Risk vs Reward, An Allstate Case Study

Do you understand the relationship between risk and reward, dreams and struggles?

They say that taking big risks makes you more available to reap big rewards. Would you agree with me when I say that your reward is proportionate to the amount of risk that you take? You see, some people want big rewards, but they’re unwilling to take big risks. I don’t think the universe works that way.

Forgive me for talking about my buddy Adam a lot, but today I just had to share some of his experiences and how they relate to this risk vs reward topic. This story goes back roughly 35 years ago. His mother had just graduated college and decided to become an Allstate agent.

Allstate is one of the largest and well known insurance companies. Did she take a big risk in becoming an agent? I would say so. Allstate compensates their agents when they make sales and keep customers. They receive a passive income, so to speak, on all of their accounts.


What was the risk that she took?

She willingly took a job opportunity that had no promise of pay or benefits. How’s that for secure? Not too many Americans at this day and age are willing to deal with anything that isn’t ‘secure’.

Not only did she have to study and acquire specific licenses, she had to acquire all of her own customers. This is a case study in risk vs reward. The money in the insurance business is great. Once you have your licenses and certifications, you can then begin to accumulate a client base. You’ve got to learn people skills, sales skills, prospecting skills, and customer retention skills. All of which take time and experience.

Let’s fast forward past the struggle of building an insurance business and talk about the reward. She and her family have won many spectacular trips to places around the world. They’ve been on cruises, seen most of the states, and visited exotic countries like Greece, Spain, England, Italy, Ireland, France, Canada and Singapore.

There truly is a big reward sitting on the other side of you taking big risks. I’m willing to bet that his mother had no idea how big the reward would be for her years of struggle and learning.

Do bloggers experience a similar situation? Let’s talk about John Chow for a moment. Do you think that he knew his income would be nice and sexy when he first started writing online? Do you think he ever thought he’d drive nice cars? He took a risk in doing something that others probably thought was stupid. Now he can say, “I told you so!” to all of his friends and family that ever doubted.


Don’t be afraid to take risks. The bigger the risk, the bigger the reward. Just know that for every big dream, there’s a big struggle that accompanies it. Don’t make the mistake of dreaming big, but only wanting a small struggle. Learn from the Allstate case study and know that you will be compensated for all of your hard work.

Happy blogging!

17 thoughts on “Risk vs Reward, An Allstate Case Study”

  1. Geoff Todd says:

    With big risk also comes the possibility of big failure. I think that’s why most people don’t take big risks – they are afraid of failing. All big rewards come with some failure in the past. We fail, learn from it and start again.
    I think with blogging, there is a the biggest risk & reward potential. Bloggers need to just stick it out for a while. It’s frustrating when you start a blog and there isn’t any traffic, but “if you build it they will come” motto is very relevant. it might just take time to build your blog’s readership.

  2. I. C. Daniel says:

    I think blogging can be a great income source after 3-5 years of hard working on a daily basis!

  3. Zac Johnson says:

    This is a game of risks. Take NONE and get nowhere!

  4. Jeff says:

    This is some great insight. I think it is important to take some risks, so that we can reap those big rewards. It is great that you followed your dream of becoming a blogger.

  5. John Gibb says:

    I like and recommend calculated risks, 24/7

    People who don’t risk are living a dead life.

    People who risk foolishly need to learn from their mistakes.

  6. Jing Zhang says:

    I am a risk taker. Somes taking risk can make your big fortune. We need to get out of comfort zone.

  7. Sharon says:

    I think people fear risk because of potential failure. Yeah, I admit it…I’ve been chicken myself 🙂

  8. The bigger the risk the bigger the return and it will always be that way. I took a big risk going into a nich highly dominated by people with big budgets. But having skills for driving orgnic traffic to my site has won me what I want.

    1. Jing Zhang says:

      I agree, bigger risk higher reward. However, we can stretch out of our capability, knoledge, resource, etc. Otherwise, it might cause disaster.
      Agree with me?

  9. Edson Hale says:

    “for every big dream, there’s a big struggle that accompanies it” this phrase in your post really deserved hundreds of tweets and I did one with the hope all commentators will do their share.
    You are right lesser the risk less the reward and vice versa but one must do the SWOT (strength, weakness, opportunities and threats) analysis of his dreams before making them true.

  10. faisal says:

    That pic with the rat and cheese is LOL.

  11. Deep says:

    Hi John,

    I completely agree with – high risk, high reward principle but I also want to add that a person should keep a balance between risk and safety to be successful in long term.

    Only those persons can take bigger risks who have nothing to lose

  12. Doing internet marketing may not necessary be risk taking. I’m one of the few marketers who has a full time job. The beauty of IM is location free, and time free, meaning I can do wherever and whenever I want.

    Always enjoy making double income. 1 stable while the other is “risky”.

  13. Chuck says:

    Failing is just “stop” before you reach success. If you don’t take risks because you are scared to fail, you won’t get big rewards.

  14. Metz says:

    Often the difference between a successful person and a failure is not one has better abilities or ideas, but the courage that one has to bet on one’s ideas, to take a calculated risk – and to act.

    Anyway, I really like the image. That is what risk and reward is all about! 😀
    Timely post, I must say.

    I found this post shared on Kingged.com, the Internet marketing social networking site, and I “kingged” it and left this comment.

  15. “Don’t make the mistake of dreaming big, but only wanting a small struggle.”

    Perfect way to sum up this article. I think this is a great way to gauge where you are in your business. Are you staying in your comfort zone? Are you seeking the easy way out? You must be honest with yourself about this.

    For bloggers, I think sometimes when we are good at something, say writing, we spend most of our time doing that. That is the ‘work’ that we put into our business. Then we become frustrated if the business isn’t taking off like we want. Yet, we feel like we have done all of this work! Well, we are missing valuable pieces to the puzzle because we are focusing on what we are good at. We are staying in our comfort zone, instead of risking the potential failure involved in becoming an expert in other areas.

  16. Joanne says:

    “If we allow risk to be a fear, then we are sure not to succeed. But, if we approach risk with proper planning, and a good attitude, then most times we can minimize the risk and use it to our advantage.” ~Catherine Pulsifer, an inspirational author

    This is an encouraging post, John. Whatever industry we are in, we take risk and wait for the outcome. If we succeed, then it is rewarding. If we fail, then we should take it as a lesson learned and start all over again. At least, at the end of the day we never ask ourselves with “what ifs.”

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