Special Report...

'Life AGENTS ARE STARVING'

This special report (based on info Amc-insurance.com) is not meant to shock you, but to clear up the misconception that most life and health insurance agents are making a great living selling life insurance.  The following figures were calculated by amc-insurance.com in 2005.  Absolutely NO ONE, (outside of the IRS) knows exactly what agents are actually earning.  Amc-insurance.com has tried to be as accurate as possible.  By the way, their figures jive closely with those offer by LIMRA (Life Insurance Management and Research Association), Agents Insurance Marketing USA, Inc. and our personal experience with life insurance agents. 

As this information was compiled in 2005, you might correctly conclude that the economic problems we've been experiencing during the past couple of years has caused the average income for life and health insurance agents to significantly decrease.  We hear it everyday.

Note:  As amc-insurance.com states, "An income survey of insurance agents is without exception, entirely worthless.  The experienced and wealthy pros will understate their earnings, while those in the lower income echelon might very well add an extra zero to their figures.  What is certain is that there is a broad spread between the proven professional insurance agent and the rookie.  Most articles have wrongly stated how much income agents obtain from their insurance sales efforts."

"By analyzing thousands and thousands of agent records (over 750,000), we (amc-insurance.com) were able to calculate with some accuracy their income levels.  For you to agree with our findings, you must accept the following assumptions... mainly that agents tend to live and work around their personal geographic location.  Based upon realms of census data, we put a value figure of household income, plus home value to each and every zip code in the United States.  Overwhelmingly, the vast majority of insurance agents earn close to what their neighbors and counterparts earn.  Therefore with some reservations, we must assume an insurance agent's net income will closely mirror that of others in their zip code area."

Their Definition Of Income 

"…Is total household income, after business expenses, and before taxes."

Why Agent Income Is Low   

Most insurance outsiders, when asked how much an insurance agent earns, would typically respond with an answer in the range of $40,000 to $70,000.  A highly regarded insurance trade magazine reported a study determining the average agent obtained an income of $50,000 a year.  Dream on!  Amc-insurance.com's intensive study shows that currently only about 7% are earning $40,000 to $70,000. 

Here is an example of the misleading information being given... According to the Bureau of Labor Statistics;  The median annual earnings of wage and salary insurance sales agents were $43,870 in May 2006.   The middle 50 percent earned between $31,640 and $69,180.  The lowest 10 percent had earnings of $24,600 or less, while the highest 10 percent earned more than $115,090.  Median annual earnings in May 2006 in the two industries employing the largest number of insurance sales agents were $46,210 for insurance carriers, and $42,950 for agencies, brokerages, and other insurance related activities.

Here's a quick idea why agent's income is so low:  (1) There are just too darn many licensed insurance agents hoping to become insurance professionals overnight.  (2) Recruiters are not initially selective enough when bringing a new agent into the insurance career. (3) New agents have no idea how much... time, money or effort they will have to contribute to learn the business, or how hard it will be to survive their first two crucial years. (4) New agents are not seeking or getting the marketing and sales training they need to succeed short or long-term.

More On This Subject 

For agents licensed under 18 months, they collectively post an outrageous agent turnover rate of close to 85%, stunning, but true.  It might upset you enough to question the validity of "expert" career agent recruiters writing articles and giving verbal accounts of their strenuous and successful pre-qualifying process.  While we believe that SOME accounts are true, we feel these exceptionally talented individuals are few and far between.  After all, was it not a former insurance recruiter who proclaimed, "If you throw enough ___ (your word choice), against the ceiling, some will stick."  This lethal rate of turnover causes the average agent longevity to amount to only 4.3 years of insurance experience.  This figure has hardly inched upward during the last 3 years. (2003-2005)

Too Many Agents   

Yes, it is true that licensed records show over a million life and health agents in the United States, possessing an "active insurance license."  Maybe we are too harsh in saying the following.  If half the agents, (lowest income) were fired today, the insurance industry would not be devastated.  Currently the center median income for licensed insurance agents is $31,700.  The average income pumps this up just a slight notch to $34,800. 

The Top 20%    

The top fifth of insurance agents average an income of $18,700 higher than the average agent.  This equates to $53,500, but remember we are talking average here.  Mixing a $200,000 insurance superstar with 9 median income agents of $31,700 results in an average of $51,700, yet note that only ONE agent actually earned that amount. 

The Starving Agents

Nearly 280,000 agents earn less than $25,000 annually selling life and health insurance.  Furthermore, this income is actually pumped up, as it includes tens of thousands of rookie agents who have their incomes subsidized by career companies. These agents will leave the business when they could no longer match the requirements for their subsidy to continue.  Have you ever wondered why insurance companies have thousands of low cash value orphan policyholder "LEADS" to help desperate rookies when they run out of family and friends?  Unfortunately, these lead minnows become the rookie's food instead of bait, as they was never taught properly how to reel in the big ones.

The Affluent Agents

The bottom line is... Only 3% of agents earn a net income exceeding $75,000!  And of these, very few reached that mark within their first 5 years of entering the insurance profession.  For the hard working, ambitious, and determined agent, here is our piece of advice.  Don't follow the rules, marketing strategies, and sales techniques offered by your recruiters and company trainers.  If you follow them, you are guaranteed to evolve into the average agent... starving on an income under $40,000.  Dare to be different, find your niche, then you will be proud to call yourself an insurance professional.

Is Their Hope For You

Jeremy and I have been training, coaching and mentoring agents, advisors and planners for almost three decades on how to properly apply the proven life insurance marketing and sales strategies to achieve long-term success, and break the six-figure income barrier.  

For example, as a Manager for Met Life, from 1989 to 1994, I hired 23 brand new agents.  Over 10 years later, 18 of those agents were still in this business.  That's an '80% Success Rate', verses the industry's 85% failure rate!  (Documented)

Plus, all 18 of those agents were making more than $100,000 per year.  Today, many of them are making $200,000, $300,000 and much more!  Consider, according to LIMRA, the average net income per agent (or advisor) is less than $45,000 per year.  The people we've trained, coached and mentored have net incomes well above $100,000 per year.  That's More Than Double and Triple the Industry Averages!  (Documented)

Since 1994, we helped over 2,000 agents, who were earning mediocre incomes, ($20,000-$40,000 per year) to become top producers in the life insurance industry and are now earning $20,000 to $100,000 per month.

It's why the IARFC, and many of the foremost names in our industry recommend and endorse our services... and only our services!

Now it's up to you!

By Lew and Jeremy Nason

'The 9 Out Of 10 Guys'

P.S. Here are just a few of the outstanding results agents have seen just in the past few months...

...$31,0000 of target premium.  (The First Month...)

Robert Gersten, CLU - MA

Message to Financial Advisors…
Why do you keep putting it off?  You have a great opportunity to really help your prospects to weather this last financial storm.  They need and want your help to achieve the financial security they’ve been dreaming about and deserve.  Aren’t life insurance and annuities a way for us to give these middle-income families the safety, guarantees and growth they are looking for?  When are you going to get back to the basics and start actually helping people, instead of just trying to make a sale?