Average Earnings Per Customer

LearningGood

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Would anyone be willing to offer a little guidance? I recently passed my life/health test and wanted to know what I could earn per customer on average ballpark?

I read some of the old threads in this forum and see that I should take less in commission for the first couple of years in return for mentor / sales training. I will be taking this advice! However, I want to see if there is much of a future once I can get 100% of the commission to build my own business.

1) I have worked a few months in P & C and see that it is tough to get appointed through insurance companies direct. Is this the same in life insurance? or is it easier to get appointed direct without an agency or cluster taking my commissions?

2) How much would I earn (once I get 100% in a few years) per customer in the first year of this customer? I am not as concerned with residual. Would help me understand my revenue "per customer" I am most interested in term insurance rather than permanent insurance. What is average amount of insurance people buy?

3) Bonus question: what is the percentage of customers who buy term insurance vs permanent insurance?

Thank you so much if you can help!
 
Would anyone be willing to offer a little guidance? I recently passed my life/health test and wanted to know what I could earn per customer on average ballpark?

I read some of the old threads in this forum and see that I should take less in commission for the first couple of years in return for mentor / sales training. I will be taking this advice! However, I want to see if there is much of a future once I can get 100% of the commission to build my own business.

1) I have worked a few months in P & C and see that it is tough to get appointed through insurance companies direct. Is this the same in life insurance? or is it easier to get appointed direct without an agency or cluster taking my commissions?

2) How much would I earn (once I get 100% in a few years) per customer in the first year of this customer? I am not as concerned with residual. Would help me understand my revenue "per customer" I am most interested in term insurance rather than permanent insurance. What is average amount of insurance people buy?

3) Bonus question: what is the percentage of customers who buy term insurance vs permanent insurance?

Thank you so much if you can help!
 
Would anyone be willing to offer a little guidance? I recently passed my life/health test and wanted to know what I could earn per customer on average ballpark?

I read some of the old threads in this forum and see that I should take less in commission for the first couple of years in return for mentor / sales training. I will be taking this advice! However, I want to see if there is much of a future once I can get 100% of the commission to build my own business.

1) I have worked a few months in P & C and see that it is tough to get appointed through insurance companies direct. Is this the same in life insurance? or is it easier to get appointed direct without an agency or cluster taking my commissions?

2) How much would I earn (once I get 100% in a few years) per customer in the first year of this customer? I am not as concerned with residual. Would help me understand my revenue "per customer" I am most interested in term insurance rather than permanent insurance. What is average amount of insurance people buy?

3) Bonus question: what is the percentage of customers who buy term insurance vs permanent insurance?

Thank you so much if you can help!
Without much more information, it would be impossible for anyone to answer your questions. The average sale will vary depending upon the market you choose to concentrate on.

It also varies with [product focus. As a general rule, term insurance is not going to create as much revenue as permanent (or at least that is what I have experienced)

It is my understanding it is a lot easier to get direct contracts with Life and Health companies than P&C companies. I am just basing this on what I have been told since I have not held a P&C license since 1976.

In the final expense market, which a good place to start as it is simple to learn (but not easy to do) the sales are almost exclusively permanent. The average premium is generally said to be around $600 per year so you can figure out what that client is worth based on your commission rate.

The family market produces a mixture of term and permanent and the average premium is probably around double the FE market.

Then, you move to the business markets where, depending on which market subset you choose the average premium can be several thousand dollars per sale.
 
Thank you for this information which is quite useful. I am interested in term insurance for the family market specifically. I want to protect families by insuring the breadwinner. If this person dies I want the family to be able to replace the breadwinner's income.

Would you happen to know what families usually buy in term insurance? 100K, 500K, etc. I understand that everyone is different but I'm hoping there is a way of finding an average.

You said this, "the family market produces a mixture of term and permanent and the average premium is probably around double the FE market" so this is good info! So if the average premium in FE is $600 then I could earn $1,200 on one sale...that would be awesome! ohhh but maybe not because that would include permanent insurance...I bet that skewes the commission a lot? Perhaps term commission would be perhaps $800 commission?

I'm sure I will learn this when I interview with companies but was hoping to learn ahead of time so I can think about it. I will start interviewing after the Thanksgiving holiday. When I learn more I will update my post with information for the next newbie.

It's good to hear that there is a possibility of getting appointed directly with a reputable insurance company without having a ton of revenue to start.
 
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I just found an amazing thread. I thought I searched everything. Anyway, for the next newbie this will help :-)

https://insurance-forums.com/commun...tion-if-they-pay-you-a-100-commission.106397/

This is for the next newbie:

So how it works is get a quick estimate for life insurance. I did and the estimate I came up with was $984/year so from what I have seen in the thread is 80-90% commission first year...so for term insurance about $850 would be earned then of course for permanent the commission would be better. Of course, this commission is just using my "example customer" so every customer is different but as a ballpark you could earn say $800/customer on average.

Looks like I chose the right business :-) I will update what I said as I learn more...I am a newbie myself so take my words with a 5 pound bag of salt. There is a good chance I could be wrong.
 
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Thank you for this information which is quite useful. I am interested in term insurance for the family market specifically. I want to protect families by insuring the breadwinner. If this person dies I want the family to be able to replace the breadwinner's income.

Would you happen to know what families usually buy in term insurance? 100K, 500K, etc. I understand that everyone is different but I'm hoping there is a way of finding an average.

You said this, "the family market produces a mixture of term and permanent and the average premium is probably around double the FE market" so this is good info! So if the average premium in FE is $600 then I could earn $1,200 on one sale...that would be awesome! ohhh but maybe not because that would include permanent insurance...I bet that skewes the commission a lot? Perhaps term commission would be perhaps $800 commission?

I'm sure I will learn this when I interview with companies but was hoping to learn ahead of time so I can think about it. I will start interviewing after the Thanksgiving holiday. When I learn more I will update my post with information for the next newbie.

It's good to hear that there is a possibility of getting appointed directly with a reputable insurance company without having a ton of revenue to start.
Depends from the future mortality tables. This business could be under water soon.
 
1) I have worked a few months in P & C and see that it is tough to get appointed through insurance companies direct. Is this the same in life insurance? or is it easier to get appointed direct without an agency or cluster taking my commissions?

No, it's far easier to be appointed direct OR through IMOs to represent companies.

2) How much would I earn (once I get 100% in a few years) per customer in the first year of this customer? I am not as concerned with residual. Would help me understand my revenue "per customer" I am most interested in term insurance rather than permanent insurance. What is average amount of insurance people buy?

Depends on the size of the problem you're solving and your ability to help the customer to find the money to solve them. In short, it's your skills and how you interact with the market, not the product or even the customer. Don't make it your customer's job to find the value in your products.

3) Bonus question: what is the percentage of customers who buy term insurance vs permanent insurance?

Thank you so much if you can help!
100% buy permanent insurance... once they realize that it's the only way to solve their problems.


So, here's the MDRT Top of the Table question: What problems will you help your clients solve on a very profitable basis?

I was just interviewed by Cole Snell for his YouTube channel "Life180". You might get a couple of nuggets in this. :)
Why Most People Fail at Financial Planning! Not What You Think! - YouTube
 
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