Altig Orlovic Agencies with American Income Life

Phil’s Memo 6/26/2012

Smart people learn from their mistakes. But the really smart ones learn from the mistakes of others.                                                                   

Yesterday was a travel day. Some people blow those off as a wasted day. I see them as an opportunity to expose myself to people, things, and places that I don’t normally get to see or hear. I usually grab a USA Today to catch up on what’s going on in the world and a book on something I want to learn about or get better at.

USA Today always has a “Poll Question of the Day”. That’s where they go out and ask several thousand Americans a question about an area of life. On the street; reality polling. (Sorry neighbors to the north, I couldn’t find an issue of Canada Today.) The response to yesterday’s question was pretty eye-opening.   Do you expect to get a raise over the next year? Yes – 48%. No – 52%. Over half of Americans do not expect to get a raise over the next 12 months. But their food bill, their gas bill, their utility bills, their tuition bills, their everyday life bills will go up. Went to a movie last week and paid $12. Me and my two friends used to go to the movies in high school and that paid for all three of us (and I’m not THAT old).

Life gets more expensive every year. Always has and always will. If it doesn’t, then we’ve got another problem called deflation. And that’s even worse. If I polled 1,000 AIL-ers, do you think I’d get a majority of them to answer “No” to that question? Not in your life. In fact, if you did the exact same as last year, you’d at least get another layer of renewals paying out. And most people I know are improving, promoting and growing. And their checks will too.

USA Today also did a piece on the new World Champions, the Miami Heat. 400,000 showed up along their victory parade route. Jimmy Fallon figured out how they got Lebron James to play so well in the fourth quarter. They told Lebron that in the Finals, there are five quarters. Don’t worry, I’ll stick to writing.

But that is quite a feat. To survive four playoff rounds against the best professional teams in the NBA, one after the other, where they have a chance to study your offense and defense and specialize in undoing what you do best. I loved Mark Cuban’s interview yesterday.  One of the ESPN commentators said that “Miami and Lebron just wanted it more.” Cuban responded, “You guys are a joke.  When you reach the NBA finals, everybody wants to win it all and no one is holding anything back.”  Except he delivered it much more sarcastically. He said it is about coaching and execution. Erik Spoelstra flat out-coached everyone.   Erik Spoelstra? Who the heck is that and where did he come from? The guy looks 25 (he’s actually 41) and yes, he came out of nowhere. Erik Spoelstra grew up on Portland and played for Portland State. The next time we pick up his trail, he’s overseas, playing for a mid-level team in Germany and coaching their local youth team.

Dwyane Wade, the All-star guard for the Heat made waves this week when he said, “The only thing Spoelstra used to be able to do when I first got here was the Christmas videos.”  He actually has a point. Spoelstra joined the Heat 17 years ago as the video coordinator. He did well and a couple years later became a talent scout, then worked out the players before games, then he was in charge of statistics for a few years, then assistant coach. And he slowly made his way up the organizational hierarchy.

So why is he the head coach at Miami? The Miami Heat has Pat Riley in their organization. Riley was the head coach of 5 NBA championship teams, NBA Coach of the Year three times, coaching the all-star game 9 times and in 1996 was named one of the 10 best coaches of all time? Why isn’t he the head coach of the Miami Heat. Simple. Pat Riley doesn’t want to coach anymore. For him, it was been-there, done-that. He had achieved all his goals and was ready to do something different, so the organization accommodated him. Tragic? Not at all. All that did was open the door for the next generation of leaders. Including Erik Spoelstra.

Was it an easy task? Following one of the all-time greatest, in a position where he got all the blame when things went wrong and none of the credit if they succeeded? No, Riley called it one of the toughest seats in all of basketball. But Spoelstra was excited about the new opportunity, and according to his old mentor, Pat Riley, he’s getting better and better every minute.

I know our organization lost one of its great coaches and mentors recently. And it will happen again; that is the ebb and flow of organizations and actually, life itself. While there is some sadness, a huge opportunity just opened up, a leadership void waiting to be filled. It’s your time, for your vision, for your leadership. A chance you never thought possible to create your own dynasty, leave your mark. Spoelstra was actually four years younger than Pat Riley when he won his first NBA Championship. You’ve been preparing your whole career to get to this point; but it’s up to you to grab the reins and make it happen.  If Erik Spoelstra would have had a couple poor seasons and not made it to the finals the last two years, do you think he’d still be the head coach? Probably not.  Like basketball, our results are measurable. But they are ultimately in your control. Carpe Diem:  Seize the day.

Top territory this week:  WashingtonNick Lorence is starting to build a dynasty in Redmond and Hunter Houvener in Lynnwood. $15,000 and $14,000 respectively in new agent ALP. $40,531of first-six-month production in Washington as a whole. Redmond’s strength is ALP per sale. $1,034 is above company average. Lynnwood closes 40%. Also, a great number. 40% is one out of 10. So if they saw 10 people they had 4 sales, 20 people and they would have 8 sales. In a week. Keep thinking big. Tacoma also topped $9,000.

#2. Right on their heels: British Columbia. $38,373. There new agents closed 24%. But get this, they had even more production from their tenured agents.  Those guys closed 54%. 54% That’s over half. Yes; they have figured out that this is a career and over time, have honed their skills. Now they can walk into any home and have better than a 50/50 shot of walking out with a sale. With an average sale of $935, they’ll get almost $500 cash upfront in advances and bonuses. Wow.  That’s incredible. But that’s Bobby Gujral and Noel Ables for you. Surrey had $46K in total production and Burnaby $35K, so those are two really strong offices.

#3. Hawaii. $32,500 in new agent production. They led the company in total production with $94,000 but remember, we’re focusing on growth. Five offices topped $10,000, including Maui with $25,000, Ualena with $15,000 and $1,081 ALP per sale.  Hilo, Waipahu, and Diamondhead round out the list.

#4. Nevada. $26,832 in new agent production. This is a young and growing region. The area has historically been strong, with large influxes of families and new people. But Doug Arritt and David Iriye have proven that they can build in any kind of economic climate.

#5. Virginia.  $25,253.38.  $25,000 for the week gives you $100,000 in new agent production a month. That’s a good baseline. They topped $62,000 overall on 30 agents, making them one of the most consistent territories in the company.

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This entry was posted on June 29, 2012 by in Phil Folkertsma.
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