re: Northwestern Mutual Career

We just hired a guy from NWM. He didn't make it there. Has wife and young kids. That's not a good combination to have starting out in the insurance biz. Perfect for single guy go-getters who don't mind being poor for 3-5 years.

I have been a multi-line insurance agent with a major company for 20 years. I can tell you that straight life sales is TOUGH. If you make it in this business, you can earn after some time, an income north of $200,000. The key is renewals. Make no mistake about it, you will have to bust your arse to make it. I for one would not work as a straight life agent. I have friends who have done well, but I would venture to say not 10% have lasted long-term in that job. Have you considered the multi-line industry?

I have a policy with a NML agent, I have three clients who are agents for them (or financial reps they are called technically) and a friend is one also. So, I've kind of seen a bit of how they work.

It's straight commission. 300 names might lead to 30 meetings which might lead to a few sales. Life insurance is a pretty beat up product, due to MANY shady characters and policies in the industry, but their reputation and polices are no doubt the best of the best. They are also pretty expensive.

You just have to have that sales mentality, and you have to have the ability to live through some slim times, at least at first. So unless you have a lot of cash saved up, or have no expenses (as in right out of school with no debt and can live at home and drive a paid for car) it's hard to make it.

Their commission plan is typical to what I see in lots of companies in the market (I have clients who are agents for other life companies). You get a big commission chunk the first year, and you get a small trailing chunk each additional year the policy stays in effect).

So the longer you can make it, the more money you will earn, because your renewal base just builds and builds. Sure, you need to keep selling new policies, but it tends to snowball after 5-10 years.

If you are of the mindset that you want to sell a great product to a reluctant public, then you can't find a better company to affiliate with. I would say for 99 percent of people, it's the wrong job.

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It's sort of comparable to a pyramid scheme

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No, no it's not.

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Go look at Bernie madoff who ran a pyramid scheme

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No, no he didn't. He ran a Ponzi scheme which is a completely different animal.

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I don't work for Northwestern mutual. But I love how people throw this around an have no clue what it actually is. I actually work for a competing company and have my investment licenses. But a pyramid scheme actually has nothing to with people working. Go look at Bernie madoff who ran a pyramid scheme. It had nothing to do with people working under people or being recruited. He was selling investments with 10% guarantees and using other people's money to find those ROR even though the accounts weren't making money. So no money is actually being made it's fraudulent claims of gains with the use of other investors money. People throw around pyramid scheme on everything they see because they heard it somewhere but don't actually have a clue of what it really is.

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You actually have no idea what a pyramid scheme is


ETA:

NWM isn't a Pyramid scheme, but what you're describing isn't close to one either.

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It had nothing to do with people working under people or being recruited.

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Pyramid schemes are 100% recruiting people to be under you. Its the nature of a pyramid.

Making up numbers here:

Someone recruits you to sell something and they get 2% of your commission. You recruit 15 people to sell the same thing and you get 2% of all of their commission.

Each one of them recruits 15 more. Commission checks for people higher on the pyramid go up as more layers are added. Examples of pyramid schemes are companies that give you products, like face cream or vitamins that you see people hawking on facebook, and tell them to sell the products, but MORE importantly, get other people to sell the products. The money is in adding new people, not selling more products.



You described correctly what Madoff was doing, you just named it Pyramid instead of Ponzi. TOTALLY different thing. Pyramid schemes are borderline legal, there is no situation where Ponzi's are legal.

Very hard startup! Had a mailer sent out in a area and got about 5 responses. Once that passes, you better have a plan. Would strongly say no. Good luck! Worked 3 months and made nothing. Forget the catch, but that startup money never happened

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I have a policy with a NML agent, I have three clients who are agents for them (or financial reps they are called technically) and a friend is one also. So, I've kind of seen a bit of how they work.

It's straight commission. 300 names might lead to 30 meetings which might lead to a few sales. Life insurance is a pretty beat up product, due to MANY shady characters and policies in the industry, but their reputation and polices are no doubt the best of the best. They are also pretty expensive.

You just have to have that sales mentality, and you have to have the ability to live through some slim times, at least at first. So unless you have a lot of cash saved up, or have no expenses (as in right out of school with no debt and can live at home and drive a paid for car) it's hard to make it.

Their commission plan is typical to what I see in lots of companies in the market (I have clients who are agents for other life companies). You get a big commission chunk the first year, and you get a small trailing chunk each additional year the policy stays in effect).

So the longer you can make it, the more money you will earn, because your renewal base just builds and builds. Sure, you need to keep selling new policies, but it tends to snowball after 5-10 years.

If you are of the mindset that you want to sell a great product to a reluctant public, then you can't find a better company to affiliate with. I would say for 99 percent of people, it's the wrong job.

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NAILED IT.

You are an IAR and don't know the difference between a pyramid scheme and a Ponzi scheme?Furthermore, you thought NWM is a pyramid scheme? How long have you been in the business?

Ex gf did it, all her and her friends did was try and sell people insurance at social events and gatherings. Needless to say they annoyed the shite out of everyone doing this

Yeah, if you are sole source of income I would go another direction. If you are dead set on this industry I would look at being a broker at a bank. More steady pay and an existing client base. Good luck.