How To Become A MILLIONAIRE In The Insurance Industry

Over 90% of insurance agents will fail in just their first year. If you expand that time horizon out just to five years, 95% of insurance agents will quit the business or go broke. However, the 5% of agents that do make it past the first five years have the opportunity to capitalize on the industry that has made the most millionaires in history. In fact, the fact that you're watching this video means that you have a higher chance of being part of the 5%. But I hate to break it to you, the odds are still heavily stacked against you. In this video, I'm going to break down the most common reason that insurance agents fail and how you can use that to your advantage to be a part of the 5% and become a millionaire in the insurance business. If you Google why do insurance agents fail so much? You'll get a few different answers. They don't listen to their customers, they don't work hard enough, or even having too high of expectations. While there's truth to all of this, none of them are quite, quite the right answer. The only reason that 95% of insurance agents fail is because they have a leak in the bucket. Let me explain. Let me introduce you guys to the four golden buckets of insurance sales. Basically, this is a concept that combines all of the four different pieces to figure out if your business is going to be profitable. Which ultimately decides if you're going to stay in the business or go broke and fail. First we have leads, the this is the top bucket. Then we have nurture sales and then retention. And then after retention, then the water left over goes to profit, which is what you take home. If any of those buckets have a leak in them, your profits are falling right out of the bucket. The only way to guarantee your success is to make sure you have no leaks in either the lead bucket, the nurture bucket, the sales bucket, or the retention bucket. If you tie all of those down and perfect each of those processes, money is going to flow through all of the buckets and straight into your profit. So let's start with the first bucket, which is leads. This is the lifeblood of your business. If you look at the four buckets, the reason leads is number one is because nothing else will get filled up if you don't have people to talk to. Leads is simply the process of getting people into your pipeline. There are three main factors to having a successful leads bucket. You have volume, which is the amount of leads you have. You can either have not enough leads or you can have plenty of leads quality. You can have quality leads or low quality leads. It's a spectrum though, so it kind of varies based off of how quality the lead is. Your cost, which is expensive leads and low cost leads. Cheap leads just means that they're low cost and they're low quality. However, I will mention with cost, the main thing that matters is roi. So it's okay to spend a little bit more on leads if those leads are converting into sales and policies which make you money. So let's combine all three of the factors. If you don't have enough leads to call, you can't play the numbers game, which is ultimately the only way that you can succeed. Insurance sales. In order to be truly successful, you need to have more leads than you do time. Put simply, you have so many leads that you can't even work them all. Or in other words, lead overflow. Most agents will blame their failures on leads, but most of the time it's not the quality of the leads that their problem. A lead is simply just a name, a number and a reason to call. You should not expect guaranteed closes. Life insurance is sold, not bought. However, there's definitely truth to quality. Quality versus low quality leads. One of the biggest things that I see affect quality is whether or not the lead is exclusive. Even if you get a lead that's brand new, but it's been called five times by five other agents, it's going to be a low quality lead. Whereas I would rather work an aged lead that hasn't been called that many times because that lead in my eyes, is going to be higher quality. The key is to have leads that have intent and quality and get a high volume of them for a low cost. This translates to either buying leads or generating them. Now the last factor is cost, which can be a killer for newer beginner agents. When people go out and buy $50 direct mail leads, they're digging themselves into a hole they now have to sell themselves out of to even have a chance at being profitable. So again, the best option is to have a high volume of leads that have intent, have quality, are exclusive to you, and are at a low cost. And again, the best way to do this, what we recommend all of our agents to do, is to buy some age leads and then start generating your own leads and, and eventually transition only to working new leads that you generate. All right, so let's talk about bucket number two, which is nurture. This is the most common of all of the leaky buckets and this is what leads to failure the majority of the time. Nurture is everything between where your lead comes in and then where you have a conversation with them to sell them. Put simply, it's the activity that you put in to get in contact with your leads and schedule a sales conversation. For most of you, this is the least fun part. It's dialing your leads. So there's four different ways to nurture leads. You have outreach, which is going to be your outbound dials, sending texts to your clients, sending emails to your clients. This is where you're putting in manual effort to get in contact with your leads. When we touched on earlier, like the reasons that a lot of people say insurance agents fail because they have the wrong expectations, well, they think they don't have to put in any manual outreach to succeed in this business. But the truth is you need to put in a ton of manual outreach to get people on the phone. So a lot of people don't really want to do the outreach part, they just want to do the remaining parts which are automation, which is basically where you're using AI to help you work your lead. So that can be emails, texts, pre booking appointments, which is helpful, but without the outreach part, this is going to be basically useless. The third one is follow up. And that's basically where you are nurturing leads that you've already had a conversation with but they just didn't buy. You're basically moving people that you've talked to closer to getting back on the phone with you and making a purchase. Follow up can be texts, emails and phone calls. And the last one, which majority of agents don't even do, but honestly, I don't think beginner agents should focus on this is content. So content is just using media to nurture your lead. This can be sending videos, emails, texts, and using social media like Facebook or Instagram. The key to winning at nurture is just putting in consistent activity. I recommend committing to a consistent amount of dials every single day and sticking with it. Do that every day for, for six months. Most people won't even get past the first two weeks. But if you do it for six months, you're going to have a much higher chance at succeeding in this business and becoming a millionaire. The thing is, most people aren't going to pick up on the first dial. So you have to commit to making a certain amount of dials, put in that activity to get people on the phone to even have a chance at sales. Which brings us to bucket number three, sales. Converting conversations into policies. Remember leads, getting people in the door, Nurture, getting leads into conversations and then sales is converting conversations into policies. So in order for someone to buy from you, four things have to be true in their mind. One, they have to trust that you have their best interests at heart. Two, they have to understand how your product will solve their problem and then believe that it's true. Three, they have to be able to buy, which means they have the money. And four, they have to believe that their social circle, their family, their friends, and everyone around them will support their decision and approve of it. So if you don't have all four of those things picked off and true in the process prospect's mind, they are never going to buy from you. All right, now, once you get into the sales process, there are four. We're doing a lot of fours. There's four parts to the sale. Number one is qualifying. This is qualifying if they can afford it, you know, checking their budget, kind of running through all that. It's also health questions, underwriting, qualifying them on that piece. Next, we have finding the need. This is where you're trying to figure out what problem you're solving so that you can offer the right solution. So we need to figure out their beneficiary, their why, who is this going to protect? We also need to figure out what the policy is going to do for the beneficiary. A lot of people like the idea of leaving money behind and creating generational wealth, but they're more likely to get a policy to cover a debt or avoid their beneficiary having to pay something that they wouldn't want to pay. So we need to figure out not only who is this for, but what problem is it going to solve for the beneficiary, Whether that's paying off a burial, paying off the mortgage, paying off some debts, or it could literally just be leaving money behind. The third part of the sale is building trust. This is what you'll commonly hear people refer to as rapport building. There's a couple of ways to build trust. You can educate the prospect, tell them different things about life insurance, and kind of act as like a professor or authority figure where you're showing them the way. And then you can also build the relationship. You want to do both of these, and this will help you check off that box that we talked about earlier, where they have to trust that you have their best interest at heart. Then the last part of the sale is simply closing. This is asking for the order, overcoming any objections that they have, and then the conclusion, which is after you've made the sale, scaling, summarizing up everything that you did, so they understand it and you can avoid chargebacks on the back end. Which brings us to the last bucket, which, to be honest with you guys, is the most painful to have a leak in. You've done all of the work, but just like sand slipping through your fingers, the policy falls through. Retention is keeping your clients on the book so that you can get a full commission. You need to keep them for an entire year and if you don't, well, your consolation prize is a chargeback, which freaking sucks. In a previous video, we covered the seven reasons that anybody charges back on a policy. They were, they can't afford it, they had an issue with their bank, they found a better option, another agent or salesperson tricked them. They don't understand the policy, family member tells them not to do it, or they don't see the value. I would definitely recommend checking out that video. Once you finish this one, there's going to be a link down below in the description. So there's a couple keys to client retention, trust and relationship building. So this can look like front end trust that you, that you build on the sale, you know, the conversation you have, building rapport, touching on their why and really acting like a trusted advisor rather than a salesperson. This could also look like sending them a birthday card after they sign up with you for their policy or sending them a thank you card after they sign up. You know, like, hey, welcome to being one of my clients. I'm excited to have you. This can also look like, you know, getting referrals and signing up their family. The deeper that you can get into their social web, the more trust and the deeper of relationship that you build with that person. The second key to, to client retention is going to be the perception of value. So this is how valuable they perceive having a policy with you to be. So there's a couple pieces of this, right? The why, what it's going to do for their beneficiary and why that's so important. But it's also like life insurance is not very tangible. I can't touch it, I can't feel it. I just know it's there because it comes out of my bank account every month. So one of the biggest mistakes that Julian and I made in the beginning when we were selling insurance is we would just sign people up, leave, and then call them back if they charge back. But if you're able to leave them a brochure, some physical materials, business card, some other different things so that they can feel tangibly what they have, it makes them perceive it as more valuable, it doesn't actually make it more valuable. Just how valuable do they perceive life insurance to be so that they make it a priority and budget for it every month. You can also do this in, like, the form of bonuses. You know, maybe you give them a gift card to their favorite restaurant for thank you for being your client, or different things like that. All right, and the third one we're going to talk about is communication. This is how often you reach out and check up. I recommend within the first 90 days. That's when you're most likely to have somebody fall off the books. So have your reach outs be the most heavy during the first 90 days. Reach out to them to make sure they get their policy. Reach out to them to see if they have any questions. Reach out to them for referrals. Make sure that they feel like you care. You can also automate some of the communication so you can literally use our new click client flow, which we have built into the CRM that follows up with them for 90 days after you sold them. All right, and the last one is building a moat. This is basically where you make your business irreplaceable by other agents. So there's a few things that you can do. A lot of this kind of comes in with like the trust and relationship building where, like, you're basically a part of their family. But you can also do some other things so that other agents can't contact them. And if they do, your client is very skeptical. So one thing that we like to do is add every single clip client to the Do Not Call list. That way, other agents, if they called them, well, the prospect would be like, why are you calling me? I'm on the Do Not Call list. And they basically made the other agents seem invalid because they were scammers calling them even though they were on the Do Not Call list. Adding someone to the Do Not Call Us literally takes like three seconds to do. You just go to do not call registry.gov, sign them up, put in a couple phone numbers. Now they're on the Do Not Call list. Another thing we would do is tell all of our clients once we sign them up to call, call us if they had any questions about their policy. You want to let them know that there's a lot of scammers and fakes and people that just want to replace business to make a commission out there. And if somebody comes to you and tries to replace the policy, call me. If you have any questions about the policy or unsure of something, call me. So now, before they call the company and cancel their policy. Who are they calling? You. So you really want to kind of like build this in, like build in a deep mistrust of other insurance agents so that if anything happens, who are they going to call? Their trusted advisor, which is you. You can also give them business cards so that they remember we like to do like magnetic business cards that they stick on the fridge. A lot of these. Like, especially if you're selling final expense or even term, because people get busy, people just forget who their insurance agent is unless you remind them that's your job to do. All right, guys, so those were all of the four buckets. So if you can generate leads at a low cost, get a high volume, a good quality lead, nurture that lead and then sell that lead and keep the policies that you sell, all of a sudden you're going to have a ton of profit that you have no idea what to do with. And if you keep that up for a few years before, before you know it, you're the 5%. In a few years longer, you're a millionaire. That is how you can become a millionaire in the insurance industry, guaranteed. And make sure that you don't fail. You're part of the 5% that wins and not a part of the 95% that doesn't. Reason 95% fail is simply because they don't know how to run it like a business. And you do now. Now, if you guys want more videos like this, be sure to click that subscribe button. Let me know what you guys want to see more of in the comments down below. And if you guys want to work with us one on one, we're looking for agents that are doing between 3 and 5k a week in production. If you're not there yet, keep watching these videos and we'll help you get there. If you are, click the link down below to schedule a free consultation to see if we're a good fit to work together. Thank you guys so much for watching. I will see you guys in the next one. Peace.