AIL-Altig

Altig Orlovic Agencies with American Income Life

Phil’s Leadership Memo 7/16/2013

Phil_bio_pageStrength does not come from physical capacity.  It comes from an indomitable will.   -Mahatma Gandhi

Let’s do a Bonus Buzz-thru.  We’ll start with the WGB Bonus; this is where Altig dominated.  Five of the top eight were all Altig-ites, Ryan Kendl coming in at #1 with $5,570.   Katie Massert got $3,681.   Mark Nielson $3,485.  Richard Luzaich and Dustin Dunbar both topped $3,000.

Bob Gujral led the leaders.  $5,367.   John McGrath, $4,448, Hunter Houvener $3,898.   Blake Higuchi, $3,559.   The usual suspects.  But that’s cool isn’t it.   I listened to a friend belly-ache all weekend about how he works harder and gets more results than his co-workers and they get paid more than him.     The AIL bonus structure is set up so that never happens.   A bunch topped $3,000 including Natalie Wagner, Nicholas Lorence, Trevor Mayer and Ryan Stenglein.    You guys are starting to figure out the Longevity Bonus out.   Ho Tran. $1,250.   A group got an extra $1,000.   Melvin Arritt, Lori Dacyk, Daven Hermosura, Blake Higuchi, and Patrick Rieger.

Tonight is the annual All-Star Game.   The best pitchers and hitters in the game test their skills against their rival league in a fun exhibition game.    Interestingly, players are generally voted in based on their batting results, not their defense.     No one looks at Golden Gloves when filling out their ballot, just batting average, mixed in with home runs and on-base-percentage.  Whoever has the highest percentages gets elected.   But there is some significance to the game.  Whichever league wins gets home field advantage in the World Series that fall.   One writer suggested having the player’s wives play one inning to give the give the game an element of interest.

Baseball managers today are as much statisticians as anything.   They not only judge batters by percentages, but base-stealers, base-runners, and fielding ability as well.   Some people lament that the game has almost become a math problem.   Pitch counts, games back, field dimensions, ERA, win percentage, everything is now measured and modeled and managed to mathematical measurements.   Some feel the game has now become the domain of nerds sitting in their underwear in their parent’s basement.   The lament is that the game has become prisoner to the numbers.

But math and percentages play a huge part in determining who ultimately wins and who loses.  The best overall team doesn’t always win the World Series (can anyone say “2003 Florida Marlins”).  They were far from the best team in baseball.    Playing by the numbers can give you a huge advantage.

You, as the MGA, are very much like a Major League Baseball manager.   You’ve got a team (9 batters).    And they all have a hitting percentage.   Now if a baseball player hits .350, that’s 35% or 3.5 hits out of 10 tries.   He’s one of the best batters in the league.  That’ll generally get you to the All-star game.

-If you hit .300, or “three hundred” as it’s usually called, that’s 3 out of 10 or 30%.   Good solid player.  As long as you do other things well, you’ll probably get an All-Star nod as well.

-A player hitting .250 is a 25% hitter.  He gets a hit one out of every four times at bat.   About what the average Major Leaguer hits (I think its .262 or something like that to be exact).

-Now if you hit .200, you are one of five.   That’s below average.   If you do other things well (like field or catch) they’ll probably put up with it for a little while, but would expect you to improve.

-If you’re below, .200, or 20%, they will look to you to work on your batting, to get together with batting coaches, perfect your swing.   If after a few months, you can’t pull your average over .200, they’ll probably send you down to the minor leagues for more instruction and more reps.  Now if you’re a rookie or new player breaking into the league, they’ll probably give you a little more grace, but you’ll got to work on improving your game.

You as an MGA have about 9 hitters.   They go to bat every time a potential client invites them into their home to the kitchen table.   Like baseball players (even professionals), they don’t get a hit every time.  In fact, if they close .350, or 35%, that’s better than one out of three.  That’s great.   At that rate, they will be successful, go to Convention, Bonus, all the things an All-Star does.

-If they close 30%, or 3 out of 10, or .300, that’s solid.   At 30%, they’ll sign up 6 deals for every 20 presentations they do.   That’s a place where you want to be.  Both in baseball and at Altig.

-.250.   25%.  One out of four.  That’s your average agent.  They might start out a little lower than that but end slightly higher, but if you’re doing one out of 4, you’ll get 5 sales in 20 presentations.  That’ll get you a solid $100,000 in cash flow a year upfront.

-.200 or 20% or one out of 5.   Here, you’re probably still okay, but definitely want to get a little coaching and work on your closing skills.    Our worst full week last year as an agency was 20%.

-Below 20%?   Your MGA should be doing video reviews (just like a batting coach), and ride alongs, to help you improve that, but it’s okay for a new person.

So now you’re the coach.  Do you know what all your players are batting (closing)? Are you getting help out to the guys that are one out of 5 or less?   Are you making sure any player 25% (.250) or less is getting extra reps to improve his or her swing?   Are you managing your agency by the numbers?   The best managers all do.   If you don’t, you are leaving a valuable tool out in the tool shed.   Yes, this is a people business, but the underpinnings are all mathematical.  Your mastery of this part of the business will be invaluable.   We’ll continue our discussion.

 

Huge week, as you can tell by the Top Offices.

-Washington State.  #1.  $56,658 in NEW AGENT production.  Remember, that’s usually only about half of the total production (in a healthy agency).   A company-leading 65 writing agents.   Lynnwood led everyone with $34,000.  That’s Daniel Toshner, Hunter, Jonathan Ng, Josh Olin and Levi Sterns.  They’re all ganging up on Nick Lorence’s Redmond crew.   The state turned in $142,019 in TOTAL ALP.  1,800 new referral cards.  A couple weeks ago they were collecting 1,200.  You can gas that resource THAT fast.

-Hawaii.  $49,977.   50 sales out of 149 referral presentations for their new agents.  That’s better than 1 out of 3 or .333.  That’s phenomenal training to hit that right out of the chute.   Maui, the #1 office in the company led everyone with $56,884. Blake Higuchi did $39,535 by himself.  That’s more than some whole state/provinces did last week.   Jonathan Emura had a respectable $17,349.

-Utah.  $20,812.   Their new agents average $1,095; they are going forth boldly.   This is a young agency.  Salt Lake City North wrote $16,000 while the Salt Lake Office turned in $15,000.  SLC North averaged over 20 presentations across their whole agency, so even though they had fewer agents, they led the state.

Virginia.  $20,039.   They are over standard.   $61,000 in total ALP.  That’s strong.   Richmond, under the leadership of Ryan Tucker topped Steve Marker and Jon Maust’s Manassas Office.  24.3% closing and $1,127 ALP per sale, so they are swinging a heavy bat there.

Honorable MentionTennessee.  $18,424.  And Alberta’s making a comeback with $17,000.   Manage your team to a win this week.

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This entry was posted on July 19, 2013 by in Ilija Orlovic.
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