How to begin a career in insurance sales

[BasicBill]

In regards to pay:

I have heard this on this forum, so sorry for misquoting it, but the idea was: This bussiness can be the hardest $35,000 per year opportunity or the easiest $200,000...

I suspect you've flipped the little homily on its pointed little head. I first heard this in the mid 80's in another life. Virginia Carter was the top female earner in A.L. Williams. She was making over $1,000,000 a year. She spoke at all the local meetings, big and small. She said that life insurance sales was the lowest paying easiest job in the world and the highest paying hardest job in the world. Take your pick.

 

[policy doctor]

Well you need to clarify that post. Mrs. Carter, along with Hubert Humphrey and others, was making big bucks at A L Williams, that's true, once the organization spread exponetially.

However, that was not individual production, that was multi-level hierarchy which pushed them folks income, higher and higher.

A successful agency with lots of producing agents will make tremendous money on overrides too.

I think of MLM like franchise sales...get one store going sucessfully, then get another going, repeat, wash, rinse, repeat, etc.

But for an individual agent to make big bucks, you have to be very efficient, and preferably sell good commission items.

 

[CHUMPS FROM OXFORD]

"Am in commerical real estate brokerage and earned: 1st yr $50k, now in 3rd yr $150k..."

OK...maybe I'm missing something. Why change? Why take a chance? I assume in 5 years you'll be pushing 200k. In 10 years...who knows?

Insurance is a tough gig and the majority of people are making under 100k.

 

[RobbieTodd]

Changing from commerical r.e. brokerage to insurance is just something looking into b/c I can't duplicate myself .....after insurance experience would start own indep. agency..

If I understand it correctly could you work your way towards commissions of $200k (equals 1k auto policies at $200/each or take some other formula with home owners insur./life insurance/P & C, etc..) once you have the business hire someone to work the renewals/client questions for $50k (or little more....for them is a salary and small commission which some people like) then go out find the new business and keep repeating? I know this is VERY aggressive but in 15 yrs have 3 people working the renewals for total cost of $150k and you have $600k commissions coming in. I know your question will be how do you get 1000 polices over 5 yrs but I know people who do it (got to be motivated!)....and also sure you'll ask about people that don't renew....that can be included in your new business generated or worked into the renewal agents (person working for you) commissions.

 

[CHUMPS FROM OXFORD]

First of all...1000 policies in 5 years is very possible.

At some point, it is possible that the policies you're losing will exceed the new ones you are writing. But the good thing is...if/when you hit that point, you'll be making very big bucks.

 

[RobbieTodd]

I'm trying to understand why indep. agencies don't grow there business asap...I would think the goal would be in 15 yrs to have a business generating net income of $500k without you the owner working more than 30 hrs a wk....and on top of that you can sell the business for ??? (few million) or have your kids work it.

This is something that I can't do in commerical real estate and it is not effected by the economy.

 

[CHUMPS FROM OXFORD]

You have somewhat identified the beauty of insurance...renewals.

Not to mention that health and P&C rates go up virtually every year.

 

[NewHealthStrategies]

....... and you get to join in the educational discussions on this forum and watch what really cool avatars people are using...... bet they don't have THAT in commercial real estate?

 

[somarco]

im actually mixxing my ring finger on my left hand... makex it hard to type

Problemx with the inxurance mafia?

 

[magent1]

RobbieTodd, (depending where you are located) you are more than likely going to average over $200 a policy for auto insurance. This might help your equation. Also, I believe it is the goal of Independent Agents to grow as much as they can as quickly as they can, but this is a business and sometimes it doesn't work out like that.