Is it true 93% of new insurance agents fail within 1st 3 years?!

Nov 15, 2018

  1. JD46
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    JD46 New Member

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    From the research I've done thus far, the answers are all over the place! I find it hard to believe the failure rate is that high but I do believe all the job listings (showing 1st year in to make $100k) are inflated.

    I'm 41 and have spent my whole life in sales, majority of it as a hearing aid specialist. Between the industry changing rapidly (negatively) and being burned out, I'm trying to find a new career. I'm confident in my sales ability but all this conflicting information pertaining to insurance sales is keeping me from jumping in.

    I contemplated trying it part time, but not sure I'd get much traction beings I work a 9 - 5. Anyone feel like sharing their experience with me?

    Couple questions...
    1. How many times during your first year did you want to quit?
    2. How much did you make your first year?
    3. How much money did you have to put towards this new insurance gig before starting up?
     
    JD46, Nov 15, 2018
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  2. Brandon 8676
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    Brandon 8676 Expert

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    I don’t know if 93% is accurate, but it DOES have a high attrition rate among new agents. Especially for those who haven’t received sufficient training. Sales is a tough gig, and without proper training and dedication, it is difficult to stick with it. I would say the rate is closer to 60%, which is still incredibly high
     
  3. JD46
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    JD46 New Member

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    Thanks Brandon, I was just reading your thread - sorry it didn't work out for you. I'm great with sales, and actually enjoy it but it does get tiring after a while. The problem is, I set the bar high for myself and lifestyle (six figures) and do not have a degree. Can't really figure out another way to make 6 figures outside of sales.
     
    JD46, Nov 15, 2018
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  4. rousemark
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    rousemark Still Here!

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    It is a whole different world from having having people come to you.. The attrition rate is high but the primary cause is the agents have call reluctance and fear rejection.. I started on a debit and had good training and was never tempted to quit the business the first year or the first 10 years...I had excellent training and support. First year I made a little over 10K.. stopped having SS deducted around Sept as I reached the max. That was in 1971 and would be equal to making around $63K today... Not bad but not 100K..
     
  5. JD46
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    JD46 New Member

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    Great info rousemark, thank you for sharing!
     
    JD46, Nov 15, 2018
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  6. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    The life insurance industry is unlike ANY other sales endeavor that you have ever done before. In fact, back in the 60's, Perrin Stryker wrote the book "The Incomparable Salesmen".

    This is NOT a job. This is a business and personal reputation decision. The worst thing you can assume is that "they'll train me to be successful because they want me to succeed." You'd think it would make sense, but the truth is... "If YOU don't make it, they'll just hire someone else." The insurance industry is very much a revolving door - throwing a lot of mud against the wall to see what sticks.

    Much of the training in our industry is this:
    "Hire 'em in masses,
    teach 'em in classes,
    sell all their family and friends,
    and fire their ***es."

    I tell you this to help you avoid the "siren songs" of various recruiters who promise that "they invest $250,000 into every new agent". (Yeah, right.)

    If you decide to get licensed... what products and demographics do you see yourself working?
    - Supplemental health insurance (cancer, accident, critical illness, hospital indemnity, etc.)
    - Employee Benefits, such as group life and health
    - Medicare Supplement and Final Expense
    - Long Term Care insurance
    - Life Settlements
    - Middle Income Market planning
    - Middle Income Market planning with investment services
    - Retirement Income Planning
    - Business owner planning including buy/sell, key man, executive compensation
    - Premium Finance for high end estate and business owner planning

    Most firms would have you just "reel them in and we'll cook the fish". (Quote from Pursuit of Happyness with Will Smith). But if you don't know what you can do and for whom you can do it for... you'll become nothing for everyone.

    The odds ARE against you. But if you study out this forum and determine what you want to sell and who you want to sell it to, you'll greatly increase your opportunities for long-term success.



    I'm biased, but I think this thread may knock a few years off of your learning curve - depending on where you want to focus: https://insurance-forums.com/community/threads/guidance-for-new-life-agents.29999/
     
    DHK, Nov 15, 2018
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  7. JD46
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    JD46 New Member

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    DHK, I've been reading a lot of your helpful comments on other similar threads as mine. Along with those, this is great information for me or any of the many people looking into this business. I thank you!

    Honestly, I don't think this is the business for me right now. I need something where I can be able to produce more immediate financial compensation.
     
    JD46, Nov 15, 2018
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  8. Amy Huddleston
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    Amy Huddleston New Member

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    I can tell you right now, the way the business is, I absolutely believe it. I've been at this game a while and never seen it this hard to make a living at. I'm seriously considering jumping ship in the new year.
     
  9. Amy Huddleston
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    Amy Huddleston New Member

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    The way the business has been the past year I should have said above.
     
  10. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    That may be very true. If you WERE to pursue this industry, you'll want to find something that's profitable with a lower learning curve. That would probably be the Final Expense marketplace. Lots of help here on this forum for that. And it lends itself to daytime activity. There is also the "mortgage protection" market as well. Again, it has a lower learning curve.

    But if you're wanting to generate and/or replace a substantial 6-figure income... it's going to take some time to do.
     
    Last edited: Nov 15, 2018
    DHK, Nov 15, 2018
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