Michael Allevato
Expert
What can a new agent that stays in the biz, expect the first year (income) and how will your renewels effect it the 2nd year, 3rd etc, etc, Thanks Mike
1st Yr Income?
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- 1,802
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Michael Allevato
Expert
MoO, life health
- 1,459
That's all on you, Dave mentioned the Granum in another post, he's made this business into a science. I suggest picking up the book on his system through National Underwriter (google it) if you're serious about this business. His system is the One Card System (OCS) and the book is called "Building a Financial Services Clientele".
I still go back and read it all the time, I was looking at it last night, but here are his numbers. You first year income is essentially based on your average first year commission (FYC) and the number of fact finders you collect per month. That's all on you and your income was fluctuate rapidly depending on how successful you are at it.
300 Fact Finders the First Year (6 new per week)
$300 FYC Avg = $27,000 first year income
$500 FYC Avg = $45,000
$700 FYC Avg = $63,000
150 Fact Finder the First Year (3 new per week)
$300 FYC Avg = $13,500 first year income
$500 FYC Avg = $22,500
$700 FYC Avg = $31,500
Both groups will make good money in 5 year time frame if they keep averaging the same number of fact finders per year with repeat sales, keeping in touch with prospects that weren't ready on the first go around, ect.
Granum's numbers:
300 Fact Finders per Year, Subsequent Income in Yrs 2 -10
$300 FYC Avg = $41,400 Yr2 / $47,300 Yr5 / $69,500 Yr10
$500 FYC Avg = $69,000 Yr2 / $78,800 Yr5 / $116,000 Yr10
$700 FYC Ave = $96,600 Yr2 / $110,000 Yr5/ $162,000 Yr10
150 Fact Finders per Year, Subsequent Income in Yrs 2-10
$300 FYC = $22,800 Yr2 / $38,100 Yr5 / $60,600 Yr10
$500 FYC = $38,000 Yr2 / $63,500 Yr5 / $101,000 Yr10
$700 FYC = $53,200 Yr2 / $88,900 Yr5 / $141,000 Yr10
I wouldn't thinky our FYC would average less than $500, especially if you focus on joint work. Your ability to consistently get in front of people will determine how much you make. You will have a tough time beating the Granum numbers if you are focusing on the life insurance business. Even my health numbers were along the same closing ratio lines as well for non-call in's. These numbers don't take into account renewal commissions, which are typically higher with health (renewals and rewrites) and lower with life (10% common for WL, 0% to 2% common for term).
Hope that helps.
I still go back and read it all the time, I was looking at it last night, but here are his numbers. You first year income is essentially based on your average first year commission (FYC) and the number of fact finders you collect per month. That's all on you and your income was fluctuate rapidly depending on how successful you are at it.
300 Fact Finders the First Year (6 new per week)
$300 FYC Avg = $27,000 first year income
$500 FYC Avg = $45,000
$700 FYC Avg = $63,000
150 Fact Finder the First Year (3 new per week)
$300 FYC Avg = $13,500 first year income
$500 FYC Avg = $22,500
$700 FYC Avg = $31,500
Both groups will make good money in 5 year time frame if they keep averaging the same number of fact finders per year with repeat sales, keeping in touch with prospects that weren't ready on the first go around, ect.
Granum's numbers:
300 Fact Finders per Year, Subsequent Income in Yrs 2 -10
$300 FYC Avg = $41,400 Yr2 / $47,300 Yr5 / $69,500 Yr10
$500 FYC Avg = $69,000 Yr2 / $78,800 Yr5 / $116,000 Yr10
$700 FYC Ave = $96,600 Yr2 / $110,000 Yr5/ $162,000 Yr10
150 Fact Finders per Year, Subsequent Income in Yrs 2-10
$300 FYC = $22,800 Yr2 / $38,100 Yr5 / $60,600 Yr10
$500 FYC = $38,000 Yr2 / $63,500 Yr5 / $101,000 Yr10
$700 FYC = $53,200 Yr2 / $88,900 Yr5 / $141,000 Yr10
I wouldn't thinky our FYC would average less than $500, especially if you focus on joint work. Your ability to consistently get in front of people will determine how much you make. You will have a tough time beating the Granum numbers if you are focusing on the life insurance business. Even my health numbers were along the same closing ratio lines as well for non-call in's. These numbers don't take into account renewal commissions, which are typically higher with health (renewals and rewrites) and lower with life (10% common for WL, 0% to 2% common for term).
Hope that helps.
How many apps do you plan on writing a week?
Avg Life agent 1st year is under $50,000.
But it really all depends on the agent.
- 7,066
Do you "give good phone", how "warm and fuzzy" do you come across during an appointment and are you an expert in the product line you are selling?
If you can answer yes to all three you can make between $50,000 and maybe as high as $75,000 first year selling Med Supps. Most probably first year will be closer to $50,000.
Med Supp companies pay first year commission for the first six years. This means, if you generate $50,000 in commission income the first year and have no cancellations that you will carry $50,000 of renewal commission into the second through sixth year.
No, you will not carry that amount forward for six years, there will be lapses. Seniors do not live for ever. But if an agent will do their due diligence there is no reason for not carrying at least 85% to 90% into future years. I have Med Supp clients who have been with me since 1993.
As a new agent improves his/her skills, generating $75,000 per year in commission income is not unrealistic. That is only one application per day, five days a week, fifty-two weeks a year or 260 apps per year.
- 1,459
All important, but even more important, how many people are you willing to contact each day? This will make the greatest difference in what you earn that first year.
- 7,066
So true!
Selling insurance is work. The work part is prospecting, he fun part is writing applications. Ya can't have one without the other.
- 7,066
Jacqueline and I are going to do just that. We are leaving in the morning and not coming back until Monday evening.I meant only in relationship to prospecting
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