I would like to offer some insights as to why I believe such a high percentage of Insurance Agents fail in their first couple years in the insurance business.
There can be multiple reasons that contribute to a new insurance agents failure. Here are the most common reasons I have found that lead to failure.
- Most Insurance Agents have a Limited product portfolio and are unable to cross sell other insurance products.
- Agents don’t have a proven sales track or sales system to follow which most new insurance agents need to get results quickly.
- They don’t create consistent cash flow from insurance sales quick enough and must leave the insurance business to go back to an hourly paying job just to survive.
- New Insurance Agents start out in the insurance business with little or no reserves to fall back on. Most businesses require some upfront capital or reserves to get started.
- A lot of agents do not get enough training (Product or Sales) to give them a fair chance of making it in the insurance business.
- Insurance Agents are not taught effective prospecting and marketing techniques that generate a consistent flow of sales prospects.
- Some people simply don’t have the drive, work habits, persistence, self motivation or ability to handle rejection that it’s takes to survive in an insurance sales career.
From my experience of hiring and training insurance agents over the past 23 years, I have found the following items need to be present in order to maximize a new agent’s chances for success long term in the insurance industry.
- A quality multi-product portfolio to offer multiple insurance solutions when different needs are uncovered during the initial fact finding process with a potential client.
- A proven sales track and presentation that can be taught and implemented very quickly. One that gets sales results but also generates a generous flow of new prospects and referrals.
- An advance commission system that provides weekly cash flow so the new agent can focus on their training and sales, not their bills that are due.
- Tools that make learning and growing in the insurance business fun and automatic. (I.e. Archived Training Videos, Health and Life Quote Engines, Live Product and Sales Training Webinars, etc.)
- Quality contracts that provide immediate 100% vesting rights and commission growth opportunities to General Agent commission levels.
At National Marketing Group we have learned over the years the essential pieces that new agents need to not only survive but thrive in the insurance industry. Our mission statement says it all. “First, to offer the Independent Insurance Agent a support system that provides a platform for success in Insurance Sales. Second, to build long term relationships through a foundation of trust and commitment.”
We sincerely believe the 80%-90% failure rate of new insurance sales agents entering the insurance industry can be significantly reduced when the right agent support system is in place. We encourage you and invite you to join us in this very exciting and rewarding career opportunity. Hope to hear from you soon!