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Let’s get a few facts straight first:
1.The person(s) that recruits you follow guidelines. The guidelines miss eliminating the 50% of applicants who just plain can not sell insurance.
2. The companies are going to give new agents “leads”, that no experienced agent would want for free. See my article, “Worthless leads compliments if career insurance companies.
3. Career agents do not get guaranteed vested renewals until they have been with the company say 5 to 10 years, if ever.
4. The career agents get a commission of say 55%, instead of 65%, 75%. Or even 90%. Surplus overrides go the career insurance agency to offset expenses.
5. The career agent receives very little assistance outside the office from the life sales manager. The sales manager spends time with the other 14 new agents, goes on his own leads, conducts staff sales meetings, and spends time working on recruiting more agents.
6. The average sales manager has at least one agent quitting or being forced to quit for lack of production. The new sales manager must get another replacement agent rolling along.
So far it seems better for the company than for the agent.
Now look at the jumbo freezer the agents will be filling with money.
Each agent that leaves puts meat (money) in the freezer. Typical agent lasts long sough to write 100 policies with an average premium of $1,000 each. That’s a total premium renewal of $100,000 if all renew. Let’s says $80,000 renews. Part of the premium goes to offset any unpaid costs the agent or agency had accrued. $50,000 remains and in 10 years it could reach $500,000 in the Freezer. (unless there is a death claim) The freezer is crammed with meat from agents who are long gone. The policy owners are now orphans, and when they call the office to buy more, the former agent’s sales manager jumps right on the hot lead.
The departed insurance agents look like a failure, and the accounting of the insurance company looks like a big success. Insurance freezers have been packing away choice cuts, compliments of former insurance agents for many years. Sorry. but as long as there are people looking for jobs, there’s no way to pull the plug.
By: donald yerke
Article Source: www.ArticlesBase.com
Don Yerke is the marketing advisor at Agents Insurance Marketing USA, a firm he founded over 25 years ago. This is the premier firm in providing carefully refined and selected Department of Insurance agent name lists. Our clients are composed of insurance company recruiting directors, independent marketing organizations, insurance wholesalers, and general agents looking to recruit quality agents. Check out our hottest articles. dyadvisor@gmail.com Our over 150 page website is located at http://www.agentsinsurancemarketing.com.
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