AIL-Altig

Altig Orlovic Agencies with American Income Life

Phil’s Memo 9/24/12

“There are no secrets to success. It is the result of preparation, hard
work, and learning from failure.” –General Colin Powell
 

The Million Dollar Club. Altig has about a dozen in there already. It’s made up of guys that have produced at least $1million in NET ALP since 1999. Three joined this past year. You get hauled on stage at Convention and get an award plus a $5,000 check. We’ve got 9 more producers that are over $825,000 and growing, so expect them to be at a million in a year or two. Eddie Olfert and Erez Shabtay are closest. Erez looks about 6 months away. Kendl Ryan, however, is writing $200,000 a year, so he can close in fast. Set this up as a career goal. It is a lofty achievement level at any insurance company anywhere. Being there would set you apart not only in our company but the industry as a whole.

I always love a good question. I tripped on this one last week. Some people are successful.
Others flame out in a month or two. An RGA was sitting across from me one morning last week and
observed, “I’ve really got two kinds of hires. Successful, long term ones, or guys/gals that don’t
even make it a month or two. Really, not much in between.” I look out in the parking lot outside my
window and see our agency’s cars: New Mercedes, BMW’s, Audi’s. And I also see 20 year-old-
Nissans, Chevy’s and Fords. A couple I’d be scared to take across the bridge into Seattle. Not much
in between. Same company. Same market. Same products. Everyone has our best scripts. Some
make it. Others don’t. It’s not rocket science, as the euphemism goes.

Why? They both have the same contracts and incentives. Then I look at my kids. I’ve got 3. They
all have about the same IQ. On two of them, all I have to do is pull up their report card once a
month in front of the family on my laptop, whoop it up and take them out for ice cream and they
excel in school. The third one, I have to check in with daily, beat (not literally, put the phone
down), bribe with ballgames, video games and hijack their DS and I might get a B-. Maybe.

So here’s the question. How hard are you to motivate?

I looked at all the stuff American Income Life has out there and it’s a mound. And you can get
multiple awards. Let me give you an example of how they stack up. It’s currently September so

you’ll have a minimum of 4 months tenure heading into the new year. Let’s put together a 2-Step
plan and see what we can get. Note this isn’t management or top tier performance.
Step 1.
There’s 12 months in 2013. On 4 of them in a row, you step it up a bit. You see 20 people a week
(work four days and see 5 people a day, or… 5 days, 4 people a day). You close one out of five or
20%. What our brand new people average. So 20% of 20 is 4 sales. Our average sale is $840, so 4
X $840 is $3,360 gross ALP a week. That’s $14,500 a month Gross. 20% falls off (Altig average).
You Net $11,600 a month.

Step 2.
Then, for the other 8 months, you coast a little more. Instead of 4 sales a week, you back down to 3.
15 presentations at 20% closing is 3 sales. 3 sales times $840 is $2,520 gross. Or $2,016 net. That’s
a little over $8,000 a month. And make sure you keep your retention rate at a solid 80%. Doable?
You’re probably already close to doing it, except maybe for the number of presentations.

So here’s what you get if you keep this schedule:
By doing Step 1; you are in Founders Club. 4 months in a row with a minimum Net ALP of
$11,500. You need 77% retention on the last month.

So here’s what you get if you keep this schedule:
By doing Step 1; you are in Founders Club. 4 months in a row with a minimum Net ALP of
$11,500. You need 77% retention on the last month.

By doing Step 2; you make Presidents Club. 4 months at $11,500 and 8 months at $8,000 totals
$110,000 in Net ALP for the year. By the end of the year, you need to be up to 80% quality.

You also more than qualify for Convention.

So can you do that? See 20 people a week for 4 months, and 15 people for 8 months. And do
everything average. Close like a brand new person (20%). Company average size deal ($840) and
average net to gross (80%).

Here’s what else you get:
Advances. $45,000.
Bonuses. $16,500. You’re working weekly, remember. So $60,000 weekly cash.
$500 for Founders Club and the prestigious ring. $1,500 for President’s Club and another ring or
pendant. A luxury Convention for 2. An extra day at Convention for Presidents Club. That’s all
worth $4,500. So we’re at $66,500 total up front. Renewals on $110,000 net X 5% is $5,500. In
six years, that pays out $33,000.

So $100,000 plus the honor, the rings. And your career is off and running. So let me ask you again.
How much does it take to motivate you?

Question came up this week: How do I get my state or province on Phil’s Memo. I should probably
draw a line in the sand, huh. I currently have the line at $20,000 in New Agent Production. We’ve
got 25 states and provinces so with everyone at the $20K mark, it would be $2 million in ALP from
new agents. I can live with that. Now you know the mark.

#1 territory in the nation last week: NEVADA. That’s in caps so you need to use Tim Cruiselevel
intensity when making that announcement. Go ahead. Hack off the landlord. Just this once.
We’ll bail you out. $28,365 in New Agent production. Their NEW agent are closing 28% and
writing $1,051 per sale. They sold every kind of lead: Response Card, Referral, Policy Owner
Service (POS) and Child Safe. Las Vegas Central had $17,400 in total production. Las Vegas
$16,100 and Reno $15,300, so you’ve got 3 solid offices in that state.

#2. Washington. $24,888 from agents in their first 6 months. $75,800 overall. Redmond wrote
$38,000. The state had an overall closing ratio of 28.3% at $1,000 a sale, so there’s a lot of good
things going on. Lynnwood had $17,000. Their average agent wrote $2,900. Renton had
$12,344. Those guys wrote over $3,000 apiece. Nick Lorence, Mark Neilson, Vlad Derevyanyy
and Hunter Houvener all had MGA-ships over $10,000 so that’s notable.

#3. Alberta, $21,372. No shame in that. They’ve been #1 in the recent past and are climbing the
charts again. With Melinda Rae Lyse and John McGrath, they probably have the strongest, most
tenured two-some in the company right there.

Hawaii and Idaho both are hoovering around $19,000. Couple states with a million to a million and
a half people are on the cusp. Great effort there.

 

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This entry was posted on September 25, 2012 by in Phil Folkertsma.
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