The reason why final expense agents fail is actually pretty simple. Bloomberg and Forbes say upwards of 80% of all businesses fail within the first 18 months. It is not exclusive to Final Expense. It's true of all businesses. Why is that the case?
First of all, the main reason final expense agents fail is because first of all the give up on themselves. They go into the business with aspirations that didn't match reality. The perception of the business is that it is just a matter of going out and talking to people. If it were only that simple!
There are many skills to develop that aren't obvious to the average person. A final expense agents sales training is something that takes months if not years to develop. A lot of people don't understand that sales is totally different from a typical corporate position. You have emotional ups and downs almost daily. Being on straight commission, you literally wake up every morning unemployed without any guaranteed income.
If you don't have the experience of selling on straight commission, there is nothing to prepare you for it. It is something that many people just can't handle.
Then the other reason final expense agents fail because they don't get involved with the right agency to help train them. They get involved with an agency that sells "Blue Sky," meaning all the benefits to a lifestyle of Final Expense and none of the gritty work that it takes to succeed in the long-run.
Also, new final expense agents fail because they get involved in an agency that is designed to short change them and squeeze the dollars out of them at a ridiculous rate. It ends up being a revolving door type of sales agency.
It is important that agents do their research on the front-end. Talk to different agencies. Get a feel for your potential manager's personality type. Figure out who has been successful. How long have his final expense agents been working with the agency? Ask for proof. Are they transparent with what to expect as far as commission and percentage advancements based on merit and production history?
What do you get for your investment? Because the manager makes money off of your production. You just have to make sure value is there. Take the time to ask these questions. Again, it is really important you are reading this because most agents don't go into this business even knowing what to ask, much less what to expect.
Many final expense agents don't understand that you must got to come into this business with a business mindset. Most agents buy direct mail, and won't have the benefit of a referral network or an existing book of business. Instead, they have to buy final expense leads to get going.
My recommendation is about $4,000 to $5,000 for a Direct Mail approach, or if you have less than that keep a full-time job and then also you know if you got $2,000 minimum for a telemarketing approach.
You must start off on the right foot. You got to be prepared for the ups and downs. You have to be willing to work through it with the understanding that the long-term is what makes it worth having. What makes it all worthwhile.
That's the reasons why most final expense agents fail. The important thing is to go into this with the right group that shows you transparently what to do. When you know that you have got that on your side it is really up to you.
Do you have the X-Factor to work hard and follow the system that is laid out upon you?
That's really the ultimate determinate of your success or failure.