AIL-Altig

Altig Orlovic Agencies with American Income Life

Phil’s Memo 3-19-13

Phil_bio_pageThe waste of money cures itself, for soon there is no more to waste.    –M.W. Harrison

 I hit a lot of topics here on the Memo but one of my common themes is money and finances.  Yes, that’s my training and background, but it’s more than that.   There’s a famous verse in the Bible that says that money is the root of all evil.   Actually, it doesn’t say that.   That’s how it is usually misquoted.  It says the LOVE of money is the root of all evil.   Wow.   That is an intense statement. “All” is an encompassing concept and “Evil” is a strong word.   Put them together and you’ve got something we need to pay attention to.   That’s one of the reasons I talk a lot about money.   Money, or I should say the MISMANAGEMENT of it, the MISCONCEPTIONS about it, creates incredible pain and suffering.  Massive amounts.   Let’s look at two concepts this morning to help us understand how to think about money, or it can eat us alive.

The first mindset that I want to hit is what I call “Instant Millionaire Syndrome.”   This hits us from several angles in our society.   The lotteries of course promote it.  I had a chance once to work with an advertising firm that sold to the Washington State Lottery.  What shocked me was how much money they had to work with for their advertising budget.  These were some of the sharpest marketing minds I have ever met, peddling the dream.   In reality, you are 6 to 45 TIMES more likely to die being struck by lightning than winning the lottery.

We also are coming out of an era, the 1990’s, where “paper” profits dominated the headlines.  Some dot-com guy went public and made $100 million, even though he was 32 and didn’t really develop anything.  In reality, we’ve had gold rushes and get-rich-quick schemes for over a hundred years.

In our century, sports stars are often pointed to as the latest example of the “get-rich-quickly.”   Let me give you a reality check even in the “instant” money of professional sports.  Forbes Magazine listed their highest paid athletes in the world this week.  #1.  Floyd Mayweather.  He’s 35 and been boxing for 28 years.  #2.  Tiger Woods.  Age 37.  He’s played for 33 years, the last 21 professionally. #3.  Kobe Bryant.  Age 34.  Has played professionally for 17 years.  Drew Brees, David Beckham, Payton Manning, Alex Rodriquez.   Almost all of them were 35+, and spent 10-20 years professionally performing at the highest levels, after 10-15 years honing their trade.

How “instant” does that sound?  No.  Everywhere I’ve looked, even in the “young” professions like sports, it’s the guy that looks long term, that continually develops their skills, that persevere at a very high level that gets wealthy.  In business, the timeline is even longer.   Have I worked with a lot of rich guys in my life?  Yes.  But I can’t think of a single one that spent less than 15 or 20 years growing, developing, building.  And then the reward.  So the first reality that I am trying to convey today:  Look and set yourself up long-term.  If you’re trying to sprint this one out, your career will be nothing but a long succession of short sprints that only leave you winded and broke.

The second lesson on money hit home when I opened the paper this morning; my heart sank.   There was a picture of one of my favorite football players:   Joey Porter.   From 1999 to 2007, he was the heart and soul of the Pittsburg Steelers.   He was their four-time All Pro linebacker.   6’3, 250 pounds.  If I was taller than 5’9 and ran the 40 yard dash in less than 10 seconds, I’d want to be a linebacker.   With the help of the referees, they defeated the Seattle Seahawks in Superbowl XL (40), while Porter led all linebackers that year in sacks.   He went on to play 3 years with the Dolphins and 2 more finishing a 13 year career in Arizona.

And he was financially rewarded for his incredible efforts.   In 2007, he signed a 5-year, $32 million contract, $20 million of that was signing bonus and guaranteed money.    At Arizona, he signed a $24 million contract with a $4 million signing bonus.    Almost monopoly money in other words.

And so the headline was shocking “Joey Porter’s House in Foreclosure.”  The mortgage was $2.8 million.   And he made almost $100 million in his career.    How is that possible?  And then the details started coming out.   He recently had been arrested for passing bad checks to get $70,000 in gambling chips from the Hard Rock Café.   His home owners association was after him for not paying his HOA dues since 2011 (the last year he was in the NFL.)

Couple morals to the story.  One is that it not necessarily what or how much you make but what you do with it.  Many people think that the answer to their money problem is to make more and more of it.  And that does help, and can be part of the solution.  But if your answer is only one sided, you may still continue to have problems if you don’t get on top of both sides of the equation.  The second is even more obvious.  Don’t get involved in activities and habits that have the potential to bring you down.   I don’t believe that Joey Porter intended to lose everything playing with dice, or cards, or whatever he was playing.   Gambling is highly addictive for certain personality types.   Unfortunately, we even here have lost some talented people to this destructive addiction.   If you need help, get help before it eats you alive.

Now if you want to make some nice money fast, that’s real and 100% guaranteed.  I do have some advice for you.  Go out and do what it takes to earn a big, fat bonus next month.  $2 million paid out altogether in February.   WGB Bonus:  327 Altig Agents got one.   Dustin Dunbar.  $4,664.  Jun Ma $4,166, Mark Nielson $4,159, Jonathan Ng $3,866, Bruce Tan $3,793.  A bunch over $3,000.   Tibor Simon, Steve Stensrud, Ryan Kendl, Joey Kennedy.

Leadership Bonus.  One guy got over $55,000.  In Altigland, Nick Lorence led everyone with $10,000.   Yes, $10,000 even.   He picked up a $500 Agent Longevity BonusHunter Houvener.  $8,135.  I know they just got married.  They’re quickly building a down payment for a house.  Luay Ghawi.  $6,229.  Trevor Mayer. $4,194.  He also got a $1,300 Personal Recruiting Bonus.   Bob Gujral.  $4,100.  Nick Powell led everybody with a $1,800 Direct Training Bonus.

Let’s look at the states and territories that are building it right.

 

#1.  Hawaii.  $25,174 of ALP from agents in their first 6 months.  They collected almost 2,000 referrals last week.   Set that up as your goal and see how it improves your lead flow.   They also led the company in total production with $105,000.    Closing one out of 4, $1,049 ALP per sale.    Maui $28,000.  Honolulu, $26,000,  Waipahu $16,000, Ualena $15,000, Diamond Head $11,500 and Hilo $9,000.    That’s good coverage.

 

#2.  Washington.  $24,175.   Washington had 95 referral presentations and sold 29 of them.  That’s over 30%.   Watch your total closing ratio but pay particularly close attention to where your highest closing is coming from.  That puts your agents at the best position to succeed.   Redmond and Lynnwood are neck and neck.  Redmond won by $3,000 this week, but Hunter will always have Lynnwood in the race.

 

#3.  Virginia.  $22,115 in First-Six-Month-Agent production.  31% close ratio among new agents.  This has become the hottest new region.   Richmond is the lead dog here this week, but Virginia Beach is right on their heels.   Manassas averaged $3,400 an agent this week.  Wow.

 

#4.  Utah.  $20,824.  $1,388 ALP per sale.  Two sales and you’ve written $2,800 in ALP.  That’s a GREAT place to start.   Salt Lake even one upped them.  $3,664 in average ALP for every Agent in that office.

 

#5.  Alberta.  $19,965.   $50,000 overall production.  Calgary had $44,000 of that and almost $2,500 per agent.    I always look at that number because that means people are individually being successful, not just the office as a whole.

 

Honorable Mention.  Nevada.  $18,708 in new agent production.  $47,000 Total.   Las Vegas led them with $26,000.    Set up a plan to get your state or province over $20,000 in new agent production.

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This entry was posted on March 19, 2013 by in Phil Folkertsma.
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