FE Saturated?

[Jose Arteaga]

Hello, alot of people say many things, such as the FE market is saturated. Along with this comes a failure rate of 90+%, which no one seems to be able to verify. Following this logic, how is this market saturated? Just wanted to see what some of the people who do this everyday think. Thanks.

Its like before 2008 you can throw a rock in any direction and hit a real estate agent but only about 2% were successful enough to call it a career.

The same, you might have a lot of licensed insurance agents but small percent can sell. In (FE only market) even less agents can sell. So get out there and sell if you can sell, you got this!

 

[CALTCAgent]

Ahh would you recommend someone pursue this or maybe Med Supps?

What area do you plan on selling FE at ? It says you are in NY. You have to consider what your area and your preferences for work are like. Some people don't like cat pee, some don't mind it.

 

[Engcon]

Yeah NY is where I am, specifically upstate. I am eventually moving to Mass.

 

[FinalExpenseDojo.com]

The senior demographic is huge... as a whole, it's not saturated.

But in terms of MARKETING saturation, it is very very saturated. Remember, the lead companies have to get the data on the people to market to. & the number of seniors that there is data on is a lot less than you think.

 

[mudhound]

Don't listen to Newby. He knows the FE field s saturated and no one is making any money. He just wants you to think everything is going great so he can recruit you to not sell. He doesn't care if he doesn't make any overwrite from you. He has more money than he can spend anyway. He just wants to build a huge agency so he will have lots of friends.. Don't fall for his slick marketing talk. Get into something where there is real .I hear that selling payphones to service stations is poised to really take off.

That is so FUNNY!!!

 

[myinsurebiz]

Plenty of room for knowledgeable Agents . . .

Final Expense, Medicare Supplements, Medicare Advantage, Indemnity, DVH, etc - plenty of buyers.

You don't have to worry about spending tens's of thousands of $$ on leads each year if you partner with a Company that provides you as many Leads as you can handle when you produce sales . . .

#JustSeeThePeople

 

[Abrasax]

They were wrong. Yes, the industry has a huge failure rate of agents. But that because there is mass pyramid recruiting and a LOT of agents who have no idea how to sell insurance and they sign up with places that have no way to train them.

Good agencies don't have a 90% failure rate. Not even close. Around 25% would be about accurate.

What agency has a 75% success rate for new agents?

 

[Newby]

What agency has a 75% success rate for new agents?

Depends on what you call success. I would think we are definitely in that range as far as guys who stay with it compared to guys who drop out of the industry. We are very selective about who we bring on and we don't recruit the masses.

If we bring on an agent we have to verify that we have an open lead territory available for them first. We don't stack agents on top of other agents. And we don't allow agents to recruit others at lower than the commissions posted on our website. It's a definite recipe for failure in my opinion to have agents come on that are sidetracked from their sales by getting distracted with recruiting other agents. And it definitely adds to the failure rate to have newer agents that should be on a 120% giving 10%, 20% or more of their own commission away to another agent that recruited them. I've seen a lot of cases where that amount of commission they are giving up every week would easily cover their entire lead bill.

Most agencies are constantly in recruit mode. They want to grow and grow and are always recruiting. Those agencies just aren't picky at all about who they bring on. It just makes sense they are going to have an astronomical failure rate.

We are unique in that we are at a good manageable size. We do a lot of production (dollar wise) for a very small IMO (number of agents wise). It allows us to spot problems with a struggling agent much better than an agency where you have thousands of agents and guys can fall through the cracks much easier. I see it sort of like a teacher having a small classroom of say 20 students compared to that same teacher having 250 students. Which would have a higher chance of 75% of those students succeeding?

 

[rousemark]

Depends on what you call success. I would think we are definitely in that range as far as guys who stay with it compared to guys who drop out of the industry. We are very selective about who we bring on and we don't recruit the masses.

If we bring on an agent we have to verify that we have an open lead territory available for them first. We don't stack agents on top of other agents. And we don't allow agents to recruit others at lower than the commissions posted on our website. It's a definite recipe for failure in my opinion to have agents come on that are sidetracked from their sales by getting distracted with recruiting other agents. And it definitely adds to the failure rate to have newer agents that should be on a 120% giving 10%, 20% or more of their own commission away to another agent that recruited them. I've seen a lot of cases where that amount of commission they are giving up every week would easily cover their entire lead bill.

Most agencies are constantly in recruit mode. They want to grow and grow and are always recruiting. Those agencies just aren't picky at all about who they bring on. It just makes sense they are going to have an astronomical failure rate.

We are unique in that we are at a good manageable size. We do a lot of production (dollar wise) for a very small IMO (number of agents wise). It allows us to spot problems with a struggling agent much better than an agency where you have thousands of agents and guys can fall through the cracks much easier. I see it sort of like a teacher having a small classroom of say 20 students compared to that same teacher having 250 students. Which would have a higher chance of 75% of those students succeeding?

The failure rates quoted are based on brand new agents lasting two years... Are you saying that 75% of the new agent,s never sold insurance before, that you recruit last two years or more.

 

[Newby]

The failure rates quoted are based on brand new agents lasting two years... Are you saying that 75% of the new agent,s never sold insurance before, that you recruit last two years or more.

I don't screen them for having never sold insurance before. A lot of them when they come to us are brand newly licensed. But a lot of the other ones have sold other types of insurance and many times they've dabbled in Final Expense but it usually wasn't their main thing.