Know what you're getting into
One rule of thumb for new producers: know and be committed to your numbers.
I started my insurance career in underwriting, but with my second son on the way, I needed money and production was where the money could be made. Before I left my salaried position, I made sure I knew what I was in for and was committed to doing what was necessary to reach my two year goal … $100,000. This was 1986 and to a 29-year-old, $100,000 meant hitting the big time.
Here are my numbers in 1986 (FYI - I had no social contacts and no leads)
- Goal 100,000
- 35% commission split with agency
- 100,000 divided by 35% = 285,714
- Average agency commission 15%
- 285,714 divided by 15% = 1,904,760
- Average account 30,000
- 1,904,760 divided by 30,000 = 63 accounts
- 80 dials equals 1 binder (I used a reference book called LeadSource for names and numbers)
- 80 dials = 40 connects
- 40 connects = 10 x-dates
- 10 x-dates = 3 appointments
- 3 appointments = 1 sale
- 80 dials = 1 sale
- 5,040 dials = $100,000
It is not a perfect system but while I was running sales for a retail shop, I took on four raw sales guys. Each of them made $100,000 in their third year because they knew their numbers and they were committed to the numbers. It isn’t rocket science. It is hard work and it requires discipline and organization.
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