Top 9 Reasons Why Selling Insurance Is So Difficult · 1.Have you ever heard of a job where nine out of 10 people quit or fail? Insane, isn't it? There are several reasons why. And I want to reveal to you what they are so you can develop a plan to avoid failure. Unlike jobs with a predictable salary, insurance paychecks are 100% based on commissions. No one is responsible for paying you a penny if you don't produce.
You MUST have the right mindset right from the start. In the beginning, I said: “Join an insurance agency that pays you a salary, an advance, a tie, or something like that. That 25% of people who DO buy is what drives your success. Having a mindset obsessed with inputs and the process is THE way you can truly control and manage the outcome, which is your income. You're in a position where you own your own successes and failures.
And what you do with either one of them is your decision. They become victims, sacrificing their own personal power to avoid the pain of accepting all responsibility. That's the mentality you need to have to get through difficult times. If you have the mentality of thanking the Lord for the bad, for eliminating the competition and staying in because you are the fittest in the jungle of selling insurance, you will benefit from this natural process of survival of the fittest. The grass is always greener, all that.
You have to accept everything, take responsibility and go for it all. Even when you're targeting the most qualified potential customer, don't assume that they are easy to sell. Life insurance is a very difficult product to sell. Simply getting your potential customer to recognize and discuss the fact that they are going to die is a difficult first step.
When you overcome that obstacle, your next task is to create urgency for them to buy right away. Being an insurance agent can be quite stressful due to the high-pressure environment of sales jobs and the need to comply with quotas. Revenue uncertainty and the hard work required to build and maintain customer relationships increase stress levels. First, insurance is an intangible product, meaning that customers can't see, touch, or feel it.
This makes it more difficult to convey the value of insurance to potential customers. You may also experience constant pressure to meet different quotas and objectives. The highly competitive nature of the profession can create a work environment that often leads to stress and exhaustion. You're struggling in the insurance business right now, or you're thinking about getting your insurance license, and you have questions about whether this industry is right for you. Some common mistakes insurance agents make when selling insurance include not listening to customer needs, using too much technical jargon, and not being persistent enough in their approach.
To dive deeper into the nuances of life insurance and related products, check out this post on universal life insurance rates. Using storytelling to illustrate the benefits of insurance can help customers understand the value of insurance in a more tangible way. Some insurance sales professionals work as full-time salaried employees for insurance companies, agencies, or brokerages. Selling life insurance from home is the same as any other type of insurance and follows a similar process once you pass the licensing exam at your respective state's insurance department. Successful insurance agents must have strong communication skills, as they must be able to explain complex insurance policies in a clear and concise manner.
I haven't been able to find any statistics on the salaries of life insurance agents, but many of the people who sell life insurance aren't just agents, but they also obtain their Series 7 and other licenses and become financial advisors through the brokerage firm associated with the agency, helping their clients with investments and other wealth-related services. Their friends have misled them by claiming that selling insurance policies as an independent insurance agent is simple and cost-effective. If you think this position is more suitable for you, here's a step-by-step guide on how to become an insurance broker. Whether you're selling life insurance to a young family who wants to protect their children's future or commercial insurance to a local company striving to succeed, your work can make a significant difference in people's lives. They work to adapt insurance coverage to the needs of individual customers and can work as captive insurance agents or independent insurance agents.
Unlike agents, brokers don't represent a single insurance company, but they work with several to offer options to their clients.
