- Thread starter
- #131
JacquesWerth
Expert
Last edited:
Ninety-Two Percent of All Agents Fail - Why?
- Thread starter JacquesWerth
- Start date
- 7,066
That pretty well sums it up. The only other thing I would add is that most agents only view selling insurance as a way to make money. It's the ones who view it as actually owning and running a real business that are successful.
How many successful businesses does one think there are where the owner hasn't made an investment in the business? If one opens a bar don't they first have to spend a lot of money buying the liquor to serve customers?
- 1,459
This is a small part of the equation, but still part of it. If 92% fail, I would guess 88% of them fail because they simply don't do what is required on a daily basis even though they know what needs to be done.
I would help train people on how to generate leads, exactly what to say, how to work the sales process, and service clients. I didn't preach anything I didn't do personally. I'm not the smartest guy or the smoothest talker, but I know it works since the techniques had been tested in the field over and over again by myself.
How many do you think applied what I taught or even a small portion? Probably 2%. I would answer emails and talk to people as time allowed on the phone, usually 2 to 3 people per day. Still, almost zero implemented or stuck with it for more than a few days. That's when I realized it wasn't so much a training problem, but a lack of motivation or willingness to work in an environment where no one was standing over them.
For a small percentage, proper training was the answer. Once they knew what to do, they took the ball and started running. I would get an email later saying it was working, but otherwise, never hear from them again. The other 88% were on every training webinar I ran, listening to the same topics over and over again. I eventually got tired of it and realized the effort I was putting in to helping people was mostly wasted.
- - - - - - - - - - - - - - - - - -
If I had to pinpoint why 92% fail, I would say four reasons in this order:
1. Not proactive: most people are use to being told what to do. They get in insurance, no one is watching over them the entire day, so they would rather take 2 hour lunches and watch porn on the computer than actually work.
2. Fear of rejection: you can't run from a "no". Until you realize it's a good thing, it's hard to get past this one. Keep it low key for you and the prospect, be straight forward, if you don't have a fit, quickly move on to someone who is willing and able to pay you for your help.
3. Lack of capital: I was a poster child for this, although I started right out of college with fewer bills. It takes a while to see a consistent revenue flow, you have to be able to survive.
4. Lack of a Lead Generation/Selling System (ie training): most importantly, you need a way to generate leads. Buy them, cold calling, direct mail, B2B, referrals, ect. Either way, you need qualified people to speak with each day. To a much small extent, a basic selling routine. The second doesn't matter unless you have a consistent flow of leads.
Most companies train people on a basic selling/prospecting system to generate and sell leads. It almost all works to some degree if you work it. That leads back to #1 as the leading cause of failure.
Last edited:
mtnmusic
Expert
Amen, Brother! In my experience the guys that "stick" are those that practice systematic selling. Ours is a numbers business and if you call x prospects you'll generate y appointments which will result in z sales. This "system" is based on the concept that concentrated effort produces predictable results.
The key is to put pressure on "the system" instead of putting pressure on yourself. You can't control the number of people who buy but you can control the number of calls you make in order to generate those sales. And, if you go any length of time without being able to set enough appointments or close enough sales, it's no big deal because the system owes you and will ultimately work and, besides, all those no's are just bringing you closer to 5 or 6 yes'es in a row.
You maintain your enthusiasm for sales and stay "pumped" by feeling good about doing those things you can control rather than blaming yourself for those things which ultimately are out of your control.. or something like that..
Unfortunately, a lot of guys become "lead hounds" and if they fail it's because of "bum leads". I've seen agents sit in their cars shuffling leads back and forth trying to find that perfect prospect and all the while developing a major case of call reluctance trying to "Carnack" their next sale. Truthfully, most of them drive past more business in a week than they could write in a year.
Which makes my final point: the best leads are the ones you develop for yourself.. a skill the 92% never acquire because of self-doubt or poor work ethics or having no "system" of their own.
- Thread starter
- #136
JacquesWerth
Expert
When putting down the character and work ethics of Insurance Agents who fail, we are overlooking an important consideration. There are many industries where a substantial majority of salespeople succeed.
- 1,459
I would guess it comes back to the proactive vs. reactive environment theory. Most sales organizations, you are truely in sales, not running a business at the same time. You are watched closer, you have a territory of people listed for you to call, many are selling a tangible product deemed "necessary", you are in "sales", not servicing customers and doing administrative/planning work.
Not saying training has nothing to with it, I just don't think better training would make much difference in the failure rate, even if it would help some.
I just made it through my first year. I'm hoping for a second. Sales ability may be near the top of the list of things that I would classify as absolutely necessary. I would put prospecting and knowing who, how, and where to prospect easily in the number one spot.
Just being at the right place at the right time enough times will produce sales. Sales ability will increase the number of sales you make. A sales system is the way to go.
Just being at the right place at the right time enough times will produce sales. Sales ability will increase the number of sales you make. A sales system is the way to go.
- 7,066
I believe that most agents do not realize when they enter the insurance field that there is a whole lot more to it than just selling. They really are "running a business". They are the CEO, CFO, VP of Marketing, Administrative Assistant, Mail Room Clerk and Chief Toilet Cleaner. Selling insurance is the fun part.
Training will definitely make a difference but the agent has to be "trainable" and have a strong desire to succeed. Even quality training does not insure success. That is only part of the equation.
mszlazak
Expert
So you want to be successful?
Listen to what Richard St. John has to say:
Richard St. John's 8 secrets of success | Video on TED.com
Why after being successful one can fail:
Richard St. John: "Success is a continuous journey" | Video on TED.com
Also, read the threads under each of these videos for some insightful comments.
Listen to what Richard St. John has to say:
Richard St. John's 8 secrets of success | Video on TED.com
Why after being successful one can fail:
Richard St. John: "Success is a continuous journey" | Video on TED.com
Also, read the threads under each of these videos for some insightful comments.
Last edited:
Similar threads
