Need Help!! Just Starting, What to Expect!?!

[Tresden]

I have been reading a lot on these forums and honestly it is pretty discouraging. So I am reaching out to try to sift through what is and is not realistic by clarifying my concerns. I am 23 years old due to graduate next semester. I have a job offer with a subsidiary of MassMutual Life and it seems like a great opportunity (from the numbers they have given me). A bit about me: I have been in sales since I was a freshman in college and have proven to be quite good at it. I have been the top sales person for every job I have had at one time or another. That being said, I am considering accepting this position, all commission (which I am used to, but am not completely sure if it is a raw deal considering the industry) and moving forward. My concerns are these: Are the figures these guys are throwing at me realistic? Here are the figures:

10 years from now (assuming you follow their model) should be making upwards of 300K.
15 Years should have 250K residual and at least 200K in additional earnings annually.

These figures I'm sure are exaggerated to some extent and obviously based on best case scenario, top performance statistics, but if I cut those figures in half, that still seems like a pretty sweet gig. My skepticism is further fueled though by reading through this forum. People are responding to topics titled "How many reps make at least 40K a year?" with responses like "I have been in the business for 24 years and never seen anybody double that figure" or "I have been in the business 21 years and never made that much." Even the more promising of the responses still makes the 'opportunity' appear much more grim like "if you have been in the business for 2 years 40K should not be a problem. By my 5th year making 60K was not unattainable."

So here is my question. What can I ACTUALLY expect to make 5 years down the line working for MASSMUTUAL right out of college with a good work ethic, sales knowledge and experience and a drive to succeed? Obviously the figures will vary as circumstances can not be controlled or predicted, but just some sort of figure that gives a realistic account of what I am getting into from a non-biased party would be EXTREMELY helpful to the decision I make about my future. I don't want to get into something that I believe will be extremely lucrative, work my ass of knowing I will make chicken scratch for 3 years, then 5 to 6 years down the line realize I am stuck (bound by reality) in a range of 60-100K a year. I think I could make that figure 2 years out of college putting in half the duress it seems I will need to in this industry, but those options seem more limited to stay in that range.

My ideal situation: I would like to be making 400K a year in 10 years minimum. Can I expect that to happen in this industry? And my last question, and forgive me for rambling, if you had the choice (in my situation, being that of a recent college grad) to take a position with Eli Lilly 50K base plus uncapped commission or Life Insurance residual commission being young and driven, what do YOU think is a better option for the LONG TERM?

Sorry for so many words...thank you in advance for your time.

 

[Josh]

The short answer to your question is that those numbers are total bs. Statistically you'll be out of the business in less than a year having made almost no money. Even if you are an exception, odds of you breaking 100k are slim at best.

 

[dgoldenz]

If everyone that worked for Mass Mutual made $450k after 10 years, they'd all be in the top ~0.5% of all agents. Not likely...not saying you can't make that much, but you better be able to find a lot of wealthy clients to make that kind of money. If you aren't making at least $80k after 5 years, you're doing something wrong or should be in another business....just my opinion.

 

[Gorn]

Fundamentally, your success will depend upon you either having access to a lot of leads or you learning how to generate a lot of leads. One of the biggest problems every agent struggles with in this day and age are the difficult advertising compliance rules. Lead generation advertising is becoming increasingly difficult to do, not because it's difficult, but because the home office won't permit agents to use lead generation advertising that actually works. The lead generation stuff nearly all home offices put out is worthless and will result in failure. If I were you, I would zero in on MassMutual's ability to provide you with a steady lead flow and if they can do that (provide leads) you've got something. If door knocking and cold calling are part or all of their solution, then move on.

 

[Tresden]

Thanks for the quick responses. In direct response to "I would zero in on MassMutual's ability to provide you with a steady lead flow and if they can do that (provide leads) you've got something. If door knocking and cold calling are part or all of their solution, then move on. "

The company I am considering working for does not provide leads. They have a system in which you write down a list of 200 people you know and solicit them for referrals. They do however offer a pretty cool system in which they have specific people that target certain demographics or occupations of people to come with you depending on the occupation of that person to essentially walk you through the process.

 

[STIBROKER]

WOW....That's a fresh approach....never heard of this before.... you will end up broke and friendless......

The company I am considering working for does not provide leads. They have a system in which you write down a list of 200 people you know and solicit them for referrals.

 

[Tresden]

WOW....That's a fresh approach....never heard of this before.... you will end up broke and friendless......

That's quite a take on it...

Does anyone else think this method is completely fallible? I assume it must have some semblance of success because the firm seems to be doing pretty well. It is the way a lot of larger firms train their salespeople. Does this kind of practice provoke similar reactions from everyone else?

 

[Guest]

The "project 200" has been around as long as I have and I have an autographed copy of the Ten Commandments!

I suppose on some level the "system" works, but in my experience the last thing in the world your close friends and family want is for you to bug them for names and addresses of THEIR friends.

I'd suggest you develop a different way of prospecting. I also think is is better to start out on strangers and not family and friends. Save them for when you have some experience and can market them for bigger / better coverages.

You have not told us what kind of a payout MassMu's GA (MassMu has their OWN dedicated GAs, unlike other carriers who use lots of different GAs) and if they are going to give you a salary, a loan, a draw, and if so, what are your responsibilities if any for paying them back?

Finally, the one thing you have not told us is this: DO YOU LIKE INSURANCE? Do you believe in the products? Do you have some kind of emotional commitment to financial products... because if you don't you are best advised to sell something that captivates your imagination... be it cars, high-tech, industrial goods, capital equipment, medical products, the list is endless.

A client of mine works for a shoe distributor and sells various lines to large stores. She loves shoes. She probably has 300 pair! She simply just loves everything about shoes.

A friend of mine loves watches and fine jewelry and has two stores. He is fascinated by these products.

I know a young man (not a client) who has a degree in some life science and works as a drug rep... and loves drugs and selling them.

If I could do it all over again I think I'd like to sell candy or ice cream. I have a semi addiction to both... and I'd love to work for Dryers or See's or Godiva, etc. However, I value my independence more than anything and that's why I just love selling Pre-Paid Legal (just joking!)

My dad sold life first for The Equitable Life Assurance Co. (yes it was spelled that way) and then for Brerkshire Life so I grew up in an "insurance" family and was taught the value of these products... and of thrift, savings, etc.

You are 23 years old. You have lots of options open to you... and you also have the option to fail at a whole lot of them... so don't worry so much about making a bad decision. Instead try to make a good one. If it doesn't work out, there are lots of other things you can do or sell.

Forty years from now when you are my age you will probably look back and will be on your 4th or 5th career. I started out as a public school teacher, then became a welfare worker, then became a computer programmer, then became a software vendor, then became a project manager, then became a work-site benefit agent, then became a health insurance sales person, and am now, after a lot of study and classes am starting out in estate, retirement, and business succession cases.

As Henry Ford said "If you think you can do something or you think you can't do something, you're right."

Live long and prosper.

Al
Find me here

 

[LGilmore]

take the lilly job.

EVERYBODY is told they will make $XXXXXXXX by just about every company.
Very and I mean very few actually do. This business is not an exact science. There are no methods that 100% guarantee success. Some are definately better than others.

23 in insurance sales usually means at 24 you're working somewhere else. Let me put it this way, would you accept advice from a 23 on financial planning?

You can do it, but the success rate is under 10% (longevity). What are you "really" up for?

 

[Norwayguy]

That's quite a take on it...

Does anyone else think this method is completely fallible? I assume it must have some semblance of success because the firm seems to be doing pretty well. It is the way a lot of larger firms train their salespeople. Does this kind of practice provoke similar reactions from everyone else?

The Project 200 does work....the question is for whom...Statistics say a year from now you will be gone from this industry having made some sales to your warm, once gone you will not be recieving renewals may even be required to pay back earned commissions, what has the carrier lost, not much they are not putting out much on your success.

To succeed at the numbers they are showing you will require some major cases, if the approach for your success lies in a project 200 then only you can answer what type of question. The other question is these people know you, they know you are brand new to the business and do they already have an agent or advisor?

My advice is if this is all your future manager can provide you then you need to find another manager. Check out the other major carriers in your area the carriers can be very similiar but your manager and the local branch can make or break you....Also ask if and get introduced to senior agents that can and be willing to mentor you.