What Makes a Life Agent Rich?
Many insurance agents tend to be financially poor. The Bureau of Labor statistics documents that median salary for insurance agents is actually under $50,000 each year. It is surprisingly demoralizing because the most effective agents generate annual income of $1 million+. Why the difference? The below average agents, unfortunately, don't have any idea that their occupation is to acquire and hold clients. The inferior insurance agents think their job is about selling insurance products. There is a significant difference between selling financial products and services (substandard agents' emphasis) and on gaining and retaining valued clients (rich agents' concentration). Let's explore.
It's vital to fully grasp the main issue and how to generate income as an insurance agent.
Your main goal, in order for you to get rich, is to have one on one meetings with prospective customers who fulfill two conditions:
1. The prospect has money in his or her control (i.e. not restricted in a 401k, tied up in property, etc.)
2. The prospective client is interested in prospects to fare better with his or her money.
Sell to the Prospects Desires Rather than Sell Your Products
Should you have any additional criteria, you will give up profits as an insurance agent. As an example, if you have a third requirement that the prospect have interest in annuities because you promote annuities, this will likely set you back a lot of income because there is NO Prospective client who cares about annuities.
Prospective buyers value their own objectives which include:
1. Safety of principal
2. Tax reduction
It's the agent's task to show prospects how the prospect's goals are consistent with his products' benefits (if that is the case). These people don't meet with you thinking about annuities or separately managed accounts or anything else other than their own desired goals.
The majority of insurance agents miss this concept and rather than concentrating on the maximum number of appointments with prospects who satisfy the two criteria above, the insurance agent will call potential customers to ascertain their own desire for annuities, managed money, life insurance coverage , etc. But such a call makes it obvious to the potential customer that your focus is in your Products or service and not their objectives. That's why you do not obtain the number of meetings you need to. That's why you're poor.
Let's present an instance. Our company, runs plenty of ads on the web to locate consumers interested in financial topics. The ad which got the best response was for a guide about methods to enhance social security income . This really is a hot topic for senior citizens. But every insurance agent told us they didn't want those leads. " I can't generate any money dealing with individuals about social security."
This is a near-sighted view that keeps most advisors/agents poor. Many of these prospective buyers who order this pamphlet on social security income fulfill the two conditions above but since the advisor/agent is so focused on his or her own goal, his or her goods and services, the agent will not secure a consultation with viable prospective buyers who might become good clients. It never occurs to poor insurance agents that individuals interested in a pamphlet on boosting social security income are interested in more income, from any source. So these people could be excellent candidates for immediate annuities. However the insurance professional's product-centered myopia never allows this possibility to surface.
Focus on the big picture--meet with individuals you can help and don't concentrate on your services and products. The financial offerings are simply tools to help people accomplish their objectives, tools that don't need to be discussed until the last 10% of your discussion. Be a prosperous insurance professional.