Is it really like this for most insurance agents

General
1

I want to share a story from an insurance agent. This person started in the business feeling hopeful but ended up frustrated. Here’s how it went:

The journey started with dreams of making a six-figure income. Who wouldn’t want to hear they could make $10,000 a month? So, this agent took the pre-licensing course, passed the exam, and joined an agency that promised great leads with no cold calling or door-knocking. It sounded amazing.

But trouble began right away. The so-called high-quality leads were not free. When the agent asked why they had to pay for them, the manager replied these leads were top-notch. So the agent paid, expecting great prospects.

The reality was disappointing when the agent made calls. Many leads were old, wrong numbers, or connected to people who didn’t want insurance at all. Some were even rude. With no sales to show, frustration grew. Everything the agency promised about these exclusive leads felt empty.

Still hopeful, the agent switched to a new agency, thinking the first was just a bad experience. This new place looked good too, same talk about quality leads, no cold-calling, and high conversion rates. But again, leads came at a cost, and this time, they were barely warm. Responses were similar: people ghosted, appointments canceled, or potential clients denied they ever asked for info. The agent also spent another $1,000 on checks, leads, and insurance, with no sales to cover it.

After two agencies, the agent looked for better luck. They tried a third company that didn’t charge for leads. But this place operated like a multi-level marketing scheme, pushing them to recruit friends and family. Eventually, it became clear this was just a pyramid scheme, and by then, the agent had lost money and relationships along with any patience left for this line of work.

2

For most successful life and health agents, this isn’t just a job. You’re starting your own business. There isn’t a magic bullet. You either pay for leads or generate them yourself, and most costs come out of your pocket. Expect to struggle in the first couple of years.

Is it possible to make $10,000 a month right away? Sure, but those cases are rare. Our industry has one of the highest failure rates of any sales job. But if you make it five years, it can be very rewarding.

3

@Ren
Exactly, what bothered me about this story was the word ‘easy’ at the start. The agent should have known they had to pay to market their own business.

Does a business just market itself?

The other option for marketing is word of mouth, or ‘friends and family,’ which gets just as much criticism as paying for leads, haha.

You’re in a tough spot no matter what.

4

Selling life insurance is tough and isn’t for everyone. When I signed my first contract in 1985, my mentor said, ‘welcome to the Super Bowl of selling,’ and he was right. Only about 5-7% of new agents succeed well enough to make a career out of it. It’s hard work, but it can pay off big for those who do succeed.

Let me share a couple of stories. I knew a guy who drove a milk truck before becoming a Prudential agent in the early 70s. By the late 80s, he was doing well enough to buy a second home on the beach in Malibu. Sadly, he passed away some years ago, but that home is worth over $25 million today. He had no advanced degree, just being likable, patient, and thorough made his clients love him.

I also have a colleague who retired last year at 94. He qualified for the Million Dollar Round Table for 56 years. He didn’t have a special background, but he was good at understanding and connecting with people.

I started my career at 40. I was already a licensed attorney, so I had a bit of an edge. I did the lead thing for a year, then moved to focus on wealthier clients, and by 44, I was working with ultra-high-net-worth individuals. At that level, it can be very profitable, and I often earned as much or more than other members of the estate planning team.

5

Let me share my perspective as someone in the insurance industry from the BGA side.

If you think you’ll start making $10,000 a month or over $100,000 a year right away, you might be waiting a long time for that.

Most people selling high-value insurance policies are often financial advisors who do multiple types of finance work. I know a 25-year-old who just joined the business aiming for that kind of income too. But the reality is that it’s unlikely, especially for younger people entering this field.

Insurance is really about building relationships. It helps to know many other agents and agencies to get leads or find business partners. From there, maintaining those relationships is key.

6

It’s interesting. I just bought a business. For salespeople, there’s a $50,000 base pay plus 6% commission, along with bonuses and contacts. They cover the lead costs but are expected to generate most leads themselves. I’ve tried generating leads and usually get over one per hour doing it.

One sale a week is usually enough to meet quota, and two sales a week can lead to over six figures in total compensation. It’s not a pyramid scheme, and I don’t want my salespeople’s friends and family involved.

You’d think it would be easy to fill these positions, but most people struggle with this kind of work. Sales is tough mentally.

7

Are you hiring?

8

Lennon said:
Are you hiring?

Yes. Are you located in Northern Virginia?

9

Axel said:

Lennon said:
Are you hiring?

Yes. Are you located in Northern Virginia?

I wish, I’m in New York. Is there any remote work?

10

Lennon said:

Axel said:
Lennon said:
Are you hiring?

Yes. Are you located in Northern Virginia?

I wish, I’m in New York. Is there any remote work?

Not really, but there might be a similar deal: Enviro-Master Commercial Cleaning in Rockland & Westchester

11

When people promise a six-figure income in the first year, it usually means they benefit from you joining the company and not from actually selling life insurance. They profit from you buying leads or recruiting friends and family. These companies are not serious, and they don’t represent the whole industry.

12

Focusing just on selling makes it hard. Insurance agents can help clients by offering a financial tool that covers loss, builds cash, and allows cash use from the policy. A lot of my time is spent helping clients understand why they need the product and how insurance fits into their financial picture.

Building relationships and trust takes time. Success comes from being the person clients turn to for their questions.