What is the disadvantages of being a Insurance Agent or Mutual Fund broker ?

Question

Want to know the disadvantages of being a Insurance Agent or a Financial Advisor.

Answer 1

Only 2 out of 10 new agents survive the first year.

Answer 2

Living on commissions. Also if a policy is lapsed during the firs year you lode the large initial commission you receive.  Also long hours usually involving evenings, when clients are home and off work.  Companies require you to provide a certain amount of new business on a weekly or monthly basis. Failing to do so will affect your income and a long dry strectch can cost you your job.

Answer 3

Real simple:

If you look for negatives, quit now.

This indutstry is far too tough for negative thinkers.

Answer 4

It depends on the company you work for.  Ultimately, there doesn't have to be a downside.  You can use business as a method for making more friends, you can focus your solicitations businesses and/or stay-at-home moms or seniors, removing the need for those late office hours.

The only universal disadvantage to insurance is paperwork.  There's a lot of it, and much of it is necessary fine detail work.

You can find a company that pays pure commission, or you can go with a company that gives you a base salary and then comission on top of that or you can go into business for yourself, if you have an effective sales personality/history and make bushels of money.

How you do it is what's critical.

Answer 5

First off, these two things are the same as the products you sell are marketed the same way.

Disadvantages are many but thats what you get for selecting one of the best occupations around. If it was easy, everyone would do it, correct?

1) hard work - everyone hears this and says "yeah yeah everything is hard work, I've done it before, I'm used to it..." With all due respect no you are not used to it and your idea of hard work in most cases won't come close to how truly you must commit yourself to long hard hours for many years to achieve success

2) fear of rejection - if you have anything less than skin thicker than an elephant's behind, you will be run out of this business very quickly. The amount of rejection, from both strangers and friends and family alike you will be constant and overwhleming. Very few people can keep their attitues where they should be grit through it

3) Pressure to earn  - these are commisison roles or at least after one year they are all commission roles. If you do not have a cushion of cash saved up or income from another source (ie. a spouse) the pressure to make sales right now will drive your customers away in hordes and you will always be opertaing under the gun, never realy sure if the advice you are giving is best for your client or for your wallet.

There are many many other disadvantages but the advantages are both numerous and compelling which is why so mnay people take a shot at these careers. The industry statistics show that if 10 people embarked on careers today in these occupations (regardless of company)  

2.4 will still be in the business in 2 years from now. But I will say those 2.4 people are truly engaged in a lucrative and rewarding career.

Answer 6

the only disadvante is, you cant make friends. All your friends think that, you want to make business out of a relationship.

Answer 7

Lets focus on the things you do need like John A. said.

You need to be a solid C student in Business classes. You need to like knocking on doors of strangers and cold calling. You don't need a finance degree because you will be selling what ever your brokerage house tells you to. You need to pass your series 7 and 63 exams which could be done while you are in high school if you really studied. You need to like having to explain simple, common, financial terms and concepts to clients because of the rampant financial illiteracy in this country. You'll have to try to get all of your friends and family to invest their money with you so you can get enough commission to eat. You need to polish up your resume and look for another job once you run out of friends and family because you will no longer have any commission to live off of.

Let your peers who did horribly in college go sell investments and insurance.  Face it; what college graduate with any amount of self respect would be dirty salesman?  Have some pride and get into the analytical side of investments to have a REAL career.