Ninety-Two Percent of All Agents Fail - Why?

[UpstateNYAgent]

The reason the failure rate is so high is simple. Its the same reason why most new entrepreneurs, relators, and anyone else doing anything that really doesn't flat out pay you an hourly wage. The biggest reason is that people think they are going to get into it, hit the ground running, and be filthy rich in a year. Its very difficult to keep plugging along. Especially after you get a few months of nothing. Everyone wants to get rich quick and thinks its going to come to them over night. Like the business was just waiting for you to come along.
There has been at least 6-7 producers that have worked for the same company I have besides me. That either started before me or tried starting after me. Im the last one, and ive been doing this for years. I still don't really make much at all. Its difficult and once people realize that they move on to either an hourly job or their next get rich quick idea.

 

[stuy119]

Two reasons in my mind:

1. Being an insurance agent isn't being a salesperson, it's being a business owner. Salespeople realize that accounts come and go, but business owners have a vested interest in seeing accounts grow and thrive, so that they are in business for the long haul and have a solid partnership.

2. No cojones/stones/balls/testicles/etc. Your financial future rests in how well you perform on a daily basis. You will piss some people off, and it may not just be the competition. But if you don't do what is right, either ethically or for your customer (hopefully both at one time), you are doomed to fail. It doesn't matter if you take a 30% hit in your residual commission, you MUST do what is right.

 

[Swift685]

It's funny reading everyones posts because its not just the insurance industry with a high wash out rate. I worked for Vector Marketing for over 2 years.

Anyone heard of CUTCO knives?

Yup, I sold cutlery for 2 years then during my last summer break from college I independently opened and operated my own branch office. So here I am 22 years old with 3 cute Uconn receptionist and 50 reps, my retention period was TWO WEEKS. And I can tell you the number one reason most of my reps failed. THEY WERE AFRAID TO PICK UP THE PHONE. PERIOD.

I had to put 20 dollar bills on the board for the first rep that reached 5 appointments.

 

[1manshow]

Sid Crosby is a bum

The Gloves are off

Aftermath: Penguins 3, Flyers 1

 

[beatuplunchbox]

It takes effort and money to market and most of the ones who wash out don't want to put either one of them into this game.

 

[Crabcake Johnny]

Sales exposes people's largest fear; rejection. Sales is walking up to that hot girl and asking her out on a date. Sales is going into a new school and asking the popular kids if you can sit at their table. Sales brings back every memory from 1st grade on of embarrassment and rejection. That's why the sales industry will have a 95% wash out rate.

 

[Russ]

Sales exposes people's largest fear; rejection. Sales is walking up to that hot girl and asking her out on a date. Sales is going into a new school and asking the popular kids if you can sit at their table. Sales brings back every memory from 1st grade on of embarrassment and rejection. That's why the sales industry will have a 95% wash out rate.

I've been doing this since Labor Day 1984 and I still have problems with rejection. It's not an easy job. I enjoy doing it. You learn a lot about people. Everyone I knew that was in the business, is no longer. They've all....quit, retired or a few even died.

I learned quite a bit about selling from sales managers and the "pro's" of the business.

Most agents will sell, but not service clients. I've known a few that could sell 10 times what I do, but would keep the issued policies in their vehicles, for weeks! Just mail the darn policies! I almost always mail policies the day they come in. Most companies will mail them directly to the insured.

As far as the average income quoted in the first post in this thread, I agree....$45,000 is about average. Reasons...decrease in commissions after the first year...people die...drop the policy...replace the policy...get on medicaid...etc...

You have to sell and service your clients...you ***always*** have to sell. You should ***always*** service your clients. Servicing... leads to future sales and referrals.

The most important thing in this business....you have to sale policies. Not 20 a week to make it and survive, but at least a few a week...consistently. Always.

 

[DJM]

Alot of this business is in your attitude. "If you think you can, or think you cant. Either way you are right"

You cant ever quit, you must have a "never say die" attitude. The second you stop believing in yourself, you are done as an agent.
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Come to think of it, the most successful agent I ever met, and am still friends with to this day, used to be a door to door cemetary plot salesman. Talk about a hard job!!! He knows what it takes, and gets it done. I respect him very much.

 

[JacquesWerth]

Sales exposes people's largest fear; rejection. Sales is walking up to that hot girl and asking her out on a date. Sales is going into a new school and asking the popular kids if you can sit at their table. Sales brings back every memory from 1st grade on of embarrassment and rejection. That's why the sales industry will have a 95% wash out rate.

Actually, the only two major industries that have such high drop-out rates are financial services and real estate. In wholesale distribution it is about 15 percent. In High Tech software and hardware sales it is less than 20 percent. In car dealerships it is about 60 percent.

 

[Paradigm]

People fail at sales because it is human nature to look for the easy way out. Lets face it the vast majority of people are drones and dont want to work hard.

Sales is about delayed gratification because it is the 20% of your efforts that lead to 80% of your results. You must do unpaid front end work to get the back end reward.

The vast majority of humans are not people persons so as a result they push rather than converse and as a result barriers go up and they suffer rejection.

And finally they dont understand return on investment, they expect it to be pain free, they complain too much, spend too much time talking about what they will do and never do it and they expect the cash to start rolling in because they are so great at least in their own mind.