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Exodus of Insurance Agents Resembles Ancient Red Seas Crossing

Jul 18, 2008
We are going to reveal straightforward information to you. An insurance agent should not be your occupation of choice. The cards are so stacked against you, and your insurance company and office get to pick the cards. Even if you chose the right card, you would not be the winner.

This year alone, nearly 250,000 agents throughout all the state will become licensed. The next generate into the ranks of annuity, health, and life insurance agents. None of them will first read this factual report. We challenge any career insurance agency to provide prospective agents with a copy of this report.

Starving insurance agents are in all major cities of the United States. Every year over 200,000 newly licensed agents will give up. They can not make enough money. Imagine than in 4 years, for every 500,000 people that made an effort to make selling insurance a career, only 3,000 agents will move up to experienced status. Who is going to help them survive from here on?.

Forget the career insurance agency that hired them

Remove a half a million insurance agents right now? Sure it would solidify the base of all the other 1,000,000 agents greatly. We do not need more insurance agents. Instead use the agency sales managers to Currently licensed and classified active, are over 1,500,000 life and health insurance agents appointed with over 2,000 insurance companies within the United States. Eliminating these 500,000 surplus rookie agents today would strengthen the existing insurance agent system. New insurance salespeople are either improperly trained, should have never been hired, or have developed an insufficient

Few businesses outperform insurance companies in writing compelling ads. These ads appearing in Sunday classified sections of newspapers look incredible. Chock full of desirable features on training, advancement, and income potential, they create an abundance of responders. The sales manager's week consists on interviewing, final interviews, license assistance, and preparing the newly contracted agents on sales procedures. However the sales manager is not trained in who to hire. Instead he just concentrates on hiring, and often the wrong candidates are chosen. Without assistance or time devotion from the sales manager, they quickly depart for a more sincere opportunity.

Another 25% of non survival goes to insurance agent recruiters for providing false concepts, and very poor and insufficient training. Most newly licensed agents anticipate easily obtaining incomes exceeding $40,000 to $70,000 their first year. Our intense studies show less than 7% of these rookies ever obtain that level .in 4 years! In fact, if most insurance agencies did not money subsidize their newer agents; the first year income of a new insurance agent would be under $20,000. A newly licensed agent blindly enters the insurance business. Being told by the sales manager of the great income potential is very misleading. Here you have the agent anticipating a $40,000 to $70,000 income. Instead the salesperson is more likely to earn closer to $20,000 or less. Plus after putting so much gas in the car, and driving so many miles, makes this figure rapidly shrink. When the bills get too high to handle, the agent knows he was duped. It is soon afterward the salesperson is out the door.

When one agent leaves, another one is quickly licensed to take his place. The agent before departing has written an average of 50 to 100 life insurance policies. When these life insurance policies renew, the life insurance agency and company both benefit. The life insurance company collects $50,000 to $100,000 in premiums on all policies that renew. Each year they receive this without paying any additional acquisition costs.

How do you predetermine a success chance factor? Well first realize when the agent is hired may be squeaking by, living from paycheck to paycheck. Next is the agent an order taker, or a product seller? Will the agent be able to sell to the clients the manager expects him to? Can the agent find enough clients to sell?

What is ideal is not always realistic. Pushing agents to immediate sell very large life insurance policies to successful business owners is an example. This is ideal for the benefit of the insurance company. However for the agent it is usually not realistic.
About the Author
On an annual basis,, over 2000,000 agents find financial reasons forcing them out of their insurance career. The agency has no remorse for their lack of recruiting agents and improper training. When the agent quits everything changes. Now the insurance company collects 100% of all premiums, plus many years of future renewals.
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