Avoiding Failures - Life Insurance Agent

Most insurance agents fail for all the same reasons that other people in business fail. As we look back on the three aspects of the business, sales, marketing (generating leads) and running the business, it becomes easier to see where the potential failure lies.

Unrealistic Expectations - Probably the most common reason insurance agents fail is that they expected too much too soon. These unrealistic expectations result from a need to be successful quickly. Successful agents have a base of renewals. New agents don’t. It is this lack of renewals that is a significant difference in the income streams. So, a new agent, even who sells a similar amount to an experienced agent, will still earn far less. Expecting that it takes time to create a book of business big enough to support you is likely the most important element to succeed. After that, we can look at the three aspects of the business.

Sales - You’ll need to do lots of hard work to make the number of sales presentations needed to be successful as an insurance agent. And new insurance agents seldom have the same closing rates as more experienced agents. Early on, it may take you twice or even three times the number of visits with a potential client to sign up a policy. That takes time and more work.
Plus, many new agents lack specific sales training. Not industry training. Generic, “how to sell” information. Although your personality may get you in the door, you will need to know how to present benefits, answer objections and ask closing questions in order to get new customers. Read books. Take courses. Consider this a major priority.

Generating Leads - To be successful, someone has to generate leads for you. As a captive agent, most of the work is done for you by your organization. But don’t leave everything to them! Ask for referrals. Network. Find your own leads, too. Leads you find yourself are more likely to close. As an independent agent, internet marketing can get expensive. Don’t let up. Insurance is a competitive industry, and you won’t get immediate, overwhelming results. SEO marketing is like networking. You have to be in both for the long haul.

Running the Business - If you don’t return calls, can’t manage your paperwork or forget to pay the lease, you’ll find failure is right around the corner. If these are not your strengths, consider remaining a captive agent or hiring an exceptional office manager to stay on top of this for you. Your business depends on it.

Focusing on Your Commissions Instead of Customer Needs - The whole basis of being a successful agent is to have positive, ongoing relationships with customers. If you are too focused on your commissions or quotas, your customers can see right through you. Chances are you’ll offer policies that don’t cover what they need and end up selling nothing. It is far more effective to offer real solutions to your customers’ needs and accept the commissions as rewards for having done a good job. Commissions are important but remember it is renewals that are more important. Outstanding service is the secret ingredient for success as an insurance agent.