This is a short training segment from a YouTube video (Building Your Insurance Business) focused on moving from personal production to building a team and becoming a sales manager. The speaker explains a concrete threshold: reach $25,000 monthly (illustrated as needing ~25 paid applications at ~$1,100 each) plus two recruited producers (QER riders) to move from a 70% to a 90% contract. The 20-point difference (the "spread") becomes override income for the manager; hitting the threshold increases deposits, profitability, and long-term business sustainability. The speaker frames these as foundational steps before a producer can be considered "in business."
Chapters
Alright guys. Hey, we just got done talking about how you can increase your value to these insurance companies by distributing more product on your own pen and going out there and helping families on your own. Now we're going to spend just a minute talking about what that looks like. If you start building a team and getting to sales manager, you're going to hear a lot about sales manager. Hopefully as you get through these modules and you listen to these videos, go through it, you'll understand why they that makes sense and how the math works for your bottom line in your business and how it increases your deposits, increases your profitability and ultimately keeps you in business longer because you're going to be, you know, putting more of that, more of those deposits in your account to pay your bills. So here we go, building your business, what that looks like. So we just got done looking at the personal production side, this is the business side and really we're going to focus on this number down here because that's really your first step, right? I tell people all the time until you get to where, yeah, at least a 90% contract with these insurance companies and you've got a couple of people writing business with you. You're not in business yet, right? This is really the foundation, this is where everything starts. Until you get here, you're just fighting and clawing to get there, right. But once you're there now, you're making good money now you're paying your bills and things are looking up and long term, you know, you've got a chance at making this a long term gig and a nice career for yourself. Certainly was for Tanya and I. So what does this mean? 25,000 and then the plus three riders and so the QER is qualified Equus riders, that's you plus two other people, right. And we just got done saying, right, every case is 1100 bucks. And so how many do I need to get to 25,000? Well, we're going to round off, make the math easy and we're going to say, hey, I need 25 paid applications in one month and you can go from a 70% contract to a 90% contract. And it really doesn't matter how you do it. I would say you should probably count on being at least 50% of that number. Right. I would, you know, even do more. So let's say you do four apps a week, that's 16 applications, that means you need nine more apps from two other people, right? And then you get to that 25,000. Now the insurance companies say, you know what you're valuable enough to us that we'll pay a 90%. Right. And these other two people that you've brought on board, they're still writing business at a 70% contract. So the difference between the 90 and the 70, that's what in this business we call spread. Right? That's the override income that the insurance companies are paying you, because not only are you valuable to them as a producer, you, but you've also demonstrated that you can bring people on board and teach them how to go out and help families with their products as well. And so that difference that they pay you is that a boy, Good job, thumbs up for being able to demonstrate your ability to get people started in this business. Hopefully, that is, you know, makes some sense to you. And you can kind of start understanding how all these pieces fit together and how the business model works.
