Why Insurance Agents Fail
Anyone considering going into the field of insurance sales needs to understand why insurance agents fail. Hopefully our tips will help you avoid some of the pitfalls of insurance sales. Although insurance sales can be a profitable business, many new agents do not make if past the first year. There is a lot more to it than just getting your license and waiting for the checks to roll in.
Agents don’t understand the real reason some agents are successful
The most important thing agents need to keep in mind is that they are there to provide a service to their clients not just to make money. Unfortunately, too many agents are focused on how much they will make instead of how to provide a valuable service that people need. When the only objective is to make money, many agents fail. It is obvious to the clients when a person has their best interest at heart, and they appreciate that. When they find a good agent, they are more than happy to spread the word to their friends, co-workers or relatives. The same is true if they are unhappy. with the service they receive. Unhappy clients make is difficult to survive in the industry for the long term.
Expecting instant success
Many first-time agents think once they have their license, they will be making lots of money. In reality, it is not easy to get into the field of insurance sales and it can take a few years before you really start to see a large paycheck. The business is built one sale at a time and good agents keep their current clients happy as well as work at expanding their book every year. It is a good idea to set small goals that lead to reaching larger ones. There are many carrier certifications for products like Medicare, a newer agent may not be aware of the time and effort it takes to get set up to offer the number of carriers they need or to complete all the CMS certifications. They also need to know, these are things that they will need to complete annually in order to be ready to sell. It can be a bit overwhelming when first starting out.
Neglecting to make a business plan
It is imperative to build a business plan. Decide where you are going to work (home or in an office space). Get the proper tools to be successful, (computer, phone copier office supplies). Organize yourself, think about how you are going to track commissions and clients. Prepare a filing system and how you are going to build your book of business.
Not focusing on the client
There is no way to be successful in insurance sales if you don’t build good relationships with your clients. We cannot stress this enough! When your client has a question about a product you offer, your name needs to come to their mind. If they do not know you are there for any questions or concerns they have, they may ask someone else and then you lose that business. Be available to them as much as possible. Do not let another agent do the job you want.
The most important way to build a relationship is to understand the client’s needs and do your best to provide what they want. It is great to focus on the sale but if the client is unhappy, you lose not only the sale but the referral. That can cost you in the end. Great customer service promotes long-lasting relationships. If you don’t have these, you have no book of business.
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Lack of focus on a specific product line
As an insurance agent, you may have licenses to sell several different products. When getting started, it is best to focus on one type of product. It is important that you understand any product you are trying to sell to someone else very well. This way you can answer any questions that come up and ensure that the client gets the product that best fits their needs.
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It is easy to get carried away and want to offer every possible product. It is best to set yourself up as an expert in an area and add other products once you are ready.
Not finding good leads
Finding good leads is one of the biggest issues insurance agents face. Good leads usually do not come cheap and cheap leads don’t usually result in a large number of sales and require a lot of work and multiple attempts before a sale is made. Agents working leads need to be able to handle rejection and even anger at times. In other words, it costs money to make money. Good leads result in more sales but you need the capital to purchase them in the first place. The frustration of bad leads can cause an otherwise good agent to struggle and even give up on their business.
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Not using the tools available
Not staying up to date with the tools that are available can keep an agent from growing. In this industry there are always changes. There are new tools introduced that make life easier every day. This can save hours every day and give you the option to meet more potential clients and in turn make more sales. remaining aware of what’s going on will help agents stay current and provide the best service to clients.
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Technology adds so many options to reach a greater audience than it did just a few years ago. Things like Facebook, zoom meetings and other social media platforms allow agents to reach a wide audience. Employing these tools can make a huge difference in getting your name and business out in front of an audience. the more people know about your business the better chance you have a being recognized as an authority on the products you offer and your chances of making a sale increase.
They don’t understand how to network
It is imperative to build relationships with other professionals in the business. They provide a wealth of information and experiences, tips and ideas that can be invaluable. Other agents provide insights as to what works and does not and can save you from learning the hard way. Other agents know how difficult it is to get started and can provide encouragement. They can explain which tools are worth the time and which ones are not. Networking also includes other professionals in other fields that may have leads to send your way.
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Agents try and go it alone
Agents need support that goes beyond their network of professionals. A good mentor or upline is a great way to get advice who has your best interest at heart. These are people who are willing to invest time into your career and want you to succeed. A few things uplines can help you with are, contracting, answering any questions about carriers, products or sale. They also might help you figure out the best business plan for your personal sales style. A mentor is a great asset to have especially if they have been in the business a long time and have had success.
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The support of friends and family helps ensure agents do not give up when they are frustrated and may also provide guidance when needed. There are many moving parts when it comes to the insurance industry, if an agent can navigate them and remain focused, positive, educated and compliant, they can have a successful career.