New Jersey is constantly in search of life insurance agents. Why? Greed. Greed is better described as the sound of money speaking. New Jersey has the highest per-capita family income among all the states. This makes New Jersey the top choice for career agent insurance companies. This does not necessarily mean that the entire state is affected. The insurance company thoroughly researches metropolitan areas in which money is found.
These are the locations where they have set up their new, modern offices. These areas have as many insurance offices as the pawnshops found in the less populated inter-city areas. Other areas are ignored by the insurers, such as the plaque. They want to send thousands of agents out to infiltrate wealthy people and small business owners. The agency manager wants to win the gold and is disappointed that his New Jersey life insurer agents accept anything less.
Young adults from wealthy or upper-middle class backgrounds have high expectations. These college seniors will likely go on to pursue careers that offer high potential income. Others college students from different backgrounds want to climb the ladder. They are encouraged by their parents to make a better future for themselves. The reaction is when the career insurance agencies chase down the second group of students. See what happens when two worlds collide.
Insurance companies and New Jersey agencies are really wasting their money with their twisted logic. Their logic says that a skilled agent working in an affulent region could write 50 policies with $2,000 per year. That’s a total of $100,000 in annual premiums. My test logic shows that new agents cannot average writing $2,000 premium policies. It would be possible to get $100,000 in yearly premium, I believe. But, it is not possible to do so.
It would only happen if the agent was writing 100 policies with healthy $1,000 premium cases. My logic is backed by fact. The following would not occur if so many agents did what the company expected. Based on 25 years of agent data analysis, I have found that 6 of 100 New Jersey agents will survive. 94% of agents will quit insurance before they reach the average 4.3 year experience mark. My logic would be correct.
New Jersey’s career insurance agencies and insurance companies could care less about whether my logic is correct. They can win in either direction. How? The insurance company immediately takes 100% control of the agent’s “block of businesses” when the agent leaves. This includes all policyholders’ 1st-year money. It also means that all renewal premiums will be paid as long as the client has an insurance policy. These policies are almost pure profit since they are new. Within the first few years of the policy being in effect, very few policyholders will die.
A salesperson cannot be self-motivated unless he or she is deeply rooted to the environment in which they work. Agents may come from $40,000 families or the same neighborhood. An agent can be brainwashed by the agency, but they cannot reprogram him. This agent cannot sell clients with a net worth of $100,000. It is very rare for a sale to be made. You will need to move slowly out of your comfort zone for years. The same agent is five times more likely to sell a household with a $40,000-to $50,000 income. The agency manager is not happy with this. Every day, the torture continues with the new agent trying hard to follow the “proven agency system”. Reality is often worse than high-income dreams.
My only observation is the deceitfulness of agencies in hiring agents who are not in their league. Agents walk away from agencies despite the fact that they are paid a lot of money by the agency.