WSJ: Why It's So Hard to Fill Sales Jobs

[DHK]

I've done all that... except the 4-year degree... and I took the 66 years ago instead of the 63.

However, the biggest part of this career is the ongoing discipline of prospecting... not necessarily your "book smarts". In fact, the more "book smarts" one has, the more they'll be locked into "massive diffusion" instead of "mature simplicity".

The compensation is commensurate with the agent's prospecting and marketing skills. I doubt it'll get any higher than the current standards.

Then it's all about the quality job of fact-finding and showing various financial concepts in a simplistic manner. Good training is all that is needed there.


It will always be easy to enter, but hard to stay in this industry.

 

[nylife11023]

My hope is that he's a trendsetter. These apostrophes should have become obsolete long ago.

You have lots of company here:

Let me google that for you

They're unnecessary. Remove them and the context leaves no doubt of the meaning.

While you are at it, get rid of uppercase letters. No need for them either.

I must say that this is a rather radical idea. I could understand if it was coming from a left-wing, liberal English professor from an elite East coast university, but from a conservative insurance agent?

Really?

Next you will tell me that English should not be our primary language?

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However, the biggest part of this career is the ongoing discipline of prospecting... not necessarily your "book smarts". In fact, the more "book smarts" one has, the more they'll be locked into "massive diffusion" instead of "mature simplicity".

The compensation is commensurate with the agent's prospecting and marketing skills. I doubt it'll get any higher than the current standards.

Is prospecting for insurance sales that much different from prospecting for customers in other industry sectors?

A friend of mine is a salesman for a company that sells mega-million telephone systems to telecommunication companies all over the world. He may make one sale a year and most of his year is taken up with prospecting laying the groundwork for sales in future years.

His company wouldn't even read the resume of someone without an university degree and at least a 3.0 average.

From reading this board and talking to older colleagues, so many insurance professionals "put down" higher education and believe, as you imply, that it is not an asset to the business, but a hinderance.

And older agents wonder why young people coming out of college don't want to consider a position as an insurance professional?

"The fault, dear Brutus, is not in our stars,
But in ourselves, that we are underlings." -Julius Caesar (I, ii, 140-141)

 

[DHK]

Many other industries also give a salary and full benefits package too. Not the life insurance industry. The closest I know of, is Metlife - a salary you qualify for, to last up to 19 weeks.

This is another reason why wirehouses do better with college graduates. They offer a salary and benefits, as long as they continuously qualify by hitting certain benchmarks. Remember that college graduates are trying to pick the best "job" or "opportunity" for them after graduating... so it's all about comparing the requirements, salary, benefits, etc.

Life insurance / planning is much more of an entrepreneurial position than almost everything else being presented.

The life insurance industry doesn't and can't do that. Why not? Because it would eat up a substantial amount of profit... profit that could be used for a dividend. Therefore, the insurance companies will only pay AFTER the sale is made and the policy is placed. This is also the reason why most expenses are on the agent, instead of on the agency or the company.


Higher education does have its place. Personally, I believe that the firms that are more about client acquisition and development (over just policy sales) would do better to have people who have invested in themselves and their education. I think that those who would choose to focus on business planning would also benefit from an appropriate bachelor's degree program.

I simply don't have one. The only reason I'd wish to have one, would be to obtain the Masters & maybe the PhD degree from The American College.

 

[Guest]

To me this is the beauty of Life Insurance sales. I am a high school graduate. Not one day of college and I go out and bust my ass and make 100k a year knocking on doors and selling FE. I tell everybody I am a Life Insurance Agent and I'm proud to do it. I'm with Rearden, I love the fact that most people don't want to do what I do....

 

[WinoBlues]

To me this is the beauty of Life Insurance sales. I am a high school graduate. Not one day of college and I go out and bust my ass and make 100k a year knocking on doors and selling FE. I tell everybody I am a Life Insurance Agent and I'm proud to do it. I'm with Rearden, I love the fact that most people don't want to do what I do....

I disagree, most people _can not_ do what we do. They want the hours and freedom, not the work.

 

[nylife11023]

Life insurance / planning is much more of an entrepreneurial position than almost everything else being presented.

While I have pointed out all of the obvious reasons why young people don't (and often can't because of debt) enter the insurance business, the above is the not so obvious reason.

It is hard enough for someone in mid-career to be successful at running their own enterprise, much less a young person with little or any business experience and zero training.

Assuming the industry keeps the present paradigm it seems to me a silly waste of time to even try to convince young people to enter the business. It would be more advantageous to recruit salespeople from other economic sectors who are more seasoned and who also have a "cash cushion" to capitalize them while they build their book

I agree that one does not need a college education to sell insurance, but unlike so many others here (usually those whom I assume have NOT gone to college and my guess would not make it through) I think a college degree, especially in business or communications or marketing is a distinct advantage, not a hinderance.

It would be very interesting to find the top 1000 producers over the past five years and see what their attained education level is. I'd bet that 75% of them had either college classes or military classes since graduating high school.

That said, being smart trumps formal education every time. Neither Bill Gates nor Steve Jobs graduated from college (to the best of my knowledge.)

 

[Cash]

Assuming the industry keeps the present paradigm it seems to me a silly waste of time to even try to convince young people to enter the business. It would be more advantageous to recruit salespeople from other economic sectors who are more seasoned and who also have a "cash cushion" to capitalize them while they build their book

Best thing you have ever said

I agree that one does not need a college education to sell insurance, but unlike so many others here (usually those whom I assume have NOT gone to college and my guess would not make it through) I think a college degree, especially in business or communications or marketing is a distinct advantage, not a
hinderance.

And this might be the dumbest thing you have ever said on here. Have you ever taken a business course from a good business school? From an ok business school? Business degrees are useless. The classes are some of the easiest classes outside of communications, marketing, and early childhood education. It's not about education, it's about IQ. If you got a degree it probably means you have an IQ above 110. If you got a business degree it means you got into college and didn't quit.

For all the talk about diversity, corporations like to hire people that look the same. They have had success with college grads with certain GPA's and personalities so they hire the closest thing to that as possible while making sure to throw in some women and minorities.

There are a lot of reasons people don't get into this business. I would think the top reason would be IT DOESN'T PAY. "Hey dad I got a job" DAD: "Great son, how much does it pay?" Son: "Nothing."

It would be very interesting to find the top 1000 producers over the past five years and see what their attained education level is. I'd bet that 75% of them had either college classes or military classes since graduating high school.

I would much rather see IQ levels. I would bet the average IQ would easily be +1 std deviation probably closer to +2 std deviation.

That said, being smart trumps formal education every time. Neither Bill Gates nor Steve Jobs graduated from college (to the best of my knowledge.)

I think Bill Gates has an IQ of 162.

Anyways here are my best guesses as to why they don't get into the business.

1. It doesn't pay.
2. It doesn't pay.
3. People hate sells and salesmen. They would rather do "marketing."
4. They don't realize how much money you can make.
5. They never thought about it.

What do I say? Stay out of the business for all I care, less competition for me.

I still believe that there is a lot of money to be made out there for someone who figures out how to hire, pay, and train top sells people in this business.

 

[nylife11023]

I still believe that there is a lot of money to be made out there for someone who figures out how to hire, pay, and train top sells people in this business.

There is more (or at least just as much) money in contracting thousands of poorly educated agents (at virtually no cost) and 'banking' on the law of large numbers that the vast majority will sell one or two policies (to relatives) before they wash out.

What is the cost of sales to the carriers?

Say you sell a 20 year term policy and get 100% of the first year premium and nothing more. It cost the company 5% for the sale if policy goes to term. And if you add in the money they make from investing the premium, that cost probably drops to around 2.5%.

If the client lapses the policy in 10 years, well just double the numbers above. Still a good deal for the carrier and seeing as most agents never do the math, they also think it's a good deal.

As long as anyone who can fog a mirror can get a state license, there is little or no reason for carriers to "train and pay" salespeople.

As for higher education, you may be right. But this much I know. Those who have made it through and earned a college degree know that you can sell Amway or Avon and keep from 30% to 50% of all the revenue you generate. So there must be some benefit to going to college!

(One thing I'm sure about is you missed some pretty good parties... ("sex, drugs, rock and roll") with a lot of major babes... unless you went to BYU or a bible college... in which case you probably actually went to class and learned something!)

 

[DHK]

Actually, BYU has the hottest and smartest students. (Not that I went there.)

Colleges Where Students Are Hot & Smart - Business Insider

 

[somarco]

There is more (or at least just as much) money in contracting thousands of poorly educated agents (at virtually no cost) and 'banking' on the law of large numbers that the vast majority will sell one or two policies (to relatives) before they wash out.

What is the cost of sales to the carriers?

Commission advances can kill that deal. Someone recently posted he has a $90K roll up debt from chargebacks on sub-agents.

I take it you have never recruited.