How to Start Your Own Bail Bond Business
Starting your own bail bond business does not require lots of cash. In fact, majority of the expenses go to advertising. Now, you may want to either start out as a bail bondsman or build your own bail bond company right away. However, you must remember that just like any other business, it requires sufficient knowledge about the industry.
What Are Bail Bond Businesses?
Bail bond companies work indirectly with the nation’s criminal justice system. They work with individuals accused of various crimes who are entitled to post bails. The accused party can cover the entire bail or bail bond businesses can offer bail financing. However, the latter involves much higher risks. But if you are an experienced bail bondsmen who is so used to the risks associated with your profession, then entering a new level of risk is no-sweat.
How Much Do Bail Bond Businesses Make?
Bail bondsmen earn their income from the fees they impose on the bond they post on behalf of their clients. The Bail Yes website published that a bail bondsman typically makes $10-$15 an hour or about $25,000 annually. Typically, the charge ranges from 10% to 20% of an offender’s total bail amount. Furthermore, BailBonds101.com said that experienced bail bondsmen can earn $50,000 to $100,000 annually. The United States Bureau of Labor Statistics listed $59,810 as the median salary of bail bondsmen in all states. Now, this gives you an estimate of how much you can earn for your bail bond business when you start your own. Of course, you have to subtract the operating costs, which include office rental, advertising fees, bounty hunter salary, and more.
Tips In Starting Your Own Bail Bond Business
If you are really decided about building your own bail bond business, here are some tips to get you started.
- Get a license
Some states do not allow the existence of commercial bail bond agents, so this is something you must check first. Usually, you must obtain a bail bond agent’s license from the department insurance of your state. Feel free to ask your state about its particular requirements including education, testing, and fingerprinting.
- Register your business
Of course, just like any other type of business, your bail bond agency must be registered too. To do this, you must visit the website of the secretary of state to register your business name to the database. You will then need to pay the applicable fees, which can costs from be less than or more than $800. You must the start gathering the pertinent documents. These include the articles of formation. A tax identification number can be obtained from the IRS website. These are the basic requirements you need to legally establish your bail bond company.
- Establish your own office
The next thing you need to do after securing all the legal documentations you need is to look for an office. Many bail bond businesses choose spaces near courthouses and they put up large neon or LED signs to get noticed. This strategy keeps them close to their target market. You also must not forget to equip your office with phone lines, fax machine, and a computer. Your phone lines must be connected to your mobile phone so you can be reached easily in case you just have your admin staff in the office. Develop your own system to track bonds efficiently and accurately.
- Set your rates and start advertising
To be able to set competitive rates, you must study your competition. The typical charge imposed on a bail bond is 10%. However, as the amount scales up, the percentage of fees drop a bit. For example, a bail bond of $10,000 or more can be charged with an 8% fee. You may also consider expanding your network of attorneys, cops, sheriffs, and law enforcers. Not only will you understand the fees better but you also have higher chances of getting new cases regularly.
In terms of advertising, it is recommended for a new bail bond agency to have an online presence. Obviously, majority of the people are online and those who need your services will definitely access the Internet. To get better visibility, you may want to hire a Search Engine Optimizer to get you to the first page of search results.
- Know the procedures for bail jumpers
If you plan to offer bond financing, you must be wary of bail jumpers. You can even at least have one bounty hunter in your office to find these kinds of people you have fronted bonds for. You lose the bond money when they do not show up in court appearances. In unfortunate cases when the family of the accused party cannot pay the bond and you cannot find the missing offender, it’s a huge loss on your part.
Insurance-backed bail bond companies have additional requirements. Meanwhile, if you have further questions about starting your own bail bond business, click here >> https://www.trustedbail.com/fl/bail-bonds-jacksonville/.