Is It Worth It for an Independent Agent to Obtain an MBA?

[moonlightandmargaritas]

Given that I generally work with Medicare clients that's pretty much the last thing I need to think about.

You're saying it's a little dry?

Of course, I'm not as old as you.

Ummm...not sure about that. Wanna match birth certificates (provided you don't have a phonyed-up Hawai'i one like Obama...)? Donald Trump can referee...

 

[GeminiGroup]

Why do you feel that an MBA would know less about insurance than a high school dropout? What are you are you basing this off of?

My argument is based on our industry sells first on price rather than product/service, I feel the reason for this is the ease of entry, you don't have to have a track record of learning to get into insurance vs. being a CPA, Dentist, etc who are required to get degrees before they can open a practice. These professionals that require a degree rarely sell on price, they don't play the quoting game, instead it's "come into my office..." Insurance professionals don't get the respect these other professions get and if we did, price would be a secondary factor. Again, I seeking a reply so I better understand your position and where you are coming from. Thank you.

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Ok here's your counter-point:

a) Education obtainment DOES NOT equal mastery in sales or running of a business.
(Ask many great lawyers and doctors about the 'training' they got on how to 'market' there great services and they will tell you how much their 'education' caused the practice to thrive vs learning how to SELL & market )
Grabbing an MBA or a B.A. for that matter, guarantees NOTHING in terms of success ratio in this business, nor does passing the state exams.
A very few schools offer degrees with Entrepreneurship, as a MAJOR...some offer classes but not as a major and even those programs don't seek to prepare one for THIS type business, they seem to 'case study' what HAPPENED, more like a HISTORY lesson vs actual 'learning'...we can all STUDY the Civil War....that ain't gonna MAKE us soldiers.

Of course 'studying' is great but it isn't a 'golden ticket'...many, many people have read and studied 'other' people's great accomplishments but it didn't lead to their success.

b) You are correct in that 'some' products that insurance agents can make a living selling have been 'reduced' to commodities but that isn't BECAUSE of the education level of who can sell it.

It has more to do with the marketplace and timing, (boring stuff learned in b-school like a product's evolution and maturity...I don't want to lose anybody so I'll leave it at that) for example....

For many folks auto insurance or term life may seem like more of a commodity (that is 'what's the price and can I get it cheaper')...however the 'hole' in your position regarding this only happening in 'low barrier" to entry professions is flawed in that many people feel the same way about 'mature' offerings like 'dental work' or even 'plastic surgery' both of whom require a bit more hoops to be jumped prior to slapping up a shingle.
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And please don't 'defend' the position by saying "you'd never" because YOUR personal feelings aren't important...the marketplace decides which products and services look and feel like commodities & as they mature in the marketplace....industries fight hard to prevent it...and in many cases the success of the industry actually causes items to be looked at as commodities.

I.E.....Laser eye surgery,divorce lawyers and Bankruptcy attorneys get 'shopped' just like a P/C agent...as a matter of FACT these 'highly educated' people are WAY more likely to DISCOUNT their "Quote" during 'the quoting game' as you call it.

These "high barrier" to entry 'peddlers'..... that went to medical school and law school more than RARELY, obtain business on price, my friend....
Doctors pitch 'financing' and 'pimp' insurance billing codes to compete on price. Lawyer pitch 'don't pay unless "We, win" type schemes based on price. (Wash off the lipstick...it's still a pig)

How is a guy that markets himself with 'let me see if I can help you with what THE INDUSTRY has to offer (no budge on pricing... it is what it is) vs a guy that says "Don't worry about paying me, ANYTHING, unless....." better or PROVED he's more willing to LEARN his business?
Answer, he isn't.......he just works in a different sandbox but it's still dirt, buddy.

A motivated hard worker will learn his 'craft' and execute his profession well and a schmuck will be a schmuck.....with a diploma or a MBA or a JD.
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Your playing a game of 'it must be true, because'. Many of our Congress, people went to law school that doesn't mean our most successful or best Congress people are lawyers...nor does attending law school in and of itself make one a better candidate for the job.


The OP's question is kind of like asking IF 'rose peddles' on the bed are a 'NEEDED' enhancement ....
Sure it might not hurt and if YOU want to it ain't gonna 'kill the mood' (unless she has allergies).....
having 'rose peddles' upstairs might be nice but ...

HOW ARE YOU GOING TO GET HER UPSTAIRS?

(That's the part they don't sell/teach you at the florist or in B-school)

 

[Norwayguy]

Come on you stopped your post at the best part, I'm sitting here just waiting to find out. For myself the bedroom is on the first floor so it gets rid of part of the equation.

 

[joe92275]

Work on a CFP, CLU or CRPC, they have more clout in our industry than an MBA.

 

[DHK]

The only masters degree program I would consider is the MSFS from The American College. (Yes, it requires a bachelor's degree.)

There are 'graduate certificates' you can earn without a bachelor's:
- Business Succession Planning
- Chartered Advisor in Philanthropy (CAP designation)
- Estate Planning & Taxation
- Accredited Estate Planner (AEP designation)

But I would still focus on CLU, ChFC, LUTCF and other designations before tackling the "graduate studies".

And before tackling THOSE, I'd be sure that I was running a profitable practice so you can afford to take the time for studying and passing those exams.

 

[VolAgent]

There is no doubt you did not agree or perhaps like my comments and that is fine, that is why I welcomed a counter viewpoint. Why do you feel that an MBA would know less about insurance than a high school dropout? What are you are you basing this off of?

My argument is based on our industry sells first on price rather than product/service, I feel the reason for this is the ease of entry, you don't have to have a track record of learning to get into insurance vs. being a CPA, Dentist, etc who are required to get degrees before they can open a practice. These professionals that require a degree rarely sell on price, they don't play the quoting game, instead it's "come into my office..." Insurance professionals don't get the respect these other professions get and if we did, price would be a secondary factor. Again, I seeking a reply so I better understand your position and where you are coming from. Thank you.

Actually, in my experience, MBAs are guilty of exactly what you hate. They merely want to focus on the premium. MBAs, CPAs and CFPs are all getting the same playbook on life insurance, it is just about the premium, nothing else.

 

[GeminiGroup]

"Work on a CFP, CLU or CRPC, they have more clout in our industry"
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This is true, if your goal is to have the biggest....
(racket) at the club..... might not be as important if your goal was to WIN matches.

But everybody is free to choose what exactly their agenda is......
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People forget that obtaining letters, degrees and designations are all NICE but they don't sell squat...
The OP inquired whether pursuing such would be 'worth' "it" ....for 'an Independent Agent':
Not for cocktail parties or your resume for a "suit" job but as an Independent.

To me it's like asking Tim Duncan (if he wins #5 this year) how important his Wake Forest degree was vs Kobe's 5 with not even a semester at JUCO....what's he gonna say.... but the TRUTH is 5 is 5....

Scoreboard doesn't lie.

They give out paychecks/rings to those that WIN....not to those that collect the best "sounding" credentials.

(Just callin' it like it tis)

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Originally Posted by joe92275 Image:
Image:

Work on a CFP, CLU or CRPC, they have more clout in our industry than an MBA.
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I personally never said MBA, but more so an undergraduate degree. I bet 95% of those who have any of those designations have an undergraduate degree.

1) Not sure I'd go as high as 95% but....

2) I'd agree that a higher % of folks that obtain these type of designations would ALSO tend be from the same crowd that would have also obtained undergrad, among other degrees but what POINT are you trying to make?

Tall guys tend to play basketball, short, small guys might jockey and people that get undergrad degrees tend to value grabbing another letter or two.....
Is there a bold proclamation to come or are we left to infer ....

 

[Matt37]

I think you need to focus on getting your undergraduate.

For me, it was very beneficial... I went to Temple University in Philadelphia and they have an entire major called Risk Management and Insurance.

Do not go and major in generic "business management." There are plenty of schools that have entire majors dedicated to this field of work.

Also, the CIC training was VERY beneficial to me... Go to the two week CIC producers school and you will be ahead of the game.

Can you make it in this field without all this? Yes of course you can.

Many guys I work with came over form car sales (surprise, surprise) and have flourished.

But they lack in areas (especially underwriting and RM) and you can see their car salesmen side come out, they are pure bred salesmen, and their lack of education gets exposed at times.

IMO, the more education you get.. the better.

Especially, the CIC training.. that really helped me.

But you will meet people who are against all this, and just say SELL, SELL, SELL.. it is up to you.
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There is no doubt you did not agree or perhaps like my comments and that is fine, that is why I welcomed a counter viewpoint. Why do you feel that an MBA would know less about insurance than a high school dropout? What are you are you basing this off of?

My argument is based on our industry sells first on price rather than product/service, I feel the reason for this is the ease of entry, you don't have to have a track record of learning to get into insurance vs. being a CPA, Dentist, etc who are required to get degrees before they can open a practice. These professionals that require a degree rarely sell on price, they don't play the quoting game, instead it's "come into my office..." Insurance professionals don't get the respect these other professions get and if we did, price would be a secondary factor. Again, I seeking a reply so I better understand your position and where you are coming from. Thank you.

Agree 100%.

This industry attracts to many career jumpers...

I did not realize it until I opened my own RRG and dealt with it all, all the mortgage brokers and car salesmen started coming over to Insurance when the economy turned.

Sure they passed the state requirements, but no real RM or knowledge of profession at all... they treated it like used car sales.

Me personally, I would not hire someone without an undergraduate that at least slightly focused on RM.. or if undergraduate is just to much make them go do the two week CIC course.

 

[ABC]

I do not think an MBA is going to help you make sales.

That is why you want it?

Insurance sales are tough!

 

[jaystar]

92% of agents fail, more or less. An MBA on a resume will help any hiring personnel take a look. We don't know if this poster will succeed in insurance or find he wants to get a 9-5 so he can get health insurance, paycheck regularly etc. A MBA sets him/her apart from the others. An MBA does not create a good sales person. But any advanced education develops a thinker, a planner and hopefully creates a path for success. Not necessarily in their chosen field now. Remember, 92%, more or less, insurance agents fail. Be prepared.