What is the TRUE Average?

[wolfe42]

I am in the process of getting my Life, Health and Accident and have been reading that only about 10% of insurance agents make around $117 and others are making in the 20k and $50k range.

I wanted to ask the seasoned veterans out there....Is this data CORRECT?

Also...Why is there such a LOW percentage that make it in this business and why would I dedicate the rest of my life to climb this mountain if these numbers are REAL?

I would appreciate your thoughts on this matter

Sincerely,

Dave Wolfe

 

[DHK]

Statistics are only relevant to the masses. Personally, I think there is a lot of mis-representation going on when people are being recruited into the business.

See: An Employment Scam in the Financial Services Industry > HOME

However, if you're trying to figure out "why bother in this career"... try reading this link.

https://www.linkedin.com/pulse/20140728172755-206592563-the-bowling-lanes-of-learning

Take a careful look at this picture. There are many insurance agents that work in ALL 4 of these categories... and the bureau of labor and statistics LUMPS THEM ALL TOGETHER.

I can guarantee you that Guy Baker does 100% of his business in the "Advanced Planning" area... and earns WAY MORE than $117k. (He's been MDRT Top of the Table for over 30 years.)

But you can't START there. You have to start at a lower profile that will fit you for when you first get started so you can be profitable today.

Then you need to invest in your ongoing education. This can include specialized training courses and designation studies.

 

[wolfe42]

Hi DHK,

Thanks for your reply and I will take a look at this information in depth tonight when I get home.

I have read other replies that you have sent to other members and I like the sincerity that you share with other members.

I am turning 43 in April and currently work in sales. I have to start part time however I could quit my job and still be okay due to my financial situation.

How long and would it take to make a 6 figure income? And I know there is many variables to this, but how long does it take the average agent to make $70k a year consistently?

I guess I don't want to invest 5 years in this business to only see mediocre results if the average statistics are what they are.

Sincerely,
Dave Wolfe

 

[DHK]

Average agents fail. This business has a 90% failure rate in the first 1-4 years. You can't be 'average' and succeed. So get that word "average" out of your head.

And unfortunately, no firm or agency can guarantee your success. Some have a great track record - such as New York Life... but there's still no guarantees, and every office can be different.

Before jumping in, you need knowledge and training. If you want to earn 6-figures a year, you need to learn simple and effective methods of communication.

(I swear, I need to ask for some referral fees for this...) I highly recommend starting by watching the online training videos by the Insurance Pro Shop. For $25/month, you can get the introductory training that I think you can't get or beat anywhere else for any price.

IPS Insurance Marketing and Sales Resource Center

Then, I would also recommend that you CALL Lew & Jeremy up and talk to them about your situation. The call would be free, and you can get some direct input before you jump-ship from your current situation. They'll probably recommend that you buy one of their systems... and they are a great value... but start with the online stuff and a phone call.

Oh, read this link too: http://www.insuranceproshop.com/NewAgents/

 

[sman]

I am in the process of getting my Life, Health and Accident and have been reading that only about 10% of insurance agents make around $117 and others are making in the 20k and $50k range.

I wanted to ask the seasoned veterans out there....Is this data CORRECT?

Also...Why is there such a LOW percentage that make it in this business and why would I dedicate the rest of my life to climb this mountain if these numbers are REAL?

I would appreciate your thoughts on this matter

Sincerely,

Dave Wolfe

Am I missing something here? You've read that only 10% of agents make 117 dollars? That certainly isn't the TOP 10%. More likely the bottom 1%. I'm assuming that you left off the letter k or a comma and 3 zero's after the 7.

As far as why there is such a low percentage of people who make it in this business, it's because it's 100% commission (most people can't handle not having a steady, dependable paycheck), it requires constant "hunting" and there is a lot of rejection (at least until you've been at it for a while and start receiving unsolicited referrals). This isn't a career whereby you show up from 9-5 and collect your paycheck at the end of the week along with a generous benefits package with 2-4 weeks of paid vacation. You don't work, you don't get paid. That includes while you're on vacation. Most of us also pay for our own health insurance (at least those of us whose spouses don't work and are able to get it through their employer). And forget about the 9-5 work schedule in the beginning if you are going to make it. More like 9-9 and that's still no guarantee. I've worked weekends, been on appointments at 6 in the morning and 10 at night. Sometimes on the same day. Fortunately I've built my business to the point of not having to do that anymore.

Not many people are willing to take the risk nor put in the hours to be successful in this business. And even for some who are that doesn't translate into success. You have to be able to connect with people and build trust so that they feel comfortable doing business with you. Working 80 hours per week can't make that happen. You either have that ability or you don't. Can it be learned? To some extent it can. But if it isn't part of your personality it's hard to make it seem genuine and people can pick up on that.

Lastly, why would a person dedicate their life to "climbing this mountain"? Because if you are successful, the income and freedom is amazing. I don't know what else I could do that affords me the ability to set my own schedule, work as little or as much as I want and make the income I make. If I want to play golf three days per week, I can. If I want to have a three day weekend every week, I can. If I want to take multiple trips per year, I can. Granted, it hasn't always been that way. It took a while to build it to where it is today. But it is so rewarding when you've been able to actually help someone and get paid in the process. I love what I do. I'm nowhere near retiring and quite honestly, when I get to that age I don't know that I would completely stop working. There is great satisfaction when clients thank me for helping them. And the best compliment is when they tell someone else about me and that person calls for assistance.

For me, those are the reasons why the mountain is worth climbing.

 

[wolfe42]

I am going to go "independent agent" and work with a agent "hopefully" that has been in the business for 35 years and does securities work as well.

I guess what I am asking is WHAT DOES IT REALLY TAKE TO SUCCEED???

What do I have to do differently than the other 90% that fails in the first 1-4 years?

Sincerely,

Dave Wolfe

 

[DHK]

There are 4 key parts you need to MASTER in this business:

1) Prospecting to set appointments
2) Fact-finding skills
3) Closing Business
4) Obtaining Professional Introductions (to make prospecting easier and improve the pool of people you're talking to and inviting into your clientele).

If you want to evaluate how well you are at those 4, take a look at the $100,000 skills formula:

In each of the following areas, rate yourself on a scale of 0 to 10. 10 being the best, 5 being "so so". 1 being poor... and 0 for not doing it at all.

# = number of people you talk to. If you only talk to one person... your score and effectiveness will reflect that.

Q = quality of people you talk to. If you're talking to minor-age children who don't have legal authority to sign a contract, give yourself a zero.

L = how well do people LIKE you. If most people like being around you, give yourself an 8, 9, or 10. If people run across the street to get away from you (think Ned Ryerson from Groundhogs Day), give yourself a 1 or 2. (BTW, showering, deodorant, and mouthwash counts for a 2 point increase!)

S = Skills. Most of us start out with very little communication skills. But as you improve your skills, you get better and enjoy the career more.

T = Thinking Successfully. If you have a poor attitude, it'll show up in everything you do. If you have a confident (but not arrogant) attitude, you'll do better.

Now, multiply your scores and see how well you do:

# x Q x L x S x T = your score.

If you have a '10' in each area... then 10 x 10 x 10 x 10 x 10 = $100,000.

If I gave myself a 5 in each area, I'd have a score of $3,125. I'd also have a lot of room for improvement too. Improvement in ONE area, increases your score overall.

Also, you can't afford to have any 'zeroes' in this. One zero wipes everything out.

I hope that helps.

----------

And then there's realizing that the job really looks a lot like this:

 

[WinoBlues]

I am going to go "independent agent" and work with a agent "hopefully" that has been in the business for 35 years and does securities work as well.

I guess what I am asking is WHAT DOES IT REALLY TAKE TO SUCCEED???

What do I have to do differently than the other 90% that fails in the first 1-4 years?

Sincerely,

Dave Wolfe

 

[pfg1]

I am in the process of getting my Life, Health and Accident and have been reading that only about 10% of insurance agents make around $117 and others are making in the 20k and $50k range.

I wanted to ask the seasoned veterans out there....Is this data CORRECT?

Also...Why is there such a LOW percentage that make it in this business and why would I dedicate the rest of my life to climb this mountain if these numbers are REAL?

I would appreciate your thoughts on this matter

Sincerely,

Dave Wolfe

I'm assuming your 117 is $117k.
I would agree, those numbers are probably pretty accurate, considering that over 50% of the people in this country make under $35k a year - in any job, and if you made $117k you be in the top 10% of income earners - in any job.


Why is it so hard in this business... honestly I'm not sure its any one thing. Most commission only jobs are tougher, and throw in that in the insurance business you can be your own boss (indy) and you get a recipe for potential mediocrity I guess.

 

[FRJ]

The "average" numbers are also skewed by the vast number of agents that never stand a chance because they've been brought into the business by unscrupulous organizations that are more interested in making money off the "orphans" that the failed agents end up leaving. Not to mention other methods that these organizations have of taking money from their agents (e.g. cost of junk leads, "office" fees, etc.)