For those who choose the insurance industry to sell for, the rewards can be incredible. From unlimited income potential to earning trips around the world, there are many attractive benefits to the world of insurance sales. However, many who try their hand with insurance sales fail within their first year.
An Overview of the Insurance Sales Career
Most every insurance agent who begins their career, begins with a list of prospects and maybe a few "inactive" or "semi-active" accounts. In other words, an entry level insurance agent starts with nothing and has the daunting task of building their own business from scratch. That means endless hours of prospecting and networking, late nights meeting with potential customers, reaching out to friends and family and purchasing leads from polling agencies.
Starting out in insurance is very tough. Not only do most have competition from other agents in their own office, but they also have to compete in one of, if not the most competitive sales careers around. Insurance agencies are everywhere, on practically every main street in America and all over the Internet. Try to watch TV without seeing at least 1 commercial for an insurance agency and you'll understand just how competitive this industry is.
So while an insurance career is very challenging to launch, the longer you are in the insurance field, the better it becomes. This improvement is due to a wonderful compensation program called "residuals." Effectively, once you sell a policy, you continue to earn commission each year the policy renews. The more policies you sell, the greater your residual income becomes. An insurance policy becomes a gift that keeps on giving. While no policy remains in effect forever, the better an agent does in keeping existing policies in effect, the more money they will earn.
This residual income is the primary reason why those in the insurance industry stay in the insurance industry. While the first few years may be very challenging, the long term rewards are fantastic.
To say that the insurance industry is competitive is akin to saying that the ocean is wet. While competition is less for those who make excellence their daily commitment, the vast majority of those who enter the insurance industry, leave due, either directly or indirectly, to competition.
The American consumers simply have too many options of where to buy there insurance from for everyone to earn six-figure salaries. There are hundreds of choices when it comes to life, home and auto and accident insurance to choose from. With so many choices, pricing (and profit margins) drop. A typical consumer has access to service companies who do nothing more than shop for the best rates among insurance companies. The end result, in many cases, is that the consumer ends up buying insurance based solely on price.
The Secret to Success
You'd think that with all the competition and price-conscious consumers that getting into the insurance sales industry is not a good choice. For those not willing to pay the price, that thought would be correct. However, if you can dedicate yourself to building relationships, networking, prospecting and a life-long commitment to training and education, then the insurance industry may be perfect for you.
Every sales industry is filled with those who are in sales because they couldn't find another job and those who love sales and are committed to being the best. Those who are focused to being their best will beat out 90% of the others just by showing up with the right attitude and dedication to excellence.
That means you will only have to truly compete against the remaining 10%. Yes, you will have to outwork, out-network and over-deliver, but you will succeed. As long as you never resort to going on cruise control, your dedication to your customers will "out-sell" the low cost providers. You and your ability to create and maintain relationships will serve you well and allow you to enjoy the fruits of your labor. And the rewards will come in the form of residual commissions, a flexible schedule and the respect you will earn from your co-workers, competitors and, most importantly, from your customers.