Northwestern Salary and Success Rate

[lyndell]

Hello I am new to the market and thinking about a career with Northwestern Mutual. I spoke with their hiring recruiter and I asked them a lot about the questions I have read in this forum. I asked there Rep if there was a signing bonus and he said the GA is really good with rearranging things so he would have to answer that. The recruiter said they try to make it so the first year rep does around 82,000 there first year. I believed her but I know they may have had around 400 come through. I have a small natural market and I am going to go through with the company but I wanted to know about how many policies does a person have to write before they make good money in the first year? Also what's the best way to get leads, I was thinking of calling people's house after 5 at home and setting appointments cold calling people in the phone book. I also thought about purchasing leads any suggestions on how to find a good company? Thanks for the input.

 

[Mac1958]

I wanted to know about how many policies does a person have to write before they make good money in the first year?

===

lyndell, with respect, I'm going to take the time to help a bit because I think this industry has enough people who are in it for the wrong reasons, and they're damaging an already bad reputation. So here's a few thoughts:

1. This may be the worst business on the planet for people who need money right away. We're dealing with people's lives, security, families and legacies here, and I can guarantee that your need for cash will make you do things that are best only for you, not for them. Plus, nothing in this business happens overnight.

2. If you're going to do this, start with a strong company and get good training in products, administration, laws, sales & marketing techniques. Northwestern Mutual, New York Life, Mass Mutual, Guardian and Met Life are generally considered the best. The local manager is key, however, because he or she sets the environment and strongly influences your chances of success.

3. If the company you like doesn't pay enough of a base salary for you (and probably none will), then I'd recommend getting another job and saving up at least one year of income. Again, the last thing this industry needs is yet another desperate "salesman" trying to squeeze out the last dollar from a prospect because they need to make their car payment.

4. If you can't generate your own leads in this business, you will be gone within a year. If you're looking at working for a company like Northwestern Mutual, depending on internet leads and other leads that you didn't create will not work. They may work for individual health insurance or basic term life (which is great), but not in a more sophisticated environment like this. You need to be involved in groups like Rotary or Sertoma, you need to be active in your community and trusted. Read Jay Conrad Levinson's "Guerilla Marketing". I'm not slamming health or term - but for NWM clientele, you need to be conversant in areas such as estate planning and wealth creation/preservation.

For your sake, for the sake of the people you'll be selling to, and for the sake of the industry, don't enter this profession because you want to clean up. If that's your reason, it's not going to work. Those people get flushed out pretty quickly, but they do terrible damage before they go.

You will make it if (a) you have money set aside to live on for at least a year, (b) you get well-trained and self-disciplined, (c) you are willing to commit to a strict plan of action and code of conduct, (d) you are able to understand that putting the needs of your clients before yours will ultimately lead to your long term success. In other words, "what goes around comes around."

I hope this helps. Good luck.

...

 

[HealthGuy]

If you work with NWML they will lead you to believe they are the "only" life company. Find another way to make a career.

 

[briko3]

Great advice. People thinking otherwise are the 98% that was out in the first few years.
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Oh, and NWM is a recruiting MACHINE. They will tell you just about anything to get you to sign on. Their training is great, but the recruiter around here kept telling me about how in a few years I would be making more than a doctor...possible, but not as easily as they make it sound.

 

[HealthGuy]

NWML feeds on people who don't know better. Make your life and career elsewhere. The insurance biz is difficult enough without being affiliated with NWML. Nothing as difficult as selling for a captive company that tells you you really aren't captive. What a joke.

 

[CFP83]

Hello I am new to the market and thinking about a career with Northwestern Mutual. I spoke with their hiring recruiter and I asked them a lot about the questions I have read in this forum. I asked there Rep if there was a signing bonus and he said the GA is really good with rearranging things so he would have to answer that. The recruiter said they try to make it so the first year rep does around 82,000 there first year. I believed her but I know they may have had around 400 come through. I have a small natural market and I am going to go through with the company but I wanted to know about how many policies does a person have to write before they make good money in the first year? Also what's the best way to get leads, I was thinking of calling people's house after 5 at home and setting appointments cold calling people in the phone book. I also thought about purchasing leads any suggestions on how to find a good company? Thanks for the input.

For Someone who wants to be in this business long-term, there is no better training ground than Northwestern Mutual. I'm still in my twenties and after spending five years with NML it was time for me to leave the nest. Without the knowledge, business sense, & marketing training that I received there, I would never be able to work within the markets I currently do or have the skill set or a system to be able to produce 300k+ a year in life premium.

With that said, once you have reached that five year mark or so and have attained all the above mentioned invaluable skills, there is no logical mathmatical reason to remain in the NML system. Long-term, Northwestern's system is management focused not producer focused. It is designed to make management weathly rather than the producers, who are out there doing all the heavy-lifting and impacting peoples lives.


After year three you are at a basic 50% commission level. You are then responsable for all your office rent, staff expense, all computers and office equipment expense. Right before I left one year ago, these items for me totaled about $70,000 a year. I was writing around 250k of premium, which resulted in 125,000 of first year commission and had renewals of about 45k a year. So overall, I had a total of 170k a year of income but was only netting 100k without factoring in taxes. Especially when you are responsable for 100% of your referrals or new business generation this math just does not make sense.

So the best advice new people to the industry can ever receive is "learn the business as career, then grow your business and make money independent".

 

[VolAgent]

After year three you are at a basic 50% commission level. You are then responsable for all your office rent, staff expense, all computers and office equipment expense. Right before I left one year ago, these items for me totaled about $70,000 a year. I was writing around 250k of premium, which resulted in 125,000 of first year commission and had renewals of about 45k a year. So overall, I had a total of 170k a year of income but was only netting 100k without factoring in taxes. Especially when you are responsable for 100% of your referrals or new business generation this math just does not make sense.

Does NML not bonus for production? I know NYL and MM bonus, while MetLife moves you up the grid for production. NYL bonuses heavily on life and gives outrageous renewals.

In reality, with the right office, you can succeed at any of them, NYL, MM, MetLife, Guardian, etc. Also, they will give you a free trip for production, instead of making you pay your own way to Milwaukee in August. Honestly, is there anything more discouraging than being told you have to pay you own way to Milwaukee in the summer?

 

[CFP83]

Vol~

Pathetically no, Northwestern DOES NOT BONUS YOU FOR PRODUCTION!!! The fyc payout for someone writing 400,000 of premium a year is the same as someone doing 50,000. The Management, which consist of Managing Partners(General Agents) and Managing Directors (District Agents) get all the benefit and bonuses for a rep that excels in production. How much damn sense does that make??!!

The only meager production bonus NML has is called the "New Client Bonus" which gives representatives a one time lump sum payment for acquiring above average levels of new clients....usually around 40 per year. The average new client bonus is a WHOPPING 4% of fyc, or 2% of premium. So if you wrote 300,000 of premium on 40 new clients you would get a $6,000 bonus the following March.

Most companies follow the idea of "produce more, make more". NML has let the "management union" get too much control. Therefore the reality at NML is "produce more, make more for your management team". In reality, what the company is doing is subsidizing younger reps higher payouts with the bigger producers reps.....how much sense does that make?

 

[VolAgent]

CFP83,

That is insane. It is a recipe for losing all the big producers who prefer captivity to NYL, Mass or Guardian. If you are a top producer and can generally stick to its products, Mass will pay you almost as much as being independent, with all the advantages of captivity. Namely, benefits and retirement.

 

[lyndell]

Thanks I'm really set as far as finances for 5-6 months as I am a single guy and I don't have a family to support. But I am trying look behind the numbers quoted of 82,000 and see how is that possible I can see 40 but 82,000 I just want to know how the process works of making the money like that as I am use to a base salary that goes no higher than 30,000 a year.

Has anyone worked for them made money and left or anything else I hear people wash out in 3 months