The Dirty Little Secret of Final Expense Sales is the Massive Expense to Write Big #'s

[Gooner]

Gooner you're an exception and not what the standard is. Let's see what your persistency is at the 13 month mark as if I'm not mistaken you said you write a lot of direct express. As for Newby he's making 135-150% on his own business .im not saying an IMO shouldn't make money but a 150k-200k ap producer needs to be at a rate were the IMO makes about a 10% override max.You paid your dues already as your IMO has made big money off you. Should they suck on you big forever? Making 15% above street contract for a 200k producer is another 30k a yr.

Fair enough on the 13 month persistancy..we'll see, but it accounts for less than 30% of my biz...probably under 20%.

I happen to know what my IMO makes at most, why...because I'm crafty like that. Im happy to give them 10-20% for what they've given me.

Hell, they haven't said it, but I'm convinced FEX is picking up SNL because I begged them to do so anf I write a ton of it...I'd rather them make the override than someone else who won't pick up a phone..not Tommy..he answers on the 2nd ring!

And who cares what someone else is making...you sound jaded. If you could make 150% on your own biz...why wouldn't you. You got to earn it! You sound like a typical 20 year old, in the way that the world owes you something. The world owes you nothing...you want it...go get it...don't be jealous of those that have put in the blood, sweat and cockroaches...to actually have an IMO and make some I override.

 

[jlata1]

Hey great for you gooner you're happy. But I guess all the agents that left efes were also jeoulous of there Imo,s making big money on them. The Fex owners left efes as they were tired of efes sucking on them. Each agent who does any type of production must look in the mirror and determine his own worth to the IMO. If you're happy with your own situation more power to you.

 

[Gooner]

Hey great for you gooner you're happy. But I guess all the agents that left efes were also jeoulous of there Imo,s making big money on them. The Fex owners left efes as they were tired of efes sucking on them. Each agent who does any type of production must look in the mirror and determine his own worth to the IMO. If you're happy with your own situation more power to you.

Full of misinformation, 1 owner left efes...lots of efes agents at FEX. Just saying...if agents don't see value...they don't have to sign up...pretty simple concept. Go in with your eyes open. I don't think Travis or JD for that matter would ever say they thought efes was sucking on them...just time for a change and BIGGER opportunities.

I'd be hard pressed to find an agent that has higher contracts than I do...with my limited time in this business

 

[Rearden]

Those are some seriously delusional numbers. I write between 15k and 20k a month. I run about 10 to 15 leads a week. I see on average 7 or 8 people a week. My lead cost is only about 1200 a month.

You sir are a certifiable freak of nature.

I only know of one or two other agents making a minimum ROI of 12:1 on their FE mail.

5:1 is considered good in my book.

 

[Iwillpay]

Hey great for you gooner you're happy. But I guess all the agents that left efes were also jeoulous of there Imo,s making big money on them. The Fex owners left efes as they were tired of efes sucking on them. Each agent who does any type of production must look in the mirror and determine his own worth to the IMO. If you're happy with your own situation more power to you.

Why not become your own IMO and get all the "fat" from the business?

 

[Newby]

Let's say several agents on here who say they do 18-25k a month.Lets look at several metrics involved to achieve those type results. avg premium of $50 a month or $600 a yr means to do $21k a month thats 35 policies a month. at 25% close ratio one would need to see 100 people a month. to see 100 people one would need 150 leads a month. Thats about $3500 in lead costs. most people have an appointment setter so theres another $1300 for appointments.Many agents who write that type business drive 1000 miles a wk easy. at an avg of 25 mpg thats another $150 a week.Expenses alone are about $5400 a month. now remember with $21k of business if you have 80% persistency thats about $16,500 . $16,500 - $5400 = $11k net. $11k -37% taxes which includes = $6990 net.ow one could make 2to 3k more but you get the point. To acquire business in final expense costs huge money and long hours and tons of driving versus other types of insurance.Don't get me wrong theres also many positives like selling to uneducated people that are super easy to sell, one gets paid very quickly and underwriting is very easy. but guys saying they're making 200-300k a yr have huge expenses.Agents are taking all the risk as imo's sit back and make 20-30% for possibly providing a little training. The avg agent does very little business so thats why producers doing 50k or more need to squeeze the crap out of there imo's are walk as theres tons of imo's that will pay them better for there business.

Jlata,

The great news is that this is America. And there is no better example of the free enterprise system that the insurance business and FE in particular. Everyone makes exactly what they are worth. Guys who get out and work make more money than they have ever made in their life. People who won't get out and work don't make anything.

If I'm a big fat lazy IMO sucking the lifeblood out of unsuspecting agents, someone smart and aggressive like you will recognize that and run me right out of business. That's the American way. And it's a great system. It's how every business in the USA should work if the politicians would keep their nose out of everything.

I think FexContracting is pretty lean and mean and the best deal for FE agents in the entire industry. I think we are ready to go head to head with all competitors. But I am pretty old and fat. Some young buck like you may build a better mousetrap and prove me wrong. It's up to you to do it.

 

[Mattschmidt]

You sir are a certifiable freak of nature.

I only know of one or two other agents making a minimum ROI of 12:1 on their FE mail.

5:1 is considered good in my book.

Take everything people say on here with a grain of salt....I have a feeling some people on here may embellish their production.

 

[BURIAL INSURANCE MAN]

The first post is dead on as far as the real numbers. while their will always
be the rare producer who writes larger case size or can do it with minimal marketing cost to do over 100k in paid biz requires 2500-3500 in mail cost month in and month out. if you have an apt setter ad another 800-1500
per month. the driving is a killer as well. If you can get a realistic 250-400%
return month in month out (I mean real money you can spend not what is
written but what is paid and sticks)

The title of this thread may put off some people but the numbers
are the real deal for most producers.

I do not think IMOs are bloodsuckers. I think they are in biz just
like the rest of us. That being said you can do better as a
producer with certain ones who do give out better contracts.

I do wonder why the same people always want to go negative
on someone who is basically just throwing real numbers out.

 

[sshafran]

The first post is dead on as far as the real numbers. while their will always
be the rare producer who writes larger case size or can do it with minimal marketing cost to do over 100k in paid biz requires 2500-3500 in mail cost month in and month out. if you have an apt setter ad another 800-1500
per month. the driving is a killer as well. If you can get a realistic 250-400%
return month in month out (I mean real money you can spend not what is
written but what is paid and sticks)

The title of this thread may put off some people but the numbers
are the real deal for most producers.

I do not think IMOs are bloodsuckers. I think they are in biz just
like the rest of us. That being said you can do better as a
producer with certain ones who do give out better contracts.

I do wonder why the same people always want to go negative
on someone who is basically just throwing real numbers out.

^This guy knows his stuff. Good to hear from a non-marketer.

 

[Newby]

The first post is dead on as far as the real numbers. while their will always be the rare producer who writes larger case size or can do it with minimal marketing cost to do over 100k in paid biz requires 2500-3500 in mail cost month in and month out. if you have an apt setter ad another 800-1500 per month. the driving is a killer as well. If you can get a realistic 250-400% return month in month out (I mean real money you can spend not what is written but what is paid and sticks) The title of this thread may put off some people but the numbers are the real deal for most producers. I do not think IMOs are bloodsuckers. I think they are in biz just like the rest of us. That being said you can do better as a producer with certain ones who do give out better contracts. I do wonder why the same people always want to go negative on someone who is basically just throwing real numbers out.

The truth is $2240 per month gets you 20-leads per week every week. That's enough for most agents to work effectively.

Most agents do NOT need the expense of an appointment setter. And they shouldn't have an appointment setter. They should be taught to set their own appointments.

You are leaving the "free" sales that do not require leads out of your figures. Referrals, lapses that are resold, Med Sups/Advantage, cancer plans, children and other family members of your lead. Smart agents work way beyond their actual lead.

I don't see anyone as going negative. I just see the OP as a green pea who thinks he can't possibly earn six figures on 120% commission because someone else might have a higher contract than him. He was in another thread thinking about selling a 10-year term as a pension replacement for a spouse which makes me think he is newly licensed and trying to get a handle on everything. We've all been there.