B
Beach Broker
Guest
I know the subject of money is pretty personal, and that a lot of people don't like to discuss how much they make, but I'm just curious to know how much some people are making as agents and for how long they have been at it.
If you want to comment, great! If not, that's ok too. Just wanted to pose the question and thought it might be interesting to others too.
Best,
Beach Broker
P.S. Here is some great content on knowing the numbers to create the exact income you desire.
The Most Important Number In The World
Before we even start discussing sales, there is something you must do first.
You need to identify what your target yearly income goal is. Maybe you already know what that number is, if you don’t, now is the time to figure it out.
Ask yourself the question, “What yearly income level will I be totally and completely satisfied with?”
Is it $250,000 per year? $500,000 per year? $1,000,000 maybe? Maybe you would be happy making $100,000. Whatever the number is write it down now.
Now what is your average take home profit on each policy you sell? (Not agency net profit, your take home pay) How much do you get to take home from the average sale?
Answering these questions is VITAL.
You need to answer these questions in order to proceed with this.
Now take a calculator and divide your Target Income by your Take Home Profit Per Sale.
This gives you the number of sales you need to do per year to reach your income goal.
For Example (just to show how the numbers work):
Joe wants to make $300,000 per year in his insurance business. His average take home profit per sale is $500 so
$300,000/$500 = 600 sales per year
So Joe needs to make 600 sales per year using his current average profit per sale in order to reach his goal. If 600 sales seems like a lot for you there is help on the way! Depending on the type of insurance you market $500 may be high or low, you run the numbers based on your own situation.
But to make $300,000 Joe needs to sell 2.5 policies per day that meet his average, every single day of the year! Without missing one single day. For Joe, this is not happening any time soon.
It proves that if Joe really wants to meet his income goal, he is going to need to find a way to get more money per sale.
If he could find a way to get just an extra $100 per sale he would cut the number of sales needed to reach his goal by 100! 100 fewer sales needed by just making an extra $100 per sale.
What if he started going after really high dollar policies where he could make an extra $250-$500 per sale he would only need one sale per day. Less than half of what he needed when he was only making $500 per client.
So, do you have your number?
What is the number you need to do in order to reach your target income goal?
Is it realistic doing what you are currently doing?
If it is, you are one of the lucky agents.
Most agents aren't increasing volume, their declining! Based on that fact many feel like the number of sales they would need in order to reach their target income level is unrealistic.
You may be asking, what does this have to do with selling strategies?
EVERYTHING!
You must know what your target sale is in order to be an effective salesperson. The reason is simple.
We don’t waste time trying to close deals that don’t meet OUR SPECIFIED CRITERIA!
No longer are you going to be spending time to “take any sale you can get”. Now the Clients are the ones who must qualify if they want you to spend time working with them.
You need to find out asap if they are really buyers and if they fit your niche. If not, then you send them to your affiliate agent who pays you a fee for each client you send him. This way you are making money off the lead you generated through your marketing, and you aren’t wasting time on clients that don’t qualify.
So now that you know the Most Important Number In The World (at least your world) we can go out and get those sales!
Best,
Beach Broker
If you want to comment, great! If not, that's ok too. Just wanted to pose the question and thought it might be interesting to others too.
Best,
Beach Broker
P.S. Here is some great content on knowing the numbers to create the exact income you desire.
The Most Important Number In The World
Before we even start discussing sales, there is something you must do first.
You need to identify what your target yearly income goal is. Maybe you already know what that number is, if you don’t, now is the time to figure it out.
Ask yourself the question, “What yearly income level will I be totally and completely satisfied with?”
Is it $250,000 per year? $500,000 per year? $1,000,000 maybe? Maybe you would be happy making $100,000. Whatever the number is write it down now.
Now what is your average take home profit on each policy you sell? (Not agency net profit, your take home pay) How much do you get to take home from the average sale?
Answering these questions is VITAL.
You need to answer these questions in order to proceed with this.
Now take a calculator and divide your Target Income by your Take Home Profit Per Sale.
This gives you the number of sales you need to do per year to reach your income goal.
For Example (just to show how the numbers work):
Joe wants to make $300,000 per year in his insurance business. His average take home profit per sale is $500 so
$300,000/$500 = 600 sales per year
So Joe needs to make 600 sales per year using his current average profit per sale in order to reach his goal. If 600 sales seems like a lot for you there is help on the way! Depending on the type of insurance you market $500 may be high or low, you run the numbers based on your own situation.
But to make $300,000 Joe needs to sell 2.5 policies per day that meet his average, every single day of the year! Without missing one single day. For Joe, this is not happening any time soon.
It proves that if Joe really wants to meet his income goal, he is going to need to find a way to get more money per sale.
If he could find a way to get just an extra $100 per sale he would cut the number of sales needed to reach his goal by 100! 100 fewer sales needed by just making an extra $100 per sale.
What if he started going after really high dollar policies where he could make an extra $250-$500 per sale he would only need one sale per day. Less than half of what he needed when he was only making $500 per client.
So, do you have your number?
What is the number you need to do in order to reach your target income goal?
Is it realistic doing what you are currently doing?
If it is, you are one of the lucky agents.
Most agents aren't increasing volume, their declining! Based on that fact many feel like the number of sales they would need in order to reach their target income level is unrealistic.
You may be asking, what does this have to do with selling strategies?
EVERYTHING!
You must know what your target sale is in order to be an effective salesperson. The reason is simple.
We don’t waste time trying to close deals that don’t meet OUR SPECIFIED CRITERIA!
No longer are you going to be spending time to “take any sale you can get”. Now the Clients are the ones who must qualify if they want you to spend time working with them.
You need to find out asap if they are really buyers and if they fit your niche. If not, then you send them to your affiliate agent who pays you a fee for each client you send him. This way you are making money off the lead you generated through your marketing, and you aren’t wasting time on clients that don’t qualify.
So now that you know the Most Important Number In The World (at least your world) we can go out and get those sales!
Best,
Beach Broker
