Considering Becoming an Agent, Seeking Advice

[Guest]

*bump* Anybody? However, I do not see insurance as a *calling*, rather a way to make a lot of money

I would suggest you go into sales, but not insurance. It takes too long, is too complex a product, is too competitive, and the money is not there early on for you to be happy. Find a product you LIKE and which you USE and which you know about and see about getting a job with the company that sells whatever that is.

There is nothing wrong with trying out different fields when you are young, but I suggest fields that are easier to succeed at. The failure rate is very high in insurance... because you need to be good in TWO areas... prospecting FIRST and sales SECOND. When you are just starting out you are probably 'good' at neither.

Try retail first.

If you want to 'bum' around a bit, I'd say sell autos. You will learn sales but won't have to prospect. Or maybe sell jewlery. Find some high-ticket item that you will be on commission with, and give it a go and see if you like THE PROCESS of sales... talking to people and overcoming objections.

If you do like it and are good at it, then go out and get a sales job where the customers don't come to you.... you have to find them.... maybe sell advertising where you have to cold-call. If you are good at that part of the equation, then you have a good shot at being successful in the financial services market.

If you can't sell in retail, you will not be able able to sell in any sector that requires you to prospect. It just won't happen. But if you can sell in a retail environment, you have half the 'problem' solved... you will then have to learn if you can prospect... perhaps better put... if you can 'stand' the process of prospecting. Many people who are good at it don't like it. You don't have to like it, but you have to be able to do it. Those who are not good at it, don't make it.

HTH.

Al
www.insurancesolutions123.com

 

[Frank Stastny]

Al, well said.

It sounds like he has the impression that there are hundreds of thousands of dollars in insurance. There can be, but like anything else, only a few who try really reach the top of their profession.

I admire the fact that he wants to be one of them but his time line is way too short. It doesn't sound as though he necessarily likes insurance, just thinks he can make a ton of money in a relatively short time.

When I started in insurance I knew I was good at selling, I had been successful at it and enjoyed it. However, I didn't know anything about prospecting, still have a lot to learn. Prospecting just plain and simple sucks! Some mornings I would rather walk around a junk yard bare-footed, kicking broken bottles and bricks than pick up the telephone.

 

[J.R.]

Al, well said.

It sounds like he has the impression that there are hundreds of thousands of dollars in insurance. There can be, but like anything else, only a few who try really reach the top of their profession.

I admire the fact that he wants to be one of them but his time line is way too short. It doesn't sound as though he necessarily likes insurance, just thinks he can make a ton of money in a relatively short time.

When I started in insurance I knew I was good at selling, I had been successful at it and enjoyed it. However, I didn't know anything about prospecting, still have a lot to learn. Prospecting just plain and simple sucks! Some mornings I would rather walk around a junk yard bare-footed, kicking broken bottles and bricks than pick up the telephone.

Well put! Then you get an appointment or two, hopefully a sale, and start to feel NICE and get into your groove.

 

[Frank Stastny]

Well put! Then you get an appointment or two, hopefully a sale, and start to feel NICE and get into your groove.

I have had days where I was tickled to death just to get a couple of appointments, let alone make a sale.

When it works it is like having a license to steal, when it doesn't it is the worst job I have ever had. It seems like you are either at the top of the mountain or three feet under whale poop. Wouldn't it be nice if you could at least be floating on the water all of the time?

 

[J.R.]

I have had days where I was tickled to death just to get a couple of appointments, let alone make a sale.

When it works it is like having a license to steal, when it doesn't it is the worst job I have ever had. It seems like you are either at the top of the mountain or three feet under whale poop. Wouldn't it be nice if you could at least be floating on the water all of the time?

I equate to a sales profession to having a drug, food, etc. addiction.
The highs are great and the lows are bad. Funny thing is that this can happen all in the course of a day. Keep trucking....

 

[Frank Stastny]

I equate to a sales profession to having a drug, food, etc. addiction.
The highs are great and the lows are bad. Funny thing is that this can happen all in the course of a day. Keep trucking....

Yes it can, and often does.

One good thing is, I no longer have to go to the junk yard to avoid the phone. Now I have an insurance forum that I can go to and sometimes even convince myself that I'm actually working.

 

[EspeciallyInMich]

Thanks a lot for your replies fellas. Very helpful. I do not to ask myself some tough questions. In the meantime, I also have some more if you all would be so kind as to address...

1) What are actual commission rates (industry averages, specific to Farmers, specific to any company in the industry, achieved by independent agents) on home and auto policies sold as (a) new business (b) renewals?

2) What is fair commission for me (as a licensed agent working under a
senior agent) to earn on home and auto (a) new business written (b)
renewals.
What is a typical compensation scheme for someone just starting off?
What is my take, and what is his take?

3) What are actual life commissions, and what would be fair to ask for
as my take?

4) Is two years a normal amount of time to "work under" another agent (and be giving him a percentage of my sales)?

5) Do you have any more advice as to going the independent route instead of being a captive agent?

Thanks much for your time and assistance!

 

[James]

I disagree, sales is easy and simple. It all boils down to Activity, yet the simplest of things will catch 99% of the people 100% of the time.

 

[Insurance Phoenix]

I do not recommend working for two years under an agent as a producer. Get a direct appointment with Farmer's. Or search around and interview with other companies who are hiring. You will gain some added experience by working under an existing agent, yes. But if you are already working in an insurance office you know more than the average person entering the industry.

Success comes down to seeing enough people/quoting enough people. Do that and your success potential goes way up.

I spent 5+ years selling life insurance for MetLife and 7+ years for a captive p/c company before going independent. I recommend also keeping your eyes and ears open to working for an independent agency.

Scottsdale Auto Insurance

 

[EspeciallyInMich]

Thanks again for your replies. I was wondering if anyone can answer the specific questions below - any data you can provide would definitely be helpful. Or if you can refer me to another avenue to ask these questions, that would be fine as well.

1) What are actual commission rates (industry averages, specific to Farmers, specific to any company in the industry, achieved by independent agents) on home and auto policies sold as (a) new business (b) renewals?

2) What is fair commission for me (as a licensed agent working under a
senior agent) to earn on home and auto (a) new business written (b)
renewals.
What is a typical compensation scheme for someone just starting off?
What is my take, and what is his take?

3) What are actual life commissions, and what would be fair to ask for
as my take?

Thanks again!