insurance sales gig

rayray · Jan 7, 2008

anyone ever been involved in selling insurance? i have a close friend who was promoted at his job and he is in charge of hiring a few more reps. he will be in charge of distributing the leads so i feel that i will have a huge advantage over others. this is the only reason why i might be interested. he just called me tonight about it.

what is the process? i know i will have to get a license and all that stuff. anyone here been involved in this line of work that can kinda fill me in on what i might be getting into before i have this sitdown meeting with my buddy in a few days. they sell to people who cant get insurance from the bigger companies btw.

gavin · Jan 7, 2008

I am in the business as an underwriter...As an independent agent working at an agency you will get most of your business from walk ins. The first thing you should do however is become the rep for all of your friends and family. Its usually about a 30% rip on first year policies with about 3% on renewals. Thats personal lines though. If your working commercial lines, the premiums are much higher so the rips are bigger. You will need a state license. The test isnt too hard..lots of terminology..endorsements etc...

shiz · Jan 7, 2008

Stay away from the insurance biz. lots of turnover(for a reason).

FozzyB · Jan 7, 2008

The insurance sales business is tough. What will your salary be, straight commission or split? It's one of those jobs you absolutely have to hustle everyday to bring home the bacon, no thinking I'll go to work and take it easy.
It helps if you have some financial support, i.e., girlfriend/wife to split housing costs, etc.

High attrition rate due to the above. Positives include residuals (built over time), sky is the limit on earnings and dealing with people daily.

Good luck either way

PBR · Jan 7, 2008

I've been in insurance sales for 23 years. It's a tough business, no doubt...but that's why those that make it are paid so well. I've hired dozens and dozens of agents over the years...like shiz said, turnover is high. The life of a typical agent goes something like this:
at first agents do well simply because they're excited.
Then the enthusiasm tapers off, and the agent struggles.
Then the agent starts inventing excuses, finding something to blame and also finding reasons not to go to work...and eventually decide insurance is not for them.

The best way(in my opinion) to make good money and enjoy it is to make a determination that you want to get to where you don't have to sell anymore...in other words getting into sales management and making your income off overwrite commission from agents that you hire, train and motivate. My time at this point is spent in those activities, and I only go sell on my own when I deide I want to. I enjoy those activities better and thus there's less chance of burnout.The absolute best thing of all is as Fozzy mentioned the residual income. One last thing, I'm not sure if you'd be an employee or an independent contractor...but as an independent of course you're responsible for your own benefits (insurance, savings, etc) and especially sending in taxes on your own, I've seen alot of good agents get into trouble tax-wise over the years because of a lack of discipline.
Hope this helps.

Timetopay · Jan 7, 2008

PBR said:
I've been in insurance sales for 23 years. It's a tough business, no doubt...but that's why those that make it are paid so well. I've hired dozens and dozens of agents over the years...like shiz said, turnover is high. The life of a typical agent goes something like this:
at first agents do well simply because they're excited.
Then the enthusiasm tapers off, and the agent struggles.
Then the agent starts inventing excuses, finding something to blame and also finding reasons not to go to work...and eventually decide insurance is not for them.

The best way(in my opinion) to make good money and enjoy it is to make a determination that you want to get to where you don't have to sell anymore...in other words getting into sales management and making your income off overwrite commission from agents that you hire, train and motivate. My time at this point is spent in those activities, and I only go sell on my own when I deide I want to. I enjoy those activities better and thus there's less chance of burnout.The absolute best thing of all is as Fozzy mentioned the residual income. One last thing, I'm not sure if you'd be an employee or an independent contractor...but as an independent of course you're responsible for your own benefits (insurance, savings, etc) and especially sending in taxes on your own, I've seen alot of good agents get into trouble tax-wise over the years because of a lack of discipline.
Hope this helps.

We in the same damn biz.No wonder we get each others jokes....

What sides are you on?

PBR · Jan 7, 2008

sombitch, TTP...I knew there was something classy about you.

Actually, I sold nothing but supplemental health for the first several years (cancer policies, accident policies, etc). Never considered myself a "real" insurance guy, just a hell of a salesman that happened to be selling insurance. The last several years it was worksite sales through payroll deduction. Ran a team that covered the eastern half of Ohio. Left in June of '06...been a broker ever since, liscensed with quite a few companies doing mostly senior stuff (medicare sups, medicare advantage, final expense, PDP plans). Not liscensed for P&C. How's that for a quick answer? How about you?

rayray · Jan 7, 2008

thanks for the info guys. imma go check out their seminar and have lunch with my buddy tomorrow. im sure he will fill me in on if this is something worth making a career change over. i know he has some young guys(mid 20's) that are gonna pull in around 40k and more this year selling strictly health insurance to people who cant get it anywhere else.

nhoj · Jan 7, 2008

Just a little FYI if you call me I will hang up on your ass. That is how your 1st day will be.

Timetopay · Jan 7, 2008

PBR said:
sombitch, TTP...I knew there was something classy about you.

Actually, I sold nothing but supplemental health for the first several years (cancer policies, accident policies, etc). Never considered myself a "real" insurance guy, just a hell of a salesman that happened to be selling insurance. The last several years it was worksite sales through payroll deduction. Ran a team that covered the eastern half of Ohio. Left in June of '06...been a broker ever since, liscensed with quite a few companies doing mostly senior stuff (medicare sups, medicare advantage, final expense, PDP plans). Not liscensed for P&C. How's that for a quick answer? How about you?

I got my series 7 at 19 years old as I thought thats the way I wanted to go. Went to work at basically a boiler room and hated it. So got into the employee benefit side. Mostly Health and the ancillaries. Been doing it I think about 12 years. Dont do much of the supplemental Aflac stuff. Still got alot of clients but mostly work with others at this point in the agency having meetings and going on thier calls to help close. Got about 30 of us or so at the agency so pretty decent size.

How are the markets by you?

PBR · Jan 7, 2008

Timetopay said:
I got my series 7 at 19 years old as I thought thats the way I wanted to go. Went to work at basically a boiler room and hated it. So got into the employee benefit side. Mostly Health and the ancillaries. Been doing it I think about 12 years. Dont do much of the supplemental Aflac stuff. Still got alot of clients but mostly work with others at this point in the agency having meetings and going on thier calls to help close. Got about 30 of us or so at the agency so pretty decent size.

How are the markets by you?

So you're one of those real professional insurance guys I was talking about. I did sell the "Aflac" stuff, but it was with a competitor of theirs (Conseco)

When you ask about the markets, do you mean population centers near me, or do people have money to spend, or what?

boatboatboat · Jan 7, 2008

I am a captive life agent with a fortune 500 company, have been for 19 years now. Have a 6/63/7/26 and a health and life.

I was a mgr for 5 years but went back into personel production. At the end of the day I wanted to help people, and that was hard to do by sitting in an office shuffling papers. The real fun IMO is out in the field, doing the actual selling.

For what ever reason it sems that many try to get into a postion where they can make an income by having others under them do the selling? I guess they think is the easy(lazy) route.

For me, the most rewarding route is the day to day selling. As far as getting business from walk ins, that simply won't happen in the life end of the bizz. I am sure for Car/ Home (pc) that is true, but not the life/investment aspect of the industry.

To the O.P., if you are thinking this is the job for you cuz your boy will hook you up with all the bomb diggety leads,........well I give you about 6mths prior to you bailing out.

Huge turn over amoung agents. National averages show that for every career agent (last 10 years are longer), there are aprox 140 people who fail.

The income can be very solid, but for me it is the freedom of time. Many agents make more then i do, but after 19 years I have things established in such a way that I am able to work less then 15 hours per week, and still do quite well. (drives my wife crazy).

I will say this, be ready your first 5 years to work your ass off, and work MANY MANY nights if you really want to make it. That is the ONLY way to see that you will become the one in 140 that makes it.

My income breaks down as such.

30% from new business written this year

30% from business that is 2/3/4 years old (still pays a 15% renual)

40% from business that is over 4 years old, or trails from securites sales.

One last thing, do some research on your home boys company. You will if you take this job making clients promises backed by THAT company, I suggest you learn how they stack up. I woudln't work for any company that was rated any less then AM Best top 3 ratings.

GL

PBR · Jan 7, 2008

Tri-boat...I agree whole-heartedly with you about working your ass off for 5 years. In any field of outside sales that's about what it will take to become a professional salesman. But i have to take issue with management being the lazy or easy route. I work my ass off for any agent that is willing to learn and work themselves. Lots of training, working with them in the field, putting out fires for them, etc. I still go into the field myself whenever I choose to stay sharp and because I still enjoy it. But selling fulltime , at least for me at this point in my career, is not appealling anymore.

Timetopay · Jan 7, 2008

Pbr Me And You One On One On A Sales Call.

Who Wins?

PBR · Jan 7, 2008

Timetopay said:
Pbr Me And You One On One On A Sales Call.

Who Wins?

Sorry Dog, but I'd get ya every time. :toast:

boatboatboat · Jan 7, 2008

Timetopay said:
Pbr Me And You One On One On A Sales Call.

Who Wins?

Depends.

If the client is a 74 year old widow, I would lean to ME getting the sale.

I will do what ever it takes to get the sale.

PBR · Jan 7, 2008

boatboatboat said:
Depends.

If the client is a 74 year old widow, I would lean to ME getting the sale.

I will do what ever it takes to get the sale.

I'd sleep with her...you willing to go that far, boat?

boatboatboat · Jan 7, 2008

PBR said:
Tri-boat...I agree whole-heartedly with you about working your ass off for 5 years. In any field of outside sales that's about what it will take to become a professional salesman. But i have to take issue with management being the lazy or easy route. I work my ass off for any agent that is willing to learn and work themselves. Lots of training, working with them in the field, putting out fires for them, etc. I still go into the field myself whenever I choose to stay sharp and because I still enjoy it. But selling fulltime , at least for me at this point in my career, is not appealling anymore.

Did you tire of making phone calls, knowing your check was 100% tied to what YOU DID?

I imagine you did.

But it sounds like you DO work very hard, your agents are lucky to have you.

I haven't been on a joint sales call(with mgr) in years, unless it's me with a new agent.

PBR · Jan 7, 2008

Just kidding...I can sell like a mofo, and I'm sure you guys can too.

Timetopay · Jan 7, 2008

boatboatboat said:
Depends.

If the client is a 74 year old widow, I would lean to ME getting the sale.

I will do what ever it takes to get the sale.

Actually my specialty is 40 to 50 year old female office managers/comptrollers.

When I first started they thought of me as like a son now they want to sleep with me.... (atleast i think they do)