If you are interested in becoming an insurance marketer, there should be a bright sign on the agent’s vehicle. Both selling insurance and marketing insurance is a different career field and should not be confused. Many of the most successful insurance marketers fail to survive even one year. Many insurance marketers who are considered to be successful don’t have any experience selling insurance. Selling insurance is an important background requirement. There are many parallel traits that must also be learned.
Why are so many insurance brokers looking to be an insurance marketer? There are two reasons. The first is your inner desire to be autonomous and manage your own business. Many independent insurance brokers are able to build their own agency with exceptional performance. The contract you have been signed by an insurance company or marketing agency is the second. You can find former insurance contacts or associates and contract them. In return for writing business, you will receive an override. It sounds like it could be easy money, right? Wrong.
In the next 12 months, at most 70,000 brokers will be eligible for a multi-level contract. Multi-level contracts allow you to earn a high commission. If you sign up, the lower level commissions an agent would get. The difference would be paid to you. You would get 20% if you were commissioned at 90% and the signed agent at 70%. If the agent signs up and collects an annual premium $1,000, then he will receive $700.00. You would also get $200.00. This concept is supported by many insurance companies. This option saves producers a lot of advertising expenses.
Your efforts should be more aggressive. It turns out that there are 9 agents who would be willing to sign the lower-paying brokerage contract. Your head is racing with dollar signs. The true insurance marketers with higher contracts will not discourage you. They will reap the benefits of every action. Wow! This could make you a lot of money. 9 agents at 20% could equal 180% in overrides. Imagine each agent writing $5,000 to cover the premium on this amazing product. This means you have $9,000 in your pocket, and not even a single finger. Strangely enough, thousands of other producers dream the same thing.
Finally, you wake up in six feet muck with other wannabe insurance agents. You begin to see the foul deeds being done on you by others. When you recruited these agents, the marketing director didn’t mind cutting $4,500 in recruiting expenses. The contract allows the marketing director to cancel the contract at any time. The contract also says that the contract is not fully vested unless you have received a certain amount of production. Your marketing director will email you to inform you that your contract has been terminated. Your marketing director will email you to inform you that your company contract has been terminated. He will then be eligible for any future renewals or overrides.
Another killer. Your insurance marketing agency suddenly switches to a new term-life insurance company carrier. Your contract is now ruined. The new contract only has one level and is not multi-level. The new contract offers you and nine of your agents the same contact. There is no override provision for you. This is not a trick that only insurance marketing companies can use. The idea was invented by insurance companies, and for good reasons. You will be terminated if they suddenly discontinue the product or substitute it with something else. Your clients’ premiums and renewals are collected by the insurance company without your knowledge. Sometimes receives all of your payouts, but retains some profit.
You weren’t stupid. There were thousands of people who fell into the insurance world. Imagine if you were able to make a commitment to becoming an insurance marketer full-time. There are far too many guns pointed at you. Today’s marketing professionals will not be agents in three years. People who are gullible and think they have the chance of a lifetime, but will not be able to replace the 10,000-11,000 people who leave the ranks. You will often need between 50 and 80 brokers to help you write business.
You have spent many years perfecting your selling skills and improving your presentation abilities as an insurance sales professional. Do you want to be a complete newbie? Being a marketer can be daunting. You are under tremendous pressure to perform, even if you get promoted to a head office position in marketing. You cannot market insurance unless you are desperate for financial, emotional, and mental challenge.
Analyses show that the earnings of top life, annuity and health sellers exceed those of insurance recruiters. The number of people with $100,000 or more in income tilts the balance heavily in favor experienced insurance sellers.
