Liberty National Life Ins. Deceptive recruiting and commission structure! Clearwater, Florida

I have been in the insurance industry for almost 16 years.  I worked for Liberty National for three years (1997-2000) and for less than a year in 2006.  I got out of the business in 2000 because in 2000 to start my own business and then went back to Liberty National in 2006 thinking I would jump start my career again with them...boy was I wrong.  They had recently gotten a new president (Andrew King) and the company has not been the same since.  The training & support is embarrassing.  I made above average money, but remember I had experience in the business and am a seasoned sales person.

Liberty was a home service company giant up until the mid nineties but then moved to ordinary business only (bank drafting premiums) and has lost so many fine agents/managers in the meantime.  Now there is so much emphasis on worksite marketing and I actually did close several sales at a few day care centers (payroll deduction cases).  I've heard so many nightmare stories...

I'm not surprised it didn't work out for you but it is NOT the truth that "every insurance company's agent position is a scam".  I am now a Sales Manager for another company that trains and supports its agents.  Even gives a guaranteed salary for the 1st 6 months.  Issues a laptop to each agent...  Ongoing training in the office & in the field.  The average pay last year was $806 per week.  There are many great insurance companies to work for.  Liberty National is just not the one to start your career off with.  Unfortunately the experience is leaving a bitter taste in many mouths.

I'll agree with most everything written.  I also asked about base pay and was told "It's small but we do pay a base pay."  In fact, there is no base pay.  It's all commission.

But, here's what they do:  They send you out with an experienced agent and they pay both of you on what he does.  To give you an idea, my last two pay checks were $12 and $14!  I don't have a mortgage or pay rent so I don't have to make much but I do have to keep my utilities on and that will not do it.

You will also have considerable start up expense if you go to work for Liberty National.  Two things you will absolutely have to have are a current lap top and a GPS.  I had a lap top but it was not current enough to meet their requirements.  Those two items cost me opver $600.00.  You will also need a car in good condition as you'll be driving hundreds of miles a day and that is another expense they don't tell you about.   My car gets 32 MPG but I'm still spending $15 -$20 a day in gas every day.  All in all, I've spent over $1,000 to work for this company and I've barely made that much working for them.  In other words, it's been about a break even proposition.

I am a heavily experienced salesman and former sales manager for several companies.  I was the top sales rep with companies with 131 reps, 92 reps and 37 reps and I produced 70% of company sales with a company with 3 sales reps.  But, insurance is a different animal.

The major problem with Liberty National is that they give neither agents or managers virtually no sales training and from my previous experience, I know this is a fatal flaw.  Every business and every product or service is different and even experienced sales reps need trainng to sell a product for a different company even though they may have worked for a direct competitor.  Liberty National uses the "warm bodies/get lucky" approach.  That is, "Get as many warm bodies throught the front door and you'll get lucky with a very few of them"  The rest, they just throw away.  This devastates people's lives and finances.  Librety can get away with this because they invest virtually nothing in their agents or managers.  They simply have nothing to lose!

Liberty's target market is blue collar workers so you'll be visiting a lot of people in mobile homes.  Liberty also does no advertising and there are many insurance companies who are advertising on TV and on the internet.  Liberty National is also not price competitive with these other insurance companies.  This means that when you write a policy and the client sees a TV advertisement for the same amount of insurance for 1/4 the premium a few days later, you'll get a call canceling the policy or it will lapse after a few months.  This policy commission will be taken out of your paycheck.

If you don't have a very broad and deep pool of friends and acquaintances, it is unlikely that you will be successful with Liberty  It used to be an inside joke that insurance companies would hire you to get your relatives but you can no longer sell relatives with out prior approval.  That makes it very tough to get started.

They also don't give you long to prove yourself.  After a few weeks, if you are not making quota, you're gone!  You still have a very nice lap top computer and a GPS but that is all you are likely to have to show for your days at Liberty.  You may not have lights in your house to see them though.

I am a current agent with this company ... I want to address a few things that were mentioned earlier ... 1st - In regards to the $99 class.  This is a discounted price that is given to people that sign up through the interview process.  Other companies do offer courses (some more and some less).  The reason the company offers this specific course is because they have influence with that company to tailor the course to improve the passing rate on the state exam (ultimate goal).

2nd - recruiting is a process all "sales" companies have to do.  Sales is a career that is not for everybody.  A large number of people get caught up in the money that they can make and forget to be honest with themselves or the person hiring them.  I have helped a great deal with the recruiting process and I can't even begin to tell you how many lies I have read on resumes.  When it comes down to the basics - either you work hard or you do not!

3rd - Liberty has never asked any agent to sell to their own family!   There is a corporate rule against it for 90 days.  Even then --- you need special permission from corporate to do so. 

4th - commissions are paid in advance of the 1st years premiums.... this is more than fair, but as an agent in sales you must always be prepared for a person to change their mind or die.  If you were paid for sales being on the books in advance there will always be charge backs... HELLO - that's sales! 

5th - There is NO base pay in the agent's selling position. If you move up to a Directors position (which many do) this is a salary position. 
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I have been with this company for 11 years.  In my office there are several people that have been with this company for more than a few years (6 yrs, 8, 10, 11, 11, 15, 19).  This is a long term career that is not easy!  You have to work your butt off to make 100k, but you can make 100k. 
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I believe when agents fail they blame everyone except themselves....granted there are situations where a manager may not have supported a particular pain in the rear, but In my experience it's mostly the agents lack of effort. 

* I have spent about an 30 minutes reading these reports ..... common theme .... agents upset because they didn't make it.  Maybe you didn't work hard enough...maybe you did ... we will never know.  I do know - I am!