Why insurance agents fail 92% of the time in their first year is a common and recurring problem in the industry. In this article we will discuss why insurance agents fail at a rate of 92% in just their first 12 months. We will also discuss how you can be in the 8% who succeed as an insurance agent.
Who am I? I’m Robert Falk, the principle broker for VIP Health Insurance and mentor to new agents. I have been in the insurance industry for many years. I have trained and mentored many agents who have had successful careers as insurance agents. I not only train and mentor new agents, but I also practice what I preach; I am still an active sales agent and constantly building my book of clients. Enough about me, lets talk about why people become an insurance agent in the first place.
Why Do People Become an Insurance Agent?
The insurance industry attracts a lot of people who like to help others, who like to build their own business, and who like to get paid based on their performance. I heard someone say that the insurance industry has created more millionaires than any other industry. I’m not sure if that is true or not, but it sounds fairly accurate. Being an insurance agent gives ambitious people the opportunity to build unlimited income while helping others. It truly is a win-win opportunity when you do it correctly.
Why Insurance Agents Fail?
There have been many studies and polls that have examined why so many insurance agents fail in the first twelve months of being an agent. A large number of agents, or former agents, will simply say that being an insurance agent just wasn’t for them. Even though that might be true to some extent for some people, that’s not exactly the root cause of why they failed or quit.
When digging deeper into the actual reasons why insurance agents can’t or won’t continue, it becomes obvious that there is a clear trend for why insurance agents fail. Each response, reason, excuse (whatever you want to call it) really comes down to something related to money.
It cost too much money to get started.
I spent too much money on leads.
I didn’t make enough money.
Is Money Really The Reason Why Insurance Agents Fail?
If someone wasn’t very good, but they some how made good money; are they a failure or a success? If someone performs horribly, but still made enough money to support their family; are they a failure or a success?
Is money really the reason why insurance agents fail in their first year? Kind of. But I believe there is a lot more to it than that. To be successful with any business, you have to have a business plan, that business plan is your blueprint for building a successful career. Insurance agents fail because they don’t have a feasible blueprint for success.
Insurance agents fail because they don’t have a FEASIBLE blueprint for success.
What Does a Feasible Blueprint Look Like?
First of all, a blueprint for success might look different from one person to the next, but there should be some similarities that are important for everyone.
- A clear understanding and expectation of the daily functions of being an insurance agent.
- Having access to the right type of training that you need.
- Having access to the right type of resources you need.
- Having access to quality leads
- Having the right mentor agent
- Having access to all relevant carriers, so you can offer what is best for your client.
We know why insurance agents fail. Now lets focus on…