Is This a Realistic Expectation?

[5starfinancialhealth]

Ive been putting alot of numbers together lately and here is what I have per deal, is this realistic?

Assurant health avg premium of $300 with 12 month advance @ 20% a deal for a total of $720 commission advanced per deal

Life insurance with a 12 month advance at 100% and an average premium of $50 for 600 per life.

Supposing I close 15 deals a week( Have done this consistently for a very long time) with a 50% life add on rate im coming up with

10,800 in health
4,800 in life

I feel as if that income on a weekly basis is just way to high(charge backs are taken into account of course) but on the same token I usually close about that amount of deals weekly at the brokerage I am employed with and only making about $1,500 weekly.

Did I miss something?

 

[GreenSky]

Did I miss something?

Yeah, how are you going to get that many leads?

Rick

 

[DHK]

Underwriting will force some of your deals to not be approved.

 

[WinoBlues]

Where are the deals coming from?

Ive been putting alot of numbers together lately and here is what I have per deal, is this realistic?

Assurant health avg premium of $300 with 12 month advance @ 20% a deal for a total of $720 commission advanced per deal

Life insurance with a 12 month advance at 100% and an average premium of $50 for 600 per life.

Supposing I close 15 deals a week( Have done this consistently for a very long time) with a 50% life add on rate im coming up with

10,800 in health
4,800 in life

I feel as if that income on a weekly basis is just way to high(charge backs are taken into account of course) but on the same token I usually close about that amount of deals weekly at the brokerage I am employed with and only making about $1,500 weekly.

Did I miss something?

 

[xrac]

Where do you get leads from now?

 

[5starfinancialhealth]

Im going to be using web leads, Ive always used web leads and have always closed @ about 1 out of 15. I am a really good closer in my opinion though, I cant expect agents employed by me to be closing at the same rate.

Im only really looking at 50 leads a day per agent so thats like a 2k weekly lead cost appox. per agent.

 

[WinoBlues]

Im going to be using web leads, Ive always used web leads and have always closed @ about 1 out of 15. I am a really good closer in my opinion though, I cant expect agents employed by me to be closing at the same rate.

Im only really looking at 50 leads a day per agent so thats like a 2k weekly lead cost appox. per agent.

You are going from $1,500 to $15,000+ weekly and from captive/employee to recruiting agency owner?

 

[5starfinancialhealth]

You are going from $1,500 to $15,000+ weekly and from captive/employee to recruiting agency owner?

Thats the idea. The numbers add up as far as commissions. Ive got ALOT of experience, the only reason I havnt done it sooner is because I didnt know how realistic and in reach it was for me until I found this forum

 

[HomeService]

Taking advances on health insurance is not a great plan. People get a job that offers benefits and boom, they drop it. Chargebacks are a bear.

 

[djs]

Advanced or as earned, after the first year, works out about the same. As earned is better if you can do it, but you can take advances and just pay yourself as earned.

Problem is 2 things.....

That pesky 20%. Good luck with that. A couple of years ago, sure. A couple of years from now? I would plan on 10%, and hope you can keep that level.

15 cases a week through underwriting? Maybe for a while. Actually, I think you are planning on 22. You'll need a person to chase these for you and make sure they get done. Some won't make it. Good news is, under the current guidelines, underwriting will be less of an issue. Problem is back to the 20% not staying around.

Third problem you have is going from application to actual closed business to keeping it on the books. Writing an app is a small part of the big picture.

Its all possible, but you are painting a pretty rosy picture. If you take the glasses off, you'll find the scenery still nice, but, that rose color goes away a bit.

Dan