Now that you have graduated with your bachelor’s degree in business or finance, it’s time to start looking for a job. Hopefully you have already found work before you receive your diploma, but if not, don’t fret. Despite what you may hear on the news, jobs are added weekly.
This article is about why you should steer clear of internships at companies such as Northwestern Mutual and New York Life.
I have heard from many readers about their experiences with these head-hunting insurance and financial services companies. Here are the reasons why you should avoid these type sales companies at all cost.
- They only want you for your family members/friends business – The financial services industry is commission based 9 times out of 10. This can be a really good by not having a earnings ceiling, but in reality, it means the company you work for doesn’t want to invest any of their money into your success. After you sign your contract and are officially hired, the first thing you are to do is write down the names and numbers of your close friend and family members. Most companies want at least 200 connections, or “warm leads.” After you have your list, you start memorizing “language” to say to the prospect over the telephone. The whole point of calling a prospect is to get the meeting. After you have set up a meeting, you are almost required to bring a “manager” to the meeting. Odds are, your close friends/family are going to purchase a small life insurance policy or annuity from you, but since you brought that manager with you, they automatically get half your commission. The justification for the manager going with you on these appointments is for you to learn the process. This is complete nonsense, they only want half the commission. You will do this until you run out of people to call. After you stop selling any life policies and are left with cold calling, they will terminate your contract. Don’t let them fool you, this is what they want to happen. After you are gone, all of the residual income generated by the policies and products you sold your friends/family goes to the managers of the agency. Think about it. They did not invest anything in you, but you gave them plenty of easy business that they will earn on for years. Now that you’re gone, they’re off to find the next young sucker to take advantage. of.
- It will ruin your relationship with friends and even some family members. No one likes to be approach about buying life insurance, period. Whenever you cold call people at 9 am, they stop seeing you as a friend, and as more of a salesman. From that point on, every time you ask a friend to hang out, they will just think you’re just trying to sell them something.
- You don’t learn anything. When interning and working for these companies, you do not learn any useful skills. The only thing you do is sucker people into meeting with you in hopes of you selling them a life policy.
No matter how much money the “Managing Director” says you can make the first year, do not work there. It is basically a scam. The business plans of these companies are to have a really high turnover rate, but get to keep the young college grad’s book of business when they leave. I know money is tight for recent grads, but trust me an take the job that pays an “ok” salary and learn something!