Here are the reasons why I believe selling insurance is a profitable business
Insurance agents are paid commissions for every policy they sell. As long as the first client stays with them and pay insurance premiums, they will receive the commission. Imagine you have been an insurance agent for 10 years and on the average you have 50 new clients a year. In the first year, you have 50 clients. In the tenth year, you have 500 clients and everyone is paying you a commission! This means that you get rewarded up to the first deal you gotten.
Once you have established yourself, you can even open up an agency with your own agents working for you. Like any other Multi-Level Marketing (MLM) model, you get a part of your agents’ earnings! This means that on top of your own clients, your agents’ clients pay you too! The more agents you recruit and train to become great sales machine, the more leverage and earnings you will have!
Many people have the perception that most have already got their insurance policies and hence, there is little business left on the table. You should know that in every year, there are newborn babies which translates to population is renewing and new business being generated each year – Not to even mention the population is growing. As with better healthcare, people are living longer and they need more funds for retirement and healthcare, which all can be plan for through insurance.
[Free Ebook] How should you invest your first $20,000?
We asked 14 Singapore finance bloggers to share what they would do if they could go back in time and invest their first $20,000. They can no longer rewind time, but you can learn from their experience and hopefully start with a better footing.
Given that Singapore Government is making annuities compulsory for every Singaporean, this is going to be a big market for you to tap!
Besides the advantages that I mentioned, there are some prices to pay before you can succeed as an insurance agent.
- Integrity – you need to have integrity to offer suitable products that meet your clients’ needs and not because you want to increase your sales.
- Responsible – you have to be responsible to your clients and respond to them when they need you. You also need to review their status periodically, even potentially there is no new business.
- Discipline – as you are almost working for yourself, you must have the discipline to wake up and start work regularly. It is always easy to avoid work when no one is enforcing it.
- Personal development – you need to continually improve yourself in terms of product knowledge and soft skills.
- Handle rejections – like any other sales job, you need to handle rejections and persevere to make deals.
Agents who are armed with these values and skills will be able to retain their clients and at the same time, attract new clients to increase their earnings.