Hellokitty
New Member
- 3
I agree. Being a insurance sales person is like being a sole proprietor. You have to know your product as well as your customers needs. Maybe he needs a confidence boost.
Ninety-Two Percent of All Agents Fail - Why?
- Thread starter JacquesWerth
- Start date
- 14,809
The only way the failure rate will even be slightly improved is if obtaining a license was a 3 month course. I think the bare minimum would be a six week course costing at least $1,000...to start the bidding.
That would kill a lot of the riff raff from coming in - absolutely would prevent broke agents from coming in looking for a commission check next week.
Just the fact that you can "study online" for the insurance exam equates this industry to getting degree from the "University of the Bahamas."
That would kill a lot of the riff raff from coming in - absolutely would prevent broke agents from coming in looking for a commission check next week.
Just the fact that you can "study online" for the insurance exam equates this industry to getting degree from the "University of the Bahamas."
- 1,802
- 14,809
It would also put companies like Mega out of business. First of all, it would kill their recruting - no way can they wait 6 weeks to 3 months for an agent to get licensed.
On top of that, after that much training, agents would come out of training with so much information they'd never end up selling products like that.
I have no idea who it was that decided selling insurance was such a complete joke, you could just buy a book and sit for the exam.
In MD a whopping 2 whole days is required for pre-licensing. Wow...2 days. Those two days consist of an instructor basically telling people what's on the exam.
I have no idea how some of these agents even passed the exam; they cannot read, write or speak properly - hard to believe they graduated high school none less got through the insurance exam.
I think if the exam had a grammar section we'd see an 85% exam failure rate.
I guess we need to change this industry as the default for "well, I suck at everything else, am dead broke so I guess I'll slum it and sell insurance."
On top of that, after that much training, agents would come out of training with so much information they'd never end up selling products like that.
I have no idea who it was that decided selling insurance was such a complete joke, you could just buy a book and sit for the exam.
In MD a whopping 2 whole days is required for pre-licensing. Wow...2 days. Those two days consist of an instructor basically telling people what's on the exam.
I have no idea how some of these agents even passed the exam; they cannot read, write or speak properly - hard to believe they graduated high school none less got through the insurance exam.
I think if the exam had a grammar section we'd see an 85% exam failure rate.
I guess we need to change this industry as the default for "well, I suck at everything else, am dead broke so I guess I'll slum it and sell insurance."
- 9,744
A friend from the board recently sent me the following, authored by Robert Krumroy in the GAMA Journal. Truly the definitive piece on the state of agent failure and retention. An excerpt:
"Tragically, most new agents to the financial service business are still being trained like Navy Seals: “Be proud to be in the organization. You will be trained to attack. Some of you will survive. Some will not. But the cause is noble. Always fight on. Never give up.We have a noble calling.”
This may work with young recruits for the armed forces, but as an adult, you will eventually quit or become so miserable that you wish you had another alternative. Why do you think that this business has an 11% retention ratio? It’s because of our lack of marketing systems (attracting customers) – not selling skills or activity supervision. We seem to eventually kill our own enlistees! We certainly don’t teach marketing correctly as an industry, nor do most companies know how to assist the local agent effectively. The result is: We have created agents who are moderately successful but still have no distinctive personal business image – no market separation – just another “me-too” professional. And that makes it hard to attract adequate business in today’s market."
"Tragically, most new agents to the financial service business are still being trained like Navy Seals: “Be proud to be in the organization. You will be trained to attack. Some of you will survive. Some will not. But the cause is noble. Always fight on. Never give up.We have a noble calling.”
This may work with young recruits for the armed forces, but as an adult, you will eventually quit or become so miserable that you wish you had another alternative. Why do you think that this business has an 11% retention ratio? It’s because of our lack of marketing systems (attracting customers) – not selling skills or activity supervision. We seem to eventually kill our own enlistees! We certainly don’t teach marketing correctly as an industry, nor do most companies know how to assist the local agent effectively. The result is: We have created agents who are moderately successful but still have no distinctive personal business image – no market separation – just another “me-too” professional. And that makes it hard to attract adequate business in today’s market."
- 14,809
Sales sucks when you're trying to pawn off any product that people are not naturally searching for. This would include:
1) Freezer plans
2) Cutco knives
3) Time shares
4) Patio enclosures
5) Most insurance products
People are more educated than we give them credit for. Things of value get "known" and become a "standard" and are sought out.
Things of little value to consumers (DESPITE what the sales rep believes) are not sought out and we have the standard "2 hours at the table with note pad presentation."
1) Freezer plans
2) Cutco knives
3) Time shares
4) Patio enclosures
5) Most insurance products
People are more educated than we give them credit for. Things of value get "known" and become a "standard" and are sought out.
Things of little value to consumers (DESPITE what the sales rep believes) are not sought out and we have the standard "2 hours at the table with note pad presentation."
- Thread starter
- #87
JacquesWerth
Expert
We have been training insurance agents to sell since August of 1989. Most of them are still in the business and some of them are among the most successful in the country. Here are some of the reasons they do so well.
They selected one target market and have become experts in that market. They know what the people in their target market buy and why. As the agents grow (and age) they upgrade to wealthier niches within their market.
They know how to find and make appointments with prospects when they are ready, willing and able to buy. They only meet with the prospects who have made a "conditional commitment" to do business with them.
They call a large list of prospects and clients every three to four weeks and speak to each of them for an average of 35 seconds. That creates "favorable front of the mind awareness" for them, which eventually results in the agent getting almost all of their business.
They mail inexpensive direct marketing cards to their entire list every two months to keep their name in front of their niche market.
They develop deep relationships of mutual trust and respect with almost all of their prospects and customers at the begining of the first meetings. Note: This is very different from what most agents know of as “building rapport.”
They immediately determine the exact buying intentions of the prospects they meet. If they can not satisfy the prospect’s requirements they say so immediately. If they can, they briefly explain their solution and ask for a conditional commitment before they go on.
With the commitment, they go through a 20 step combination of presentation and close, which gets commitments at every step. Then they have the prospect create and close the sale. There is no discomfort or pressure for either the prospects or the agent.
They seldom need to make more than two appointments to close the sale.
How many of those things do you do consistently and well?
They selected one target market and have become experts in that market. They know what the people in their target market buy and why. As the agents grow (and age) they upgrade to wealthier niches within their market.
They know how to find and make appointments with prospects when they are ready, willing and able to buy. They only meet with the prospects who have made a "conditional commitment" to do business with them.
They call a large list of prospects and clients every three to four weeks and speak to each of them for an average of 35 seconds. That creates "favorable front of the mind awareness" for them, which eventually results in the agent getting almost all of their business.
They mail inexpensive direct marketing cards to their entire list every two months to keep their name in front of their niche market.
They develop deep relationships of mutual trust and respect with almost all of their prospects and customers at the begining of the first meetings. Note: This is very different from what most agents know of as “building rapport.”
They immediately determine the exact buying intentions of the prospects they meet. If they can not satisfy the prospect’s requirements they say so immediately. If they can, they briefly explain their solution and ask for a conditional commitment before they go on.
With the commitment, they go through a 20 step combination of presentation and close, which gets commitments at every step. Then they have the prospect create and close the sale. There is no discomfort or pressure for either the prospects or the agent.
They seldom need to make more than two appointments to close the sale.
How many of those things do you do consistently and well?
- 9,744
I have no basis to dispute your claim.
However in the eighteen years I've been in the business, I've never met one, bumped into one, talked to one, or heard one extolling the virtues of your system.
Good news - especially these days - spreads like wildfire. Is it some sort of secret society or something?
- 1,118
John, Paul, dangit, stay on topic! What type of underwear do you prefer?
- 7,790
I heard a rumor that Al's jock strap is homemade. It consists of half a peanut shell and a rubber band. Al, tell me it isn't so!
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