The #1 reason why insurance agents struggle and ultimately fail in insurance sales… is they lack the training they need to help people.
Most of them are just pushing the product.
There are more millionaires in this industry than any other industry in the world.
But why do people still fail in this business?
Avoid the #1 Reason Why Insurance Agents Fail
Become an advisor, not a salesperson. Don’t view it as a job, view it as a career. Once you become an advisor, your sales with drastically increase, along with the people you help! And because you are helping people you will get more repeat business and your referrals will explode.
The end result? You will make more money!
How do you become an advisor?
- Stop relying on other people. Learn how to attract more clients to your business.
- Stop selling the product and start selling a problem that you solve for people. The product is the solution!
- Become an expert in your market
- Stop telling people what they want to hear. Build rapport, ask questions to help your prospect see and feel the problems they have
When it comes to an industry like insurance, there is no shortage of opportunities for agents to thrive. Even though the sky is the limit for them, only a few can succeed – about 92% of insurance agents fail to leave a huge space for new talents. That said, let’s take a look at the reasons why the vast majority of insurance agents fail.
They don’t see it as a career
Many new insurance agents tend to think of it just as a job but not a career. Well, if you think of it as a career, you should develop a plan to achieve your long-term goals. However, if you do it as a job, your intention is to earn only a little bit of money and you are stuck there. If you consider it as a career, you will be driven with plenty of precious but highly practical goals such as buying your dream home, riding the newest car, traveling all over the world, and so on. If you are stuck with a “just another job” attitude, you will only pay your bills to survive hardly. So, take it so seriously and start to think of it as a career, and focus on the big picture before everything else.
Having unrealistic goals
It is compulsory to have bigger, pricier goals if you want to be a successful insurance agent. However, those goals must be realistic. Otherwise, you are likely to get disheartened when you cannot achieve those goals and give them up. For instance, if you are a novice, you shouldn’t have a goal to earn $150,000 in the first year. Instead, set a realistic time to achieve that goal and work on it.
Getting discouraged due to undercutting
There’s an intense battle between insurance companies to grab their piece of the pie. So, you shouldn’t expect to win all the business out there in the market. Some companies will undercut you and win the client and that’s the nature of this business. So, you must be smart and strong enough to tolerate such instances. Just because someone else undercuts you, you shouldn’t do the same. After all, there are many other things than the price – relationships are precious. So, work on building relationships instead of getting discouraged.
They lack support
Sadly, some individuals cannot succeed in their businesses including insurance just because of the lack of support at home. At times, insurance agents may receive their financial rewards such as commissions after a while. If the financial situation of their family is pretty tight, family members (particularly the spouse) might start to question their success. As a result, they will give up on the insurance industry soon. To avoid this, agents should communicate well with the family and encourage them to have more realistic goals and think of the big picture in a couple of years.
In addition to that, the insurance industry doesn’t fit individuals who want to be nurtured all the time. You cannot necessarily expect someone to hold your hand and walk you to the door of success if you are an insurance agent. Basically, insurance is a lucrative industry especially for those who love to work independently, at their own pace and strategies.
As long as you can address the points mentioned above, your chances of succeeding as an insurance agent are greater. So, you should do a self-analysis and decide if you can fit into that criteria before stepping into this highly lucrative and exciting field.