How hard is it to become an agent?


Editorial team Published on

It is easy to get licensed as an agent (like in real estate or insurance), but hard to build a successful, high-earning career.

The barrier to entry is low regarding time and money, but the daily grind of finding clients causes a high failure rate in the first few years.

The Licensing Process (Easy to Moderate)

  • Pre-licensing Coursework: Requires taking a state-approved course (ranging from 40 to 180 hours depending on your state and whether you are pursuing real estate or insurance).
  • State Licensing Exam: Passing scores usually sit around 70% to 75%. Pass rates for first-time test takers often hover near 50% to 60%, making preparation courses essential.
  • Startup Costs: Upfront expenses for schooling, background checks, fingerprints, and state application fees typically range from $1,000 to $2,000.

The Real Challenge: Succeeding as an Agent (Hard)

  • Lead Generation: You are essentially starting a small business. Finding a steady stream of buyers, sellers, or policyholders requires constant marketing, networking, and cold outreach.
  • High Attrition Rates: Statistics show that a large majority of new agents (up to 75% or more) leave the profession within their first year to five years because they cannot secure enough transactions.
  • Commission-Only Income: Most agents do not earn a traditional salary. You only get paid when a deal closes, meaning you must budget carefully for dry spells.
  • Unpredictable Hours: Clients expect availability on evenings and weekends, which strains work-life balance.