Fast-lane brokerage business ?

[chrisbiz4444]

After reading and speaking to some business people in my area it seems starting a brokerage that handles financial products can be very fast-lane. For example, I know of a insurance guy who started out as a life insurance agent. Then went on his own building an insurance business with agents under him. He now has a Bentley and Ferrari parked in his driveway. Same goes for mortgages. A guy started out as a loan officer then opened a business as a broker. He Is now making 2 million per year. These story's seem to be everywhere. The same goes for starting investment company's. Look at John Devaney. At one time this guy was making 50 million a year. He started off selling fake watches according to his bio lol. I do not hear many people on this forum talking about these type of business's to start-up. So hopefully this post will open some eyes. Or maybe someone can open mine with some info that I'm missing. It seem there is boat loads of money to be made in finance niches.

My question is has anyone tried this or at least looked into going this route? If so could you tell me more about your findings? I mean think commercial real estate brokerage. The deals are huge. I see loads of residential brokers opening up for business but I do not see many commercial guys opening their own company's.But I see many commercial brokers working for big corporate brokerages. Why is this? It makes no sense ! Is there some kind of catch im missing here?

Thanks for reading. I feel this could be a valuable thread if the right characters respond.

 

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[Connor]

I work in commercial insurance and have considered going this route. A problem in that area is over-saturation- lots of small agencies around there, but if you can gain some size, there is a ton of money to be made. Previously, a lot of these companies started out in personal lines and small commercial, but more carriers are going direct now, so it's getting tougher and tougher to get started. Probably the best route to go for insurance is if you can find some specialization to focus on that can't easily be replicated where you can gain leverage on both sides of the equation (with the carriers and customers). We have an agency that has a program for indoor soccer fields, and now all of these guys reach out to them- other agencies can't compete with that product. Once you get to a decent size, you'll then have the resources and size to attract some larger customers, but man it's difficult to gain that relevance. I can't talk too much about the real estate and other financial products, but I'm happy to share what I can about insurance.

 

[chrisbiz4444]

I work in commercial insurance and have considered going this route. A problem in that area is over-saturation- lots of small agencies around there, but if you can gain some size, there is a ton of money to be made. Previously, a lot of these companies started out in personal lines and small commercial, but more carriers are going direct now, so it's getting tougher and tougher to get started. Probably the best route to go for insurance is if you can find some specialization to focus on that can't easily be replicated where you can gain leverage on both sides of the equation (with the carriers and customers). We have an agency that has a program for indoor soccer fields, and now all of these guys reach out to them- other agencies can't compete with that product. Once you get to a decent size, you'll then have the resources and size to attract some larger customers, but man it's difficult to gain that relevance. I can't talk too much about the real estate and other financial products, but I'm happy to share what I can about insurance.

Thanks for the response. Do you get residuals on the insurance product you sell? I know life insurance is that way.