Dismiss mistaken beliefs regarding new insurance agents and get down to the truth. In this case, the truth hurts telling. Selling insurance is one of the worst occupations you could ever get yourself into. More licensed insurance agents leave the business with far less money than when they started!
Millions of individuals crave having a career like this. Great working hours, steady and rapidly increasing income, plus rapid career advancement. This is not in the least bit an accurate description of becoming a licensed insurance agent. Yet 259,000 people annually are hired as health, annuity, and life agents.
Starving insurance agents are in all major cities of the United States. Every year over 200,000 newly licensed agents will give up. They can not make enough money. Imagine than in 4 years, for every 500,000 people that made an effort to make selling insurance a career, only 3,000 agents will move up to experienced status. Who is going to help them survive from here on?.
Do not believe that the insurance sales team you joined
Currently licensed and classified active, are over 1,500,000 life and health insurance agents appointed with over 2,000 insurance companies within the United States. Eliminating these 500,000 surplus rookie agents today would strengthen the existing insurance agent system .New insurance salespeople are either improperly trained, should have never been hired, or have developed an insufficient number of clients.
Often a career life insurance agency places newspaper ads. Others go so far as using college campus job fair recruiting methods in searching for new agents to hire. Both of these methods when analyzed show almost identical results. 85% of these agents will fail within the first 18 months. In insurance sales you have two types of agents, those who can fill out an order application and those that can actually solicit and sell life and health insurance products. Many agents simply can?t sell. 50% drop out like flies for this reason alone.
A newly licensed agent blindly enters the insurance business. Being told by the sales manager of the great income potential is very misleading. Here you have the agent anticipating a $40,000 to $70,000 income. Instead the salesperson is more likely to earn closer to $20,000 or less. Plus after putting so much gas in the car, and driving so many miles, makes this figure rapidly shrink. When the bills get too high to handle, the agent knows he was duped. It is soon afterward the salesperson is out the door.
It is a revolving door that never stops. As soon as a licensed insurance agent leaves a freshly licensed agent is ready to step in to fill the slot. Many of the leaving agents have writing between $50,000 and $100,000 in annual policy holders’ premium. No longer working there, the company and agency are not entitled to receive all the remaining premiums yet to be paid. In addition, they are paid on all the life insurance policies that are renewed each year. The profits produce big time numbers.
Consider these factors. If you knew you were going to receive very little sales training would you have taken the job? Would knowing that the sales manager is going to provide you with minimal guidance, affected your decision? Does finding out you alone are responsible for locating possible buyers, sound the same as plenty of leads furnished? Do you as a former agent, still believe in newspaper job classified ads? What would you like to do to the sales manager that hired you
The career agency is usually located in a swank, suburban area of a major city where the average mean family incomes are the highest in the state. The targeted customer for these agencies is high income individuals and small successful businesses. 90% of the limited training is spent on target marketing to these prime clients exclusively.