Altig Orlovic Agencies with American Income Life
We’re looking at the Math of business. Actually, of all of life, but in particular how it affects your agency. Someone asked: Should you just KNOW the math of your business, or do you have to pencil everything out? The answer to that question is that it is a kind of like music. Some people play piano (or whatever instrument) by ear, and don’t even know how to read music. Others just read the sheet music, and would be completely lost if they didn’t have notes to follow. And that’s kind of like how math works. Some people can do it naturally in their head; but most people need to pull out a spreadsheet and lay it out. You need to be able to naturally understand the basics of how the math works in your business, but pulling out a calculator and putting in real numbers is the only way you really know what works and what makes sense in business. I’ve been in business 26 years and once in a while I still get fooled on what works and what doesn’t, especially over the long run.
Percentages are vital to business and yours is no exception. One of the core percentages is your immediate Quality Measure, or Net to Gross. Your Net to Gross is nothing more than the percentage of business that actually gets issued, versus that total amount that you turn in. If you turn in 10 deals and 8 of them ultimately end up getting issued, your Net to Gross is 8 divided by 10 or 80%. Your quality affects bonuses, Conventions, renewals, everything.
Now, I’ve run through all the factors that affect Net to Gross; its a few pages and several minutes long. But Rick Altig just did a conference call on Quality that was so simple, so straightforward, that it takes away any ambiguity. It’s like playing “Chopsticks” on the keyboard, and hearing Beethoven’s Fifth come out of the piano. So here it is.
Let’s say your Quality is bad. 69%, for example. How do you get it up to an 85% or 90%? Here’s the breakdown. Declines is always a biggie. 6-7% if you’re not careful. How do you eliminate the hit? Two words: Trial App. This is a Freebie that AIL gives us. Here’s where you can run the application through American Income and they’ll come back and TELL YOU whether or not it will be accepted or declined. Imagine if you weren’t sure if a girl (or guy) would go out with you and you had a pass called a “trial ask” that would tell you whether or not the person would accept your invitation or advances. No fretting, no hurt feelings, no embarrassment, no one would even know. And you had unlimited usage. How cool would that be? That’s what a Trial App is! If someone you write up is sick or has been sick and you’re not sure whether they qualify, TRIAL APP them.
But I have to wait until they run the app through underwriting to find out and get paid. Yes. Go out and write another app to cover your shaky one if you want that money. It’s better to wait and have a sure answer than risk it and put your quality, your bonuses, your renewals, everything on the line to rush it a couple of weeks. TRIAL APP it. It’ll save you the 6% that you’re currently being docked for declines. Now you’ve gone from a 69% to a 75%. Let’s keep going.
Incompletes. This is from sick people that they can’t get doctor’s reports on. So it incompletes. That runs about 3% on a lot of agents! How can we identify who is going to Incomplete? They’re the ones that have checkmarks by the “sick” questions. How do you prevent it? Use your magic pass: The TRIAL APP. You’ve just guaranteed yourself a 0% deduction on your net to gross. So 75% + 3% and now you’re at 78%.
Withdrawns. This usually happens when a spouse is declined for being sick. Do you see a theme happening here? All deducts come from someone who was or is sick. You are in charge. How do you take control of your quality percentage? Don’t write up someone who is sick, or TRIAL APP them to see how it plays out, rather than put this most important percentage at risk. Now you can add another 7% on this category. 78% + 7% is 85%. You’ve gone from terrible to terrific by doing one thing. TRIAL APP-ING sick people.
One last percentage before I move on. 82% That’s the break-even quality number. Remember one of the main reasons you went into this career? Yes, renewals. The concept of getting paid today for work you did 6 months, 1 year, 8 years ago. How fast and how big that happens to you depends on whether your Net to Gross is 82% or greater. If you’re 75% to 82% you’ll get renewals. You’ll just have to wait a while until that bad business gets paid back before you get paid. That’s fair. But if you’re over 82%, that accelerates your payout and you’re not that far from experiencing the miracle of renewals. Altig as a whole is at 82%. Be average or better. And then the math will work automatically work in your favor. But the key to it all is your quality percentage. We’ve given you the key to your success in this area; make it happen.
Top Territories. Washington. $64,938 in NEW AGENT production. That’s just agents in their first six months. $65,000! They collected 1,470 referrals and had a great mix of leads to present on. The state wrote $137,222 in Total ALP. So they are running 47% new agents and 53% tenured agents. That is the perfect formula for growth. No wonder Washington is exploding. Redmond just put up some unreal numbers. $50,740 in ALP. $1,269 per sale. Almost $3,000 per agent. What? Redmond wrote $16,000 and $26,000 the last two weeks. They weren’t even the best office in the state. What did they do differently? Couple things but the one I want to focus in on is that they sent everybody out doing Operation Field but they added one component. Or maybe I should say they remembered one component. When the Field Managers went out and taught Redmond, they took along another person; the person that they were training. And this made them BOTH better. And what did they do when their training was done? They went out by themselves. Total different set up. So Redmond hit the road doing EXACTLY what they had done in their training. They took someone with them. The results were as good as they had seen in their Operation Field training and even a little BETTER. You can wait until we install this final component of Operation Field in your office or you can start doing it now already and launch your office to new heights. We’ll share why and how it works later, just know for now that it WORKS.
#2. Hawaii. $36,937. Almost $37,000 in first-six-month agent production. 1,582 referrals collected. They had 88 sales off of 320 referral presentations. Their new agents had 47 sales out of 147 presentations. That’s 32% closing. That’s like batting .320, if you remember last week’s memo. That’s great for brand new agents! That’s another reason to collect lots of referrals. They’re easier to sell and so your new agents can hit home runs off of them and launch their careers in a spectacular way. Hawaii averaged over $2,700 in ALP per agent as well. Maui was the big story in Hawaii. $57,000. They had 10 agents, all 10 wrote and the ten of them averaged 20.4 presentations per agent. They did their 20 and then some. How much did the average agent on Maui write seeing 20+ people? $5,688. Per agent. 35% close. When you’re on a roll like that, you get momentum. That puts about $3,000 in the average agents pocket. Blake Higuchi’s agency wrote $40,000 of the total. LLB. Lead like Blake. Make up a wristband for yourself tonight.
#3. MANITOBA! The birthplace of our current wave of leadership at Altig. $20,934. $1,102 in ALP per sale both among their new agents and tenured ones. 33% closing. Their new agents had some good news and some bad news on their referral presentations. First the good news. Their new agents closed 100% of their referral presentations. Every single one of them. Now for the bad news. They only made 5 referral presentations. If a basketball player is shooting 100% what do you do? You feed him the ball. Then you feed him the ball. Again and again. What do you do when your new agents sell 100% of their referral presentations? You feed them more referral presentations. Christopher Hintz, Kevin Appasamy and Raymond James are raising up the next generation of leaders here.