Would a Career Change Be Wise?

[Ann H]

Hi there,

I've been weighing the pros and cons of entering the insurance business, mainly to sell insurance online (virtual agent?). I have 9+ years in retail banking experience where sales were a large factor of success, so I'm comfortable with that aspect of the job. I'm also comfortable with working my tail off to succeed. I currently make a little over $50k/annually working for a state agency. I have been at this job for 3 years and have not received a pay increase once. Needless to say, the state is having budget issues and I foresee no raise in the near future. So, my main question is, what are your thoughts on leaving my current job/PAY in order to begin a career in the insurance business? If I work hard enough during the first few years, do you think I could earn comparable pay?
Thanks in advance for your responses!

Sure, if you have lots of assets to survive the first few lean years. Your $50,000 state job probably includes health, dental, pension... Your employer also pays the other 7.5% of your FICA tax. You have no business expenses on your current job.

Add up all your compensation, plus start-up costs and expected expenses, and you'll need to make $100,000 or more to match a net income of $50,000. Why not start now, while keeping your job. If you're a "virtual agent", you can answer emails at 11 pm in your PJ's at home, then send the e-mail at 8 am the next morning. Nobody knows. Build up, get a base, and then think about quitting your state job.

BTW, congratulations on being a state employee who has motivation!

 

[thenextlevel]

I am just getting started myself, so I can't really answer your question. But I will say that if your looking for positive advice yor not going to find it from the forum members here....

 

[DHK]

I am just getting started myself, so I can't really answer your question. But I will say that if your looking for positive advice yor not going to find it from the forum members here....

YOU CAN DO IT!!!!

YOU'LL MAKE 6-FIGURES YOUR FIRST MONTH!!!!!

MDRT... HERE WE COME!

Let's grow up, shall we?

Life insurance has been touted as a job. It really isn't. It's a career and it's a business. And you had better know what you're getting into before you're already deep into it.

All the advice given was positive... positive to the person who is looking for advice and not just to confirm their own biases.

I'm also trying to show others what they need to think about. Of course, thinking is a rare skill to find these days.

That great book Napolean Hill wrote was called "THINK and grow rich"... not "be an *** and grow rich".


BTW, I do admit that I assumed it was life insurance when it could very well be P&C. In either case, you need to know what you're getting into and to question paradigms before you assume that everything will work out exactly the way you think it would.

 

[thenextlevel]

I wasn't saying that any one particular member was being negative. It's just my opinion after spending considerable time reading the posts here the general attitude towards people trying to enter the business (like myself) is negative. I refuse to believe that I can't be successful if I work hard and do the right things. I believe that to be true for anybody.

I understand that the turnover rate in this business is extremely high. Not everyone is cut out for it. I applaud anyone who has made it because I know what kind of work ethic he or she must have.

I think instead of everyone saying "there is no way you can make $50k your first year out" maybe they should say "if you visit x amount of business owners on a daily basis you will find success"
Because thats a fact isn't it? If someone where to cold walk 50 businesses a day, assuming they are a half way decent sales person, the money will come. I know several people that work at the same company I am starting with that have done that. Started with nothing and made there way to $70-100K incomes.
These are people I know outside of the business as well, so it's not just a sales pitch.

I understand I am new at this, and most everyone here is more knowledgeable than I am. But I have had several successful sales careers before this one, and one of the most important things I learned from them was having and keeping a positive mindset. Any new or prospective agent that comes on this board most likely isn't going to be leaving with one.

As a matter of fact, I'm not really leaving with one so maybe it's time for me to leave

 

[DHK]

Gee... if you can't take it online, what would happen in the real world?

The fact is that insurance sales IS hard... and sometimes the idea of a steady income is more appealing than 100% commission only.

AND, just because you walk into a bunch of businesses, doesn't mean you'll get paid immediately. Yes, success WILL come... but you have to be consistent and be able to weather the storm while you're building your client base.

For some people, their greatest asset right now is a job. It's not their ability to earn an income - because there's LOTS of unemployed people who can earn an income. And if you're going to give up a JOB to go into this business, you need your eyes wide open.

Yes, the opportunity is incredible and it calls to the adventurer like a siren song. But if you fall for the "trance of the opportunity", you could make an uninformed decision and not be able to find work for a long time. Jobs are difficult to just be selected for the interview... let alone get hired for!

It must be a carefully weighted decision.

 

[Josh]

No as in it wouldn't be wise? Or no, as in yes?

Even if the 40 leads/month were free, 10 leads/week probably isn't enough to live off of while paying bills, but it's certainly not enough to match the money made at a state job with benefits. If they were free and there were 40 leads/week coming in, then that's an entirely different story. Under that scenario there is a reasonably good chance an agent could at least break even against the state job.

 

[Full Throttle]

I've been weighing the pros and cons of entering the insurance business, mainly to sell insurance online (virtual agent?).

I think you will have a tough time with that business model. Even if you do replace your income, I personally think you are short changing yourself a lot of dollars in the future setting up shop that way. JMO.


Here is the good news and the bad news:

Good news: if you actually work from 9am to 4pm seeing people or fighting to see people, have a proven approach to get in front of people, you can absolutely make it in the life insurance business. You may not replace your entire income your first year (maybe you will), but definetly by year 3 if not sooner and you will be a much happier person. You can work 12 hour days and fail if you aren't seeing people or fighting to see people.

Bad news: if you don't spend 9am to 4pm seeing people or fighting to see people out of the gate, you will fail. If you don't use proven techniques to find life insurance buyers, you will fail. You will be miserable, you will do harm to yourself financially, and you will need to find a new job in a tough economy.

Definition:
Seeing People or Fighting to See People: you are in a meeting with a potential client or you actively calling on people to set approach meetings.

Not included:
Computer work
Product Training
Processing Paperwork
Putting Together a Plan
Insurance Forums
Chamber Meetings
Bathing Your Cat
Ect.

 

[rjm63]

working my tail off, state agency

Something does not add up here...any clue?

 

[houcoogster]

I wasn't saying that any one particular member was being negative. It's just my opinion after spending considerable time reading the posts here the general attitude towards people trying to enter the business (like myself) is negative. I refuse to believe that I can't be successful if I work hard and do the right things. I believe that to be true for anybody.

I understand that the turnover rate in this business is extremely high. Not everyone is cut out for it. I applaud anyone who has made it because I know what kind of work ethic he or she must have.

I think instead of everyone saying "there is no way you can make $50k your first year out" maybe they should say "if you visit x amount of business owners on a daily basis you will find success"
Because thats a fact isn't it? If someone where to cold walk 50 businesses a day, assuming they are a half way decent sales person, the money will come. I know several people that work at the same company I am starting with that have done that. Started with nothing and made there way to $70-100K incomes.
These are people I know outside of the business as well, so it's not just a sales pitch.

I understand I am new at this, and most everyone here is more knowledgeable than I am. But I have had several successful sales careers before this one, and one of the most important things I learned from them was having and keeping a positive mindset. Any new or prospective agent that comes on this board most likely isn't going to be leaving with one.

As a matter of fact, I'm not really leaving with one so maybe it's time for me to leave

This guy already has 50k job with awesome benefits, why should he leave to maybe make 50k in two or three years. If you think we are being negative I suggest he ask his Mom ;Hey, Mom guess what? What son? I just quit my job with the state to be an independent insurance agent! you fill in the blanks _____ ____ ____ ____ ___

 

[rjm63]

Bathing Your Cat

...thanks for the chuckle