Becoming an insurance agent is an option that some Singaporeans may pursue if they want to work in the financial business or need a part-time employment to supplement their income.
Insurance firms and the agencies that represent them are continuously looking for talent to develop their agent network, unlike other ordinary positions where corporations are limited by the number of headcount they can afford, because many agents in Singapore do not receive a fixed income. Instead, they get compensated in the form of commissions when a sale is made.
As a result, finding new agents is a competitive procedure. Apart from having a larger sales team, new agents, especially recent graduates, bring with them an untapped network of contacts that the insurance business can tap into.
For potential recruits, rosy representations of what agents can expect in their careers are portrayed. These include the promise of high wages that increase over time, flexible working hours, and the ability to be your own boss, all of which appeal to folks who are tired of their mundane 9-6 jobs.
However, there are numerous other hazards lurking beneath these promises of a rewarding profession that are rarely highlighted when firms are eager to hire more agents.
We chatted with one ex-insurance agent to better understand certain aspects of the profession that aspiring agents should be aware of before deciding to pursue a career as an insurance agent.
Potential High Earnings Is Exactly What It Means…Potential That Many Never Realize
New agents are frequently persuaded that if they work hard enough, they can earn a six-figure annual wage.
While it is a possibility because compensation is based on sales, it is foolish to believe that working as an insurance salesman will lead to financial success.
Our ex-insurance agent acquaintance told us that throughout his one-and-a-half year career as a full-time insurance agent, he earned around $1,000 $1,500 per month on average.
He started off making around $1,500 a month, with the expectation that, like with any employment, his pay would rise as he gained more expertise and his network grew. It seemed like an acceptable trade-off to make a bit less today compared to his contemporaries in the hopes of making much more in the future.
Instead of increasing his monthly salary over time, he watched it fall to around $1,000 per month near the end of his one-and-a-half-year tenure. What went wrong?
Selling To Family Members And Close Friends First
Family members and close friends are usually the first possible clients that agents are taught to contact. Because most family members or close friends are unlikely to say no when you approach them about insurance planning, the strategy here is to sell through relationships. This is comparable to the foundation of many Multi-Level Marketing (MLM) organizations.
Because relationship selling is more effective, even if agents are still new, they may have moderate success.
This results in a win-win situation. Insurance businesses and agencies are pleased since their newly hired agents can assist them in growing their market share. Agents are enthusiastic because they see a tiny but steady revenue and believe that things will improve in the future.
Selling To Their Extended Network
After all family members and close friends have been approached with sales pitches, agents will turn to their expanded network of contacts. Long-lost friends, ex-schoolmates, and army buddies are examples. The strategy is straightforward. Rekindle old friendships in order to generate new opportunities.
Agents may find that their duties are growing more challenging at this stage. The explanation is simple: they’re reaching out to a group of people who aren’t as close to them as they formerly were, and who are less willing to meet with them and listen to their sales presentations than their previous circle of family members and close friends.
Another issue that new agents would start to face during this time, according to our ex-insurance agent pal. Even among those who are amenable to meeting with them, many of them are likely to have worked with at least one, if not more, agents previously.
Because there are so many agents out there trying to reach out to their extended network, most people have plenty of insurance agent friends who would have reached out to them. New agents gradually begin to realize that they are not the only ones who have entered the insurance profession among their extended network of acquaintances.
Selling To The Public
After a while, agents’ network of family, friends, and long-lost friends will run out of people to market to. They must now engage the public in order to continue producing more leads and cash. And it’s at this point that things become increasingly more difficult.
How do insurance agents get rich?
How Do Insurance Brokers Get Paid? Commissions and fees earned on sold policies are the primary source of income for an insurance broker. These commissions are usually a percentage of the total annual premium for the insurance. An insurance premium is the amount of money paid for a policy by an individual or a corporation.
Which insurance agent makes the most money?
A Quick Overview of the Insurance Industry While there are various types of insurance (ranging from vehicle insurance to health insurance), selling life insurance is the most lucrative business in the industry.
Why do insurance agents quit?
The majority of agents leave because they are unable to make enough money to sustain themselves and their families. The only way to fix this is to learn how to generate more and better leads, as well as how to follow up on them. People use the internet to conduct fact-checking missions. They are unconcerned with who answers their questions as long as they receive responses.
Can you make a lot of money in insurance?
If you have the enthusiasm and drive to put in the extra effort, there is no limit to how much money you can make selling insurance. However, once everything is up and running, selling insurance may be a lucrative business with significant profit margins. Most industry professionals claim that when they first started out, they made between $1,000 and $20,000 per month and quickly grew up to six figures per month. Anthony Martin, who became financially independent eight years ago as an insurance sales representative, is one such specialist. Martin established Choice Mutual, a one-person insurance firm focusing in post-hospitalization charges. Choice Mutual pays for funerals and burials, so families don’t have to worry about the costs. The payouts range from $10,000 to $30,000, and Martin currently earns more than $1,000,000 each year from the venture. Martin’s tale is only one of many examples of how the insurance industry pays, and pays well. You can earn up to a million dollars with the appropriate marketing strategy, patience, and perseverance.
How do you convince customers to buy insurance?
Insurance salespeople typically try to be everything to everyone, but specialist marketing may be a better strategy. Concentrating your marketing efforts on a single business class can benefit you in the following ways:
- Develop a thorough understanding of an industry’s hazards. The dangers are sometimes evident. However, when you gain experience in a particular field, your ability to assess hazards improves.
- Obtain a competitive advantage. Clients are more inclined to select an insurance agent who is knowledgeable in their field.
- Raise your profile. Getting clients the right insurance at a reasonable price is a smart strategy to establish a reputation as the industry’s go-to agent.
- Make money by referring others. As your reputation grows, you may receive more business referrals.
To choose a speciality, start by looking into the different types of businesses that exist in your area. Joining trade organisations, reading industry periodicals to remain up to date on significant problems, and concentrating your networking efforts on people in that field may be beneficial.
How do I succeed in insurance?
That is why I developed this tool. Visit this site to identify an agency that is a role model for others in order to help new insurance salespeople succeed and urge employing agents to consider young and inexperienced applicants.
Please forward this information to any young insurance salespeople you know. And if you’re one of them, here’s what you should do:
To be an untrained yet extremely successful insurance salesperson, follow these 21 tips: