The Dirty Little Secret of Final Expense Sales is the Massive Expense to Write Big #'s

jlata1

Super Genius
100+ Post Club
192
Let's say several agents on here who say they do 18-25k a month.Lets look at several metrics involved to achieve those type results. avg premium of $50 a month or $600 a yr means to do $21k a month thats 35 policies a month. at 25% close ratio one would need to see 100 people a month. to see 100 people one would need 150 leads a month. Thats about $3500 in lead costs. most people have an appointment setter so theres another $1300 for appointments.Many agents who write that type business drive 1000 miles a wk easy. at an avg of 25 mpg thats another $150 a week.Expenses alone are about $5400 a month. now remember with $21k of business if you have 80% persistency thats about $16,500 . $16,500 - $5400 = $11k net. $11k -37% taxes which includes = $6990 net.ow one could make 2to 3k more but you get the point. To acquire business in final expense costs huge money and long hours and tons of driving versus other types of insurance.Don't get me wrong theres also many positives like selling to uneducated people that are super easy to sell, one gets paid very quickly and underwriting is very easy. but guys saying they're making 200-300k a yr have huge expenses.Agents are taking all the risk as imo's sit back and make 20-30% for possibly providing a little training. The avg agent does very little business so thats why producers doing 50k or more need to squeeze the crap out of there imo's are walk as theres tons of imo's that will pay them better for there business.
 
Let's say several agents on here who say they do 18-25k a month.Lets look at several metrics involved to achieve those type results. avg premium of $50 a month or $600 a yr means to do $21k a month thats 35 policies a month. at 25% close ratio one would need to see 100 people a month. to see 100 people one would need 150 leads a month. Thats about $3500 in lead costs. most people have an appointment setter so theres another $1300 for appointments.Many agents who write that type business drive 1000 miles a wk easy. at an avg of 25 mpg thats another $150 a week.Expenses alone are about $5400 a month. now remember with $21k of business if you have 80% persistency thats about $16,500 . $16,500 - $5400 = $11k net. $11k -37% taxes which includes = $6990 net.ow one could make 2to 3k more but you get the point. To acquire business in final expense costs huge money and long hours and tons of driving versus other types of insurance.Don't get me wrong theres also many positives like selling to uneducated people that are super easy to sell, one gets paid very quickly and underwriting is very easy. but guys saying they're making 200-300k a yr have huge expenses.Agents are taking all the risk as imo's sit back and make 20-30% for possibly providing a little training. The avg agent does very little business so thats why producers doing 50k or more need to squeeze the crap out of there imo's are walk as theres tons of imo's that will pay them better for there business.

How much are you offering? Do you have something else we should be selling? Give us the gold.
 
Let's say several agents on here who say they do 18-25k a month.Lets look at several metrics involved to achieve those type results. avg premium of $50 a month or $600 a yr means to do $21k a month thats 35 policies a month. at 25% close ratio one would need to see 100 people a month. to see 100 people one would need 150 leads a month. Thats about $3500 in lead costs. most people have an appointment setter so theres another $1300 for appointments.Many agents who write that type business drive 1000 miles a wk easy. at an avg of 25 mpg thats another $150 a week.Expenses alone are about $5400 a month. now remember with $21k of business if you have 80% persistency thats about $16,500 . $16,500 - $5400 = $11k net. $11k -37% taxes which includes = $6990 net.ow one could make 2to 3k more but you get the point. To acquire business in final expense costs huge money and long hours and tons of driving versus other types of insurance.Don't get me wrong theres also many positives like selling to uneducated people that are super easy to sell, one gets paid very quickly and underwriting is very easy. but guys saying they're making 200-300k a yr have huge expenses.Agents are taking all the risk as imo's sit back and make 20-30% for possibly providing a little training. The avg agent does very little business so thats why producers doing 50k or more need to squeeze the crap out of there imo's are walk as theres tons of imo's that will pay them better for there business.

Those are some seriously delusional numbers. I write between 15k and 20k a month. I run about 10 to 15 leads a week. I see on average 7 or 8 people a week. My lead cost is only about 1200 a month.
 
"Agents are taking all the risk as imo's sit back and make 20-30% for possibly providing a little training."
*******************
Seems to me, the IMO's are the ones taking most of the risk.
 
Last edited:
Let's say several agents on here who say they do 18-25k a month.Lets look at several metrics involved to achieve those type results. avg premium of $50 a month or $600 a yr means to do $21k a month thats 35 policies a month. at 25% close ratio one would need to see 100 people a month. to see 100 people one would need 150 leads a month. Thats about $3500 in lead costs. most people have an appointment setter so theres another $1300 for appointments.Many agents who write that type business drive 1000 miles a wk easy. at an avg of 25 mpg thats another $150 a week.Expenses alone are about $5400 a month. now remember with $21k of business if you have 80% persistency thats about $16,500 . $16,500 - $5400 = $11k net. $11k -37% taxes which includes = $6990 net.ow one could make 2to 3k more but you get the point. To acquire business in final expense costs huge money and long hours and tons of driving versus other types of insurance.Don't get me wrong theres also many positives like selling to uneducated people that are super easy to sell, one gets paid very quickly and underwriting is very easy. but guys saying they're making 200-300k a yr have huge expenses.Agents are taking all the risk as imo's sit back and make 20-30% for possibly providing a little training. The avg agent does very little business so thats why producers doing 50k or more need to squeeze the crap out of there imo's are walk as theres tons of imo's that will pay them better for there business.

Lots of ASSumptions in this post.

Average premium for a top producer is much closer to $65-75/month. I would think.

Your saying you only close 25% of your sits...that's nuts. I close to 60% of my sits...presentation, presentation, presentation.

My avg AP is $850ish. I write 20-25 apps a month. I need 40 sits to hit my goal...I need 80-90 leads and $15/appt for my setter. I pay let's say $20/lead...so at most I'm at $2,400-$3k per month.

Now gas...why count that against yourself...you're hopefully writing off mileage.

SOOOO, to my point....I close at the ratio I do because of 2 main points;
1. I understand selling and have done it for years, in many arenas and markets. Setup selling systems for small to medium sized businesses. Inalso innovate and try to come up with ways to make my biz better...'in house' leads for starters.
2. MY IMO. WITHOUT TRAVIS TUBBS AND SCOTT BURKE, I would not be nearly as successful as I am in this business. They have 2 completely different styles, but I am using a combination of both. It works for me, probably wouldn't for a lot of folks.

So to say you need to squeeze your IMO is a bit asinine, maybe you need one that can bring value to your biz...just a thought.
 
"How much are you offering? Do you have something else we should be selling? Give us the gold."
****************
Probably someone touting the new flavor of the month. My bet is VFG (Virtual Financial Group). They seem to be sprouting up everywhere.
 
"How much are you offering? Do you have something else we should be selling? Give us the gold."
****************
Probably someone touting the new flavor of the month. My bet is VFG (Virtual Financial Group). They seem to be sprouting up everywhere.

Keep in mind...This is the same guy who started the "what does an IMO make" thread. Sounds like a jaded agent, seeking revenge for something.
 
Ah, okay. You pay attention much more closely than I do. His "Dirty Little Secret" jargon screams of someone who is looking for attention.
 
Ah, okay. You pay attention much more closely than I do. His "Dirty Little Secret" jargon screams of someone who is looking for attention.

I thought his name looked familiar, so I did a search of threads started by user and it popped up.

But, yes, I agree..definitely attention seeking
 
Gooner you're an exception and not what the standard is. Let's see what your persistency is at the 13 month mark as if I'm not mistaken you said you write a lot of direct express. As for Newby he's making 135-150% on his own business .im not saying an IMO shouldn't make money but a 150k-200k ap producer needs to be at a rate were the IMO makes about a 10% override max.You paid your dues already as your IMO has made big money off you. Should they suck on you big forever? Making 15% above street contract for a 200k producer is another 30k a yr.
 
Back
Top