban areas or regions with a higher cost of living often offer higher salaries due to increased demand and larger client bases. Conversely, rural areas may have lower salary expectations but also lower operating costs.
2. Size and Scale of the Agency: The number of clients, policies written and overall size of your agency directly impact your revenue and, consequently, your salary. Larger agencies with more employees and a broad client base tend to generate more income, allowing owners to draw higher salaries.
3. Experience and Expertise: Your experience in the insurance industry and your level of expertise can significantly influence your earnings. Owners with a deep understanding of the market, advanced certifications or specialized knowledge in certain types of insurance often command higher salaries.
4. Commissions and Renewals: Commissions are a significant component of an insurance agency owner’s income. You typically earn a commission on every policy sold, with the percentage varying based on the type of insurance, the insurance carrier and the volume of business you bring in. Additionally, renewal commissions provide a steady income stream as clients renew their policies annually. Agencies that prioritize client retention and have a high renewal rate can generate substantial income from ongoing commissions, boosting the owner’s salary.
5. Agency’s Financial Performance: The profitability of your agency is one of the most critical factors affecting your salary. Efficient management, cost control and successful marketing strategies can increase profitability, enabling you to pay yourself more. Conversely, high operating costs or poor financial management can limit your earning potential.
6. Market Conditions: The broader economic environment and market conditions, such as competition, interest rates, and regulatory changes, can impact your agency’s revenue and, in turn, your salary. For example, during economic downturns, clients may reduce their coverage or shop for cheaper options, affecting your earnings.
7. Product Offering and Diversification: Agencies that offer a diverse range of insurance products, including niche or specialty insurance, can attract a broader client base and potentially higher revenue streams. Diversification helps mitigate risk and can lead to more stable and higher earnings.
8. Brand Reputation and Client Retention: A strong reputation in the industry and high client retention rates are crucial for sustained profitability. Positive word-of-mouth, strong relationships with clients and a reputation for excellent service can drive growth and enable you to maintain or increase your salary.
9. Marketing and Sales Strategy: An effective marketing and sales strategy can significantly impact your agency’s growth and profitability. Investing in digital marketing, customer relationship management (CRM) systems, and other tools can help attract and retain clients, ultimately boosting your earnings.

By understanding these factors, you can better position your agency for success and ensure that your salary reflects the value you bring as an owner.

How To Get Start Earning In Insurance Faster

Starting your own insurance agency can seem overwhelming and a lot of times, not financially feasible. Partnering with an already established insurance company can allow you to hit the ground running.

For example, working with an established agency like Symmetry Financial Group provides you with access to a leads program, technology and resources, and exclusive agency ownership. This means you gain the ability to own your business and a portion of Symmetry’s through Equity Appreciation Rights.

Within this model, the sky's the limit as far as how much you earn since this structure allows you to unlock potential through a commission-only sales job.

At The Walls Agency, in partnership with Symmetry Financial Group, we’re committed to your success. Our team assists you with getting your insurance license and the necessary credentials to get started right away. Our proven business model includes:

• A leads generation system that gives you access to heavily subsidized lead programs, saving you time on prospecting
• Proprietary technology to automate tasks, generate real-time quotes and manage leads
• Professional development and community engagement opportunities
• Extensive training programs and mentorship opportunities

The beauty of this type of system, well, several beauties actually, is that you operate on a 1099 basis. So you don’t need employees, rent an office with utilities etc., as you would starting a traditional agency. You are your own boss and you work on your schedule..

If you’re self-motivated, thrive on competition and want to start right away in a turnkey business model, this could be the opportunity you’ve been waiting for. Best of all, there is no cap on your earnings, so your salary doesn’t have to fall into one of the figures above. Instead, it can grow as high as your ambition and dedication take you.