Altig Orlovic Agencies with American Income Life
To avoid criticism, do nothing, say nothing, be nothing.
It’s Convention Week. There were so many people going that AIL ended up chartering a commercial airplane from Miami to Punta Cana, in the Dominican Republic to supplement the regularly scheduled flights. If you are reading this from a place this from a place that has less than 11 swimming pools, make this your LAST Convention that you miss.
We’re looking at “Yes” companies. Companies that find out ways to get to “Yes.” Isn’t that a bit obvious, though? No. Let me give you an example of a “No” company. My family and I went on vacation recently and the five of us took two large suitcases with all our stuff. They lost one of them. American Airlines tracking system showed it being checked in and then lost all trace of it. It had two weeks of my stuff in them. I expected to be reimbursed for their contents. First, they said, I needed receipts for what was inside. Receipts? For my old clothes? I asked the lady if she kept all the receipts for her clothes. She heed and hawed for a while and said, “If it was something really nice.” In other words, she didn’t. But she wouldn’t pay until I could give her receipts.
Okay, I said. At least reimburse me for the clothes I had to buy to get through vacation while they looked for my suitcase. That’s what they told me to do on the phone. So I copied and organized all my receipts and sent them to the address she gave me. A month later, a letter comes back. Dear Mr. Folkertsma. At least they spelled it right. They took the whole page to say, “I’m sorry, we will not be reimbursing you your costs because you did not sent in original receipts.” I called her up. Now I’m usually a pretty nice guy. It takes a lot to make me mad; but you don’t want to see that. Kind of like the incredible hulk. But I don’t turn green. And I don’t grow any muscles. I got her on the phone. I said, “I did so. I sent you a copy of every original receipt. Nicely ordered. Added up. It was all very reasonable.” “No,” she responded. “You sent me a copy of the original receipt.” I need the actual receipt itself.” What? IRS doesn’t even require the original receipt. Plus, you just lost my suitcase. You’ll probably lose those too. And then I’m really hosed. I offered to meet her and so she could see them all. “No, we don’t allow any customers in our building.” “No.” “No.” She was doing everything in her power to say, “No.”
Wow. They must be stacking up a pile of money if they don’t pay any of it out, shouldn’t they? Actually, the opposite is true. They just went into bankruptcy a couple months and are looking at other airlines to merge with. That is a “No” company.
So last week we started with Costco. They are thriving using a “Yes” return policy. Costco essentially guarantees everything they sell to ridicules extremes to get a “Yes” from their customers. How can you do this in your business? When you hire, can you guarantee a certain number of hours of training? Can you guarantee a minimum number of ride-alongs or being able to watch a certain number of successful sales? Absolutely. Can you guarantee a minimum base pay? We’ve done it!
How do you guarantee a minimum amount of pay on a commission scale? Here’s what we did. We offered a guaranteed weekly base to any agent that saw their 20 people every week. For some people it was $800 a week (about $40,000 base a year). If they made their minimum 20 presentations every week and DIDN’T make $800, we would write them a check for the difference. Maybe it’s $400. Or $500 or $600. The amount isn’t the point. The guarantee is.
How does that work? How can you afford that? Some weeks are just bad weeks. It just doesn’t happen for them. Well, if an agent sees 20 people, they have 5 sales on average. Company-wide last week, new agents sold 20% (or 4 out of 20). Tenured agents sold 30% (or 6 out of 20). That was the actual numbers you reported. So an agent in their first six months makes 4 sales on 20 presentations. Let’s say it is a bad week and they sell only half that. They make two sales. The average overall sale was $877. Let’s take a below average week. $850 ALP per sale. Times 2 sales, or $1,700 in ALP. Times a 50% contract times 65% cash advance. And they make $553 advance. Since they are almost always over the bonus minimum, that’s 15% or another $255 bonus. So a total of $808 on life sales. So on a bad week, they still make their minimum.
What if they consistently see 20 people but don’t make 2 sales, they don’t write $1,700. It is possible to have a terrible week. But multiple weeks in a row is almost impossible. If they see 20 people for 3 weeks, that’s 60 people. Out of 60 people, you will always have 3 or 4 that were ready to buy before you even showed up. You didn’t have to explain a thing; just fill out the paperwork. You’d almost have to talk them out of it. But for that terrible week, how do you fund the “extra” check to that agent? Simple. You will make so much override and bonus as an MGA on their normal weeks, that you can afford to cut them the check on the one week they blank or do terrible. And p.s. If you know a check is on the line, you’re going to be out their making sure they have two sales. It has a built in mechanism. And like Costco. Yea, some people take the stuff back, and they take a total loss on it. And a few even abuse the policy. But by having the policy, they have so many more sales that they can absorb the bad apples they do come across. That is the power of “Yes.” Next week, we’ll see how Starbucks gets you to say “Yes” to a $4 cup of coffee.
Your best, fastest-growing state? It’s Washington right now. $43,959. Remember they had about $80,000 with everybody, but we are focused on new agents in our listing of the best states and provinces. They are growing the fastest! All six Washington offices are involved with new agent sales. Redmond, led by Nick Lorence is out front. They closing 28% so you know the training is good.
#2. Manitoba. Yes, they are making a run for the top. They only have a million people in Manitoba but it’s not so important how many people, but who those people are. Chris Hintz, Kevin Appasamy. Sara Vaz and Raymond James form a power team of solid leadership. $35,580 in New Production. $1,112 ALP per sale. Phenomenal.
#3. Minnesota. $32,901 in new agent production. They are up to 47 total agents in that state, so the quantity is getting there. Over 800 referrals collected for the week, almost 20 per new agent. That keeps motor running. They’ve sold a minimum of 10 sales out of response, referral and POS. In fact, their top seller, both in number and percentage were referrals. That reduces dependence on outside sources and removes all barriers.
#4. Hawaii. $28,133. They’re all in Punta Cana this week. Also, over $1,000 ALP per sale. They only made 31 response card presentations, compared to almost 200 on referral. No wonder their closing ratio always is one of the best in the company.
Top individuals this week? Daniel Toshner. $13,964. 11 sales, $1,269 per sale. Wow. Randy Souliers. He’s a Convention regular who knows how to have a good time. But he balances it with work. 32 appointments, 22 presentations, 8 sales for $7,058. That’s a perfect “10” in my book. Whole bunch broke $6,000. That’s worth a mention. Andrew Helgeson, Tao Chen, Rolando Mararac, Robert Thompson, Michael Burningham, Ryan Kendl, Melinda Rae Lyse.There’s men and women, older and younger, new guys and 17 year vets, US and Canada, different backgrounds. All had this in common: They had a goal, they went to work, and didn’t stop until they hit it. That is Altig. Be a part of it.