$10,000 Budget Vs $500 Budget

[Agentguy5]

I listened to an interview with agent 'nameless' and he referred to another icon in FE 'nameless2' who allegedly made 200K+ yr but he spent 50K for leads.

Return on Investments isn't as important as some agents make it sound. I don't even consider it at all. My objective is to get as many good leads as it takes to make as many sales as possible.

Let me ask you this.

If you had to spend $150,000 to Gross $300,000, would you look back and say "wow, I spent too much to Net $150k, I'd be better off just getting a job at Walmart?

 

[Prtzl]

Return on Investments isn't as important as some agents make it sound. I don't even consider it at all. My objective is to get as many good leads as it takes to make as many sales as possible.

Let me ask you this.

If you had to spend $150,000 to Gross $300,000, would you look back and say "wow, I spent too much to Net $150k, I'd be better off just getting a job at Walmart?

Walmart's horrible analogy but it's alright - the, "you're only cut out to flip burgers" line is good too..

So, we're working with 150K(leads) to produce 300K. Net: 150K

150K: Potential charge backs? (25%-$37.5K fair?)
Net: 112K

112K: Taxes. I'm not to familiar with the IC tax rate - conservative 22%?($24,640 fair?) - Net $87360

$87,360: Misc expenses gas, wear tear on car/truck(mechanical issues) etc.. $250 wk- fair?(low/high? - $13000) Net: $74,360

$74,360: Medical/dental/life insurance/disability - this varies - ($500mo fair? 6K) - Net: $68,360

Annual Net: $68,360

Please show me where I'm off base. I know the charge backs could be less, the tax write offs could be substantial and monthly personal insurance protection could vary --

300K Gross - Net 68,400(rounded)

Please show me where I'm off..

 

[dabulls]

Walmart's horrible analogy but it's alright - the, "you're only cut out to flip burgers" line is good too..

So, we're working with 150K(leads) to produce 300K. Net: 150K

150K: Potential charge backs? (25%-$37.5K fair?)
Net: 112K

112K: Taxes. I'm not to familiar with the IC tax rate - conservative 22%?($24,640 fair?) - Net $87360

$87,360: Misc expenses gas, wear tear on car/truck(mechanical issues) etc.. $250 wk- fair?(low/high? - $13000) Net: $74,360

$74,360: Medical/dental/life insurance/disability - this varies - ($500mo fair? 6K) - Net: $68,360

Annual Net: $68,360

Please show me where I'm off base. I know the charge backs could be less, the tax write offs could be substantial and monthly personal insurance protection could vary --

300K Gross - Net 68,400(rounded)

Please show me where I'm off..

The 150k was just an example. He isn't spending 150k in leads. That is 100 leads a week.

Also the expenses are write offs. You are taxing on income before business expenses (except leads)
Chargebacks are way off base percentage wise and also they aren't full chargebacks most of the time.

Do you investigate other careers this much?

 

[rousemark]

Walmart's horrible analogy but it's alright - the, "you're only cut out to flip burgers" line is good too..

So, we're working with 150K(leads) to produce 300K. Net: 150K

150K: Potential charge backs? (25%-$37.5K fair?)
Net: 112K

112K: Taxes. I'm not to familiar with the IC tax rate - conservative 22%?($24,640 fair?) - Net $87360

$87,360: Misc expenses gas, wear tear on car/truck(mechanical issues) etc.. $250 wk- fair?(low/high? - $13000) Net: $74,360

$74,360: Medical/dental/life insurance/disability - this varies - ($500mo fair? 6K) - Net: $68,360

Annual Net: $68,360

Please show me where I'm off base. I know the charge backs could be less, the tax write offs could be substantial and monthly personal insurance protection could vary --

300K Gross - Net 68,400(rounded)

Please show me where I'm off..

So, if you get a regular job with XX employer and the salary is $100K per year do you subtract the FICA and Income taxes, medical insurance premium, etc and say I make $52K per year or say I make $100K pr year. True, the cost of doing business such as office space, transportation expense, etc must be taken into account to determine what your earnings are but not all the other things you are deducting.

BTW, charge backs are already taken into account as most companies report actual earnings on the 1099. Can't imagine any agent having any where close to 25% CBs.

 

[Prtzl]

Obviously the 150K was Hyperbole - but that was the number I was working with. The bottom line number is tricky in this business. There's no question Agent5 who's done phenomenal in this business, is simply stating in this business it's going to cost you to play. But if you're really good you should make 2-4-6 times what you've invested. I get that.

Agent5's a national trainer, has made more in one year than I probably have in 2 or 3. Let's just make this clear - I'm not at the income level he's discussing. But, I'm not to far down from the 'net' range(after taxes and with all the benefits, 401k etc..)

This is where FE gets exciting though - you can give yourself a raise whenever you want.. Where I'm at - I can't.

Anyway -- high numbers are thrown around all the time but 'Net' is what counts. There's no question Agent5 has a really high 'Net' though..I do not doubt that..

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So, if you get a regular job with XX employer and the salary is $100K per year do you subtract the FICA and Income taxes, medical insurance premium, etc and say I make $52K per year or say I make $100K pr year. True, the cost of doing business such as office space, transportation expense, etc must be taken into account to determine what your earnings are but not all the other things you are deducting.

BTW, charge backs are already taken into account as most companies report actual earnings on the 1099. Can't imagine any agent having any where close to 25% CBs.

I used that number for charge backs because it was a number used on someone YouTube training series. 25%.

The family members who'v been able to retire at 50yo and a few other people I know - when we've ever discussed $$$ - they always - without fail, say "I cleared xyz".. They never say what they grossed.

Ironically one week ago a gentlemen who I'v been speaking with(he's trying to get me into a dealership program with Kaeser Blair-promotional products. He personally sent me hi 1099 - 252K. His cost for doing business was/is far less then FE and he has a book or repeat customers. After taxes he said he's still making over 200K still.

I definitely have my feelers out -- sales is where it's at. Now I have to find my calling.

For the record - I'm not saying people lie about their income levels here -- you guys are knocking it out of the park--why would you lie..right?

Problem with FE is there's no bottom line number -- it's applications submitted for the yr -- no client fall off corrections or lead cost balance. It would be very interesting to come across top performers who had this info for all to see(barring personal stuff)..

Agent5's killin it~!

 

[FinalExpenseDojo.com]

Problem with FE is there's no bottom line number -- it's applications submitted for the yr -- no client fall off corrections or lead cost balance. It would be very interesting to come across top performers who had this info for all to see(barring personal stuff)..

Okay... so why are YOU here??

 

[rousemark]

Okay... so why are YOU here??

It seems he just wants to try to prove that there are no agents making upper class income selling FE. For what purpose? Your guess is as good as any.

 

[NSRH]

If more agents gauged success by money in the bank, rather than total sales, it would shift everyone's outlook on this business.

Like Agentguy5 said, ROI is irrelevant (to a degree). The only thing that matters is money in the bank.

For example: some of the price buster companies out there, may pay a little less in commission, but the extra sales make up the haircut in commissions.

There is so much more in this business than, lead cost, contract level, and total business on the books. The bottom line is net income, and no one really talks about that. Mostly because of the sensitivity of it.

 

[VolAgent]

ROI is ONLY relevant if you have a similar investment to compare it against and even then it is not the entire picture.

If one activity has a 10x ROI while one has a 3x ROI, the 10x one would seem to be the better choice. But what if you can only put $5,000 into the 10x activity while you can put $50,000 into the 3x activity? Assuming you can't do both, the $50,000 at 3x ROI is the clear winner for total net profit. You will net $150,000 versus $50,000.

 

[rousemark]

If more agents gauged success by money in the bank, rather than total sales, it would shift everyone's outlook on this business.

Like Agentguy5 said, ROI is irrelevant (to a degree). The only thing that matters is money in the bank.

For example: some of the price buster companies out there, may pay a little less in commission, but the extra sales make up the haircut in commissions.

There is so much more in this business than, lead cost, contract level, and total business on the books. The bottom line is net income, and no one really talks about that. Mostly because of the sensitivity of it.

The other thing Prtzl and others do is count advances as earnings which is a big mistake. Using 100% commission to keep it simple, If I sell and place a $100 per month payment and get a 6 month advance in the amount of $600... But I have not made $600.. I have made $100 and received a loan of $500... When it pays the second month I have made $200 and now have an outstanding loan of $400. If it does not pay again, they take the loan back but I have still made $200.. Advance paybacks or charge backs really have noting to do with earnings because that money has yet to be earned. If I go to the back and take out a $1000 personal loan, my cash flow has increased by the $1000 but my earnings haven't. It is the same with advances.