If I couldn't make more than $260,000 per year sitting at home in my underwear taking orders over the phone while searching porn sites I would get out of this business and find something more lucrative to do.
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Your figures have went from 2K-5K per week, down to 1,200-2K per week with chargebacks; what you are saying is that you have a persistency of roughly 40-60%.
Do you consider this the average?
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Hey guys, I apologize if I came across a little bit harsh. I know that there are a lot of great offers for contracts and leads here on the forum, heck that is how I got contracted!
I also would not be still around if it wasn't for the advice I have learned from each and everyone of you. Any contribution helps in the grand scheme of things. We're all here to try and further ourselves in this wonderful world of insurance.
To theinsuranceman, I have to say I busted your chops probably harder than I should. It may be just the way your post came across. There are too many new agents that come in here trying to learn the best way to feed their families and from one who has been through the mill and has survived, I guess I just want them to know how to proceed with caution.
Now let's all have a wonderful weekend and get ready to write plenty of APPS next week!!!!!!!!!!!!!
Let's take a minute to review all of this from Greg.
Ok, his agents close 1 out of 5 leads, they sell 2K-5K a week but only make an average of 1.2K-2K per week. The average premium is $40-$50 per month.
At $40 per month, that's $480 per year. In order to reach that 5K that would be 11 policies a week sold. If closing 1 out of 5 then they only have to call 55 leads per week. That's an average of 1.375 calls per hour on a 40 hour work week. or 2.75 calls on a 20 hour work week.
Greg must have one hell of a convincing "script" for the phone. Of course there is only a 40-60% persistency rate which contradicts the "great script" thing.
So, sounds like for every two you sell, you lose one.
So that means as an agent you are really only averaging 35% per sale since you obviously can only count on one of two sales sticking.
If you have that kind of persistency, then I'm assuming your script is a very pushy script and does not solidify the sale.
Somehow all of these numbers just don't add up.
Greg, tell me what I'm not seeing here if you can.....but for now I'm calling BS!
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Todd R. King
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[COLOR=red]Do the right thing because it's simply the right thing to do.[/COLOR]
Let's take a minute to review all of this from Greg.
Ok, his agents close 1 out of 5 leads, they sell 2K-5K a week but only make an average of 1.2K-2K per week. The average premium is $40-$50 per month.
At $40 per month, that's $480 per year. In order to reach that 5K that would be 11 policies a week sold. If closing 1 out of 5 then they only have to call 55 leads per week. That's an average of 1.375 calls per hour on a 40 hour work week. or 2.75 calls on a 20 hour work week.
Greg must have one hell of a convincing "script" for the phone. Of course there is only a 40-60% persistency rate which contradicts the "great script" thing.
So, sounds like for every two you sell, you lose one.
So that means as an agent you are really only averaging 35% per sale since you obviously can only count on one of two sales sticking.
If you have that kind of persistency, then I'm assuming your script is a very pushy script and does not solidify the sale.
Somehow all of these numbers just don't add up.
Greg, tell me what I'm not seeing here if you can.....but for now I'm calling BS!
Great summary, Todd.
In your opinion; what should a final expense agent expect?
Hey guys, I apologize if I came across a little bit harsh. I know that there are a lot of great offers for contracts and leads here on the forum, heck that is how I got contracted!
I also would not be still around if it wasn't for the advice I have learned from each and everyone of you. Any contribution helps in the grand scheme of things. We're all here to try and further ourselves in this wonderful world of insurance.
To theinsuranceman, I have to say I busted your chops probably harder than I should. It may be just the way your post came across. There are too many new agents that come in here trying to learn the best way to feed their families and from one who has been through the mill and has survived, I guess I just want them to know how to proceed with caution.
Now let's all have a wonderful weekend and get ready to write plenty of APPS next week!!!!!!!!!!!!!
Let's take a minute to review all of this from Greg.
Ok, his agents close 1 out of 5 leads, they sell 2K-5K a week but only make an average of 1.2K-2K per week. The average premium is $40-$50 per month.
At $40 per month, that's $480 per year. In order to reach that 5K that would be 11 policies a week sold. If closing 1 out of 5 then they only have to call 55 leads per week. That's an average of 1.375 calls per hour on a 40 hour work week. or 2.75 calls on a 20 hour work week.
Greg must have one hell of a convincing "script" for the phone. Of course there is only a 40-60% persistency rate which contradicts the "great script" thing.
So, sounds like for every two you sell, you lose one.
So that means as an agent you are really only averaging 35% per sale since you obviously can only count on one of two sales sticking.
If you have that kind of persistency, then I'm assuming your script is a very pushy script and does not solidify the sale.
Somehow all of these numbers just don't add up.
Greg, tell me what I'm not seeing here if you can.....but for now I'm calling BS!
We don't cold call a list. We use a dialer that dials 100's or 1000's of residential numbers per minute. Adjust the control for the dial rate. The people who listen to the complete 35 sec. recorded message (maybe 1 out of 100 numbers dialed) then are instructed to press one if they would like to talk to an agent.(or press 2 to be removed from the call list).
When they press one they go to a digital recorder where they are asked to leave their name, age, and best time to call them back.
After they press 1 there are 3 things that can happen..1) They start cussing and fussing, 2) hang up w/o leaving a message, 3) leave a sincere message to be called back. We only call the "3)"'s above.
So we are calling people who have already been dialed and filtered by the dialer. Much more efficient than us dialing the list cold.
Now let's look at the math:
$45 premium x 12 x 70% x 65% advance = $245.70 in advance commissions....5 sales: $245.70 x 5 = $1228.50 in advance commissions. Note that $45 premium x 12 = $540 ann. prem. x 5 sales = $2700.00 ann. prem.
When I say "an agent makes" I'm saying the cash they actually receive from submitted production, which is 65% of the annual commission. I'm NOT using annualized commission, only advanced commission. The agent really makes more than just advance comm. and I think that's where your confusion came in, because the paythru kicks in on month # 2, not months 10,11, and 12 like a lot of other co.'s. Remember, this paythru handles ALL charge backs. Charge backs never come out of adavanced commissions.
You are using a $5000 week which of course is not the norm. My ex. above reflects a truer average of a $2700 week.
Did this answer your question?
Ps....My 7th month persistency is presently at 81% and 13th month persistency is 78%.
In your opinion; what should a final expense agent expect?
To get awful sweaty going trailer-to-trailer in the summertime? (especially here in the South)...
Seriously, I would think, based on nearly 20 years of insurance marketing experience, that it would be much easier (and profitable) to go in on a "demand" product like MedSupps or MA, make a client, then try to sell other lines?
Years ago we used to call FE "Ed McMahon policies".
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[COLOR=blue]Don't steal - the government hates competition.[/COLOR]
So, you've convinced some neophytes to sell burial plans @ 70% (dopes). Not only that, every household in your territory not on the DNC list now hates all insurance cold callers because of your dialer...
So, you've convinced some neophytes to sell burial plans @ 70% (dopes). Not only that, every household in your territory not on the DNC list now hates all insurance cold callers because of your dialer...
Machine dialing or a person dialing.....hmmmm.....did you get past the 10th grade?
But Paul speaks the truth. Within 10 years phone marketing will be all but dead due to the use of cells. Even I'm trying to justify why I'm paying for a land line and cell when my cell's quality is very clear and my "land line" is VOIP anyway.
The generation coming up through high school now will be IMMUNE to phone calls. I have 6 nieces/nephews between 18 and 26. Not a single one has a land line and they do not answer any call unless it's from their friends or family.
Within 15 year (I know that's ways off) the entire residential telemarketing industry will be gone.
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Lol. I think we can agree Paul that over the next 20 years a lot of advertisers are going to be in a world of hurt, and it's not just the phone.
I've had a lot of agents disagree with me but I don't know of the "store front" State Farm concept will be able to last. Paul, do you see ANY of these kids coming up in today's generation walking into an Allstate?
Re: Final Expense Sales Over Phone?
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