Why is It Getting Harder to Find Good Agents?

[Rick17]

Hi everyone - my name is Rick.

Just joined today after coming across the forum while searching on Google. This looks like a great community and I'm excited to learn and contribute.

I never was able to find a good answer after looking on Google, so I'm hoping you veterans can answer my question

Last night, I was having a conversation about the insurance industry with one of my uncles (who is a broker in Michigan) at our family Thanksgiving party.

He said that the industry is a lot of work but can be a rewarding business and that what made him successful was finding a great group of agents to surround himself with.

This make sense to me. I mean I always hear that if you surround yourself with good people you will go far in life.

But then he mentioned that it's becoming really difficult to find and build a good team nowadays and that the industry is more difficult now than it was for most of his career.

But he never really explained why and I didn't want to be the "annoying kid" asking so many questions.

Anyways, I was wondering...Is this because people are just not as hard working? Is it a lack of education? The economy? Is this just in Michigan or everywhere?

Thanks everyone!

 

[Chazm]

I could probably answer one of the reasons.

The Internet is much bigger today than it has ever been and just like you did today, we can research the Internet and talk with multiple people about any subject.

I started captive with a company and within a year I realized (from this website) that I could do the same amount of work and make 50% more commission.

I'm sure there's other reasons, but thats one

 

[Expat]

I could probably answer one of the reasons.

The Internet is much bigger today than it has ever been and just like you did today, we can research the Internet and talk with multiple people about any subject.

I started captive with a company and within a year I realized (from this website) that I could do the same amount of work and make 50% more commission.

I'm sure there's other reasons, but thats one

There are many reasons, but you hit it on the head with your reason.

 

[Guest]

I'll bet that when your uncle started out the vast majority of agents were "captive" in that they began their career with a single carrier and while they might have moved to another one over time, they probably did not go the indie route.

The career houses, like Met, NYL, Equitable (where my father started in 1958) and a large number of other carriers had educational standards as well as "cultural" standards to be hired. Most required several interviews, perhaps a general intelligence exam, and even some, a college degree or be working toward it. If nothing else you were expected to know how to read well, write well, choose a conservative suit and tie a necktie.

These days anyone who is not a felon and who can fog a mirror can be an agent. There are no gatekeepers like there used to me. Entry is easy and cheap. Anyone with a 10th grade education can pass the insurance exam for most states and I believe that insurance (like real estate) is where so many people "go" when they can't find a job doing anything else.

Also, the paradigm has changed. The carriers no longer spend a lot of money on agents for training. The concept today is to appoint as many agents as they can and hope each writes one or two cases before they wash out. It cost virtually nothing to appoint an agent... a few dollars for a background/credit check and a few dollars to the state DOI to register the agent.

The general agency distribution system was supposed to be a mechanism to "winnow out" the dullards as well as train those who passed the standard. However, there are no standards and thus no vetting.

I don't mean to imply that there are no "smart" agents out there. But I do believe that there are many more "unintelligent" agents then there used to be because the requirements are either low or non-existent.

Just my opinion. YMMV.

 

[rousemark]

But he never really explained why and I didn't want to be the "annoying kid" asking so many questions.

Never hesitate to ask questions.. (as long as they are not nosy questions) As a general rule if you are asking advice from someone they much more likely to be flattered than annoyed.. And, people usually love to talk about their business and thier success.

 

[Bertolinoins]

There are still a ton of very good agents out there and they are not that hard to find, I have a list of 137 producers or small agency owners within 25 miles of my office that I try to keep in touch with. The hard part is providing a format that will attract good agents and still be profitable for you as an agency owner.

 

[aacards8]

I'll bet that when your uncle started out the vast majority of agents were "captive" in that they began their career with a single carrier and while they might have moved to another one over time, they probably did not go the indie route.

The career houses, like Met, NYL, Equitable (where my father started in 1958) and a large number of other carriers had educational standards as well as "cultural" standards to be hired. Most required several interviews, perhaps a general intelligence exam, and even some, a college degree or be working toward it. If nothing else you were expected to know how to read well, write well, choose a conservative suit and tie a necktie.

These days anyone who is not a felon and who can fog a mirror can be an agent. There are no gatekeepers like there used to me. Entry is easy and cheap. Anyone with a 10th grade education can pass the insurance exam for most states and I believe that insurance (like real estate) is where so many people "go" when they can't find a job doing anything else.

Also, the paradigm has changed. The carriers no longer spend a lot of money on agents for training. The concept today is to appoint as many agents as they can and hope each writes one or two cases before they wash out. It cost virtually nothing to appoint an agent... a few dollars for a background/credit check and a few dollars to the state DOI to register the agent.

The general agency distribution system was supposed to be a mechanism to "winnow out" the dullards as well as train those who passed the standard. However, there are no standards and thus no vetting.

I don't mean to imply that there are no "smart" agents out there. But I do believe that there are many more "unintelligent" agents then there used to be because the requirements are either low or non-existent.

Just my opinion. YMMV.

Actually that's not quite true - some of the captives still vet their potential agents pretty carefully. I'm starting as a Life Specialist with AAA So CA and I had to go through 2 face to face interviews, a hair follicle drug test, a background check where I had to verify my past employment with 1099s, and a credit check. And their paying for my expenses (hotel, meals, etc) for 2 weeks of training. They probably do that because it's a salary + commission position in a p and c office where the p & C agents are required to give the Life agents leads as part of their compensation.

And I heard State Farm is pretty stringent too.

 

[Park Ranger]

My view is that the big Agencies where I started in 2007 are not well run by the Executives. Most of the Training was very good but the directions we were sent in were the wrong ones. Also, trainees were yelled at and berated and browbeaten for not making required sales goals. There were 17 Agents hired with me I was there for three years struggling and watching the revovling doors with new agents coming and recent hires leaving. At the end of three years it came down to me and one other guy and neither of us made the cut. In that 3 year period maybe a 120 Agents were hired. I don't know of any who "graduated", maybe one or two could have made it after I left. Corporate culture snapped defeat from the jaws of victory. I'm a Good Agent now and appreciate a lot of the training I was given and almost none of the prospecting help. If I could do it over I still would have hired on with NYL, but I would have the since to quit after I had enough traing in 8-10 months and gone indy. 25% should not have been hired, 10% were railroaded or overworked at least 20% should have made it but for dictatorial management style and decisions made by Executives.

 

[Rick17]

Thanks for the replies everyone.

Personally, I don't have much experience yet (I'm still in school), but to me seems that the most important thing for building a good team would be to find agents that know how to sell.

Also, Chazm said something that made me start thinking of something else which is that maybe it's not so hard to find good people, but rather it's more difficult to keep / retain them.

I mean if I could make 50% more doing something on my own, I wouldn't hesitate to jump on it.
- - - - - - - - - - - - - - - - - -
Bertolinoins, do you have any tips for how you keep in touch with them without irritating them?

People skills is one area I'd really like to improve on. I'm sociable and confident, but I've found it's hard to stay in touch with people when they know you're trying to sell to them or persuade them.

For example, I've been making websites as a side business for a few years now, and some people just get annoyed when I try to keep in touch with them.
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Never hesitate to ask questions.. (as long as they are not nosy questions) As a general rule if you are asking advice from someone they much more likely to be flattered than annoyed.. And, people usually love to talk about their business and thier success.

Good point, thanks.

I try to always ask intelligent questions and I am genuinely interested in hearing how people became successful.

If I've learned one thing while being in college so far, it's that it DOESN'T teach you how to make money.

 

[sman]

I don't mean to imply that there are no "smart" agents out there. But I do believe that there are many more "unintelligent" agents then there used to be because the requirements are either low or non-existent.

Just my opinion. YMMV.

Don't you just love when someone is talking about how dumb others are and they use the wrong word in their rant? It's "than" not "then". Hilarious!