Altig Orlovic Agencies with American Income Life

Phil’s Leadership Memo 8/16/13


Stop waiting for things to happen.   Go out and make them happen.

July is in the books.    How well did you LEAD?  How well did you DO?   One of the most frustrating aspects of the work-world is that success is very tough to measure in many situations.   If you are a CPA, for example, how do you measure success?   Sometimes the lowest tax bill is on an incorrect return.   My wife is a music minister at a church.  She complains about the same problem.  How does she measure success?   She sometimes jokes that when the Complaint Meter is generally pointing south, she’s probably doing okay.

But our business is AMAZINGLY measurable How much ALP did you write?  What is your quality?   If you answer those two questions, I can tell you exactly how well you did.   You can look at trend-lines a little.   Is your ALP (personal and agency) going up or going down?    And maybe, how many active people are in your pipeline?  And you’re done.  You can measure your performance in 60 seconds.   Pretty simple, huh?   We can make it more complicated.  I think those are called excuses.  Excuses only make the person giving them feel better.  It usually just irritates the person listening.  And they certainly don’t change the score.

Here’s the good news.   August is a new month.  You start out at zero.  Not one agent had any new ALP carryover from the previous month.   Everyone started in exactly the same place.  So if you loved July, get over it.   It’s done.  We’ve moved on.  If you didn’t hit your goal; get over it.   August is your redemption.  You can do whatever you want this month.   The ball is in your court.

Let’s do a quick buzz-by our top people to see where they are at for the Annual Rankings.  Mark Neilson is #1 with $215,000 in Net ALP.  He should break $400,000.    Ryan Kendl is #3 in the company with $166,000.  He’s on pace for $300,000.   You don’t sacrifice quality for quantity for quantity.   His 4-month retention is 88.6%.  Dustin Dunbar and Katie Massart are currently at #4 and #5 in the company.   They are both over $130,000 and in the $250,000 annual range.   Bruce Tan is also in the Top 10 at #10.  He’s got an amazing 90% Retention.  That means when he writes 10 policies, 9 of them make it all the way through underwriting, not declined, not cancelled or withdrawn; all the information is complete and available and 4 months down the road, the client is paying monthly and on their way.  How does he do it?  He doesn’t write up sick people!  And if there is a question, always Trial App (Trial Ask) it.

We’ve got a few more in the Top 20.  #20 and #10 are only $15,000 apart, so you can make up that in one month.     Jonni Ng, Erez Shabtay, and Richard Luzaich are all within easy striking range.  With a good sprint to the finish, Altig-Orlovic could have 7 or 8 of the top agents in the company.  I even see several of our very Top Talents hovering between $80,000 and $95,000.   Steve Stensrud, Michael Burningham and Tim Cruise are all capable of writing $200,000 to $250,000 walking from appointment to appointment.

A question came up from last weekIf you start in August, how much business do you have to write to make it to Convention?   $42,000.  Same as July.   How much do you have to write if you start in September:  $42,000.  Pretty simple and easy.   The average size sale in the agency is $850.   So you need about 49 sales.    Sell 49 policies between now and the end of the year and you earn the trip of a lifetime.  I have never heard ANYONE come back from Convention and NOT have a great, great time.  So set up a tracking chart for $42,000.   Some agencies use a race trace around their meeting room.  Some people make themselves a giant thermometer. I think they stole that from The United Way.  Who cares?  It works.   Set up your tracking the day you start and hit the first major milestone of your career by making convention in 2013:  $42,000 if you started after June 30.   If you are an MGA with new agents, use this as a leadership tool.   It’s a great place to solidify your agents and expose them to something that’s way bigger and beyond their current state in life.

ROI.  Return On Investment.   Let’s put some meat on this concept.  Where should you invest and how do you calculate the ROI?  Let me give you an example.   If you are an MGA, an interview booker might make sense for you.  Let’s run some numbers.     So you are a relatively new agency, five agents in their first nine months.   And they are writing $2,000 a week.   That’s a total of $10,000 a week.  I love simple math.   What’s the MGA bonus on those 5 agents?   The agents earn $10,000 times 15% or $1,500 between the 5 of them.   $2,000ALP times 15% is $300.  Five agents at $300 earn $1,500.   You can do the math both ways.

How much bonus does the MGA earn?  That’s a bit of a loaded question but the answer is 120% of the agent’s total bonus, or $1,800.  That’s if he/she has 3 codes in the rolling 5 weeks.  If the MGA has 2 codes, the MGA gets half of that, or $900.   And they earn $0 bonus if they have 0 or 1 new code.   I’m going to assume minimum quality.  So how many codes do you want?  Minimum of 3 every five weeks.

How many interviews do you needs to get 3 codes every 5 weeks?   I worked the numbers backwards already for you, using agency averages.   If you set 178 interviews a week, you’ll get 64 interviews.   That’s just the national average everywhere.  Out of 64 interviews, you’ll have 3 to 4 people that you are excited and they catch the vision. That’s never changed.  Your top person will make it through licensing, get trained and become your next star agents (or at least write some business).  And pay you back several times.  Keep following me.

So how many hours of interview-setter time do you need to set 178 appointments?   40 hours if they’re setting 4 ½ interviews an hour, or 1 every 10 to 15 minutes.    Maybe you’ll get two people at 20 hours.  But you’re going to pay $400 to $600 to get the job done.   Some people pay $6 or $10 for every actual interview conducted.  Every market is different.    64 interviews times $8 an interviewee that show up is $500.   And you’ll get one coded agent a week.   Did you get the minimum 3 every 5 weeks?  Yes.  In fact, you’ll get about 5 if you are average, and earn Extra Bonus.   But think about what you just did.   You spent $500 a week and now earn an extra $1,800 a week in bonus money.  That’s JUST on your existing agency; not counting all the extra override and bonuses your new people will bring in.   That’s how some of these MGA’s are earning $20,000, $30,000, $40,000 in Leadership Bonus a month.   But that’s a whole other math problem.  Maybe when we’re at Starbucks I can show you how they do it.  In my small example, you invest $500 and you return $1,800.   Your ROI?  360%.   Not 36%.  360%!   That’s a smart way to invest your money.

This also shows you the power of recruiting in the home.  If you consistently bring in people that you meet in the field, your investment and effort can be cut in half.

Phenomenal week.  $742,500 reported so far.   Lots of great performances.  Quickly.

Washington.  $45,235 in new agent production.  1,280 referrals collected.  $139,600+ in Total ALP.

Redmond wrote $48,000.  I’ve bragged on them enough.  Vancouver is busting out!  Over $15,000.

Tennessee.  $35,273.  New agents averaged over $1,100 a sale.  You can’t sell big deals in Tennessee right?   Bunch of malarkey.  Don’t ruin these new agents.  They are doing it RIGHT.   #2 in the whole company with $85,500 in Total ALP.  Bobby Hamilton and Ashlynn Orng are tag-teaming in Nashville East and did $54,000 between them.  We expected big but this is ridiculous.

Utah.  $30,040.   24 out of 95 referral presentations.  There’s a money machine in Utah and it says “referrals” on the side of it.  Let’s see how much they print up in the next several months.   Patrick Rieger in Salt Lake City has $27,000 just in his MGA-ship.

California.  $20,274.  33% closing as a state.   Both Salt Lake City and California are bumping up against $3,000 ALP an agent.   Huntington Beach, Chico, and Santa Rosa all topped $15,000.    Josh Olin has the hottest agency in that state.

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