Be Prepared

[SouthernComfort]

Starting out you better figure at minimum the following. Each week 4-5 applications with a minimum of 12 presentations. $50 average per application. $495 advance on a (110%) contract, 420.75 advance on an (85%) contract, $396 advance on an (80%) contract, and 247.50 advance on a (50%) contract.

15 leads wk avg $25 per lead = $375
1.5 out of 5 (lapse) = 495x5= 2475-742.50= 1732.50-375(leads)= 1357.50 total on a (110%) contract

420.75x5= 2103.75-631.13(lapse)= 1472.62-375(leads)= 1097.62 total on an (85%) contract

396x5= 1982-594(lapse)= 1388-375(leads)= 1013 total on an (80%) contract

247.50x5= 1237.50-371.25(lapse)= 866.25 total, if on a 50% contract you better be getting free leads.

My advice get with an IMO that provides leads at a set costs unless you are a prospecting superstar. On top of that join some database and get addresses for your day so you can knock on doors in areas where you are working.

So far this has been a mighty learning experience.

 

[Todd King]

If you're getting a 30% lapse ratio, you're doing something wrong!

 

[SouthernComfort]

The good news Todd is none of my Monumental has lapsed . I am averaging 2 out 10 apps lapsing but I would rather have more in my account to handle chargebacks.

 

[jacobtn]

not everyone does direct mail. many cold call or door knock off of lists. An IMO with set lead costs are going to take a pretty nice chunk of your commissions, so your leads are going to cost you quite a bit.

Starting out you better figure at minimum the following. Each week 4-5 applications with a minimum of 12 presentations. $50 average per application. $495 advance on a (110%) contract, 420.75 advance on an (85%) contract, $396 advance on an (80%) contract, and 247.50 advance on a (50%) contract.

15 leads wk avg $25 per lead = $375
1.5 out of 5 (lapse) = 495x5= 2475-742.50= 1732.50-375(leads)= 1357.50 total on a (110%) contract

420.75x5= 2103.75-631.13(lapse)= 1472.62-375(leads)= 1097.62 total on an (85%) contract

396x5= 1982-594(lapse)= 1388-375(leads)= 1013 total on an (80%) contract

247.50x5= 1237.50-371.25(lapse)= 866.25 total, if on a 50% contract you better be getting free leads.

My advice get with an IMO that provides leads at a set costs unless you are a prospecting superstar. On top of that join some database and get addresses for your day so you can knock on doors in areas where you are working.

So far this has been a mighty learning experience.

 

[0b1kanobee]

Thanks SouthernComfort!

 

[TDFnCali]

Starting out you better figure at minimum the following. Each week 4-5 applications with a minimum of 12 presentations. $50 average per application. $495 advance on a (110%) contract, 420.75 advance on an (85%) contract, $396 advance on an (80%) contract, and 247.50 advance on a (50%) contract.

15 leads wk avg $25 per lead = $375
1.5 out of 5 (lapse) = 495x5= 2475-742.50= 1732.50-375(leads)= 1357.50 total on a (110%) contract

420.75x5= 2103.75-631.13(lapse)= 1472.62-375(leads)= 1097.62 total on an (85%) contract

396x5= 1982-594(lapse)= 1388-375(leads)= 1013 total on an (80%) contract

247.50x5= 1237.50-371.25(lapse)= 866.25 total, if on a 50% contract you better be getting free leads.

My advice get with an IMO that provides leads at a set costs unless you are a prospecting superstar. On top of that join some database and get addresses for your day so you can knock on doors in areas where you are working.

So far this has been a mighty learning experience.

30% lapse rate? Ouch! Mines stays about 10-15%

 

[SouthernComfort]

yall have to realize i have a small sample size and always plan for the worst. The last two were both RNA where I requested the 3rd as withdrawal date. Neither application was processed quick enough for a withdrawal on the 3rd and of course both were NSF returned.

But again expect excellence, plan for disaster.

 

[SportsNut]

yall have to realize i have a small sample size

I've got the same problem... 'small sample size'. You've just got to keep your 'sample' movin as fast as you can and it makes it L(.)(.)K BIGGER. Learned that long ago from an old girlfriend.
This will also help your lapse rate too. :bump:

 

[jdeasy]

yall have to realize i have a small sample size and always plan for the worst. The last two were both RNA where I requested the 3rd as withdrawal date. Neither application was processed quick enough for a withdrawal on the 3rd and of course both were NSF returned.

But again expect excellence, plan for disaster.

With RNA if you ask for a certain draft date and it's not processed by that date then they go to the next month for the draft.

For example, if I wrote on today for a 14th of the month draft date and it doesn't get issued until the 16th, they won't take the first draft until the 14th of next month.

Unless the agent contacts them and ask for the draft to be processed now. You need to be aware of this stuff if writing RNA. The other thing about RNA is that they almost never draft on the date requested. It's usually 2 or 3 days later. That is a huge problem with them and one they say they are working to fix. Something else to be aware of when writing RNA.