Set up for failure in a sales career
There are those who aspire to a career in Insurance sales. This choice can lead exceptional financial rewards, prestige and a solid profession. There are many benefits with a career in Insurance sales.
Yet when people apply to become an agent I find that the depiction of the new career tells only one side. New agents hear about the money, freedom, positions and benefits of the position. Yet there is always another side to any story. That story not only shares the positive but the negative aspects to the decision to pursue this career.
I am not a negative person. But it is time to share the story so that people know exactly what they are getting into before they make the decision. Consider the following;
1) This is not a job, but a career choice to become self employed - when you are looking for a job you should not consider a career in Insurance sales. With a job you work and get a check after a few weeks. With insurance you have no guarantee of a check even if you go to work, prospect as they tell you to and do all that is required. The average income for a 1st year agent is under $25,000. Yes there are some high producers but that is the exception, not the norm. For most self employed businesses it takes years to earn a profit.
2) Consider this position from an accounting perspective - On a balance sheet it lists the assets (things you own) and liabilities (what you owe) along with owners equity and it all must balance. In sales you have your assets(benefits from your new position) and that is where most managers stay when they are interviewing. But the liabilities (expenses) associated with this position are not offset by income initially. You have to pay to keep your car running; gas to get to appointments; lunch money; money to pay your household bills; money to cover expenses that need to paid in order to work. These expenses must be covered by someone and it typically is not the insurance company.
3) Great rewards involve great risk- you can get great rewards from taking great risks. If you are willing to handle all the risks associated with succeeding big in Insurance, you can see great rewards. The key is to see where you want to be and then pay the price to get there.
This is a great career for the person who is prepared to cover all expenses until income starts to come in.