Why is $50mp and $10,000 the average in FE?

[WinoBlues]

From a different thread

@rousemark rousemark said: ↑
I would say that is about right for the average sale. Telesales or F2F.. Some agents may do higher but I am talking about barrage across the board.

@WinoBlues
I wonder if some of that isn't because the agents have a $10,000 face amount / $50mp mentality. Not all agents of course. I seem to remember Travis, I think, would start at something like $200mp. Fear of lapses maybe? Newer broker agents afraid to punch above their weight? Do trainers teach those numbers?

It seems like anytime agents talks about quoting FE they talk about $10,000. and funeral cost. That and they seem to assume their prospects are all broke. I get that many are.

Just thoughts. Probably showing my Not an FE agent undies.

 

[myinsurebiz]

From a different thread

@rousemark rousemark said: ↑
I would say that is about right for the average sale. Telesales or F2F.. Some agents may do higher but I am talking about barrage across the board.

@WinoBlues
I wonder if some of that isn't because the agents have a $10,000 face amount / $50mp mentality. Not all agents of course. I seem to remember Travis, I think, would start at something like $200mp. Fear of lapses maybe? Newer broker agents afraid to punch above their weight? Do trainers teach those numbers?

It seems like anytime agents talks about quoting FE they talk about $10,000. and funeral cost. That and they seem to assume their prospects are all broke. I get that many are.

Just thoughts. Probably showing my Not an FE agent undies.

I'm seeing a much higher MP than $50.

 

[Life Hawk]

Probably showing my Not an FE agent undies.

Your whitie tighties are showing.

Good questions. My personal take, is that amount might be more of a budget number than anything.

As to 10K amount, sadly too many people believe that's enough to get planted...

 

[Rearden]

"The policy that stays, is the policy that pays."

 

[tribetime32]

My personal average is typically 68 or 69 monthly premium. I think that 50 is egregiously low and it comes down to sales process. I don't show anything less than 60 or 65 to start and then go up from there. This gives you room to go down if they really can't afford it.

Also, a client may need 15000 in coverage but they are older and unhealthy and can't afford $150 or more a month. Another scenario is that they are young and healthy and want to be cremated. It makes no sense to sell a $19 monthly premium if they're going to need 15,000 or 20,000 down the road and you sold them $5,000.

I think these are major reasons why average monthly premium is $50.

 

[tribetime32]

To add on, I will say that there is nothing wrong with writing a smaller deal, but if you are getting a lot of them, you should look at your sales process and see if you are selling yourself short.

 

[Rearden]

As all things, numbers vary by agent.

Some have higher averages, some have lower averages.

The key is knowing your numbers and leveraging your marketing system accordingly to derive your goal income.

And the good news is you can have a profitable system on a lower or higher average premium, given enough leads and completed presentations.

 

[WinoBlues]

As I recall, and I am old. Ben did a lot of small cases, And Mungia did a chit load when he did his $500,000.

 

[WinoBlues]

I don't show anything less than 60 or 65 to start and then go up from there.

Maybe that is my disconnect.

I don't ask about the price until after I find the problem that needs a solution. It is their problem, I have the solution, the solution has a price. Now, I may not be able to fix it all today. But I will be back.

If it is funeral and they just need something low my starting point is $15,000. Much lower than that they need to die soon or that will bury them shallow enough a puppy could dig them up.

 

[theinsuranceman]

From a different thread

@rousemark rousemark said: ↑
I would say that is about right for the average sale. Telesales or F2F.. Some agents may do higher but I am talking about barrage across the board.

@WinoBlues
I wonder if some of that isn't because the agents have a $10,000 face amount / $50mp mentality. Not all agents of course. I seem to remember Travis, I think, would start at something like $200mp. Fear of lapses maybe? Newer broker agents afraid to punch above their weight? Do trainers teach those numbers?

It seems like anytime agents talks about quoting FE they talk about $10,000. and funeral cost. That and they seem to assume their prospects are all broke. I get that many are.

Just thoughts. Probably showing my Not an FE agent undies.

_Not everyone wants to be buried. When you average in cheap cremations that brings the over all ave. down.

_Some areas of the country are much more prone to cremations, and other areas more prone to burials. If someone tells me in the warm up they want to be cremated, and they seem pretty sure about it, then I will show them a $3k-$5k premium. Because just as sure as I show them the $10k premium I'm going to hear "that's too expensive for a cremation, we're going to look around". Now they've raised their defensive shields and I just shot myself in the foot.

_A lot of FE sales are to people who already have some coverage and only needing to add a little bit more. Not all sales are to people with zero coverage in place.