Let us tell the truth, and nothing but the truth.
However the information contained in this report is precisely the knowledge very few life insurance career agencies would want released.
The new agent trainees need to know exactly the business practices of the life insurance companies they represent.
Does the life insurance company want you to know that an agent that does not make the grade is worth substantially more than one that marginally carries on? A larger life career agency commonly has 150 new agent trainees coming and going during a year's time..
Yearly over 90 of these agents do not measure up to snuff, at least enough to last 12 months.
This translates frequently into three agent sales managers controlling a force of 30 to 40 licensed agents.
This is an amount that only increases upward at a snail's pace.
The only blunder these new agent trainees commit is answering a luring advertisement.
The first step of baiting the trap is catching the agents' attention.
The Agent Bait Unemployment creates two emotions many adults have trouble coping.
The fear factor of unemployment or minimum wage employment enhances fear and struggling to get by.
In addition the emotion of greed to these adults is earning more money than they ever dreamed.
The life insurance company is an expert on placing carrots in front of mules.
Carefully worded emotions and outlandish solutions appear in their Sunday newspaper classified ads.
Flipping burgers versus making $100,000 yearly in a short time, puts selling insurance in a no comparison situation.
It is certainly not out of the ordinary to have two dozen agents inquires off a single ad that promises a rainbow of benefits.
15% to 20% of a sales manager's time may be spent interviewing agents, and 20% additional time monitoring a new agent 's progress on the sales speech, product portfolio, and sales presentation.
All pre-actions before an agent attempts selling life insurance or health products.
Life insurance agents leave the industry rapidly before even 12 or 18 months go by.
There is a variety of reasons.
mostly caused by the lack of sales manager concern and assistance.
Either they could not sell enough, deliver an adequate amount of presentations, or effectively close prospects.
Shifty, dubious maneuvers by the insurance agency intentionally depleted the agent's perseverance.
The agent was forced to face reality and leave.
Life insurance agents are worth more dead (gone), than alive to the life insurance companies.
How does a profit of about $100,000 to $350,000 per dead (former) agent sound? This amount is after deducting commissions that were fronted or earned by the insurance agents sales efforts.
Realistically a huge number of new agents last long enough to write 100 policies with an average premium of $850 each..
When agents leave, the remaining first year premiums due, and all renewals become the exclusive property of the Life Insurance Companies.
$85,000 of potential yearly premiums remain.
Look at it each of the first five years with no death benefits paid, and a modest 85% policy renewal rate, First renewal year= $72,250,00 profit.
Year 2 = $61,412.
00, year 3 = $52,200.
00, year 4 = $44,370.
00 and year 5 = $37,710.
The no longer existing, sub-par agent earns the company $267,942.
00 The insurance agency and company potentially earns more on the former agent, than on the life agent that stuck with them for 5 years.
There are no office rental fees, or time sacrificed training a departed agent.
Could this trend be reversed? Definitely, absolutely, and without any doubt is the answer.
However career life insurance agencies like remaining profitable.
Few, if any, are not going to do much to change this trend.
Their superficial, transparent mode of operation is working just fine for them.
Under the table, in company management discussions it is often crudely called the masses of - formula.