I’d like to offer some insight as to why I believe such a high percentage of insurance agents fail within their first two years in the insurance business.
There can be multiple reasons that contribute to the failure of a new insurance agent. These are the most common reasons I have found that lead to failure.
- Most insurance agents have a limited product portfolio and cannot cross-sell other insurance products.
- Agents don’t have a proven sales follow-up or sales system that most new insurance agents need to get results fast.
- They don’t create a steady cash flow from insurance sales fast enough and must leave the insurance business to go back to an hourly job just to survive.
- New insurance agents start out in the insurance business with little to no reserves to fall back on. Most businesses require some initial capital or reserves to get started.
- Many agents do not receive enough training (Products or Sales) to have a fair chance of succeeding in the insurance business.
- Insurance agents are not taught effective prospecting and marketing techniques that generate a steady stream of sales leads.
- Some people just don’t have the drive, work habits, persistence, self-motivation, or ability to handle rejection it takes to survive in an insurance sales career.
From my experience recruiting and training insurance agents over the past 23 years, I have found that the following elements must be in place to maximize a new agent’s chances of long-term success in the insurance industry.
- A quality multi-product portfolio to offer multiple insurance solutions when different needs are discovered during the initial research process with a potential client.
- A proven sales lead and presentation that can be taught and implemented very quickly. One that gets sales results but also generates a generous flow of new leads and referrals.
- An upfront commission system that provides weekly cash flow so the new agent can focus on their training and sales, not on 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 up 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, offer the Independent Insurance Agent a support system that provides a platform for success in Insurance Sales. Second, build long-term relationships through a foundation of trust and commitment.”
We truly believe that the 80% to 90% failure rate of new insurance sales agents entering the insurance industry can be significantly reduced when the proper agent support system is in place. We encourage and invite you to join us in this exciting and rewarding career opportunity. Hope to hear from you soon!
