The Math Doesn't Add Up.

[VaDwayne]

Bottom line is this. You can change numbers around, add or subtract an extra percent here or there, use a high or low retention rate, and it boils down to this.

If you or I sell 150-200 med supps a year, for fifteen years, and we don't sell at least 5 referrals a week in the later years, and replace policies on top of that, we probably, no, we didn't service our existing customer base correctly.

 

[Todd King]

I see so many agents out there either selling just med supps or just FE. They are ALL just stepping over money.

If you concentrate on the med supps and also cross-sell your FE, LTC and annuities, you will have your "expenses" covered.

There is no better way...and I repeat...NO BETTER WAY to build a renewal base than with med supps.

The retention rate is extremely high if you are servicing your client.

If you sell one product, you're an order taker.
If you sell more than one, now you're their agent!

Try educating yourself on annuities and sell a few of those a year. You can increase your income significantly.

If you only made a poultry 5% on annuites, you would only have to sell $400K to put an additional $20K/year in your pocket.

Just selling one FE per week would put around another $25K in your pocket.

 

[sman]

Yep. I pick up anywhere from $500k-$1,000,000 in investments every year from my Med Supp business. Sometimes that's annuities. Sometimes it's mutual funds or managed accounts. Those create additional trail income as well.

 

[moonlightandmargaritas]

Just to continue off topic here ... I grew up (21 years) in Lynchburg, VA about an hour and a half from Dwayne's town, but I have lived here in Jacksonville, FL since 1991 ... They had a lot of bad bugs in VA also, it got hot and humid as Heck in July and August and I can do without Winter in VA. I will take my 25 golf courses within 45 minutes of the house, ocean breezes, crappy NFL team, awesome college football, and 2 seasons any day of the week.

Today's weather in Tampa, Fla: Blue sky sunny, a gentle breeze and 76 right now on the old therm-mo-meter.

I guess it's why so many millions are clamoring to move to Jerkwater, Virginia.

 

[sman]

Come on G, didn't your favorite movie make you think of Frank and his goats?

 

[bcbroker]

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.

I have seen this same diagram for over 30 years now. It is such a mistaken belief that it is that simple, never taking into consideration of handling that block of business as it grows, the bigger it gets, the maintainance it requires. I have added 50 to 100 new clients per month for well over 20 years.but after a few years, some of these
accounts have to be rewritten to maintain lower premiums. nearly 1/3 of my business is now rewrites. both over and under 65. also, you have to hire people to help you maintain sales and maintainance.
That's just the way it is in the real world, but that's not a bad thing, If I ever decide to retire, I still get a 6 figure income on a book that perpetuates itself.

 

[YouGotMyMoney]

.

I guess it's why so many millions are clamoring to move to Jerkwater, Virginia.

Not having to pay state income taxes doesn't hurt either.

 

[VaDwayne]

Today's weather in Tampa, Fla: Blue sky sunny, a gentle breeze and 76 right now on the old therm-mo-meter.

I guess it's why so many millions are clamoring to move to Jerkwater, Virginia.

Actually thousands are moving to Jerkwater, Virginia? It's good that it's nice in Miami. That way the paramedics stay warm as they pick up the wounded(have you seen COPS), the flamers won't catch a cold in South Beach, the hookers will stay warm at night, it will be really pleasant at the gay pride parade, the stars cocaine won't clump together and they will be warm as they smoke their crack, you can roll your windows down as you sit in traffic, the Dophins can watch the Super Bowl on a television outdoors, and all of the illegals will feel like they are at home.

I'd rather pay taxes than live in that scumpit. If the United States needed an enema, Miami would be the place they would insert the hose.

Keep trying....

 

[FLBrkr]

Actually thousands are moving to Jerkwater, Virginia? It's good that it's nice in Miami. That way the paramedics stay warm as they pick up the wounded(have you seen COPS), the flamers won't catch a cold in South Beach, the hookers will stay warm at night, it will be really pleasant at the gay pride parade, the cocaine won't clump together, you can roll your windows down as you sit in traffic, and all of the illegals will feel like they are at home.

I'd rather pay taxes than live in that scumpit. If the United States needed an enema, Miami would be the place they would insert the hose.

I always thought Newark, NJ would be that spot ... followed by Cleveland ... Detroit ... etc. etc. Actually, now that I think about it, 1600 Pennsylvania Ave. seems to be where it should be inserted ... ..... the enema that is ...

 

[Yoda]

Originally Posted by moonlightandmargaritas

Today's weather in Tampa, Fla: Blue sky sunny, a gentle breeze and 76 right now on the old therm-mo-meter.

I guess it's why so many millions are clamoring to move to Jerkwater, Virginia.
​

Actually thousands are moving to Jerkwater, Virginia? It's good that it's nice in Miami. That way the paramedics stay warm as they pick up the wounded(have you seen COPS), the flamers won't catch a cold in South Beach, the hookers will stay warm at night, it will be really pleasant at the gay pride parade, the stars cocaine won't clump together and they will be warm as they smoke their crack, you can roll your windows down as you sit in traffic, the Dophins can watch the Super Bowl on a television outdoors, and all of the illegals will feel like they are at home.

I'd rather pay taxes than live in that scumpit. If the United States needed an enema, Miami would be the place they would insert the hose.

Keep trying....
============================================

Set the bong down Da Wayne! He said he was from Tampa not Miami! Miami is the atlantic coast and Tampa is the gulf coast. They are two hundred miles apart. By the way Miami cant hold a candle to hell holes like Atlanta and New York City.