Some people aren’t aware that large amounts of money can be made as a life insurance agent. It’s not easy by any stretch of the imagination, but making large amounts of money each year in any field usually isn’t. In this article I’ll outline 7 things life insurance agents need to consider to make $200,000 per year or more.
1. Do what you get paid the most to do.
This is a big one, and that’s probably why I have it listed first. You’ve simply got to spend your time on those things that will allow you to make the kind of money you’re worth. If you’re going to make over $15,000 per month, you’ve got to be doing those things that require the high paying skills you’ve worked hard to develop. You are compensated in direct proportion to the complexity of the problems you solve. If you’re going to make big money, you’ve got to be helping people solve big problems. This is what you need to be spending the majority of your time doing.
But there’s a huge problem. The majority of life insurance agents don’t spend their time actually doing what they get paid the most to do. In fact, they spend the majority of their time doing work that is worth $10-$12 per hour. These $10-$12 per hour tasks include cold-calling, prospecting, introducing themselves to new people, or other things in order to set appointments. Then on the rare occasions they sell policies, they shift their focus onto making sure it gets through underwriting. They’re scheduling the paramed exams, requesting the attending physician statements, calling the client to remind them of the paramed exam, working with the underwriter, calling for updates and a host of other tasks sometimes required to get a policy approved. Again, tasks that can be handled by someone making $10-$12 per hour.
The bottom line is this… you can’t make $16,000 per month by doing work that only pays $2,000 per month. You’ve got to use your skills that allow you to solve complex problems for people. In other words, you’ve got to be selling. You can’t be prospecting.
2. Focus on larger commission sales and clients.
Unless you’re working with a large number of new clients, it’s likely that small commission sales will only result in enough income to get by. You’ve got to have some seriously effective advertising and marketing happening if you’re going to try and make $200,000 by doing a large volume of transactions. You’ve got to fill your funnel with hundreds of prospects each month in order to make small commission sales create a large income.
This is why agents with the goal of making a multiple six figure income focus on larger commission sales and clients. They only have to get a handful of sales each month in order to reach their goals. They’re servicing a smaller number of people, but actually making bigger money. For example, they may have an average commission of $2,100 per sale. This means they only have to make 8 sales per month
In life insurance, it’s actually easier to go after the bigger commission sale than it is to go after the smaller one. There’s a few reasons for this. Typically, when you’re working with a larger commission sale, it’s with someone that has a larger amount of money. And these people are typically pretty smart. These are the kinds of people that understand value when they see it. They’re educated enough to know when something will help them solve their problems and they make decisions fast. This leads to less time having to think things over, less time having to speak with others about it, and less time trying to figure out whether or not they’re going to implement the solution you’ve presented. There are serious advantages working with people who know how to make decisions and that can make them quickly. Wealthier people are usually this way.
3. Don’t try to reinvent the wheel.
One of the major advantages of the life insurance industry is how long it’s been around. And because it’s been around for so long, there are literally thousands upon thousands of agents that have documented what it takes to be successful. Thousands of agents have made millions in this business and have outlined the steps they’ve taken. Success leaves clues, and in some cases, entire blueprints. To make good money as an agent, you need to follow a blueprint that’s been proven time and time again.
Do not spend precious time trying to figure things out, when someone has already figured it out and would probably be willing to share it with you. To make a couple hundred thousand, don’t try to pioneer anything in this business, just find a system where others have proven to be successful and apply some hard work.
If you can plug into a system that’s already working, you’ll be light years ahead of where you would have been without it. You can tell that if an organization is nationwide and has a very large number of agents, they probably know a thing or two about what it takes to make good money. Get into an organization like this and soak up everything you can. Follow their blueprint to a tee and combine it with some hard work. Then watch as the results start to pile in.
4. Create or join a mastermind of other successful agents.
Dale Carnegie, in his masterful work “Think and Grow Rich” talks about the power of a mastermind. In a group like this, you can find synergy of energy, commitment, and excitement that participants bring to the group. The power of a group like this is that participants raise the bar by challenging each other to create and implement goals, brainstorm ideas, and support each other with total honesty, respect and compassion.
In the life insurance industry there’s power in working with teams. Not only a team on the front end marketing side and a team on the back end underwriting side, but a team that surrounds you in the middle. Having a team in the middle means having other agents with whom you can interact. These are people doing the exact same thing you are that you can get feedback from. They’re people you can share best practices with and that will share their best practices with you. These are people with whom you can be honest and share ideas.
This is also a team with whom you can have some comradery. Knowing that you’re not alone and that you can reach out to a friend if you have a question can go a very long way. Having someone to give you a needed boost is invaluable. As tough as you may want to think you are, earning a large income will require the best of you and you can get encouragement from others with the same goal.
5. Have the absolute best products to offer.
This may go without saying, but if you can present the best product available on the market today, and you can point out how it’s the most efficient solution to the client’s problem, in many cases it will completely sell itself. People want you to show them a product that’s going to make a very real difference in their life. It has to be unique and it has to do certain things to solve the problems that your clients are racked with.
They don’t want anything left to chance when it comes to their life insurance needs. They need to know the product you’re presenting is offered by a fiscal powerhouse of a company and that it’s going to do everything you promise it will do. If you’re going to make big money in the life insurance industry, you’ve simply got to have a very competitive product to offer.
6. Be In the right markets.
You’ve got to know what markets you can serve. You’ve got to know where the problems are and which ones you can solve. For example, you may know how there’s a certain demographic in the aging population who has the majority of their money tied up in non-liquid assets. You know that when they die, their beneficiaries will have to sell some of those assets in order to pay the taxes on the estate. Selling those assets can be a big problem. You also know that upon the death of the estate owner, an insurance policy can create the cash needed to pay the taxes and effectively solve that problem.
Another example: You may know that many small business owners don’t have a 401k because they’re not yet large enough to consider it. For these people, they have a very real problem. They’re not saving for retirement! You also know that certain types of life insurance policies can be structured for massive accumulation and can be the prefect alternative to the 401k. You can present this solution to their problem and in a way that causes them to have a desire to move forward.
In the life insurance industry, when you’re in the right markets, things just seem to fall into place. You can earn large amounts of income each month when you’ve identified a segment of the market that has a problem that you know how to solve. Not only can you earn a large income in the right markets, but you can genuinely make a difference in the lives of others.
7. Approach every day with a positive mental attitude, have some faith and work hard.
There are many things you can’t control, but your attitude is not one of them. In fact, in many cases it’s the only thing you can control. If you make the decision to love what you do, you’ll work hard to take care of your clients to the best of your ability. You’ll consider your clients to be the lifeblood of your financial well-being and you’ll treat them as such. These things will shine through. Your clients will see that you’re truly serving them and doing everything you can to make a difference in their life. This will cause them to open their network to you and refer their friends, family and neighbors.
When you show good faith in your clients, they’ll show good faith in you. With this mutual respect, you’ll always have a desire to take care of them. You’ll have the confidence to let them know how they can help you grow your practice. And when you’re constantly going above and beyond their expectations, they’ll become your best source of new business.
With these 7 things, you’ll be well on your way to making a very handsome living. You’ll have less stress, more freedom and a significantly better lifestyle. It will take some work, but with the right attitude and some faith you’ll make quick work of it.