I would like to offer some insights as to why I believe such a high percentage of Insurance Agents fail in their first couple years in the insurance business.
There can be multiple reasons that contribute to a new insurance agents failure. Here are the most common reasons I have found that lead to failure.
- Most Insurance Agents have a Limited product portfolio and are unable to cross sell other insurance products.
- Agents don’t have a proven sales track or sales system to follow which most new insurance agents need to get results quickly.
- They don’t create consistent cash flow from insurance sales quick enough and must leave the insurance business to go back to an hourly paying job just to survive.
- New Insurance Agents start out in the insurance business with little or no reserves to fall back on. Most businesses require some upfront capital or reserves to get started.
- A lot of agents do not get enough training (Product or Sales) to give them a fair chance of making it in the insurance business.
- Insurance Agents are not taught effective prospecting and marketing techniques that generate a consistent flow of sales prospects.
- Some people simply don’t have the drive, work habits, persistence, self motivation or ability to handle rejection that it’s takes to survive in an insurance sales career.
From my experience of hiring and training insurance agents over the past 23 years, I have found the following items need to be present in order to maximize a new agent’s chances for success long term in the insurance industry.