- 3,994
I don’t understand allocating certain money to chargebacks. Just run a good budget, and consistently work and you won’t even notice it if you’re writing half decent business.
Looking to change from FE to something else...
- Thread starter Ksutton
- Start date
What I meant was so many people spend every cent they make then when they have a week or 2 of chargeback hell and make nothing due to chargebacks they get desperate . One fast pony was a perfect example . He was doing $20-$25 k a month and busted out of the business . Unchecked expenses and crazy lead costs did him in .I’m on as earned on 90% of my contracts .
- 3,994
Spend less than you make I preach that over and over again to people that are coming into the business.
This really comes down to the agent(s) though, right?
I know a lot of people killing it other types of life sales.
Leads are all that really matter in the end. If you can generate/buy/network enough leads, you'll be successful in pretty much any sales job.
That's a life lesson, not a life insurance one...
BarryNY
Guru
- 272
I think a very simple rule of thumb to manage cash flow is to just assume that the 75% advance is all you'll ever see...then keep selling and the inevitable chargebacks will blend into those deals that do make it thru months 10-12...
$75 prem = $900 AP @ 115%= $1035 @ 75% = $776 advance.
Buy 30 inbound live TV leads for the week @ $53 and close 23% = $227 CPA/deal cost/marketing spent/etc. needed to close each deal - total 7 deals..
$776 - $227 = $549 NET cash flow/deal after all direct costs. That's $3,843 for the week NET. Call it $3,500...that's after ALL marketing. All from the comfort of your own cozy home.
If you want to talk a few more hours and take 40 calls...you'll see another $1,200 for the week. $3,500 - $5,000 a week is doable. That's 30-40 hours of only talking to people who want to talk to you. It's totally up to your skills on the phone. If you're working for Assurance...based on exactly this you'll get paid 7 x $165 = $1,155 versus the $3,500. Really do you believe in you?
Call me. 631-664-7883. No recruiting. No overrides.
- Thread starter
- #17
Nah - the chargebacks were annoying but I wasn’t hurting with money. In fact, all my taxes have been and are paid and I bought a house.
- Thread starter
- #18
115% contract? Seems low
BarryNY
Guru
- 272
Hi. My degree is Accounting. So, although I've held positions as a Marketing VP and an Advertising exec as well as running a sales territory for Lehman Bros and UBS in their mortgage backed securities business...I'll always be conservative in my financial projections...can't take the accounting out of the guy...
And, since I don't do recruiting and I don't know what contracts people can negotiate for themselves - I assume "street" level contracts for carriers like AETNA, Prosperity and RNA - they could be in the 115% range for showing potential earnings projections.
Lots of successful indy agents are 125% and above...good for them...and anyone buying the best leads that money can buy - you should be at 125% with your IMO...
That additional 10% brings in another $67.50/deal cash flow from the advance...
