3 things I wish I knew starting out as a new agent

[rousemark]

Baseball,

Thanks for proving my point that most new agents fail because the have no money to buy leads. 34 dollars, your figure, times 20 is 680 dollars.

You going to loan your new agents 680 dollars to buy leads?

I'm not making excuses. I'm describing reality.

I don't expect you to agree with me. To do so would be accepting blame for the failure of any of your new agents.

tinman

There is not hardy any business a person can start with no money...Most, you have to have rent for your location, money for inventory, insurance, etc. Why do people expect the insurance business to be any different? You are starting a business not getting hired for a job. But, in the end, the insurance business is about the closet you can find that you cam make it with very little money. I contracted a guy one time that was so broke, he couldn't afford very much even for gas.. He would drive to a neighborhood, park his car and walk down the streets knocking on the doors..It was rough at first.. but it wasn't too long before he was making $1000 week+ selling cancer insurance.. It can be done.. If a person is determined to do it.

 

[Alston]

There is not hardy any business a person can start with no money...

"Any business" I think that highlights the problem. A lot of new agents don't realize for all intents and purposes they just started a business.

Many expect to be treated like employees. They expect to do what they are told and get paid for their time more or less.

The mindset of many employees is to sit patiently and wait for explicit instructions.

They don't tend to realize on a deep level that they are in the performance economy.

It's not that they are lazy, per se.

I just don't think they realize how much they need to shift their thinking.

Unlike with a regular job, you don't get paid for your time and effort.

You get paid for your results.

You don't get 80% of the commission for the sales you almost close. Or half of the renewals for the clients you almost keep.

This is easy to explain and easy to understand intellectually...

But hard to really grasp emotionally.

At least it was for me.

It is tough being a new agent for a lot of reasons.

Lack of capital. Lack of skills. Lack of experience.

And the mindset that made you a good employee may make you a lousy salesperson or entrepreneur.

 

[Newby]

The three most important things a new agent needs to know about BEFORE contracting with an IMO are:

1. Commission rates. If the IMO tells you they pay "street" commission you need to ask the name of the street. Is the name of the street 110%, 100%...or.50%. Yes, new agents can contract for 100% commissions and higher.

2. When your renewal commissions are vested. Renewal commissions can be either vested, nonvested, or conditionally vested. If they are not vested ("vested" means YOU own the renewal commissions on the policies you write) from day one tell the IMO thanks, but no thanks.

3. Contract release. Once a new agent learns a few things about the way their IMO works he may decide he wants to go with another IMO. If you do NOT have a release from your IMO, and they are NOT obligated to give you one, you can NOT go with another IMO for six months. If you do not write business for six months the carriers will release you but that means you have no income for six months. If your IMO will not give you a signed, undated release BEFORE you sign the contracting agreement you need to tell the IMO thanks but no thanks.

Here's link explaining releases and a few other things a new agent NEEDS to know BEFORE signing a contract: iliaa.org/contract-get-release/

Have a great day!
tinman

Great post! Love the "name of the street" idea. More agents get ripped off by accepting "street level" as an answer to the question of commission levels than anything else.

The releases thing is a little off. No FE agent is trapped for 6-months. There are just too many great companies to sell. Never let anyone tell you that you are stuck for six months. You just contract with different companies and you are good to go.

A release is really only good when everyone is in agreement. The new IMO has to accept your contracts and the releasing IMO has to be in agreement to release you. A piece of paper that you get months or years in advance of wanting to be released is no guarantee. All the IMO has to do is call any company and tell them to not release you and that paper won't work.

Just deal with reputable IMOs to start with. Most of us on the forum operate basically the same way. Buy all your leads you have coming in, and clean up all debts. Have the new IMO sign a release form that they accept any debts that occur going forward and bang. You are released. No six month wait. And it works fine for everyone.

 

[Baseball7]

I think a common misunderstanding's is releases are not one way and they need to be reciprocal.

 

[WinoBlues]

...... A release is really only good when everyone is in agreement. The new IMO has to accept your contracts and the releasing IMO has to be in agreement to release you. A piece of paper that you get months or years in advance of wanting to be released is no guarantee. All the IMO has to do is call any company and tell them to not release you and that paper won't work.......

This needs to be a sticky.

The most honest paragraph re:releases I have read here.

IMO A and IMO B have to agree.
The agent?

 

[DayTimer]

Baseball ... If you've "been there , done it" you're an exception by surviving the six months.

I know Baseball7. I've seen Baseball7 in action. Baseball7 is a friend of mine. You sir, are no Baseball7.

Baseball7 is exceptional, to be sure. He does more than merely survive - he thrives. And he does so because he takes his leads, both the fresh and the not so fresh, and door knocks them day after day, week after week, and he doesn't quit 'til he writes his goal in annual premium.

Almost anyone can do it, but very few will do it. Those few will always be the exception.

 

[Thedude]

Can you cite one of the studies you're referring to?

I studied his study and found that studying those studies led to a 100 percent increase in citing studies.

 

[krissyann64]

These are my 3 items, would love to hear from others on what their 3 are. Thought this thread might help some new agents just starting out in the business.

1) Commission Levels vary GREATLY with different agencies. Don't blindly sign up without comparing commission levels
2) Be prepared to invest a fair amount of money on leads. (This is why #1 is so important)
3) Stay on top of NSF's/Lapses to avoid chargebacks

Hope this helps!

Now.... where would you go if you were just starting out with no experience and an Oregon License? I have healthcare experience it no insurance experience.

 

[Jose Arteaga]

Now.... where would you go if you were just starting out with no experience and an Oregon License? I have healthcare experience it no insurance experience.

I would check out cfcagentcontracting.com Agents that are green to life insurance are preferred. Friendly and in my opinion, the best training you can get.

this is @OregonDuckLaw home state so probably will have a real feel for the area, and areas you should work in.
Feel free to reach out. Jose-602 554 2862 or Jeff 858 752 3293

 

[MedicareMillionair]

These are my 3 items, would love to hear from others on what their 3 are. Thought this thread might help some new agents just starting out in the business.

1) Commission Levels vary GREATLY with different agencies. Don't blindly sign up without comparing commission levels
2) Be prepared to invest a fair amount of money on leads. (This is why #1 is so important)
3) Stay on top of NSF's/Lapses to avoid chargebacks

Hope this helps!

I agree with this. I do think however, too many agents focus on commission levels. If you're in a situation where you get half the commission, but write three times the business, you're making 50% more income.

If you have the opportunity to work in an agency that provides a marketing system and support to make you an efficient machine at a lower commission, it may be your best starting point. This business is about volume. Too many agents walking around with top contracts and no sales.