What are some disadvantages of being a Insurance Agent? -

i am doing something for school and just need to know some disadvantages. The primary disadvantage would be that compensation normally relies on commission therefore; if business gets slow you don't eat. The secondary disadvantage which is more of a concern is carriers selling directly to consumers at a discount. Being able to sleep and just live with yourself. I find it difficult to imagine a less rewarding life. Not being able to place a client with a carrier because the risk is too high. People work very hard to open a business and certain businesses have a high risk of accident. Carriers are starting to exclude those businesses from their list if insurable risks and considering them uninsurable. Hope this helps These days there are very few Independent Brokers, or Agents. Most agencies are owned by a group or corporation, and salaries benefits are limited greatly, compared to mom pop type shops. With large companies, organizations, and unions, many offer group coverage that is much cheaper than individual packages...competition is fierce. However, I have found that the best way to find retain clients is thru customer service, NOT "SALES". Service puts more money in your pocket in the long run. Many agents work on commission, so if they don't sell, they don't get paid. Some agents are on salary, but they are still under pressure to produce sales. So basically, besides getting licensed to write insurance policies, and agent should be a good salesperson. And insurance is highly regulated, and it is common for unhappy clients to go after agents as well as insurance companies. So insurance agents usually carry Errors and ommissions insurance, just like doctors or lawyers have malpractice insurance. Biggest disadvantage is most work is straight commission - so you have to be able to sell. Second biggest disadvantage is "reputation". People you meet think you're always going to be trying to sell them something, so they'll avoid you. Think of being an insurance agent as going into business on your own. In order to be succesful, you will need to do one of two things. Follow a business plan someone else gives you. Like a franchise, there is usually a cost associated with this, and you might not always be able to sell the right product for each customer. Create your own business. Pay may be higher, but so is the failure rate because so many people fail to plan properly or have sufficiently differentiated skills or markets.