Taking new Job offer. But first.. Convince me not to.

[StangV2_0]

First off, this is not smack talk. Serious post.. Need advice. I am 99% sure I am going to take this offer.

TLDR? Jump to last few paragraphs.

Been selling cars for 5 years. Just been offered a job to sell insurance for Outsurance as a commercial broker. But read below for background and why I am where I am now.

So before I sold cars I worked in the oil industry. I spend 13 years building, maintaining, and certifying petroleum installations. Got retrenched. Reasons for retrenchment was simple. They wanted me to move to George when I had just moved to PE. At the time I was going through a divorce and my boys were 3 and 5 years old. I was very worried that I will lose an important relationship with them. And there was another man in my wife (now ex wife) life at the time. I was concerned they would look at him as a father figure while their dad had a job out of town. I also wanted to travel back to PE as much as possible to spend time with them. But the new offer would not allow this, and would not compensate me for this. So asked what is plan B? They said plan B is retrenchment. I took plan B. And now 5 years later as far as my kids are concerned, I have zero regrets. I have been there for them as much as possible and they know who their dad is.

At the time I had been with the company for many years, had a prof fund, and got out a bakkie as part of my severance pay. I was thinking of going into plumbing or solar etc. Plumbing was an easy transition since I had dealt with a lot of underground piping and civil work. So I felt this would be a natural move for me. Had some plumber friends who supported this. Another option was fire sprinkler systems since I had also dealt a lot with above ground pipework that had to be cut and threaded to size etc. Galvanized pipe. Run through building up and down various floors. So this too would have been simple transition. But plumbing was top of my list.

"Why don't you sell cars?" one mate suggested. "You know cars, and you know sales." I agreed to try it. And I must be honest, 5 years down the line, I regret it. Not because it is hard, but because it pushed my levels of patience and well being to levels I thought were not possible. I also had a manager and his manager who were extremely toxic and belittling in every way they could be. This went on for years. It is really hard to explain the levels this went to. One example is this. Dad passed away. Was about mid way though the month. Said to boss I need to attend funeral in JHB will be away for a few days. He turned to board behind him. Think I was on two deals so far for the month. He looked at it for a bit then looked at me and said "Sorry to hear that. But no offence, if you don't reach 6 cars this month, I don't want you to come back" And if this is shocking to you, I can swear this is the tip of the iceberg..

Anyways, I left that dealership in December and joined the current one I am at. And I am happy here. I really am. Much more family orientated vibe and atmosphere. Really happy. But it is still car sales.

What I sell this month counts for this month only. It is a once of payment. You start next month not knowing where you will finish. It is extremely hard to budget. And of course, poor sales happen. I had some months early last year and prior to that when I maybe took home R3500 after deductions even though I sold 5 cars. That was because I was only paid 2.5% com for not reaching 6 cars.

Enter insurance job..

Co worker mine who used to work for same group, in same town, joined Outsurance 2 years ago. He in fact been talking to me about buying a new car from me, and he only wanted to support me. No one else. Followed up with him last week and said he is going to be buying in October. We must chat then. As we chatted (I don't just stop the chat cause you not buying now, I am in sales remember? ) he said it was one of the best decisions he made. Keep in mind his boss at the time was my boss. Same group. And here he was looking at buying a brand new car.. So I asked him how it all works etc. Was impressed. Said please let me know if a position becomes available.

Few days later he did just that. Had an interview on Thursday. Got back ground checks done on Friday. Got the call today. I have the job. Start 1 June.

I will be responsible for selling insurance to commercial and private persons. Can sell to anyone in SA but am encouraged to stick to a 200km radius of my base, which will be PE.

You are started on a retainer salary of around R23k with no commission. First 6 weeks is spent in training. Retainer salary stays in place for three month then start depreciating monthly. takes about 3 years to depreciate to zero at which point you work on commission only. I asked my co worked what his current book is after 2 years, he said its R370k. So he currently making R37k a month average. I asked what target is a month? they said R13k. So after being there for 2 years his average per month has been around R15k.

Basically, how it work is this. You are paid on average 10% of the amount your clients are paying each month for their insurance policies. If you have one client paying R150k, then 10% is yours. If you have 50 clients paying R10k, then 10% is yours. However, if a client does not pay or cancel their policy, you will lose the commission form that deal. You are paid this monthly and not upfront.

Now in my history of car sales targets have been around 6 vehicles a month. Over the last 5 years selling cars I have averaged this, stock limitations excluded. What do I have to show for it? Nothing, except another month of pressure and stress not knowing what I may make the end of next month.

If I had of achieved 80% of my target selling insurance the last 5 years I would have a salary of R62k this month.

So guys, I am thinking of doing this. But this post is last check. Wife supports me. Mates support me. Google supports me. I am under no false impressions of it being easy. I will have to put in some serious work over the next few years. But If I put into this what I have put into car sales surely I will be far more successful. Surely?

Convince me otherwise... Discuss...

 

[BlueCrayon]

Do it, aside from all the advice you get, you're gonna take it anyway.

Goodluck man

 

[Spaffy]

Does this involve cold calling? Only asking because that takes a different kind of person but you seem to be a natural salesperson so all the best to you.

 

[StangV2_0]

And while we at it. Before anyone replies that you get no leads let me just say I am comfortable with this.

There have been days when I have made 50 or more cold calls to try sell a car. Then the next day gone out and cold called on 10 or more businesses. A car salesman who sits around waiting for a client is a kak salesman. Last week I made on average 10 calls a day and visited 10 businesses in total. I have one deal I am expecting to close from this and another fleet deal with multiple vehicle hanging in the balance.

The point I am making is I am prepared to put the effort in but right now I am losing motivation in the motor industry. I just dont feel motivated because it is this constant grind and pressure of not knowing where it may end up next month.

 

[StangV2_0]

Does this involve cold calling? Only asking because that takes a different kind of person but you seem to be a natural salesperson so all the best to you.

Yes. and that will be the deciding factor on whether successful or not. You get NO leads and are expected the generate every single lead yourself. I am comfortable with that.

 

[el_guapo3291]

Hey man,

I think go for it, I know quite a few people in both sectors and with insurance your ceiling is so much higher. If you manage to snag a few big clients you will also have a very decent and relatively stable income. Sales is inhherently stressful and obviously there will be challenges but after reading your post I would think you have the necessary skillset to be successful.

Good luck and all the best!

 

[TheJudge]

Reasons against: job sounds kak boring
Reasons for: set income at first.
Real question: what can you do to better yourself if you move to that fixed amount for a year, maybe two?

 

[Spectre]

Mate ... It's hard to convince you not to considering where you started and where you are now.

My advise is to go for it, because it's a chance at a better life for you and your kids.

 

[Spaffy]

I like the "passive income" aspect of it.
I know it's not passive because you worked for it initially but once you have that client and that 10% income it's there pretty much indefinitely.
So a few years in you could be making a lot of money, and they cater for the first few slower years with the retainer salary.

 

[FeelsBranMan]

Reasons against: it is tough, but you have sales experience so I assume you already know what it is like. The big con is as you mentioned, any client that fails/cancels a policy = you lose that commission, which can be really bad in the long run.

Reasons for: even worst case scenario, at least this buys you time to explore the job and give you peace of mind with salary, even if only for awhile.

Go for it, I wish you the best of luck!

 

[Confucius]

Go.

 

[StangV2_0]

Sales is inhherently stressful and obviously there will be challenges but after reading your post I would think you have the necessary skillset to be successful.

well this is why it is so attractive to me. I am not expecting the stress and corporate pressure to be any less. But the return over the years ahead will be more lucrative provided I put in the effort,.

Reasons against: job sounds kak boring
Reasons for: set income at first.
Real question: what can you do to better yourself if you move to that fixed amount for a year, maybe two?

The income will not be fixed. I will switch to a a commission based income gradually. Their target is R13k a month minimum. If I achieve 100% of target, no more and no less, I will be earning roughly R46k in three years. And I have no intention to stop working once I hit target.

Mate ... It's hard to convince you not to considering where you started and where you are now.

My advise is to go for it, because it's a chance at a better life for you and your kids.

Well, my oldest son is 11. 7 years from now varsity will be calling. I cant pay for that on my current salary as a car salesman. And there are 2 more kids behind him. Wife and I have been trying to buy a house the last few months. Banks take one look at my average income and say sorry. I argue that I pay my rent every month which is similar to bond amount and they just say no thanks. I cannot do what my family needs based on a salary as a car salesman. With that said, there are car salesman who ARE doing well and do it every month. I for whatever reason just cant do it every month, and I havent figured out why. I may have three good months then there is a bad month. Then a decent month, then a good month or two then bad month again. It also makes financial planning so hard since you never know what market is going to do.

Right now the load shedding is hitting the industry very hard since many persons are spending money on Solar and not cars. Persons are thinking well, we can keep the car a bit, lets get solar. Some companies are shedding jobs. But guess what, they will all still need insurance.

Go.

I think I should.. Havent handed in resignation yet. Thought I would get some feedback from this thread first. I got offer in writing, so its done. Just have to make final step..

 

[TheJudge]

The income will not be fixed. I will switch to a a commission based income gradually. Their target is R13k a month minimum. If I achieve 100% of target, no more and no less, I will be earning roughly R46k in three years. And I have no intention to stop working once I hit target.

I meant at first. So when you start there will be a buffer.

Obviously it might be something you love and want to do long term but also consider what you can do (either in terms of courses or just possible experience) that will give you options later. No such thing as permanent or long-term employment anymore so try to make sure there is an exit strategy that keeps your interests as the priority.

 

[ThE411]

@StangV2_0 my two cents as an Outsurance employee.

I'm on CTC, not a commission based package like you'll be. It's a great company to work for, and you can earn shit tons if you work hard, as long as you are aware that there is competition then go for it. I don't think a lot of the current guys in your new role have sales experience so you could do really well here.

 

[StangV2_0]

I meant at first. So when you start there will be a buffer.

Obviously it might be something you love and want to do long term but also consider what you can do (either in terms of courses or just possible experience) that will give you options later. No such thing as permanent or long-term employment anymore so try to make sure there is an exit strategy that keeps your interests as the priority.

Well yeah, spot on. Well...

If you pass a certain exam when it comes up, you are then allowed to and qualified to start your own brokerage. Have a big enough client base and its a no brainer.

 

[StangV2_0]

@StangV2_0 my two cents as an Outsurance employee.

I'm on CTC, not a commission based package like you'll be. It's a great company to work for, and you can earn shit tons if you work hard, as long as you are aware that there is competition then go for it. I don't think a lot of the current guys in your new role have sales experience so you could do really well here.

Well thats the best advice I have seen so far and its hands on. Thanks dude. Appreciate your post.

That's my advantage I feel, actual sales experience. The steps of a sale, handling objections, and how to close a deal. It takes a bit of assertiveness which I have learnt over the years. I think I am now 99.5% there. Thanks dude!!

 

[TheJudge]

Well yeah, spot on. Well...

If you pass a certain exam when it comes up, you are then allowed to and qualified to start your own brokerage. Have a big enough client base and its a no brainer.

Also maybe a shift in the insurance type you deal with. You have experience with cars and also other installations so you have underlying knowledge a new oke won't. That might open doors for you to do more bespoke work on new policies or maybe even assessment. So there is a possible avenue that you can research as well and possible move within the company.

 

[StangV2_0]

Also maybe a shift in the insurance type you deal with. You have experience with cars and also other installations so you have underlying knowledge a new oke won't. That might open doors for you to do more bespoke work on new policies or maybe even assessment. So there is a possible avenue that you can research as well and possible move within the company.

Good advice and I will be more confident visiting and calling clients in industry I have dealt with. Will use that.

 

[ThE411]

@StangV2_0 just one more thing to note, vehicle insurance is by far the easiest product we sell, so there’s a lot you’ll need to learn but the training we offer is very good so they won’t leave you to struggle in silence

 

[StangV2_0]

@StangV2_0 just one more thing to note, vehicle insurance is by far the easiest product we sell, so there’s a lot you’ll need to learn but the training we offer is very good so they won’t leave you to struggle in silence

Yeah I gathered that. I asked them in my interview how soon can I start selling? Can I start as soon as they employ me? Can I earn commision from my first week?

They laughed and said no.. no you cant. We taking you to school for 6 weeks. So the first 6 weeks we wont even see you. You going to be getting paid to sit at home in your PJ's doing online courses. Once thats done, we will see you. And then you can sell.

 

[ThE411]

@StangV2_0 yeah the first few weeks is actually nice because you get paid to learn. You won’t actually be in a selling position until you’re training is done and you’ve passed the tests (which are easy if you study). But trust me, you’ll need the training before you can sell

 

[StangV2_0]

But trust me, you’ll need the training before you can sell

I agree. Must have the product knowledge!!

 

[ThE411]

@StangV2_0 look me up once you’ve joined buddy

 

[IcEmAn_T66]

@

StangV2_0​

Bud ima be honest, i worked in car sales for a few years it sucks balls and not worth the stress,
Dealer Principals are wankers who always have a chip on their shoulders and think they are the business, i say go for it, its a good fresh opportunity and you have security.......well for 2 years atleast so you can budget, and because you were in car sales already you should know the F and I Process.

 

[StangV2_0]

Thanks dude, appreciate the support.

Dealer Principals are wankers who always have a chip on their shoulders and think they are the business,

Yeah, lets not even go there. From what I can tell my former one was the worst. His name proceeds him in this industry. I have cold called on business in the past where the owner has looked at me and told me he would love to support me, but he refuses to support my DP. I said to him you dont have to deal with him, you will deal with me. Said no, He just cannot and refuses to ever have any support for our dealership.

So yeah, preach brother. 🤜🤝

 

[IcEmAn_T66]

Thanks dude, appreciate the support.



Yeah, lets not even go there. From what I can tell my former one was the worst. His name proceeds him in this industry. I have cold called on business in the past where the owner has looked at me and told me he would love to support me, but he refuses to support my DP. I said to him you dont have to deal with him, you will deal with me. Said no, He just cannot and refuses to ever have any support for our dealership.

So yeah, preach brother. 🤜🤝

Dis your DP work for incredible connection back in the day ? the one I had did many years ago, he is such a tool and given the chance I would no hesitate once to break his nose ha ha ha ha

 

[D3TTOL]

You've made your mind up.

I have to tell you this. I had a friend who worked as a salesman for life insurance. I'm not 100% if he was telling the truth or not but when he explained things to me it went like this.

He would sell a life insurance policy. He'd make a % of the monthly payment per month per policy he had sold. Additionally he would get a small lump sum given to him as well. Usually around R20k-R50k depending on the value of the policy. However! This money was not entirely his until the client had paid their policy for 12 months, if at any time they defaulted or cancelled then he would have to give the money back.

Not sure if what he said was real but just in case it is and it's something similar to what you might be doing then it may be a bit of a heads up.

 

[StangV2_0]

Dis your DP work for incredible connection back in the day ?

No he did not. And although the man grinded my tits every single day he was great teacher in sales. I have to at least thank him for that.

You've made your mind up.

I have to tell you this. I had a friend who worked as a salesman for life insurance. I'm not 100% if he was telling the truth or not but when he explained things to me it went like this.

He would sell a life insurance policy. He'd make a % of the monthly payment per month per policy he had sold. Additionally he would get a small lump sum given to him as well. Usually around R20k-R50k depending on the value of the policy. However! This money was not entirely his until the client had paid their policy for 12 months, if at any time they defaulted or cancelled then he would have to give the money back.

Not sure if what he said was real but just in case it is and it's something similar to what you might be doing then it may be a bit of a heads up.

Yeah I have been warned about this from a few persons and it appears to apply to long term insurance and not short term. You are paid a monthly percent of what the client pays every month. And the client will forever remain yours until either myself or the client leave Outsurance.

I signed the acceptance letter, affidavit, and had to get it stamped by commissioner of oaths. Submitted. Handed in my resignation. Starting 1 June. No going back now.

 

[SteveIndeed]

I signed the acceptance letter, affidavit, and had to get it stamped by commissioner of oaths. Submitted. Handed in my resignation. Starting 1 June. No going back now.

Best of luck to you!

 

[ThatGuyJD]

Do it man. Then you can buy all the kids their own 1000D as their first houses.