If you have made a decision to build a career selling insurance products, congratulations. You have made a choice that can positively impact your future, your finances, and your family.
I wish I didn’t have to tell you but you have also made a decision to introduce one of the hardest experiences you will have in your life.
Disappointment. And why am I saying that?
Because the longer you stay in this business the more likely you will be to say “I am ready to quit selling insurance”. But why? Why do well over 80% of the agents that get their license and work for insurance companies quit within the first year? Let me give you a few reasons to consider:
1) Rejection by potential customers – you will need thick skin to make it in this business because you will hear the phrase “no thank you” so many times you will begin to think it’s your first name. People don’t typically run out to buy insurance. They have to be convinced that it is something they should seriously consider now. The one customer who knows for sure insurance is important is the person who has experienced firsthand either death or illness with no insurance. That will not be the majority of your customers so they will say no often. Get us to it!
2) Financial Insufficiency – most insurance companies are extremely rich. A large part of that reason is they are an industry that gets most of their business from salespeople but they guarantee no wages. If a salesman doesn’t make a sale, he doesn’t get paid. This means that as a salesman you must have the financial resources to go to work everyday, keep your car running, pay for a phone service, wash your clothes so you look nice in front of customers, pay your household bills and eat while not getting a dime for your efforts. Most of us cannot afford to go to work every day and handle the expenses of living with no money coming in.
On some policies, you can get paid rather quickly while others take weeks. So a new agent is expected to do all he has to in order to write and submit business. Yet he gets no money. It’s not long before he is out of the insurance business and taking a job with more financial stability.
3) Managerial Incompetence – one of the hardest challenges for a sales agent is to be working under an incompetent manager. Many times insurance companies promote managers from salesmen who did well in sales. However sales and management are two different animals. You can be an excellent salesman but not know the first thing about management. I have worked under managers who thought their job was to push you to sell. Salesmen need guidance in their careers to keep them focused on the goal; make money as quickly as possible.
Don’t quit. Find out how to win and fight until you do.