Will These Numbers Work in FE

[nfl72]

posted by JD,

"I recently followed a Columbian Life agent that had written an $80/mo. on a lady for a $17,000 face. At first I was looking at an easy $80/mo sale to replace it with more coverage. As we discussed it further she was "sold up" and resented it. She didn't need the $17,000 and certainly couldn't afford it. She was looking to drop the whole thing. I replaced it with a $40/mo.. She still has it. I said recently, it was about 6 months ago."

I believe this is a different dog entirely here. This guy wasn't sold up and in fact wanted more. Would you rather make $600 or $2100?

What we don't know is which policies were involved in the transaction. This would be a good time to push Foresters and show him all the free member benefits he could quite posibly use. We also don't know what the cost is per $1,000.

I do know this; If i got a guy who wants to spend $220 per month I am going to put my best foot forward. May the best policy (and salesman) win!

 

[hockeyday]

I started out with AFLAC in 1994 and then moved to Mutual of Omaha in 1996 before returning to an old JOB that made me an offer I couldn't refuse in 1997. Now I'm looking at returning to the insurance business full time, but I must be certain these numbers will work before making the leap.

I must clear 75K a year after expenses. I have a 105% contract with a great FE Company. I feel my numbers are conservative and leave room for the good and bad weeks.So here's my math.

Sell 5 policies per week with average annual premium at $50 per month/per policy with a 9 month advance. 5 x $50 = 2500 X 1.05 = $2625 with a 9 month advance would leave me with $1968 per week.

Leads- I can get 1000 mailed for $425. Mail a 1000 per week, 46 weeks per year.

$1968 - $425 lead cost = $1543 with an additional $100 per week for postage, E&O, ect leave me at $1443.

$1443 per week = $69,000 working 48 weeks, leaving room for the holidays/vacation.

Throw in a few med supps per month and the back 3 months of the advance should put me over or right at the 75K mark.

I'm willing to work a 50 hour week, what ever it takes.

I realize there will be some charge backs. How does my plan look? Am I missing something.

Thanks

the real question is will you keep mailing when you don't get a good lead return, 1% and your taking 100% of the risk is going to be tough, with the outfit that JD is with you place a lead order and they take the risk..

 

[nfl72]

"Yeah but in the mortgage business, they don't come back and cancel on you. Something about pigs get fat and hogs get slaughtered."



There is a difference between being slaughtered and
being stupid! If a guy has $160 and wants $220, as is the case here, I am going to try and write the $220. Were not talking about replacing a policy he had for 5 years. It was stated he had the policy for 3 weeks. You could probalby even get his first payment back for him!

The origional post by Reardon was about not leaving money on the table, which it appears to me, is exactly what took place.

 

[0b1kanobee]

There is a difference between being slaughtered and being stupid! If a guy has $160 and wants $220, as is the case here, I am going to try and write the $220.

Yeah and I want $500. There is a big difference between what someone wants and what they can afford especially with some of these folks mentality.

This case may be different but I suspect the agent who sells folks policies based on what they truly can afford VS. how great a salesman they are with getting people to spend the most money will have a longer shelf life in this business.

Insurance is a career where being a good salesperson is just one aspect of the business. It's also about doing the right thing and sometimes it is for no charge at all, charity if you will. Just because a prospect or client "wants" something doesn't mean I'm gonna sell it to him. If it is the wrong fit for them I'll tell them I can't and they will have to contact somebody else.

I provide the bast value for their premium dollar not not the best value for me based on their premium dollar and the value being the product which will be in force when they need it most not one they really couldn't afford but they "wanted".

 

[WinoBlues]

Yeah, that always pisses me off. I just told the cable company that I can't work that, tell people I will be there in a four hour window.

It would work for us if people felt they needed insurance as much as they need their cable.

Ain't that the truth.

 

[nfl72]

"This case may be different but I suspect the agent who sells folks policies based on what they truly can afford VS. how great a salesman they are with getting people to spend the most money will have a longer shelf life in this business. "

Hey ob1, I think you missed my first post here. That is exactly what I stated.


"I provide the bast value for their premium dollar not not the best value for me based on their premium dollar and the value being the product which will be in force when they need it most not one they really couldn't afford but they "wanted".

In this case rewrite the whole thing at $220 and give him what he wants. Your not getting greedy or fat, your being smart.

NICE GUYS FINISH LAST!!!!

 

[0b1kanobee]

NICE GUYS FINISH LAST!!!!

When did this conversation turn to talking about women?

I am too nice though but at least my clients love me!! I always get lots of hugs but they don't pay the bills.

I don't sell a lot but my persistency rate is great. I was told that was the main reason I still have a position in the school system.

 

[Frank Stastny]

Yeah and I want $500. There is a big difference between what someone wants and what they can afford especially with some of these folks mentality.

This case may be different but I suspect the agent who sells folks policies based on what they truly can afford VS. how great a salesman they are with getting people to spend the most money will have a longer shelf life in this business.

Insurance is a career where being a good salesperson is just one aspect of the business. It's also about doing the right thing and sometimes it is for no charge at all, charity if you will. Just because a prospect or client "wants" something doesn't mean I'm gonna sell it to him. If it is the wrong fit for them I'll tell them I can't and they will have to contact somebody else.

I provide the bast value for their premium dollar not not the best value for me based on their premium dollar and the value being the product which will be in force when they need it most not one they really couldn't afford but they "wanted".

Amen!

Preach it brother. I couldn't agree more. Spoken like a true professional insurance agent.

The only thing missing is a rousing chorus of "Jesus Wants Me for a Sunbeam".

 

[Rearden]

The difference in annualized premium in the prior case was $10-$12 per month. Not enough to be 10% of a difference, and not enough of a concern for him.

I did suggest he consider piling his insurance in one policy but didn't want commission-breath either.

You can sell by premium without being a hog.

 

[jdeasy]

posted by JD,

"I recently followed a Columbian Life agent that had written an $80/mo. on a lady for a $17,000 face. At first I was looking at an easy $80/mo sale to replace it with more coverage. As we discussed it further she was "sold up" and resented it. She didn't need the $17,000 and certainly couldn't afford it. She was looking to drop the whole thing. I replaced it with a $40/mo.. She still has it. I said recently, it was about 6 months ago."

I believe this is a different dog entirely here. This guy wasn't sold up and in fact wanted more. Would you rather make $600 or $2100?

What we don't know is which policies were involved in the transaction. This would be a good time to push Foresters and show him all the free member benefits he could quite posibly use. We also don't know what the cost is per $1,000.

I do know this; If i got a guy who wants to spend $220 per month I am going to put my best foot forward. May the best policy (and salesman) win!

You bust on him in hindsight for not getting the whole thing. I would bust on you in hindsight for using Foresters.

None of us that weren't there have a clue as to what we would have done because all the facts are not evident to us. Who knows, it might have been the rare case where I would offered Foresters as well.

Reardon has Foresters in his tool box. It must not have been the best fit. You are picking apart one appointment without all the facts while he has been putting up great numbers month after month. I would tend to give him some leeway on this one.