Testing My Theory About Getting Started

squeed

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Well, I've been asking questions for months, and I'm finally ready to pull the trigger and take the first step of signing up for my pre-license coursework. I'm going to take Life First, then Health and finally P&C.

Let me know if I'm thinking about this the right way.

My scenerio:

I have a job, but, I feel that it's probably at risk sometime within the next 6-18 months. So insurance sales is my backup plan. For those insurance professionals here, please don't be insulted, I don't mean to insinuate that your chosen profession is merely my backup. What I mean is that it is my backup plan to change careers, but I'm not going to jump in right away.

My job is selling now, and to make a long story short, we were handed unbelievable quotas for all new business and in this economy, it's not going to happen. Zig Ziglar couldn't hit the quota.

So I plan to start cold calling and selling Life Insurance part time. I can dedicate 1 hour per day to cold calling and 2 hours to marketing activities at night (direct mail, publication advertising etc ...)

I'll be happy if I write 2 policies per month. For me, this is more about proving to myself that I can do this, and learning the business slowly, vs. trying to make a living right away. Because if I get started this way, and then I get canned, I'll have a good amount of confidence that if I can write 2 policies per month part time, then when I'm dedicating 10 hours a day to it, I can multiple that by 10.

Am I crazy ?

-S
 
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This is a great place to learn the business, there are a lot of great people on this forum that you will be able to learn a lot from.

Working a few hours per day you should be able to meet your goal of 2 policies per month, actually you will probably enjoy it so much you may leave your other sales job before they ask you to leave for not hitting their unrealistic goals.

My only thought is why all licenses, I would suggest only life and health and not get yourself bogged down with learning the P&C side of the market. Find someone in your community to network with and refer your P&C business to them and have them refer Life and Health Business to you.
 
Well, I've been asking questions for months, and I'm finally ready to pull the trigger and take the first step of signing up for my pre-license coursework. I'm going to take Life First, then Health and finally P&C.

Let me know if I'm thinking about this the right way.

My scenerio:

I have a job, but, I feel that it's probably at risk sometime within the next 6-18 months. So insurance sales is my backup plan. For those insurance professionals here, please don't be insulted, I don't mean to insinuate that your chosen profession is merely my backup. What I mean is that it is my backup plan to change careers, but I'm not going to jump in right away.

My job is selling now, and to make a long story short, we were handed unbelievable quotas for all new business and in this economy, it's not going to happen. Zig Ziglar couldn't hit the quota.

So I plan to start cold calling and selling Life Insurance part time. I can dedicate 1 hour per day to cold calling and 2 hours to marketing activities at night (direct mail, publication advertising etc ...)

I'll be happy if I write 2 policies per month. For me, this is more about proving to myself that I can do this, and learning the business slowly, vs. trying to make a living right away. Because if I get started this way, and then I get canned, I'll have a good amount of confidence that if I can write 2 policies per month part time, then when I'm dedicating 10 hours a day to it, I can multiple that by 10.

Am I crazy ?

-S

No, not crazy at all.

I assume you are going to have to start as an "underwear" agent. There is nothing wrong with that, it's just that I think it will present a much larger learning curve for you.

You may have read statements I have made about the anticipated explosion in the Medicare Supplement market, or not. With the limited amount of time you have to spend you may want to look into starting with Med Supps.

There is a relatively low learning curve. You are the "underwriter". Purchasing leads is not necessary. Seniors are typically available all hours of the day. (Some of the times I have had the greatest success when calling between 5:30 pm and 8:30 pm.) Once you have your "dog and pony show" down pat, Med Supps are usually a "one call sale".

They offer "full commission" renewals for six years with commissions averaging around 16% to !8%. Some companies offer more and some less. Like life insurance, there is very little service work needed. And, living in Florida you sure won't have any problems finding seniors to contact.

Unlike selling life insurance, every senior knows, with out a doubt, that Medicare by itself is not adequate coverage. They all believe that they must have additional coverage. That makes every senior on Medicare a viable prospect for you to contact.

Since they all "know" that they need additional coverage all you have to do is convince them that it is better to have that coverage with you as opposed to the agent who they currently have their policy with. Most of the time all you have to do is tell them that you will return their phone calls and that is reason enough for them to drop him and go with you.

Just something else for you to consider.

Oh, I would suggest that you look into taking the life and health exam at the same time. I don't know about Florida but in Missouri it is much easier when you do both together.
 
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Frank what is the average commission on Medicare Supplements or what is the average monthly premium?
 
Frank what is the average commission on Medicare Supplements or what is the average monthly premium?

The monthly premium can vary greatly from state to state, so can the amount of commission.

I would guess in Missouri the average premium would be around $130 per month. That is a WAG, I have never sat down and figured it out. I have not done that standing up either.

I am currently using three companies. My average percent of commission for those three is 18.66%. So my average monthly commission will be roughly $25 or $300 annually for the first six years, $1,800 total after six years.

That means that if I average selling one policy per day that stays on the books and do that five days a week, 52 weeks a year, that will amount to a total of $78,000 in commission. (Agents new to the Med Supp market may only average about .65 policies per day the first year.)

Even if I only retain 70% from the previous year, that will amount to $54,000 in renewal commission. (An agent should be retaining 90% from the previous year.) Ad to that the current year's commission and it doesn't take long to into six figures without even breaking a sweat.

It all depends on how motivated they are. how quickly they learn and whether or not they want to learn to prospect or piss away most of their money buying leads.
 
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Well, I've been asking questions for months, and I'm finally ready to pull the trigger and take the first step of signing up for my pre-license coursework. I'm going to take Life First, then Health and finally P&C.

Let me know if I'm thinking about this the right way.

My scenerio:

I have a job, but, I feel that it's probably at risk sometime within the next 6-18 months. So insurance sales is my backup plan. For those insurance professionals here, please don't be insulted, I don't mean to insinuate that your chosen profession is merely my backup. What I mean is that it is my backup plan to change careers, but I'm not going to jump in right away.

My job is selling now, and to make a long story short, we were handed unbelievable quotas for all new business and in this economy, it's not going to happen. Zig Ziglar couldn't hit the quota.

So I plan to start cold calling and selling Life Insurance part time. I can dedicate 1 hour per day to cold calling and 2 hours to marketing activities at night (direct mail, publication advertising etc ...)

I'll be happy if I write 2 policies per month. For me, this is more about proving to myself that I can do this, and learning the business slowly, vs. trying to make a living right away. Because if I get started this way, and then I get canned, I'll have a good amount of confidence that if I can write 2 policies per month part time, then when I'm dedicating 10 hours a day to it, I can multiple that by 10.

Am I crazy ?

-S

I am in almost the same position. I want to learn as much as I can about the products I am selling and the most effective way of selling them. That way when I do ramp up I will be fully prepared (or at least mostly prepared) for anything that might come my way. I love a good challenge and I'm not sure there is much bigger a challenge than selling insurance... So I should be good. ;)
 
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