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Selling Insurance
12-02-2014, 11:38 PM
I graduate with a degree in Marketing from a state school this December. I was just offered a job with a fortune 500 company selling supplemental insurance. It's 100% commission and I have to get certified before training which will cost me around $200.
I've looked into it and know that it involves a ton of hard work. There is only one other agent for this company in my area and will help train me, so I don't have to worry about agent saturation or competition within the firm. I also have another meeting with the regional sales director to get more information.
They have a good bonus and incentive program, but the 100% commission is what worries me. I know I have the skills and work ethic to succeed, but would like some first hand knowledge from anyone who has experience in this line of work.
For the record, If I take this job I plan to grind it out for a few years and build up a nest egg to become fully self employed. If I don't take this job I will keep working my college job until I get another sales gig that will hopefully pay a base salary plus commission. I've sent my resume to multiple other jobs and have a few leads that could pan out.
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Selling Insurance
12-03-2014, 12:19 AM
I had an interview with a place when I was down on my luck. A friend of mine went through with it. In the interview they asked me to generate a list of 100 people I know. Those would be the people I start with. From there it is all cold calling. The guys who stay are the ones who are lucky enough to hit a few bigger accounts early on, enough for them to stay and become middle management and bring in new salespeople. Middle management gets a cut of whatever the salesmen get, so it becomes a multi-level marketing deal with the credible (or stench) of insurance sales.
I honestly think you can find a better job for the effort required to make a buck, even if you have to create the job yourself.
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Selling Insurance
12-03-2014, 12:21 AM
Make a travel insurance for Russians that is reliable like clockwork and you are golden.
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Selling Insurance
12-03-2014, 12:24 AM
That depends on your sales skill and past abilities. Commission is one of the greatest motivators in my eyes, but obviously, you don't close, you don't eat. You cannot ever be comfortable, in my opinion, its the greatest job for someone that's swallowed the red pill.
"Money over bitches, nigga stick to the script." - Jay-Z
They gonna love me for my ambition.
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Selling Insurance
12-03-2014, 12:26 AM
Are you sure it's not one of those MLM scammy companies like Primerica?
I hear "F500" or F1000" thrown out there a lot along with "venture-backed" and "backed by X-Hedge Fund".
Look at Herbalife, Amway, and Primerica. The last one used to be part of Citi.
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Selling Insurance
12-03-2014, 01:13 AM
Yeah I was going to say, sounds like a MLM company, Transamerica in my area ?
Questions:
Did some guy bring you to a group meeting the first time ?
Was it a group of super enthusiastic people introducing you to everyone ?
Are they asking for money up front for the certification and no base salary ? (I'm assuming yes in your post)
Is the office in a rental office building ?
Is the insurance you're selling for seniors or retirees ?
If you answered yes to at least 2 of these, more than likely it's a pyramid (MLM) scheme.
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Selling Insurance
12-03-2014, 01:39 AM
My best friend from college was going into life insurance (even interned with a company) until he decided to become a dirtbag instead. What he told me is that you work for forever (i.e. super long hours) in the beginning making peanuts but if you are successful you essentially get to "coast" on your social circle since most of them renew every year without thinking. Selling insurance is a good career if you have a large social circle where the people are better off with this type of insurance and are very personable and extroverted.
As others have said the certification sounds suspect and I can't speak about the company you are thinking about. But I would think about whether this is a quality product that people are actually going to need/want because nobody should sell their friends garbage?
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Selling Insurance
12-03-2014, 02:07 AM
Also, as tarquin said mentioned, if they make you write a list of people you know....
Walk out.
They're going to make you sell the insurance to your closest friends. You're going to lose a couple of friends over a shitty product. Ask yourself this, if it's such a good product then why do you have to sell it to those close to you first?
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Selling Insurance
12-03-2014, 07:29 AM
I once overheard a life insurance guy on the phone talking to a college. He felt there is a reason so many of these companies burn through people. Once they've got all their new hires' relatives and friends, the people it would be impossible to get under normal circumstances, they dump them.
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Selling Insurance
12-03-2014, 09:38 AM
If you are not trying to sell to family and friends, but rather coldcalling, this might be a chance to make money for you if you are up for it.
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Selling Insurance
12-03-2014, 10:56 AM
I know several former and current insurance salesmen. Large respected companies have their employees work on 100% commission, so I don't think the worries about it being MLM are justified. Typically the first thing they do is have you reach out to all of your friends and family. Those will be your bread and butter. So you have to expect that as real possibility that you will burn some bridges with those close to you, because that is what it takes to survive in the industry.
Also, don't do it, unless you are ready to make it a career. It is definitely a down the road profession where you if you can build a good book of business, you can just float by on residuals.
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Selling Insurance
12-03-2014, 11:01 AM
^^ Yep what Harvey said. High turnover job for a couple reasons:
1. You will piss off some family/friends off by trying to sell to them. The ones you don't piss off will just think you're stupid. Just know that the people you sell to, that you're duping them into buying...
2. ...Shitty products. You don't make money on legit consumer insurance like term life, car, homeowners, etc. You make make money on things like universal or whole life. These are sold as investments. Terrible investments. Your goal of insurance is to never have to use it. Don't buy insurance hoping to use it.
3. If you're fine with #1 and #2, you can make great money.
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Selling Insurance
12-03-2014, 01:44 PM
Good advice. I want to reiterate that I would be interacting with small business owners and managers, not individuals. I would never take a job that would force me to sell to friends and family. I also wouldn't be pushing products I don't believe in. This isn't a "con single healthy 20 year old's to buy whole life insurance" gig. It's more of setting up dental, vision, or disability insurance for employees that aren't fully covered by their current plans.
Has anyone else worked a commission only job? I have the drive and personality to excel, I'm just still deciding if this is the direction I want to go.
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Selling Insurance
12-03-2014, 10:38 PM
Sounds like AFLAC, which is a saturated sale in almost every market. My best friend, who also had a marketing degree out of a state school, worked with them his senior year and got his licensing out of the way so he started selling for them about 20 hours per week the semester we graduated on a commission only basis. He moved to Florida a couple of years out of school and got into a regional property & casualty firm there before moving to one of the big P&C players (AJ Gallagher, Marsh-McClennan, Aon, etc.). He's 31 and making about $200k as a VP in his office now. I actually just visited him a couple of weeks ago and we were talking about how shitty the AFLAC gig was but he grinded it out and looked for other opportunities when they presented themselves. He could open his own shop but he's not interested in the entrepreneurial route and he's now looking into gigs to do work for hedge funds that invest in huge re-insurance policies where he could double his current income in the next couple of years.
All that is to say that it is possible to make it by starting out in an environment like that but you will probably bounce around a little. You could be a great salesman, get lucky, and be making $250k per year by your late 20s with AFLAC but it's unlikely. Less than 5% of people that get into the insurance industry survive longer than 18 months. If you're really passionate about it, give it a shot, but keep looking for other opportunities with a base salary if you can.
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Selling Insurance
12-04-2014, 08:55 AM
It's a good way in to a small business.
I have a friend who does really well B2B sales, now he's in medical supplies (OR surgical devices). I've heard him say he wishes he'd have started in insurance because of the route to owning small insurance business. Either way, he doesn't have to sit behind a desk.
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Selling Insurance
12-04-2014, 09:58 AM
Back in the day in New York, in the 60s, my Dad did quite well in insurance. He was in his late 20s, and doing ok, and took things to the next level by selling some company policies. He is a charismatic man, so he only needed access. He got that access by sending a clever sales letter to a handful of key decision makers...his hook was including a 100 dollar bill and telling them that he only needed 15 min of their time and that he understood just how valuable their time was. This was a bold move, as an online inflation calculator will reveal that to be about 750 dollars in today's money. Money talks, bullshit walks. No one else was doing that.
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Selling Insurance
12-05-2014, 09:17 AM
Wi30, the hardest part about insurance, real estate, or any commission only gig is being able to cover bills while you get yourself financially stable the first couple of years. If you have that squared away, it sounds like an opportunity that will teach you a good bit and hopefully you'll make some cash before you move elsewhere. If you're ultimately interested in real estate, start attending real estate investment clubs near you, and offer to "bird dog" properties and do some research for the top guys for free. The key to succeeding in any of these businesses, aside from your work ethic and sales skills, is having someone successful show you the ropes. Business mentors can be difficult to find but exponentially worth the investment of many hours you put into the relationship before getting anything back.
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Selling Insurance
12-06-2014, 09:20 AM
Let us know what you decide.