True Passive Income

[SportsNut]

Re: True Passive Invone

O.... I'm thinking we won't be hearing much more from him come Janurary time.

Hoping that tins is a prophet.

 

[Newby]

I'd like to see a few more comments on this thread. I respect what JD is saying but I can't believe that the income expectations I've laid out here are too difficult for a guy who works everyday and buys leads. Since my downline agents are completely independent and usually have contracts here there and everywhere, I can't tell exactly how most of them are doing. I can say that I have several that consistently turn in $2,000 to $3,000 in FE each week.

In my examples I'm only calculating with 110% (many companies pay 115% these days) and 7.5% renewals. Using 25% falloff rate seems very high to me. Plus I'm figuring an agent is paying $750 per week average in lead cost to get 20-leads per week. In most areas you only need to drop 1,500 pieces to get 20 leads. That would cost $450 per week using Monumental's mailer or around $650 using the most expensive mailers. Other companies have lead co-op money that can also lower your cost of leads.

I can't see that this is not EASILY obtainable by anyone in FE who is willing to work hard. I think where most independent agents fall short is that they simply won't buy the leads consistently. They think of the incoming commissions like a paycheck rather than as business cash flow. Job mentality rather than business owner mentality.

Let's get a few more opinions here. Maybe I'm crazy.

 

[senior-advisor-indiana]

I'd like to see a few more comments on this thread. I respect what JD is saying but I can't believe that the income expectations I've laid out here are too difficult for a guy who works everyday and buys leads. Since my downline agents are completely independent and usually have contracts here there and everywhere, I can't tell exactly how most of them are doing. I can say that I have several that consistently turn in $2,000 to $3,000 in FE each week.

In my examples I'm only calculating with 110% (many companies pay 115% these days) and 7.5% renewals. Using 25% falloff rate seems very high to me. Plus I'm figuring an agent is paying $750 per week average in lead cost to get 20-leads per week. In most areas you only need to drop 1,500 pieces to get 20 leads. That would cost $450 per week using Monumental's mailer or around $650 using the most expensive mailers. Other companies have lead co-op money that can also lower your cost of leads.

I can't see that this is not EASILY obtainable by anyone in FE who is willing to work hard. I think where most independent agents fall short is that they simply won't buy the leads consistently. They think of the incoming commissions like a paycheck rather than as business cash flow. Job mentality rather than business owner mentality.

Let's get a few more opinions here. Maybe I'm crazy.

I think you laid out easy numbers for an agent that wants to work. The problem is most agents aren't willing to risk buying leads and put in the work. I was one of those agents in the beginning of my career and if I wasn't captive I would have sank. Your numbers are very realistic.
As far as living off of med Supp renewals, that is easily obtainable. You need to keep in contact with your book though and make sure you are the one rolling them. I have made some lazy mistakes over the years and won't take another 2 year vacation like that again. As long as the landscape doesn't change too much though, I will be just sitting back rolling clients in 2 years and writing referrals.

 

[jacobtn]

I think you laid out easy numbers for an agent that wants to work. The problem is most agents aren't willing to risk buying leads and put in the work. I was one of those agents in the beginning of my career and if I wasn't captive I would have sank. Your numbers are very realistic.
As far as living off of med Supp renewals, that is easily obtainable. You need to keep in contact with your book though and make sure you are the one rolling them. I have made some lazy mistakes over the years and won't take another 2 year vacation like that again. As long as the landscape doesn't change too much though, I will be just sitting back rolling clients in 2 years and writing referrals.

Start writing annuities or large ULs, one or two large deals a year and you won't have to do anything else... you can make $40k-60k on one app.. My wife loves those!

 

[senior-advisor-indiana]

Start writing annuities or large ULs, one or two large deals a year and you won't have to do anything else... you can make $40k-60k on one app.. My wife loves those!

Those are nice apps to come by but not as predictable as med supps. I'd rather write $50k in med supp commission than hope for 1 or 2 of those cases a year.

 

[Todd King]

I'd like to see a few more comments on this thread. I respect what JD is saying but I can't believe that the income expectations I've laid out here are too difficult for a guy who works everyday and buys leads. Since my downline agents are completely independent and usually have contracts here there and everywhere, I can't tell exactly how most of them are doing. I can say that I have several that consistently turn in $2,000 to $3,000 in FE each week.

In my examples I'm only calculating with 110% (many companies pay 115% these days) and 7.5% renewals. Using 25% falloff rate seems very high to me. Plus I'm figuring an agent is paying $750 per week average in lead cost to get 20-leads per week. In most areas you only need to drop 1,500 pieces to get 20 leads. That would cost $450 per week using Monumental's mailer or around $650 using the most expensive mailers. Other companies have lead co-op money that can also lower your cost of leads.

I can't see that this is not EASILY obtainable by anyone in FE who is willing to work hard. I think where most independent agents fall short is that they simply won't buy the leads consistently. They think of the incoming commissions like a paycheck rather than as business cash flow. Job mentality rather than business owner mentality.

Let's get a few more opinions here. Maybe I'm crazy.

When you're dealing with the clientele that can afford Med Supps, then you won't have that fall off rate for FE or Med Supps.

If you're dealing with the clientele that can only afford the MA type of plan I can see that kind of fall off for FE.

 

[Tahoe Ray]

Start writing annuities or large ULs, one or two large deals a year and you won't have to do anything else... you can make $40k-60k on one app.. My wife loves those!

Those are nice apps to come by but not as predictable as med supps. I'd rather write $50k in med supp commission than hope for 1 or 2 of those cases a year.

Why not do both? Hunt for one big app per quarter but focus on the activity the pays the bills....

 

[insure4real]

Lot of good feedback guys. I guess to redefine the question is there anyone making over. $2,000 on residual renewal income. Who truly believes its a "retirement plan" ?

 

[digfesales105]

Lot of good feedback guys. I guess to redefine the question is there anyone making over. $2,000 on residual renewal income. Who truly believes its a "retirement plan" ?

Yes. I get one from one of 3 carriers I no longer write for. I'll tell you(which I know I shouldn't)... It's around $2200-$2400. I can do the LH and NAA way of recruiting and show you a pay stub if you like? hahaha

How ya like them apples?!

Sorry...I couldn't resist that last line. Just seemed fitting?

 

[Cory]

I don't know many that are making those types of residuals, but if you work hard and commit to this business long-term (as long as you enjoy it and can grow)... don't see any reason why you couldn't consider it some sort of retirement plan. I tend to think of the larger residuals as bonuses that I dump into retirement and maybe treat myself every now and again.

Kudos to you DIG FE... or we could just go somewhere and eat a bunch of caramels. Good line!