Altig Orlovic Agencies with American Income Life
We looked at how math plays a crucial role in everything from music to banking to science. Whether you’re measuring asteroid flight paths or managing the Chicago White Sox bull pen, math plays an important part. And as computers, mobile devices and databases become BOTH more accessible and capable at the same time, the significance of mathematics becomes even greater.
Here’s the first KEY PRINCIPLE you must understand and eventually master to be the most effective business person you can be. EVERY TRANSACTION IN BUSINESS CAN AND SHOULD BE MEASURED AT A PERCENTAGE. Clinically, a percentage is a rate, a ratio or a fraction of 100. 100 is total and completeness. If you give 100%, you gave everything. If you made 100% of your shots, you made all of them. If you sold 100% of your presentations, you sold all of them. This may seem very elementary to you right now but stick with me. It’s that important.
How do you calculate a %? Divide the two numbers (what you’re measuring versus the total possible) and move the decimal over two to the right. You had 10 people interview in a day. You hired 2. That’s 20%. 2 divided by 10 = .20 . Move the decimal over two to the right and you get 20. Or 20%. Once you start thinking that way, you will start to do it naturally.
Here’s where most people go wrong. They only think of the absolute number. I sold 2 response cards this week; I sold 1 referral; and I sold one POS. “Response cards are the best. That’s where it’s at.” You see, they miss the most important part of the equation. Yea, they sold 2 response cards but they made 10 presentations off of response cards, 3 on POS, and 3 on referrals. Now which is best? Yes. Referrals and POS. They sold 33% on POS and referrals but only 20% on response cards. So yes, they sold twice as many off of response cards. But it took them way more time, resources and effort. If they had done all 16 presentations on referrals, they would have had between 5 and 6 sales. Instead of 4. Conversely, if they had done all 16 presentations on response cards, they would have sold only about 3. That’s why you must always work in percentages. And eventually, you will naturally think in percentages.
For our SGA-ships, I always work on percentages. Percentage of the total and percentage change. That’s how all decisions are evaluated, or you will often get a wrong answer. Or at least a wrong perspective. If you’re not aware of percentages, people can mislead you. During the past presidential election, Mitt Romney’s campaign was touting his personal contributions to the total tax system: He paid $2 million or so in taxes. Patriotism at its best, right? Well actually, and some smart math people caught the misdirect, and it later came out that he paid only about 10% of his income in taxes. Which is less than a lot of Americans. He just made a lot of income. The percentage is usually more important than the amount.
High-level sports teams are all now using %’s to run their teams and strategies. What % of the running plays are to the right side of the line in football, versus passes on which downs. There are entire matrixes on statistics, trying to gain that advantage. Baseball is crazy this way. This batter hits .340 (that’s 34%) against right-handed pitchers with runners in scoring position when his team is behind by less than 2 runs. What??? But that’s how teams make almost all of their personnel decisions. If you want to see this in action, rent the movie, Moneyball. It is a true-life story about Billy Beane, the general manager of the Oakland A’s. Oakland is a small-market team with revenues and a budget that was a fraction of the teams he was competing against. So he figured out how to create the best scenarios for his team using sabermetrics, or the advanced study and tracking of any and every percentage a player could have. And he competed for pennants every year, having the third smallest payroll in the game. The person that has the best grasp of percentages has an innate advantage. We’ll continue next week.
Bonuses. All bonuses are….you guessed it. A percentage. All an agent in their first nine months has to do is $1,150 ALP to bonus. 5% bonus the first week, 10% the second week and 15% thereafter. Think about that. If you’re on a 50% contract, 65% advance: You get $373.75 in advance from $1,150. And $172.50 in Bonus. So you are really getting a 46.2% bonus. You earn $373.75. They give you an extra $172.50. So 172.5/$373.75 is 46.2%. While they call it a 15% bonus (because they key the payout off the total ALP), that’s really a misnomer. Any other company in America would call it a 46.2% bonus. If I make $100,000 a year and they give me a $20,000 a year bonus. That’s a 20% bonus. Know your math and get rich!
They paid out almost a million and a half. So who’s getting rich. Bruce Tan. $6,663. Mark Nielson. $6,032. Ryan Kendl. I always think he’s missing a vowel in his name. He isn’t missing out on bonuses though. $5,214. Steven Stensrud. $4.711. Daniel Toshner and Dustin Dunbar both got $4,000.
Another $1M was given in Leadership Bonus. Bobby Gujral $10,956. Bob’s one of the best math guys here. He manages his agency by the bonus structure and knows the rest will figure itself out. Nick Lorence. 2nd Best. $10,894. John McGrath is flooded out of Calgary. Fortunately direct deposit doesn’t care. $6,176. Ryan Stenglein and Josh Olin both came in at $5,000.
Karl Amlie. $2,132. Andrew McCarthy $1,683. Benjamin Clabough $1,600. Anastacio Baeza $1,400. Evergreen Am, Devin Jump, and Virgina Lee, $1,300. Patrick Fowler $1,200. The Top Reinstater is Eugene Kashkin. He took home an extra $1,557.
I love Darrell Asbell. There’s not limit to the number of bonuses you can get. So he picks up a $3,000 Leadership Bonus and then hops over and picks up an extra $2,000 Longevity Bonus. Kimo Collins, Daven Hermosura, Luay Ghawi, Tiarre Hubbard, and Melinda Rae Lyse all got at least $1,000 on the Longevity.
Fastest Growing Territories.
-Hawaii. Number One Again. They took a half a step back, implemented Operation Field and have never looked back. $37,561 in New Agent Production, 188% of what is expected of a territory. They turned in a company-best 1,288 new referral cards. 68 referral sales on 244 presentations. Now that you do percentages, what is that: Yes, 68 / 244 is 28%, or .280. Better than one out of 4 but not quite one out of 5. Their number of presentations are up almost 50% and that has just catapulted this state. Maui has $31,000. Blake Higuchi is $21,000 of that. Waipahu also has a solid $22,000. Kimo Collins leads them with $9,300.
–Washington. $34,344. They were second in referrals collected at 1,133. They went 37 out of 127 on referrals. That’s 29%. Now tenured agents (guys that have been here over 6 months) were a whopping 38% on renewal presentations. That’s approaching the magical 40% that we’ve talked about. POS is also really strong here. They lead the company with 39 out of 97 presentations in that category. That’s over 40%. Long-time agents were 24 for 45, or well over 50%. Over 50%, that’s insane. Just feed that monster. It’ll spit money out as fast as you can feed it. They lead in total ALP with $97,000 as well. Redmond has regained their lead there with $34,000. But Lynwood is still over $20K.
–Nevada. $19,820. 18 out of 47 on referrals. That’s 38.3%. Tenured agents went 8 for 17 on referrals. That is ALMOST 50%. So now that you’re a math wizard, what does this tell you. Get your guys all the referral leads you can! Tran Ho and Darrell Asbell lead that stay, with $26,000 just out of the Las Vegas office. 17 out of their 19 coded agents wrote and they closed one out of four; that all points to a strong positive energy in that office.
–California continues to smoke ‘em. $19,120. They lead the country in Childsafe presentations. 8 for 27. 30%. I’m a businessman and I say, “Not bad.” 30% is decent. I might not build my whole agency around that, but certainly solid. Huntington Beach led this state with over $21,000. That’s Daniel Toshner, Dave Thorton, and Josh Olin. But looking through the reports, I see a strong core of great new leaders burning it up. The future looks bright in this state.