My 1st Month at EFES/Equita Final Expense
- Thread starter Rearden
- Start date
@ 20 leads a week that would be roughly $1,600 for the month. Any way you slice it it's definitely a good gig. I'd be ok with clearing 10k a month. From what I understand the biggest issue with FE is persistency. I have heard you are doing well if you hold 60-70% (heard, not experienced, I haven't dipped my toe in FE yet). Yet again, not a bad month in my book for someone who is just starting and can at least expect to hold $6k-$7k.
13 month persistancy should be over 80% (minimum). 90% is realistic for a good producer.
To answer the "how much in your pocket" question:
13,500ap x 90% (commission) = $12,150 x 90% "stick rate" = $10,195 x 75% (9 month advance)= $8201.25 minus $1600 for leads = $6601.25
Keeping in mind that this time 9 months from now he will have 2k per month coming in from these sales that will cover the lead costs for him. Sticking with it and being consistent for a year is really key to making money in FE. The way I figure it, I am living off the 9 month advance, not the AP x commission rate. Going totally "as earned" is better but unrealistic for a new agent (usually)
How many Dr.s, lawyers, financial advisers, bankers, professors, etc. made $6,601 sixty days from the time they decided that's what they wanted to do for a living. Not Bad.
- 2,455
If I were doing that business I would take a small salary every month/week and only count 0n 50% sticking at most then do a 3 year look back on my book and account and start taking profit distributions. I think where agents screw up is when they are doing well they just spend the money like most people. Then they are buried in debt and out of the business.
- 18,980
Everybody is making a lot of assumptions here. Suppose he only gets 15 leads per week at $16 each? That's what most EFES agents pay. That's less than $1000/mo. for leads.
He could pay as little as $11/lead. That's what I pay. I also only get 15 leads per week.
What if he is on over 100% contracts? That is also possible at EFES. Probably not since he is fairly new. If he keeps that production up like that he will get there.
As for persistancy, Biggin is correct. There is no reason to have less than 80% 13 month persistancy. I have 89% with my top carrier. Somewhat less than that for my second and third choices carriers.
But, it's not all about persistancy either. You are going to lose 20 to 25% of FE business no matter who you are. I'm talking about declines not takens and lapses all rolled into one percentage.
My goal is to always write $3000 ap per week. The reason for that is because I want to make $100,000 per year after lead costs. If I, [or anyone}, writes $150,000 ap in a year and lose 25% of that it's down to about $113,000. Figure $10,000 to $12,000 in lead costs and you are at the $100,000 mark for the year after lead costs.
I've been well obver my goals for three years in a row now and well under those lead costs, {my lead bill was just shy of $9000 in 2010}. But, my goal is still always the same.
With the training and support and asteady leads from EFES there is no reason an agent that is willing to do FE fulltime could not do $3000 ap per week on average. Sure there will be some weeks where that is not hit, but there will also be $5, $6 and $7K weeks.
One has to be willing to put in the work. I see recruiters/marketers all the time spouting off about how "easy" it is to sell FE. That's just baloney. It can be a simple undertaking, but there is still a lot of work. Much of the work is "saw sharpening" and it appears to outsiders that you are not working, but you are.
Now, in my case, I built tires in a factory for 18 years. That is major, hard, hot, backbreaking work. Is this work anything like that? Of course not, it's a completely different type of work. It's still work. These people are not calling you up and begging you to come over and pick up a check.
He could pay as little as $11/lead. That's what I pay. I also only get 15 leads per week.
What if he is on over 100% contracts? That is also possible at EFES. Probably not since he is fairly new. If he keeps that production up like that he will get there.
As for persistancy, Biggin is correct. There is no reason to have less than 80% 13 month persistancy. I have 89% with my top carrier. Somewhat less than that for my second and third choices carriers.
But, it's not all about persistancy either. You are going to lose 20 to 25% of FE business no matter who you are. I'm talking about declines not takens and lapses all rolled into one percentage.
My goal is to always write $3000 ap per week. The reason for that is because I want to make $100,000 per year after lead costs. If I, [or anyone}, writes $150,000 ap in a year and lose 25% of that it's down to about $113,000. Figure $10,000 to $12,000 in lead costs and you are at the $100,000 mark for the year after lead costs.
I've been well obver my goals for three years in a row now and well under those lead costs, {my lead bill was just shy of $9000 in 2010}. But, my goal is still always the same.
With the training and support and asteady leads from EFES there is no reason an agent that is willing to do FE fulltime could not do $3000 ap per week on average. Sure there will be some weeks where that is not hit, but there will also be $5, $6 and $7K weeks.
One has to be willing to put in the work. I see recruiters/marketers all the time spouting off about how "easy" it is to sell FE. That's just baloney. It can be a simple undertaking, but there is still a lot of work. Much of the work is "saw sharpening" and it appears to outsiders that you are not working, but you are.
Now, in my case, I built tires in a factory for 18 years. That is major, hard, hot, backbreaking work. Is this work anything like that? Of course not, it's a completely different type of work. It's still work. These people are not calling you up and begging you to come over and pick up a check.
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Does your annual goal of $100k after lead costs include renewals or completely new business? If not what additional renewals could one expect from the goal of writing $3k weekly in the 2nd, 3rd, 4th, 5th year (assuming the 25% dropoff in business you mentioned). Also, how long do renewals last?
- 18,980
That goal is new business. Obvious my real income reflects renewals.
Renewals are anywhere from 2% to 10% depending on company and product. I never count renewals in goals. That's just gravy. I also do a little bit of med sup business. That's not included in that gaol of $100,000 in FE business.
When I called last year they offered I believe 90% contract and leads were around $23. I'm sure you can get them for around $16 but I doubt it if you were new.
I would love to sell more FE. I just really suck at it.
For instance, I work closely with 3 other guys that average about 1.5 FE policies a week. Most of our sales are focused on Med Supps and MAPD's so their main goal isn't FE but it definitely helps their sales out.
Guess what I write? About 1.5 every 2 months....lol.
I know it's something I'm doing wrong. I ask them if they have life insurance and usually if they do, they say they are fine and don't need anymore. Or, if they don't have any they don't believe in owning it. I just know I am missing the boat and need to get better at it
That's exactly what I was told when I called here recently. Any way you slice it I would call it a success and offer my congratulations! I should have some leads coming in here any day now, interested to see how bad I suck at FE. So far the only appointment I've had that was interested wanted to pay less than $10 per month. But I also don't claim to be any good at sales.
