The Math Doesn't Add Up.

[VaDwayne]

I based my med. supp. career on the fact that I was told that you could double you clients in two years, triple in three, quadruple in 4 and so on. After reading a thread that stated that even the best agents don't sell 6-8 a week, I have been thinking about the numbers I have been counting on.

If you only sold 12 per month for 15 years:

12X 15 years= 1800 clients (correction 2160)
1800X 80% retention = 1440 clients (correction 1728)
1728 divided by 6 years(replacement with another company) = 240(correction 288)med supps replaced per year

288 divided by 52 = 5.5 med supps per week, and this does not include new referrals, new clients, wtc.

If you only average 15 per month for 15 years that number goes up to 7 per week, every week, without new clients. And that is only a 80% retention rate.

If you are the super agent,and we have some of those, and you average 20 per month, less than 5 per week, that is 9.23 sales per week,every week, without any new sales.



I must be missing something here. What am I missing? Is my math wrong(quite possible)? Is the truth being stretched to impress? Or is this just one more thing that I have noticed in my short time that just wasn't true and being told to new agents.

 

[theinsuranceman]

Sounds like most Med Supp sales is just the process of rolling business from one carrier to another, never adding brand new clients. Or else someone misinformed you on the numbers. Or there are a lot of lazy agents. I don't sell med-supps, so my opinion may be off base.

 

[Tampa Teddy]

I based my med. supp. career on the fact that I was told that you could double you clients in two years, triple in three, quadruple in 4 and so on. After reading a thread that stated that even the best agents don't sell 6-8 a week, I have been thinking about the numbers I have been counting on.

If you only sold 12 per month for 15 years:

12X 15 years= 1800 clients
1800X 80% retention = 1440 clients
1440 divided by 6 years(replacement with another company) = 240 med supps replaced per year

240 divided by 52 = 4.6 med supps per week, and this does not include new referrals, new clients, wtc.

If you only average 15 per month for 15 years that number goes up to 7 per week, every week, without new clients. And that is only a 80% retention rate.

If you are the super agent,and we have some of those, and you average 20 per month, less than 5 per week, that is 9.23 sales per week,every week, without any new sales.



I must be missing something here. What am I missing? Is my math wrong(quite possible)? Is the truth being stretched to impress? Or is this just one more thing that I have noticed in my short time that just wasn't true and being told to new agents.

I'm not sure where you got your numbers. You may want to start all over again since 12 per month for 15 years = 2160 NOT 1800.

 

[somarco]

Gosh, sounds like it is time to change careers again. Perhaps gutters & siding would be a good choice.

 

[Crabcake Johnny]

I'm not sure about that math - my parents have had the same supp since age 65 and they're 78.

 

[VaDwayne]

I'm not sure where you got your numbers. You may want to start all over again since 12 per month for 15 years = 2160 NOT 1800.

Good point, I'm not sure what I did. 2160 makes it 5.54 per week, just working your current clients with no referrals or new clients. I was told that you will replace the majority of clients within the 6 years. I just know that hearing that agents with years of experience are not selling 6-8 and my goal was to be at 10 per week in a few years was a tad disconcerning. I'll still keep it as my goal though.

 

[HarryRenard]

I based my med. supp. career on the fact that I was told that you could double you clients in two years, triple in three, quadruple in 4 and so on. After reading a thread that stated that even the best agents don't sell 6-8 a week, I have been thinking about the numbers I have been counting on.

If you only sold 12 per month for 15 years:

12X 15 years= 1800 clients (correction 2160)
1800X 80% retention = 1440 clients (correction 1728)
1728 divided by 6 years(replacement with another company) = 240(correction 288)med supps replaced per year

288 divided by 52 = 5.5 med supps per week, and this does not include new referrals, new clients, wtc.

If you only average 15 per month for 15 years that number goes up to 7 per week, every week, without new clients. And that is only a 80% retention rate.

If you are the super agent,and we have some of those, and you average 20 per month, less than 5 per week, that is 9.23 sales per week,every week, without any new sales.



I must be missing something here. What am I missing? Is my math wrong(quite possible)? Is the truth being stretched to impress? Or is this just one more thing that I have noticed in my short time that just wasn't true and being told to new agents.

Well your math is WRONG to start(as all ready pointed out). In addition you considering a lot of different variables most that help the numbers, its not as black and white as your calculations.

But that mostly just comes from experience so I wont hold it against you.
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Good point, I'm not sure what I did. 2160 makes it 5.54 per week, just working your current clients with no referrals or new clients. I was told that you will replace the majority of clients within the 6 years. I just know that hearing that agents with years of experience are not selling 6-8 and my goal was to be at 10 per week in a few years was a tad disconcerning. I'll still keep it as my goal though.

Maybe they are selling 6-8 a week BUT they aren't counting that in their numbers because they really aren't generating a new commish just extending their renewals.

 

[hardwork]

Sounds like most Med Supp sales is just the process of rolling business from one carrier to another, never adding brand new clients. Or else someone misinformed you on the numbers. Or there are a lot of lazy agents. I don't sell med-supps, so my opinion may be off base.

Most of my med- supps are new clients!
Not sure why the math is so complicated for some, respectfully speaking!

Lets look at it this way (realistically): 250 clients = 375,000
comission = .20
annual income = 75,000
monthly in = 6,250
(Average annual premium per client is 1500)
Some agents are able to focus on this product,many have to have a couple of other products in there brief case! It is nice to get a Med- Supp renewal check every month (insuranceman)

Renewals are very important for you newbies, they take the pressure off. Clients can feel the pressure.Pressured people don't buy!

 

[Tampa Teddy]

Good point, I'm not sure what I did. 2160 makes it 5.54 per week, just working your current clients with no referrals or new clients. I was told that you will replace the majority of clients within the 6 years. I just know that hearing that agents with years of experience are not selling 6-8 and my goal was to be at 10 per week in a few years was a tad disconcerning. I'll still keep it as my goal though.

You need to start at the very beginning. And by very beginning, I mean grade school math class. I don't know if you are actually making a living in this business, but what I do know is that 2160 over the course of 15 years, is not even close to 5.54 per week!

 

[VaDwayne]

You need to start at the very beginning. And by very beginning, I mean grade school math class. I don't know if you are actually making a living in this business, but what I do know is that 2160 over the course of 15 years, is not even close to 5.54 per week!

Sure it is If you sell 2160 med supps and you retain 80% of your customers, and you only replace med supps for 1/6 of them a year , the math adds up to 5.4 a week. That's elementary math.

2160 multiplied by 80% divided by 6 divided by 52 = 5.384615 per week.

Thanks for the help. You see, you get the same percentage on your med supps as I do, but my income goes twice as far in Waynesboro, Va. than your's does in Tampa Florida. Money is relative. I am doing very well and I hope you are too.