Ninety-Two Percent of All Agents Fail - Why?

[twhite2]

The number one reason people don't make it in sales is their recruiter paints a beautiful picture of income and wealth but says very little about the chances of actually attaining it. Maybe if recruiters would tell people up front that they have a 9 out of 10 chance of not making it, that might motivate some to work a little hard. I also agree that it can be very especially difficult for those who cannot go much time without income. I've seen those who receive a monthly paycheck to start out last much longer as it gives them time to build up some residual income.

 

[Larry Tew]

It's all about selection. Captives can say what they want to at GAMA meetings, but with a few exceptions, most companies will hire almost anyone who will take the job. It's not that there aren't selection tools out there, but the pressure on field management is to recruit at all costs. This is why mid-level managers are getting burned out and leaving the industry or going back into production.

 

[Full Throttle]

Sales isn't glamorous, you have to generate enough leads each day. You have to have a reason big enough to do what needs to be done. This month I've prospected harder than any other month in recent memory, I decided that 10% of all the new revenue I produced for the next three months that I would donate to a local organization that feeds the inner city poor. $1.50 produces three meals. That got me fired up and out there in the trenches, imagine that, if I don't produce, some kid might not get to eat a meal. To each his own.

I encourage anyone struggling to do the necessary activity each day to go volunteer at a soup kitchen. If that doesn't inspire you to help out someone in need, I don't know what will! Maybe it's helping sick kids at a local hospital, maybe it's funding college for your kids. Whatever it is, find a reason to get out there.

 

[arnguy]

that is correct

We are certainly glad that you agree, Are trying to build up your post count?

 

[JacquesWerth]

Here's Why ...

Here are a few of the reasons most agents fail.

They don't realize that most insurance companies are organized to profit from the failure and turnover of new agents. Once they get some business from their "natural market," while losing the respect of friends and relatives, their inability to prospect effectively is deadly.

They work too long and hard trying to get appointments with people who will not buy from them. When they do get appointments, they waste too much time and effort closing too few prospects.

They don't know how to get commitments to buy before they visit with a prospect.

They do not focus on a specific demographic market niche and target only that niche. They don't know how to develop favorable "front of the mind awareness" with a large number of prospects in their niche market.

They try to "help" people who don't want their help.

They don't realize that people buy what they want, not what they need.

They believe that "no one wants to buy insurance, it has to be sold." Reality is that at least twenty percent of all insurance is bought from agents whose sales skills are worse than none.

They believe that selling is all about persuading, convincing, and the logic of value. They don't think about how naturally resistent they are to someone who is trying to persuade them.

 

[Full Throttle]

I'm sticking with they don't contact enough people. If you have a simple-proven approach and you call on enough people, this wouldn't be a thread to begin with.

Jacques, I've heard a lot about your system, but never from someone using it successfully. I'm skeptical, can you put me in contact with three life insurance producers utilizing your system and doing MDRT or above production?

 

[daveb]

From what im seeing, the main reasons are :

-Insufficient support by managers. Most managers aim to recruit as many people as possible with no regard to quality or even training provided. They simply hope to run it as a numbers game. If 9 out of 10 agents fail, all he needs is that 1 guy to help him make money. For the 9 that fail, most will at least be able to sign up their friends/family for some plans before they quit, after which the cases will be assigned to the manager who gets free renewal commission.

Managers also tend to remain in a "boss" role. So instead of being a helpful mentor who teaches you how to suceed, he is instead the scary boss that screams at you if you do not close enough cases. When this happens, the new agent becomes lost, confused, has no clue who to turn to for guidance, and quits.

-They become disgusted with the sales tatics in the industry. A lot of it is highly unethical, basically showing benefit illustrations and talking about interest rates or cash values while leaving out all the important things like exclusions.

-Loss of motivation. Prospecting is hard at the beginning, prospecting is even harder if the only thing your manager is teaching you is "just cold call these people and try to set as many appointments as possible". If you keep prospecting 7 days of the week and dont see any results, you are going to lose motivation and quit.

Brilliant!! And that's all I have to say about that.

 

[dmarbell]

...I decided that 10% of all the new revenue I produced for the next three months that I would donate to a local organization that feeds the inner city poor. $1.50 produces three meals. That got me fired up and out there in the trenches, imagine that, if I don't produce, some kid might not get to eat a meal. To each his own.

I encourage anyone struggling to do the necessary activity each day to go volunteer at a soup kitchen. If that doesn't inspire you to help out someone in need, I don't know what will! Maybe it's helping sick kids at a local hospital, maybe it's funding college for your kids. Whatever it is, find a reason to get out there.

If we all did this, how much better off would our country be? A virtual army of insurance agents, off the golf courses and into the trenches of the truly needy.

I salute you. You shame me, and indeed, most of us.

Danny

 

[Surfy]

Re: Here's Why ...

They don't know how to get commitments to buy before they visit with a prospect.

Yeah, after you have already made two trips and just gave them a great quote saving them $499.00 a year (with more coverage) it's like, "My homeowners insurance isn't due to renew until next February. Can you come back and see me then?"

AARRRGGGG!

It's called on the job training and until we get good at it, we are going to lose sales. Can we stick it out until our skill sets catch up to our monthly income? Over 90% can't.

That, and new, first time agents are terrified of the phone and they crawl back into their comfort zone and go to work for a paycheck.

Surfy

 

[crons79]

Re: Here's Why ...

Yeah, after you have already made two trips and just gave them a great quote saving them $499.00 a year (with more coverage) it's like, "My homeowners insurance isn't due to renew until next February. Can you come back and see me then?"

Nope, sure can't! Now sign here, here and here.