- 1,641
Sure, as volume increases so will drops. Now where is the breakeven point between high volume/higher drops and high volume fewer drops. This is the point of diminishing returns.
A little math help....
20 x .10 = 2
50 x .04 = 2
Sure, as volume increases so will drops. Now where is the breakeven point between high volume/higher drops and high volume fewer drops. This is the point of diminishing returns.
A little math help....
20 x .10 = 2
50 x .04 = 2
- 14,808
I wrote $700,000+ - issued last year and lost 4 cases. If my average premium was $3,500 that's 200 cases which means I lost 2%.
- Thread starter
- #13
G
Guest
Guest
Is it possible to have higher output, fewer drop offs?
Maybe it doesn't even matter, I'm reading a really good book and it has a very fitting quote.
Some will
Some won't
Who cares
Who's next
I'm not sure why you added the math help, did I miss something? This time or before? Help!
- Thread starter
- #14
G
Guest
Guest
Geez, you took a major pay cut to run the association, that's someone who really wants to help others.
- Thread starter
- #15
G
Guest
Guest
Well let's not forget the 50 something thousand dollars on your renewals if they didn't switch policies upon renewal.
- 14,808
Well, with renewals and re-writes my income last year closed out starting with a "2" - to which I had never made that kind of money before in my life.
With renewals and re-writes alone I'll do just fine....hence how I can afford to start the association.
What really needs to be discussed is...where's everyone block of business?
At $500,000 say 20% drop off at the 1st renewal. Now go out 4 years - 2 mill in business - ditch 20% leaving 1.6 mill.
1.6 mill X 5% = $80,000 and that's not including a singe re-write for a 1st year commish. I see all these agents - all in the biz much longer then me - all seemingly looking the next deal.
Where the block?
With renewals and re-writes alone I'll do just fine....hence how I can afford to start the association.
What really needs to be discussed is...where's everyone block of business?
At $500,000 say 20% drop off at the 1st renewal. Now go out 4 years - 2 mill in business - ditch 20% leaving 1.6 mill.
1.6 mill X 5% = $80,000 and that's not including a singe re-write for a 1st year commish. I see all these agents - all in the biz much longer then me - all seemingly looking the next deal.
Where the block?
- 14,808
My main income source is re-writes from biz I wrote in '04 and some '05. They are all going into year 4 (or 3) and not sucking up any more increases.
So I'm either doing a supp app and taking the service fee - which is bullshit - or I'm writing 'em with another carrier and taking the 1st year commish - and they lower their rate.
Uninsurable now? I move 'em into MHIP - cut their rate. What none of them are willing to do deal with yet anther increase with the same carrier.
Only real issue with re-writes is the new 2 year review period - which is discussed.
- 1,641
2 is 10% of 20.
If you write 50 and lose 2, that's 4%.
As for diminshing returns, you're right. Most won't do the volume to have that problem.
- Thread starter
- #19
G
Guest
Guest
Excellent point, my problem was that I walked away from two books by ending up at one totally corrupt agency and another totally broke after 6 months agency and lost 100's, yes 100's of clients.
Sure I ended up with some but nowhere near what I would have had.
Lost thousands upon thousands of dollars.
My first year writing Golden Rule I had just about 300 policies issued.
After I left the job, they raped those 300 accounts, twisted and churned to prevent me from getting/keeping them.
Then they were terminated by GR and anyone who worked there is black listed, permanently. To a 'call center' that's a big loss.
Recently they lost 70% of their Assurant biz, got dropped as an MGA.
Sweet after all.
- 14,808
Do you currently write business?
