ValeRosso
Guru
- 636
Are you talking strictly final expense sales?
No B.S yearly income
- Thread starter Espn0830
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- #12
Yes just final expense. But if you have other experience feel free to share. Everyone is all ears and eager to learn what others experience is.
I think members have been reluctant to answer your question directly because, everyone's ROI is different. Some agents do not require an ROI as high as others, and may fear criticism from those who think otherwise.
If your profit margin is acceptable to you, based on your time and effort, you're winning regardless of what other agents are doing. Compare your results to your own goals.
If your profit margin is acceptable to you, based on your time and effort, you're winning regardless of what other agents are doing. Compare your results to your own goals.
tikibarrister
Guru
- 501
There's a strong American cultural taboo about discussing how much you make. In some countries, comparing salaries is quite normal but not here.
Perhaps some of the big IMOs (@Newby @Rearden @JRoot) could share what their agents make on average...or median...after the initial washout. But you'd have to make an estimate from that of what business costs (leads, car, etc.) are.
Perhaps some of the big IMOs (@Newby @Rearden @JRoot) could share what their agents make on average...or median...after the initial washout. But you'd have to make an estimate from that of what business costs (leads, car, etc.) are.
- 17,062
I have no idea what anyone makes but me. I have a lot of agents selling $200 plus and a few at $300 plus. But for me to know what their bottom line is after all is said and done I would have to spend hours calculating persistency month by month, lead cost, estimate their fuel costs, etc. I see them buying very nice homes, and toys. Several have stay at home wives and a house load of kids. Living the great life. That's as much as I need to know.
If they are happy, I'm happy.
I can tell you from my own experience what I did but I followed a very different path than most.
I started the biz selling Pre-need insurance policies for a local funeral home. I didn't know it at the time but I was on the worst commission plan I've ever seen. 4% of the face amount of the policy. But if I kept the face up to higher numbers I could get up to a max of 8%. (I later made up to 30% on these same policies).
That 1st year I made $78,000 on that crappy commission deal. I worked my azz off for that but it was all new to me and I loved it.
By the 3rd year I made just over $150,000. I was working smarter and on a better commission level. I was the #2 Preneed agent in the country that year with Dignity which was the largest owner of funeral homes nationwide. I would have made more money as an independent FE agent at that point but I didn't know that yet.
I made a little more every year in the biz than my previous years. And it was just through getting better and commission increases. There were zero renewals in pre-need sales.
Several years in I added Med Sups and FE. Just because my prospects kept asking me about them. When I learned about renewals, I thought that I had died and gone to heaven and was really focused on building up my renewal base. At this point I was selling around $250,000 in annual premium and I have way lower lead cost and then most of us do because I was still selling for funeral homes to their customer base, but I also did my own direct mail. I bought a huge laser printer and a paper folder and turned my office into a mail house but I only mailed about 500 to 1,000 pieces per month And my lead cost for the year never went over about $20,000.
Around my 12th year I talked my wife into joining me in the biz which was not easy because she had a high paying job as an accountant. But luckily the new company she had started working for she really hated so I snatched her up. I wanted to do more Medicare but without crashing my life biz which is what was happening with me doing everything.
I brought her on and contracted with the local hospital to be their Medicare agency. I bought a building between the two hospital locations and branded it with the hospital's name. I did informational seminars in their auditorium twice a month and my wife wrote the Medicare biz that I stirred up from that. I also sent her all the Medicare biz I stirred up from being out in the field running FE and pre-need appointments every day. At that point our annual income after all expenses was over $450,000 as a two person husband/wife agency. We clicked along that way for several years.
About this time is when I first started the FexContracting agency. I had no big plan but had one of the only distribution contracts for 5-Star Life which was a red hot product at that time. They required millions of dollars in production for me to keep that contract or I never would have recruited anyone. I liked my business as it was.
FexContracting grew very rapidly and right after my 2nd year what I thought was going to be a side gig to my main agency blew past my main agency. I had to get out of the field entirely and run the agency. And that's what I've been doing for the last 10 years. My wife still maintains that Medicare base we built up which is 80% supplements and 20% Advantage. It still pays her a very nice income and she has a steady stream of referrals and renewals and hasn't really bought any leads in years. We ended the contract with the hospital years ago. That lasted for 7-years.
So how's that for transparency?
I can tell you I made roughly $45k with State Farm. First year in the business, my gross was almost four times that.
Like Newby said, I've made more money each year I've been in the business. My net is now much higher than what my gross was that first year. All as a producer; no downline.
But a new agent can expect to make very little or a lot. All depends on the situation.
Like Newby said, I've made more money each year I've been in the business. My net is now much higher than what my gross was that first year. All as a producer; no downline.
But a new agent can expect to make very little or a lot. All depends on the situation.
- 5,496
I'm an independent p&c commercial broker, so take this for what it's worth.
My first few years, it was hard to believe how much I was working and how hard and how many hours and how little I was making.
12 years in, it's hard to believe how little I am working and how much I am making.
My business is more about renewals, with FE you mostly gotta keep grinding.
My first few years, it was hard to believe how much I was working and how hard and how many hours and how little I was making.
12 years in, it's hard to believe how little I am working and how much I am making.
My business is more about renewals, with FE you mostly gotta keep grinding.
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You don't necessarily have to keep grinding with FE.
FE makes more on a sale upfront, so you can make a lot in a short period of time. Long-term, the renewals aren't as good. But guys who's have been doing FE 12 years can work a little and still make a lot. Several producers work 1 day a week and that's it; I guess that's a grind for some?
There's also the ability to recruit and build with FE. Lots of money in that. But that's a different thing. I'm talking as a producer.
- 19,578
The renewals level out at 10 years. That's the max for almost all companies. I'm in my 15th year of FE focused sales. My renewals have been pretty level for the last 5 years.
Most all of the top producers I know are in the field 2 days a week. Two and a half tops.
I know some that grind it out all week but they won't be long timers in this.
I stand corrected. Let the p&c folks keep thier renewals. Too much service work for me anyway
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