Average Earnings Per Customer

[LearningGood]

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

This is excellent news - thanks!

Thank you for all the info.

 

[Allen Trent]

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.

the average is massively inflated by sales to high income & business owners, so using an industry average including segments of the market that you wont be working in will skew the numbers.

Merely using Dave Ramsey advice, putting 8-10 times annual income should give you a start to understand. You just need to figure out the average income of who you will be approaching. NOTE---8-10 times income is not nearly enough term life for a young breadwinner with lots of debt & young kids & spouse, but it may be a good number for someone age 50 with college age kids & a working spouse

 

[Allen Trent]

s $984/year so

highly doubt this will be your average term life sale unless you are working with high income or business people. Go online & get some 20 year term quotes for ages 25-40 years old. Not uncommon for people to be able to get $250k 20 year term for $20 per month or a $500k face amount for $30-35

To get to an average of premium of $984, you would need to be averaging $1M+ sales on the younger ages or be working with age 45-60 or high income/net worth clients.

While younger breadwinners do indeed need a lot more coverage, they can be a difficult market to prospect & see during daytime hours & follow through with their appointments, telephone interviews, exams as they are busy with family, kids, career, social life

Adding or focusing on final expense or senior clients can provide some very solid daytime activities & those markets tend to be more reliable to follow through in my experience

 

[goillini52]

highly doubt this will be your average term life sale unless you are working with high income or business people. Go online & get some 20 year term quotes for ages 25-40 years old. Not uncommon for people to be able to get $250k 20 year term for $20 per month or a $500k face amount for $30-35

20 year term seems pointless since AOC says the world will end in 10 years.

 

[Allen Trent]

20 year term seems pointless since AOC says the world will end in 10 years.

So, you are suggesting Annual renewable term or is a full annual rate even too long?

So, Permanent is out for sure as it can last longer than 10 years, right.

What do you liberals suggest to clients then (just assuming you are liberal as you seem to have a crush on AOC..........................lol)

 

[goillini52]

So, you are suggesting Annual renewable term or is a full annual rate even too long?

So, Permanent is out for sure as it can last longer than 10 years, right.

What do you liberals suggest to clients then (just assuming you are liberal as you seem to have a crush on AOC..........................lol)

I'm no Liberal!!! You really know how to insult somebody.

I just like to point out AOC's stupidity. She's the poster child for the Left.

 

[Life Hawk]

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!

FE agent here, but a simple equation works a bit like this. 600 (average yearly policy) X Commission level + trails = commission per sale.

3 major things effect your income:
1. How many policies you sale.
2. How long you keep sold business on the books.
3. What your first year commissions are per sale.

Term coverage means potential conversion down the road. Study that, it is important.

 

[rousemark]

I'm no Liberal!!! You really know how to insult somebody.

I just like to point out AOC's stupidity. She's the poster child for the Left.

Me doth think thou protests too much!!!!

 

[marindependent]

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?

As someone that does both - I can tell with certainty that getting appointed in P&C is night and day compared to getting appointed in Life [I do not know about Health really]

Forget everything you know about the appointment process in the P&C industry - virtually throw it out the window, its worthless.

The life insurance industry, to its credit, actually works as if they WANT more Life insurance agents, as opposed to P&C.

 

[LearningGood]

It's midnight and I'm just reading all of these responses. Thank you everyone for the help. I will read this again in the morning and run some numbers on calculators, etc. so I can formulate an intelligent response. Thanks again.