This article focuses on the business of insurance agents, financial planners, trusted advisors, and marketers. They have been in business for long enough to understand that it is rewarding, that they love it, and that they have reached senior citizen status. There are a growing number of people who are still in the business. Some of us are full-time, some are semi-retired, while others have cut back on part-time practice.
My view is that I am semi-retired. These are our points of view and reflections. We have fulfilled the promises we were given decades ago by recruiters. We have witnessed the transformation from selling insurance to a full-time profession. It is challenging and rewarding. We have much to share with our peers and practitioners of all ages.
1964 was less than one year after I signed my first insurance policy. I found myself in the Grand Ballroom at the Rice Hotel in Houston. Ben Feldman, a veteran insurance agent and probably the most successful in the Republic’s history, was on stage. Ben talked about many things, but one thing that I still remember is this great prediction and admonition: He asked how many people had been in business for less than two years. Many hands were raised. Perhaps half of them. He said that in five years, over 90% of us wouldn’t be working in this industry. It’s so hard. It is so hard. I promised myself that I would make it to that 10%. You have to do the work and not talk the talk in order to make this happen. It’s worth it for the rewards and the ability to overcome the inevitable bumps and bruises in sales. What does it take to do this?
The retrospective view, which is 71 years old and 44 years of agency experience, shows that there are many strategies and techniques available to agents. It is exciting and inviting to see the future. There are many benefits that come from this. It might also be a motivator for younger people to realize their dreams, goals, and promises.
First, I found that a lot of new business for an agency comes from its existing clients. This is largely unsolicited and is supplemented with the more traditional methods of lead development. Contracting to purchase leads from a vendor and having them delivered to your office via the Internet is one such option. As you know, there are at least 6-8 other prospecting methods. The ones that work best for you are the ones you choose to use. This is a process that requires a lot of trial and error, but it is essential. Nearly all prospect leads in our case are emailed or phoned. This was not true in the beginning.
Our office manager is the only person who cold calls businesses in yellow pages every day for over 9 years. She is never bored and always produces quality leads. Through the annual telephoned service contacts and conservation, we have always been able to get new and valuable prospects. Following the sequential selling strategy to existing clients, I am a follower. This is how the client becomes a customer, whether it’s an individual, family member, or business. If you don’t do this, you are leaving your chips on the table. We have created an inbound telephone arrangement that trades on directory aid, but the details of the method are beyond the scope of this article.
Finally, as the times and circumstances have changed over the years, I tried every method and strategy to develop steady, qualified leads just like most of you have done. A commission-based business requires that one never stops trying to generate leads and business. Failing to do so will result in failure of the entire effort, and eventually leave this industry. I’ve found that the longer an agency operator is active, the more quality leads, new clients, and referrals one receives. It is important to stay the course. Turning prospecting problems into processes is the key. It is crucial to choose the right IMOs, FMOs and BGAs for the practitioner. These organizations offer value-added services such as education, marketing strategies and new coverage rollouts. These organizations offer value-added services, education, marketing strategies and new coverage rollouts. Take advantage of them and ensure that all contracts are through them and directly with the insurer.
It is important to treat your selling efforts as a professional business. You should have a professional office with all the necessary equipment. This includes computers, phones, faxes, national call capability, client and supplier files, printers and copiers, staff, detailed annual plan, fringe benefits, commission accounts receivable controls and website.
This is a very important point. The income streams we receive from insurance companies through agents contracts create value. The main element is vesting with the right to select beneficiaries. It is crucial to emphasize that this is the development of income and asset for the producer. At a certain point, businesses can be considered not only our work but also an income-producing asset. This is how you can add new business to your existing business while also conserving renewals and trailing payments. They not only provide income for retirement while we are alive, but they also provide financial support for our loved ones after our death. Pay attention to the agency and agent agreements, including the vesting, beneficiary selection rights and for-cause/breaching clauses. Pay particular attention to the language regarding ownership of policyholders. This clearly demonstrates that the agent and insuror are part of a joint venture. Each has a stake. If the contract phrase includes an inducement to switch policyholders to another company, it would be considered a breach.
We have the right and obligation to act in the best interests of our clients and cannot be forced to do so by a company. Doing otherwise would result in the company cancelling the contract for cause, which would lead to our loss as well as the client’s loss. Moving a term or life insurance policy that covers medical insurance or other coverages because they are too costly would be a good example. It is possible to pass new underwriting and get comparable or better coverage. Client’s interests are paramount. This principle will help you stay in the field and reap the rewards of being there for the long-term.
This is the main point. Agents, marketers, financial advisors and consultants are all part of the same team. But, we are also our bosses. Think about that. If we are fit enough, healthy enough, and not too old, we can continue to practice medicine as long as necessary. All of this is in our control. All of these are our choices, decisions, and enjoyments. At 71 years old, I don’t have any immediate plans to retire fully. There is no reason to sell out or close down if there isn’t any burnout. Many of my peers would agree with me. It is a smart decision to reduce your time and effort and to combine your activities with travel, retirement, leisure pursuits, and vocations. The best part is that there is no age discrimination in this business. I will never be informed that my services are not needed anymore or that my job is being exported to another state or country. No one is going to promote me above my head. Keep getting communications and offers of contracts from IMOs, insurors, and others. They are entitled to a share of the proven productivity, so why not?
All of this is quite different from the corporate world. This is a far cry from corporate workers who are afraid, intimidated and insecure and know that they will one day be called to the boss’s office. Only we can fire others.
The advent of computers and the Internet has made it possible to complete most insurance applications online. There’s no need to look through your windshield or burn gas. And there are no no-shows when you get there. I have had a comfortable gross income for many years by taking advantage of all this. This has increased each year since my semi-retirement a few years back.
We are now able to create a unique financial and tax strategy. Senior citizen agents and practitioners often receive some social security income. Many of us might even receive pension income from our previous jobs. Many people have their own IRAs, SEPs, and 401(k) plans. I know that I have, and I think it is a good idea, especially for the 401(k). This is a great strategy. This last plan can be contributed to large amounts of money (provided you have it), while tax-qualified plans are subject RMDs. We can create assets and keep our income from social security completely or largely tax-free, while also building up funds to support our living security. Many of you will find this to be a very appealing concept. This is in contrast to regular employees or corporate retirees who have substantial pensions but no active tax-advantaged plan and little or no business deductions. They are hit hard for all their income. That is not an issue for us, at least until we decide to tap our plans or close down our shop. If you have the ability to do it, this is a nice job.
It is clear that seniors who are actively involved in non-work and work activities, have a higher quality of life and live longer and healthier lives. This kind of end-game, that frankly surprised me, should be motivating not only senior practitioners, but everyone. We entered this field because we were independent.
