Changing Career - Opinions?

[ltcadviser]

Josh, you might be right. Probably might be best for the OP to interview with Northwestern or NY Life. Maybe get some training and a base salary to ease a transition.

 

[xrac]

I'm still inclined to be more cautious about that assessment. I'm not doubting it's possible to do quite well, but it takes more than I think most folks realize to get started. I'd be shocked if there was any empirical evidence that pointed to any conclusion other than 9/10 people that leave a steady paying job to pursue a career as a commission only agent end up making significantly less than what they made at the job they left. I also firmly believe that most folks that have a salaried job aren't cut out to work for themselves. As a self-employed man I know some days not only do I not make any money, but as the result of expenses I lose money. I also know that some days I work for an hour and make more than most folks make in two weeks. Such is the life of an entrepreneur. Let's take a look at some realistic numbers though:

At $60k/year plus benefits and employer contribution on fica is easily at least $70k/year, probably more. That's about $5,800/month. We haven't established what products she'd be looking at, but for the sake of discussion let's say it's life insurance. She'd need a minimum of $1k/month for marketing which let's say includes the cost of her transportation. She'd have to write at least $7k/month in premium to hit those numbers. Does she have the ability to get in front of enough folks that have enough need for insurance to write that type of premium along the extra premium to cover anything that doesn't issue? Now we're getting closer to what her situation is. She'll need more than a marketing plan, she'll need several marketing strategies and the ability to invest in them in terms of money and time in order to start reaching her goals. If she has that type of a plan, now she's in a better situation to be in the minority that succeed. The less planning ahead of time, the more likely she joins in the less favorable statistic.

Josh, you calculations look reasonable to me plus your are not even factoring in the value of benefits (sick days, vacation, 401k, and insurance) at her present salaried job.

 

[mikeincolumbuso]

I did not see whether any funds were set aside during the transition. it is much easier to make a switch like this when there is a cushion of say 6 mos to pay the bills while you are getting off and running.

 

[Norrissa]

Have set aside plenty to do this over the past three years. I've now obtained my license, AHIP, E&O and really considering the full leap. If only these NAA people will quit trying to contact me! It's amazing how many have contacted me and do not disclose who they're with. It's funny actually, I can't help but wonder with all of them emailing and calling me, who's out selling?

I didn't state it, but my husband is our bread winner. The beni's of the employer aren't much to consider either. I'm extremely displeased with my job though and can't see doing this forever.

 

[seeknulfind]

Norissa,

I wondered if you'd given up on us. Please keep us updated on how you make out.

Guys come on for goodness sakes! This lady is an accountant - not exactly the kind of person who doesn't consider the figures. But, I'm sure you know that and voiced your concerns for others who may stumble upon this thread.

One more thing Norissa, I'd say much of the naysaying around here stems from how tough this business is. Sales is tough enough and insurance, especially, has built a reputation for chewing newbys up and spitting them out. That said, allow me to slide away from some popular concepts.

First, the insurance industry is well-known for excellent sales training. So I'll ask you... if the training is so good why in the world to so many otherwise intelligent people fail here?

Maybe it's because sales is only a small part of this occupation.

The late Frank Stastny (posts found on this forum) liked to say this isn't a sales job - it's a prospecting job.

Check out to excellent threads for two similar methods of prospecting.

http://www.insurance-forums.net/forum/final-expense-forum/never-pay-lead-again-t52274.html

http://www.insurance-forums.net/for...survey-door-door-t33623.html?highlight=survey

Maybe you can see yourself doing this, maybe you can't. Keep in mind this is not the only way to prospect but it is one of the most direct methods. As pointed out in the former thread - every prospecting method fails 99% of the time.

I'm convinced much of the negativity here comes from the fact that we all face a LOT of rejection. It comes with the territory.

Another aspect of this occupation is product knowledge. This is where I think you might shine. Once you understand... really understand the true value of what insurance has to offer, I can see your own pulse quickening. Why?

Because once you establish a well-designed insurance product as the cornerstone of a financial plan - you've got a very solid base to build on.

Since I don't believe in luck, I'll wish you much success in your endeavor.

Andy

 

[mikeincolumbuso]

You are fortunate that you have some time on your side and that you won't be forced to make the same amount of money right away. My advice is to find a mentor you trust, figure out what type of products you want to offer and then put together a marketing plan and stick with it. You won't be under a lot of pressure to make a lot of money right away, at least it sounds that way. My situation was a lot different when I started in the business 11 years ago. I am still not sure how I survived. I realize now that I made a number of mistakes and I am not doing now what I started out doing 11 years ago. So spend a lot of time figuring out what you want to do and how to do it. There are several good books about careers in insurance and financial services that you may want to read if you haven't already. Good Luck

 

[Norrissa]

Thanks so much for all of your comments. I can't tell you how helpful you've been. I had considered quitting work altogether and having just finished a long hard month close, I feel I'm ready to do this. I will be tendering my resignation at work this Monday. The hubby and I have discussed it and fully believe that if you wait until it's the perfect time to do something then you find yourself always waiting. I'm ready

 

[Mah]

Great job. There is never a perfect time. I can see you succeeding. Youre already successful, you just have to transfer your strong work ethics into something you believe in. Caadvise gave u great advice.