| ign="center"> | | | | stick." This lethal rate of turnover causes the |
| This report is not meant to shock you, but to clear | | | | average agent longevity to amount to only 4.3 years |
| up some misconceptions that most life and health | | | | of insurance experience. This figure has hardly inched |
| insurance agents are living out a life of apps and | | | | upward during the last 3 years. |
| money. These are our personal calculated figures | | | | TOO MANY AGENTS Yes, it is true that licensed |
| being presented to you. Absolutely NO ONE, (outside | | | | records show over a million life and health agents in |
| of the IRS) knows exactly what agents actually earn. | | | | the United States, possessing an "active insurance |
| We will try to be as accurate as possible. If you | | | | license." Maybe we are too harsh in saying the |
| asked a person what a professional salesperson | | | | following. If half the agents (lowest income), were |
| earns, you would consider life insurance salespeople | | | | fired today, the insurance industry would not be |
| to be in this category. Hint - a non-insurance personal | | | | devastated. Currently the center median income for |
| sales person tends to earns enough more, to put him | | | | licensed insurance agents is $31,700. The average |
| her in a more upscale neighborhood. | | | | income pumps this up just a slight notch to $34,800. |
| An income survey of insurance agents is without | | | | Fortunately this figure is starting to increase, thanks |
| exception, entirely worthless. The experienced and | | | | primarily to Continuing Education Requirements. |
| wealthy pros will understate their earnings, while | | | | THE TOP 20% The top fifth of insurance agents |
| those in the lower income echelon might very well | | | | average an income of $18,700 higher than the |
| add an extra zero to their figures. What is certain, is | | | | average agent. This equates to $53,500, but |
| that there is a broad spread between the proven | | | | remember we are talking average here. Mixing a |
| professional insurance agent and the rookie. Plentiful | | | | $200,000 insurance superstar with 9 median income |
| articles have wrongly stated how much income | | | | agents of $31,700 results in an average of $51,700, |
| agents obtain from their insurance sales efforts. | | | | yet note that only ONE agent actually earned that |
| By analyzing thousands and thousands of agent | | | | amount. After 15 years of helping agent marketers |
| records (over 750,000), we are able to calculate with | | | | become more successful, it is still amazing how much |
| some accuracy their income levels. For you to agree | | | | money is spent by the insurance companies and |
| with our findings you must accept our assumptions... | | | | recruiters chasing down the wannabees. Please don't |
| mainly that agents tend to live and work around their | | | | preach the 80/20 rule to agents, unless you in turn |
| personal geographic location. Based upon realms of | | | | follow it in your recruiting efforts. |
| census data, we put a value figure of household | | | | THE STARVING Nearly 280,000 agents earn less |
| income, plus home value to each and every zip code | | | | than $25,000 annually selling life and health insurance. |
| in the United States. Overwhelmingly, the high | | | | Furthermore, this income is actually pumped up, as it |
| majority of insurance agents earn close to what their | | | | includes tens of thousands of rookie agents who |
| neighbors and counterparts earn. Therefore with | | | | have their incomes subsidized by career companies, |
| some reservations, we must assume an insurance | | | | and will leave the business when they could no longer |
| agent's net income will closely mirror that of others in | | | | match the requirements for the subsidy to continue. |
| their zip code area. | | | | Ever wonder why insurance companies have |
| OUR DEFINITION OF INCOME: Total household | | | | thousands of low cash value orphan policyholder |
| income, after business expenses, and before taxes. | | | | "LEADS" to help when the rookie desperately runs |
| WHY INCOME IS LOW Non-insurance outsiders, | | | | out of family and friends. Unfortunately these lead |
| when asked how much an insurance agent earns, | | | | minnows become the rookie's food instead of bait, |
| would typically respond with an answer in the range | | | | as he was never taught properly how to reel in the |
| of $40,000 to $70,000. A highly regarded insurance | | | | big ones. |
| trade magazine reported a study determining the | | | | THE AFFLUENT Only 3% of agents earn a net |
| average agent obtained an income of $50,000 a year. | | | | income exceeding $75,000! And of these, very few |
| Dream on. Our intensive study shows that currently | | | | reached the mark within their lst 5 years of entering |
| only about 7% are at this level. Here's some | | | | the insurance profession. For the hard working, |
| understanding why: (1) There are just too darn many | | | | ambitious, and determined agent, here is our piece of |
| licensed insurance agents hoping to become to | | | | advice. Don't follow the rules! If you follow all the |
| become professionals. (2) Recruiters are not initially | | | | rules, you are guaranteed to evolve into the average |
| selective enough when bringing a new agent into the | | | | agent... starving on an income under $40,000. Dare to |
| insurance career. (3) New agents have no idea how | | | | be different, find your niche, then you will be proud |
| much money that they will actually net, and how hard | | | | to call yourself an insurance professional. |
| it will be to survive the first two crucial years. | | | | FOR RECRUITERS ONLY Concentrate your time on |
| MORE ON THIS SUBJECT For agents licensed under | | | | proven, experienced agents and quit trying to solicit |
| 18 months, they collectively post an outrageous | | | | the rookies. Sure rookies will reply to your mailing, |
| agent turnover rate of close to 85%, stunning, but | | | | just like they will reply to all your competitors. There |
| true. It might upset you enough to question the | | | | are plenty of quality 3 to 10 year agents looking for |
| validity of "expert" career agent recruiters writing | | | | an opportunity to meet the challenge of you helping |
| articles and giving verbal accounts of their strenuous | | | | then earn a better living. If you are looking for |
| and successful pre-qualifying process. While we | | | | brokers, remember that 60% of agents have no |
| believe that SOME accounts are true, we feel these | | | | surplus business to give. Contact us, we will be glad |
| exceptionally talented individuals are few and far | | | | to help you target the "happy discontent" agents, |
| between. After all, was it not a former insurance | | | | especially those receptive agents searching to better |
| recruiter who proclaimed, "If you throw enough ___ | | | | their career and their income. |
| (your word choice), against the ceiling, some will | | | | |