Do Life Insurance Agents really make good money?
Thinking of starting a new career as a life insurance agent, and am being told that I could make $1000 a week starting out. Is that true?
- Anonymous1 decade agoFavorite Answer
All managing partners or recruiters will dangle the money carrot in front of you to get you to salivate at the figure they provide, and come on board so they can get their recruiting bonuses.
You can make money; however, in a typical instance, it generally takes an agent, on average, about 3 years to get his/her book of business so that they are making very good money. It is possible to make about $50k or so the first year, but that is with good leads and plenty of prospecting, and more often than not, it's for people who have a very large circle of people that they know from which they can get referrals and sell products to. It sounds hokey, but the 10-3-1 rule is so true, and has proven to be. Consider that all the time you spend prospecting, trying to find qualified clients to talk to ... out of those 50 - 100 (depending on how good your appointment setting skills are), you'll get 10 to book an appointment. Of that 10, only 3 will show up for their appointment, or keep the appointment. The others will cancel. Out of those 3, you'll probably get one sale. Now, how many sales per week does it take to make that $1000 they're talking about? That's how the process will go for every close you need to make.
Another thing to keep in mind is that if you're considering going into the insurance business, do NOT go with a company that strictly sells life. Those people are like revolving doors, and the recruiters know it. It's very hard. Go with someone who has a solid program to develop you if you're truly interested in the business. And guess who those companies are? The companies that sell PROPERTY AND CASUALTY, and do a lot of research in their agency programs. The best are State Farm, Farmers and Allstate. P&C is easy to sell, because if you can get someone a cheaper premium, they're pretty much on board. It's transactional, but it helps build your business later on for the life or annuity or mutual fund sale, because now you have a relationship with the client. Furthermore, life insurance, you get paid once based on first year premium. With P&C, you get renewals that automatically come in. People tend to keep their auto insurance for years unless they're dropped, they lapse, or they really think they're paying too much.
Good luck.Source(s): Experience - insurance/investment professional
- JessicaLv 51 decade ago
I know that I dont... the market is bad right now due to the cost of living & gas going up...people don't want to commit to another insurance premium right now.