Realistic New Agent Expectations

[dustyblue6]

Hi all, I've been lurking on this forum for a couple of months and have now got questions of my own. I'm new to insurance. I quit my job on the 3rd of October 2014 to do this full-time. From October on, I've been captive twice now selling FE first with Old American now Lincoln Heritage. Along with the leads being $35 a pop, I write 3-4 out of 10. Of course you know that in this market we're working with low to moderate income customers and at this point I'm figuring I should find a job and sell part-time to build up any momentum to live off of.

My question(s): Is it always going to be this way? How do you live off this full-time? Is there another part of this industry where you don't have to dig so fiercely for customers and get bigger commissions?

I'm at a cross roads here. I got into this to fund my retirement and pay off debt, how do I make this realistically work for me?

Thanks.

 

[moonlightandmargaritas]

Along with the leads being $35 a pop, I write 3-4 out of 10. Of course you know that in this market we're working with low to moderate income customers and at this point I'm figuring I should find a job and sell part-time to build up any momentum to live off of.

Something's missing and/or misstated here.

You buy 10 leads at $35 each ($350 total). You sell three (at the industry average of $50/month) is $1,800 in annual premium. At 120%, that should generate $2,160 in FYC. That should generate a 75% advance of $1,620 a week. Deduct the leads ($350.), and that leaves you $1,270. a week.

Something doesn't add up....(and it's not MY math)

 

[dustyblue6]

Yes, at $50 monthly premiums and at a 75%. But my average is $21 to $32 in monthly premiums at 90% commission and 75% of that upfront. I not real confident of selling a good chunk of LH leads, so I'm doing no more than 10 leads a week. So either I'm doing something wrong, or there's something else that I'm not doing.

 

[moonlightandmargaritas]

But my average is $21 to $32 in monthly premiums at 90% commission and 75% of that upfront. I not real confident of selling a good chunk of LH leads, so I'm doing no more than 10 leads a week. So either I'm doing something wrong, or there's something else that I'm not doing.

Aha!

You've obviously got two issues here; your average premium is only about half of the industry average, and a 90% contract don't get it.

Independents are in the 115-120% range. That's about 50% higher...

 

[johnnyhodges]

Good Luck to you, and welcome to insurance. I've been at it about 18 months and will tell you it's very hard starting out. I went P&C and A,L&H and have found some things out about both along the way and myself and which I prefer to sale. As far as being captive and selling just FE, I would suggest you drop that right away and seek appointments with as many carriers as you can comfortably learn the policy basics. Also I would recommend you get E&O insurance for yourself. Being new you could have a problem that having E&O insurance could solve, and some carriers may require it. You will hear a lot about LH pro & con. For me LH does not work, due to what I view as severe conditions put on agents and prices of products. It's just harder for me to push a product I can get somewhere else for less and LH has no value to the customer above any other carrier. With that said you will see / come to know agents making 10k+ with LH. Start marketing yourself as a insurance agent, not ____ company agent. Lastly I would say if you think you need a job then you may not be working hard enough at selling and won't make enough to pay your bills and increasing rely on the job to pay bills and put your energy into that and less into insurance. Pick one and be all you can be, just remember you already quit a job, why go back.

 

[moonlightandmargaritas]

johnny, good post. How 'bout some paragraphs in the future?

 

[dustyblue6]

Thanks for that JohnnyHodges, I'm sitting here doubting my decision and it looks like I'm starting with a handicap. Thinking about it, I can see where getting a job can impact my selling, it's all or nothing at both. I needed that, again thanks!

 

[pcbinsurance]

Don't doubt your decision. Doubt the companies you are aligning yourself with.

— Your inside track to selling more, making more and working smarter or 360 FINANCIAL GROUP or https://www.trkingim.com/ would be good spots to look to.

 

[dustyblue6]

Thanks pcbinsurance for the resources, I'm following through with your advice.

 

[pcbinsurance]

Good luck. Any of those three would be fantastic choices. Other great choices as well if you'd like to PM me.