Why insurance agents fail in this business – Part 1

So you have been witnessing the success of your friends from school who decided to join the insurance industry. Their Facebook pages are full of pictures of them attending glamorous award ceremonies, shaking hands with new clients after closing a sale, and posing in front of famous landmarks such as the Eiffel Tower, Big Ben and the Burj Khalifa. So you thought to yourself, “I can do it too, it can’t be that hard”. So off you go, starting your career as an insurance agent, joining an agency, getting all the right training and certification needed to set you off on this new and exciting path. Nothing can stop you now, “New York City, here I come!”

Twelve months later, while scrolling down your Facebook page, you realized you have only shook hands with 4 clients. Not only that you haven’t been anywhere near the New York city, you are now struggling to pay your rent. And you wondered if that job vacancy at your brother’s restaurant is still available.

This story is relatable to many, not just insurance agents. Realtors, MLM sales people and freelancers alike, many in the end gave up that dream of achieving financial freedom and the freedom to work as and when you wish.

So why do agents, especially new agents, fail? We will list some of the most common reasons.

1. Mindset

This is the most critical factor! No matter how much training you’ve received, how skillful you are, and how many prospects lining up at your door, waiting to buy insurance from you. If you don’t have the mindset to succeed, all these talent and skills and opportunities that you may have are wasted. Having the right mindset is important to succeed at any field and any job you decide to venture into. As the saying goes, “whatever the mind can conceive and believe, it can achieve“. Similarly, if you believe you don’t have what it takes, don’t think you are good enough, don’t think you are likable or confident enough to close any sale, even though you are fantastic and smart and have great personality, you won’t make it. So, believe, believe, believe!

2. Having the wrong focus

Many people who joined this industry joined it for the sole reason of making lots of money. Though we can’t say that this wouldn’t work 100% of the time, what we will say is that, this business shouldn’t be only about money. This is a people business, which means that you are dealing with people and your main focus should be about providing value to them. If you have this intention deeply rooted in you, your whole perspective will genuinely shift, and your clients will be able to sense the sincerity in you.

3. Unable to relate to clients

This is one of the effects of having the wrong focus. It is the result of doing this only for the sake of money and seeing your clients and prospects as dollar signs. Well they are not. They are not here to help you close sales and earn your commission. Instead you are here to offer value and service to them. Be attentive to their problems and concerns. Sincerely try to help offer them the best solution. It wouldn’t hurt to brush up on your people skills.

4. Not willing to work hard

You can’t succeed without working hard. Tis career can be difficult as you have to motivate yourself persistently to keep at it. Unlike a 9 – 5 job, where you know that you have to show up for work by 8 am, 5 days a week and you have to submit that report by the end of the week and meet those sales target by the end of the quarter. In this line, there is no supervisor checking on your progress, no appraisal at the end of the year.

So it’s entirely up to you, your self-determination and persistence. Nothing comes easy. Those peers you see who have achieved their financial freedom, they have put in many hours of hard work, they too have gone through numerous bouts of disappointments and rejections. Most even have experienced periods of self-doubt and uncertainties. But they picked themselves up and carried on. In short, they persevered!

5. Seeing this as job, not a business

This is a business! With a job, you can just go to work each day and earn a salary at the end of the month (provided you don’t mess up so bad and get yourself fired). A business however, is more than that. It requires smart and solid planning, capital to invest in the right training and self-development, and to pay for phone bills and gas for all the traveling required to meet with prospects. When you start seeing this as your own little business, you will start to take responsibility in ensuring its growth.

These are just a few of the reasons why an agent can fail in this business. There are many more, which we will be covering in part 2 of the article. Do you have any interesting stories you would like to share with us in your journey as an insurance agent? Please get in touch with us. We would love to hear from you!