Years ago, a client of mine took the leap toward realizing a lifelong dream of owning his own business. Art had a marketing degree, had grown up in an entrepreneurial family, and had 10 years of corporate marketing experience. After months of research and due diligence, Art decided to make his fortune with a start-up motorcycle dealership. Additional months of negotiation and planning with one of the largest Japanese motorcycle manufacturers eventually led Art to quit his job and take a second mortgage on his home. The loan, plus a small inheritance from his grandmother, gave him just enough seed money to satisfy the manufacturer’s minimum requirements.
Eventually Art located and acquired a building site, and construction began. Once the shell and roof were completed, he took on much of the interior work himself to keep costs down. It was about at this time I dropped by the store to take a look around. Art was excited, but near exhaustion. During a tour of the premises, I noticed a folding camping cot in the area that would become the service department. When I asked Art about the cot, he explained he had been working through the night for several days: painting, installing the suspended ceiling, and putting down flooring. He said he would grab a couple of hours’ sleep early in the morning, and then return to work at daybreak.
A few weeks later I attended the grand opening. There were lots of shiny new motorcycles, prospective customers and champagne. Art was speaking to a group of his guests when I heard him say he had nearly lost everything because, at the last minute, the manufacturer demanded the shelves be stocked with thousands of dollars’ worth of parts—or they wouldn’t ship the first new motorcycle. Desperate for funds, he took on a partner and maxed out his credit cards to raise the money.
There is a happy ending to this story, sort of. The motorcycle dealership was a success, but unfortunately Art’s marriage became a casualty of the 70-to-80-hour work weeks.
What does my client’s motorcycle shop have to do with insurance? Consider the advantages the property-casualty insurance business has to offer to those with that same energy and entrepreneurial spirit as my friend, Art.
1 No capital investment needed. It’s not necessary to second mortgage your home, or take on additional debt to enter the insurance business, nor is it usually necessary to rent office space, or hire administrative support. There are lots of agencies that will provide a livable income—plus expenses, office space and administrative support—to qualified new producer candidates.
2 No post graduate degree required. Unlike many high-paying professions that require an MA, PhD, MD or other advanced degree, selling insurance is for the most part a "learn as you earn" proposition. There’s no question that continuing education is critical, but years of post-graduate study are not necessary.
3 Flexible hours. It should seldom be necessary to miss a child’s choir concert, soccer game or any other important event you want to attend. Insurance agents make their own schedule. It’s not to say they don’t work hard; they certainly do, but they choose the hours.
4 No promotion necessary to increase earnings. I began my insurance career right out of college as a "management trainee" in the home office of a life insurance company. At the conclusion of my 6-month review, I asked how long it would take to become a manager. The answer: "If you work hard, and all goes well, about 20 years." Insurance producers don’t have to wait for someone to retire or die to get a promotion. It’s not unusual for successful new producers to be earning a six-figure income in 5 years or so. And the income is more consistent than that in other sales positions because of the stabilizing effect of renewal commissions. Many insurance agents earn a living on par with doctors, lawyers and corporate executives.
5 Work as hard as you want. It sounds peculiar to say, but there are lots of people in the economy who would like to work harder and longer to earn more money. In many cases their hours have been cut back and overtime has been eliminated. Some are working harder and longer for less, glad they still have a job. Insurance agents have the option to work harder and longer if necessary.
6 Do good while doing well. Insurance agents are respected members of society because of the positive contribution they make. They are often leaders of their community, their church, their school system, or civic and charitable organizations. Selling insurance is an honorable profession that allows businesses and families to survive unexpected property and financial loss.
7 The magic of residual income. Like an actor who gets paid each time a TV performance is aired, insurance agents are paid on the same policy over and over again. This has an almost magical effect on income. Ask a real estate agent, car salesman or most other salespeople about their residual income.
8 Nearly unlimited territory. Most property-casualty agents can define their own marketing territories. I’ve worked with agents who focus only on specific areas in large cities; others consider their entire states, or even multiple states, to be their turf.
9 Ability to adapt and change. Property-casualty agents have the flexibility to make course corrections, or to change course altogether if market conditions change or an opportunity surfaces. The insurance business may not be recession-proof, but insurance agents have lots of options when they’re faced with lagging sales or reductions in revenue.
10 Transferable skills. If it should ever become necessary to relocate due to health issues, or to be closer to elderly parents, a proven insurance producer is almost always in demand no matter where he or she might go.
11 Insurance people are nice. I’ve had the opportunity to visit with insurance people all over the country through my association with the National Alliance. I’ve found them to be kind and compassionate, just "nice people" that I’d be delighted to invite into my home.
The economy has created opportunities for agencies that are looking for new producers. Former real estate agents, bankers, car salespeople and folks from many other businesses affected by the economy are looking to start second and third careers. Some will recognize the advantages of a career as a property-casualty agent and be a good fit for your agency. Use every opportunity to tell them the story of the benefits of a career in selling insurance.