Project 200 Question

[Josh]

Bruce, it's not a job. If it was, sure, they're getting screwed sideways. It's not though, it's a 1099 independent position. Insurance agents have a huge upside potential.

Do recruiters guarantee salaries?
Do recruiters guarantee results?

Recruiters guarantee agents will get paid on business they right.

If someone wants a job, they should find a job. If they want to work as an insurance agent (start their own business), then there is the risk they will invest their time and resources and not make anything at it.

Did you write business you weren't paid on?

I'm jumping in your situation without apparently following some of the other threads so forgive me if there is something you posted there or even earlier in this one that already answers my questions, but I get the impression you're upset because you believe you worked hard and didn't make much (if any) money.

Straight commission payment means you only eat what you kill. If you can't find business, none of the above matters.

Again, it sounds like you expect selling insurance to be a w2 job, and it just doesn't work that way for most folks. I've held w2 jobs with an expense account, mileage reimbursement, generous base and a health commission structure, but getting those jobs is a LOT more work than getting recruited to sell insurance. On the plus side, almost anyone has a chance at making a good to great living on a straight commission job almost completely regardless of their employment or education history.

Again, what of personal responsibility? If the recruiters are saying folks would get paid a base of $500/week and then they aren't, then that's one thing, but as long as the compensation plan was explained up front and folks agree to it, then there is no reason to cry foul after the fact.

 

[Norwayguy]

Boy....did YOU ever give me an idea of how you think!!

IDK what kind of teachers you have been around, but making a one-size-fits-all syllabus and then repeating it for 20 years is NOT teaching. Its called baby-sitting.

If your idea of teaching is policing a class of 40 kids, one hour at a time, you really are out of touch with the field of Education. FWIW.

Best Wishes,
Bruce

You totally ignored the advice about a whole bunch of people you can go see and help. Your former coworkers could have used your help.

 

[rousemark]

Good point, Josh; lets talk about that.

a.) The agent agrees to bring a willingness to work hard, right. Do we all agree that this is a tough job? I think, maybe, yes.

b.) The agent agree to conduct themselves in an Ethical manner, right?

c.) Apparently---I don't necessarily agree with this---the agent agrees to get his own training and exams for licensure.

d,) I'll even go one step farther and agree that the agent takes responsibility for his own infastructure, right?

Now....since we did that..... how about what the company owes.

a.) Education as to product.

b.) Education as to process.

c.) Transitional guidance from Trainee to established agent.

d.) Fair compensation.

Having laid that out I can say, honestly, that I held up MY side of the bargain. How come the company is not accountable for failing to hold up its side?

Best Wishes,

Bruce

The only thing the company "owes" is what was agreed to in the contract and that basically, in most contracts, is to pay commissions earned. I have never seen those other things guaranteed by contract and if you do receive them then it is serendipity.

 

[Kenek]

I've worked with agents who refuse to set appointments until they believe that they know every detail about all products and in-house processes and have received enough training to overcome any objection they might run across as they don't want to look stupid or green or whatever in front of the client. No one with that mindset makes it in this business. You're gonna screw up and fumble and stumble at some point - we've all been there and we've all gotten over it.

Bruce, if you want to succeed you have to stop waiting for the Holy Grail of company support that will deliver clients into your lap just because you exist and are contracted.

The deal is this - you sign on with a well-known company, they train you (minimally, perhaps) and offer office support and space. They hopefully have a decent product lineup so that you can solve your clients' insurance needs. What they don't have to offer you are your clients. That's what YOU have to bring to the table. We can debate p200 all day (personally it is just one tool of many in my prospecting toolbox) but the bottom line is YOU need to get out and start talking to potential clients right now.

The best and most effective teacher/trainer in the world is this thing called EXPERIENCE. The more you have the better you are. Go out and get some.

 

[UndIns]

Typically they want 200 of your closest friends and relatives. I'm not sure I could come up with 20. haha If I give them those 20 names my list of "friends" would probably drop to zero. Do not try to sell to relatives and friends until you become an expert at what you are doing. Even then, let them come to you.

I am not an expert! But this is great advice!

 

[Norwayguy]

I am not an expert! But this is great advice!

And its sage advice now that Frank has passed on.

 

[RyanCO]

.

I would add that the notion of "fair" compensation begs an obvious question -- who is to decide what is "fair"?

The law of supply & demand exists on the employment side as well. The insurance companies see that they are providing enough compensation to attract and retain enough agents to get the job done at an acceptable level. If, one day, it was tougher to attract enough quality people, the companies would need to improve compensation. On the other hand, if the industry were suddenly flooded with good people, the compensation would probably drop until acceptable equilibrium was achieved.

Compensation is what it is. It works for the insurance companies, it works for enough agents to keep the companies profitable. The market is determining what is "fair".

.

 

[DHK]

Attracting people has never been an issue. It's retaining productive agents.

If you're not making money and making sales... it's only a matter of time before you leave.

If you are making money, all management has to do is not screw up... and you'll probably stay as long as everyone is reasonably pleased with each other.

I was an independent agent for a while... but I wasn't making good money. Now I'm at a career agency learning from a great mentor and manager. This makes all the difference. Without a great manager, trainer and mentor, you might as well stumble upon your sales and make twice the commissions being independent.

As long as the tools, training & coaching are present at the levels I need, I'll probably stay a career agent. Until I 'out-grow' their usefulness, then I'll probably consider leaving the company... not before.

Training makes a great difference in the ability to retain agents - even and especially at lower compensation levels compared to independent agent contracts.

 

[DecisionMan]

Bruce, you raise valid points about the company's responsibility.

However:
1. Life is not fair. And the lack of company follow-through seems standard-issue nowadays. Get over it, and accept it.

2. This is not a job. Insurance sales is your own business, whether or not you are captive. Run it like your own business.

If you had another business, like a hot dog stand (insert whatever business you want), would you complain and whine about valid competitive issues or would you do something to work around those issues so you could stay in business.

I hate captive companies and have been burned by them. But being indy isn't a bed of roses either. In each situation, you've got to work hard at prospecting, presenting, follow-through, case-development, underwriting, databasing, chasing commissions.

Every single one of those things to do is not fair but it just is.

Man up, make a decision, stick to it, and do whatever it takes to be successful in this business.

 

[sshafran]

Good point, Josh; lets talk about that.

a.) The agent agrees to bring a willingness to work hard, right. Do we all agree that this is a tough job? I think, maybe, yes.

I've found that most new agents don't even know what hard work is. And, if they don't work hard, they won't be terminated...but their income will reflect it. Try finding that at a "fair job."

b.) The agent agree to conduct themselves in an Ethical manner, right?

c.) Apparently---I don't necessarily agree with this---the agent agrees to get his own training and exams for licensure.

Why wouldn't you agree with this? Do you think it would be better to have the insurance comapny pay for exams & license? Kinda like how the state will pay for you to go to college to learn how to become a teacher...right? wrong. Like how hospitals will pay to send you to Medical school...right? wrong. I think an agent should have skin in the game.

d,) I'll even go one step farther and agree that the agent takes responsibility for his own infastructure, right?

Now....since we did that..... how about what the company owes.

The company owes you squat. You haven't done anything for them. You haven't created a product to sell. You haven't financed a company to stand behind the product. They owe you commissions when you sell. Period. And, as a 27 year old who has only been licensed for a little over 2 years, I'll say that the long-term commissions are more than generous. The sky is the limit.

a.) Education as to product.

They don't "owe" this to you, but if they want their products sold, it is in their best interest to educate. They create underwriting guides - have you read them cover-to-cover? That's all the education you need...

b.) Education as to process.

c.) Transitional guidance from Trainee to established agent.

Won't that come with experience and production?

d.) Fair compensation.

I don't think I could make more money in any other industry. And I still feel like I'm just getting started. The money is there to go out and get if you work for it.

Having laid that out I can say, honestly, that I held up MY side of the bargain. How come the company is not accountable for failing to hold up its side?

I'd question if they really failed to hold up their side.

Best Wishes,

Bruce