There should be a blazing sign that flashes in an agent’s car whenever thinking about becoming an insurance marketer. Selling insurance and marketing insurance are two different insurance career fields and should never be mistaken as one and the same. Some of the best insurance sellers miserably fail to even last one year as an insurance marketer. Likewise, many insurance marketers that could be considered successful have very little experience selling insurance. Although it must be said that selling, insurance is a good background prerequisite, as there are parallel traits that must be mastered.
Why do so many insurance sellers want to become an insurance marketer? Blame this on two things. First is the inner desire to be independent and run your own operation. However, many independent insurance brokers achieve building their own agency with outstanding performance. The second is the contract the insurance company or marketing firm has signed you to. The contract you signed has a provision for you to find associates or former insurance acquaintances, contract them, and receive money in the form of an override, every time they write business. Sounds like easy money right? Wrong.
During the next twelve months, at least 70,000 brokers will receive a multi-level contract. The multi-level contract puts your commission at the high level. At a lower level is the commission an agent would receive that you sign up. You would get the difference between the two figures. If you were commissioned at 90%, with the signed agent at 70% you would receive a 20% override amount. So if the agent so signed up, collects an annual premium of $1,000, then he would receive $700.00 and $200.00 would be credited to you. Many insurance companies endorse and promote this concept. After all, many advertising costs are spared if producers practice this option.
Project your efforts as being more aggressive. You find not one, but 9 agents willing to sign this lower payout brokerage contract. Dollar signs race through your head. You are not discouraged by the true insurance marketers, with higher contracts, who will benefit from every one of your actions. Wow, this could be big bucks, as 9 agents at 20% could mean 180% in overrides. You dream of each of them writing just $5,000 in premium of this great product. That means $9,000 in your pocket without hardly lifting a finger. Strangely, thousands of other producers share your dream.
You finally wake up in six feet of muck inside a pit with similar wannabee insurance marketers. Crawling out, you start to realize the dirty deeds that have been pulled on you. The marketing director, shovel in hand, did not mind saving about $4,500 in recruiting costs, when you personally recruited those agents. Your contract gives the marketing director the option at any time to cancel your contract. It also states that until you receive write a set amount of production, the contract will not be fully vested. Your marketing director emails you that your contract is being terminated. He will now be receiving all future overrides and renewals under his company contract.
Another killer. Suddenly your insurance marketing organization switches to say a new term life insurance company carrier. Of course, your contract turns to ashes. The new contract has one nice level, and is not multi-level. You and the nine other agents you recruited are suddenly being offered the same contact. No override provision is available for you. Never think for a moment that this is a trick exclusive to insurance marketing firms. Insurance companies were the inventors of the idea, for good reason. If they suddenly either drop the product you are selling, or replace it with one you fell is not suitable you will stop writing. The insurance company benefits by collecting premiums and renewals of your clients without you. Your payout is often totally ended with the marketing firm sometimes retaining some gain.
You were not a stupid person. Thousands of others slid into the muck of the real insurance world. What about if you had committed to yourself into becoming a full time insurance marketer. There are too many bullets loaded in the gun pointed at you. 70% of today’s marketers will not be recruiting agents 3 years from now. Mainly gullible people thinking they are looking at the opportunity of a lifetime will replace the 10,000 to 11,000 that leave the ranks. To even hit the success ranks, you often need 50 to 80 brokers actively writing business for you.
As a professional seller of insurance products, you have spent years refining selling skills, and building your presentation performance. Would you like to start over as a rookie? Well starting as a marketer is usually as a rookie. Even a step up to the head office in a marketing position, puts you under great pressure to perform or slide into the mud. Unless you so badly crave emotional, mental, and financial challenge, you cannot market insurance.
Analysis shows the earnings of many top health, annuity, and life sellers exceeding that of insurance marketing recruiters. In fact, the number of $100,000 or higher income earners tilts the scales heavily in favor of experienced insurance sellers.