Life Agent Survival

[Bitnis]

I believe the "do not call" law has made this business much more difficult than it has ever been. I would have to guess that issue alone made prospecting for life insurance twice as hard as it was before it passed.

The captive companies recommend starting with your warm list. What else can they recommend? Direct mail would get them even worse results than the warm list. New agents don't know enough to talk with business owners. The public thinks they should be able to go on the internet and ask for you when the mood strikes them. Building websites and advertising is not going to get you off the ground.

For selling life insurance I think it needs to be made clear that your business depends on your ability to get referrals from the few policies you will sell elsewhere. Unless of course you can bankroll a lot of purchased leads to get started. A few will get lucky and do something else but to make a significant impact on the 92% number for life agents, referrals and purchased leads are a must.

I remember asking my NYL manager why our 30 year old top producer could do $700k per year when everyone else was barely making it. He told me it was because "he's just a nice guy." I believe captive companies have accepted the fact that they will have 92% turnover and their business plan includes throwing as much mud at the wall as possible. Apparently the model works better for them than it does for 92% of the agents.

 

[sdmink]

Here's my new agent perspective... (6 months in)

I work "captive" for MOO, although I'm not really captive. Do some work through BCH as well when our rates aren't in the neighborhood and I'm with a rate-shopper.

I agree with you that purchased leads are a must to learn the business. When you can get exclusive leads from your company, it helps a lot since you're not competing with seasoned phone agents.

Working with independent lead companies was very frustrating for obvious reasons, but all of the rejection just helps you grow if you have the sack to handle it.

Now that I'm a few months in, I'm doing some work with Associations that we're endorsed with, so it helps when you walk through the door of a business owner with some literature that has their association's name on it, and you can say "Your association has asked me to come show you your new member perks."

Life insurance by itself is hard to get referrals for, since most people see the netquote commercials and would rather do it all over the phone with the first person that calls them. That's why it's so important to spread your knowledge out and be able to offer DI, CI, Life, and retirement help.

You're right though... Don't know how you can just sell life nowadays unless you get exclusive leads from your company..

 

[BNTRS]

I believe captive companies have accepted the fact that they will have 92% turnover and their business plan includes throwing as much mud at the wall as possible. Apparently the model works better for them than it does for 92% of the agents.

Well think about this. We recruit you, we spend practically nothing on having you here, maybe a little money for an insurance exam and prep materials if we're nice. Maybe we'll even give you an outdated refubished computer that you have to give back if you leave--maybe I should have said let you borrow. We can probably print up some business cards with your name on them. We've spent...a couple hundred bucks?

You work a project 100 or 200 list and sell your closest friends and familiy members, perhaps pay for a couple thousand dollars in premium and then decide this isn't for you and you quit. We pay you the commissions for your business and if any of it lapses in the first year, we're going to send you a letter informing you that now you owe us money for the commissions we so generously advanced you. If on the other hand the business stays on the books, we keep collecting a check and most likely your renewals weren't vested so no agent to pay those to.

The insurance companies understand warm referrals real well. What better way to get a referral to someone than to have the referrer even go so far as to sell the product for you?

It's the same business model the door-to-door vacuum, knives, encyclopedia, etc. companies use.

If there is one thing you can be sure of about insurance companies is that they don't waste money. If the high turnover rate were really a costly problem, they'd have nipped it in the butt a long time ago.

 

[VolAgent]

The insurance companies understand warm referrals real well. What better way to get a referral to someone than to have the referrer even go so far as to sell the product for you?

And who knows, one out of a hundred might suceed and make a career out of it. One out of a thousand might even make their career with that company. One out of ten thousand might become the next MDRT producer.

I feel dirty now.

 

[magagent]

You should feel dirty

 

[Full Throttle]

Personal opinion: working friends and family can work, but it will not be enough for most people. I think to have a fair shot, you need to be writing at least 100 lives a year, even if they are small cases to start out. Over time you can upgrade your cases.

I've never been in the career channel, but know plenty of friends that have (most who are no longer in the business). My personal opinion, three things screw it up for rookies:

1. No one wants to be a life insurance agent, they're all "financial planners". Learn to survive as a life agent selling plain vanilla life insurance, then go back and help out with the financial planning piece later or on delivery. If you come in as a financial planner, no one knows what the hell you do.

2. I think the number one mistake is not asking enough people to review their life insurance each day. I would say 10 a day, F2F is the minimum, but 20 would guarantee success. I'm walking into smalll businesses only, but if I came in brand new, I would also bang on residential doors at night. If you don't feel confident selling business owners, bring someone with for joint work to learn. New Edward Jones reps don't do anything with their "warm market", they simply bang on doors and they have the highest success rate for rookies in the financial services business.

3. Not asking for introductions. It's very easy to get low key introductions to other business owners in the area. "Do you know Jim at ABC next door? When I stop in to introduce myself, would you mind if I mention we do business so I'm not a complete stranger?" Is that a referral? I don't know, but it makes it easier when talking to Jim.

I'm personally new to being a full time life agent, so that's my two cents. That being said, I'm on pace for over 100 lives placed this year.

 

[Bitnis]

Full Throttle, what percent of that is life?

 

[Full Throttle]

Full Throttle, what percent of that is life?

Of the lives I've written so far this year? Most of it, with a handful of DI cases and two LTC cases. I only count core lives into the mix: life, DI, and LTC. I still write health, but don't actively look for it and do not count it toward my 100 lives placed target.

 

[shortcut]

I think too many agents attempt to sell their clients everything at once. Having a good mix, even if they are smaller policies, will allow cross selling further down the road. Prospecting should get easier with time...

 

[Belmont]

Life insurance is a products for those people for whom life insurance is a business. It is a wholesome referral actions. So here the first target is most important. Once you do the first insurance policy you need to ask this particualr person to do the favour for you like the same way. You have to make a nice networking and to keep faith in all of your insurance policy holder. almost 90% agent do this business this way.