Why do new insurance agents fail so often?

by Guest » Tue Sep 15, 2009 09:13 am

What could be the main causes of our failure when we join this profession of
becoming an insurance agent?

Total Comments: 34

Posted: Tue Sep 22, 2009 07:39 pm Post Subject: Cash flow

I've seen many agents over the years fail because they just didn't have the cash to carry them through the beginning years.

Point at hand, I'm currently witnessing a good friend of mine loosing her agency right now. She opened the agency less than a year ago and within months started taking salary. When things started getting tight, the first thing she cut was advertising, then couldn't understand why the business wasn't pouring in. Then she laid off the producer because "It was my mortgage payment or you." So now it's a one man shop where she is required to do all the servicing and the selling.

Any new business is going to need some time before income can be taken out of it.

Posted: Wed Sep 23, 2009 07:02 am Post Subject:

It's always tough for people to generate a whole new database of productive clients.
It's more so if they're not self-motivated or if they succumb to denials from prospects. In order to succeed, they'd certainly need to develop proper working habbits.

Posted: Wed Sep 23, 2009 04:50 pm Post Subject:

I think it is a good idea to purchase a book of business if you have the money when opening a new agency.

Posted: Fri Sep 25, 2009 12:04 am Post Subject:

It is quite simple, really. New insurance agents fail because they refuse to do what successful agents do.

A successful agent must have excellent organizational skills and effectively manage his/her time.

A successful agent understands that no matter how many fancy products he/she has, none of them are any good unless he/she can sit face to face with a prospective client.

A successful agent understands that he/she will never have all the answers, but will always know where to find the answers.

A successful agent understands that is almost impossible to establish a belief in a product unless he/she would buy the product(s) themselves.

A successful agent understands that the only way to get an afternoon or day off is to earn it.


Posted: Mon Oct 05, 2009 01:34 am Post Subject:

I think that most agents get poor training, are under capitalized and don't realize that they are essentially in business for themselves.

The poor training means that they don't make sales until they figure out more of the business on their own.

Under capitalization means that they can't stick around long enough to learn enough to be successful.

Believing that they are a regular employee leads to them thinking that someone else is responsible for their success or failure. You've got to be responsible and in charge of every aspect of your life as an insurance agent.

You have to make sure that you learn enough whether training is available or not. You have to create a system that works and that will generate sales. If your boss can't help you, you have to do it on your own.

Posted: Wed Oct 21, 2009 06:03 pm Post Subject:

LIMRA dictates that 90 percent of agents that fail is because they fail to prospect. I found this to be true in most cases but there is an underlying issue and that is prevalent. The fear of rejection is what seems to be the reason agents don't prospect. The ones who are successful realize the immobilazation of fear and face it because they know this is the only way to be successful.

To many times have I seen agents be successful with obvious disadvantages and at the same time others fail when they have every potential to be successful. The only difference is the previous agent is out meeting people and asking them for the sale.

No matter what try, purchased leads, training in prospecting, product training or working with a senior agent, if you don't prospect on your own you will fail.

Posted: Mon Oct 26, 2009 12:13 pm Post Subject:

It also helps if you are willing to work double time the first year. Also, many agents overlook the most obvious things like returning phone calls.

Posted: Mon Oct 26, 2009 12:13 pm Post Subject:

It also helps if you are willing to work double time the first year. Also, many agents overlook the most obvious things like returning phone calls.

Posted: Fri Oct 30, 2009 03:59 pm Post Subject: why agents fail

I am in my second year and struggling A LOT. In trying to be objective -- most of all I'm not seeing enough people!! I have resorted to buying leads, orphan clients, etc, and not having good results. I do think the economy is not helping, and I feel I do have a limited product line and not a lot of support from my manager. Am I just making excuses? I think P & C might give me access to more clients than just life and health and am thinking of changing companies -- but my confidence is in the tank -- will I fail again?

Posted: Sat Nov 14, 2009 05:49 am Post Subject:

I BELIEVE, SOME AGENTS FAIL BECAUSE THEY DONT HAVE A CLUE OF WHAT THE BUSINESS CONSIST OF AS FAR AS AN E&O Insurance, Trust Account, Monthly Office Lease, City Permits, and Most Important What companies they have to work with..........etc.

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