How To Apply $100M Money Models As An Insurance Agent

So Alex Hormozi has just released his book $100 million money models. And in this video I'm going to be breaking down how you can apply the concepts of this book to selling insurance. So I actually had the pleasure of meeting Alex Hormozi in person about a year ago. And basically he owns a whole life insurance brokerage himself, so he fully believes in the insurance industry. And what I'm gonna be doing in this video is showing you guys how you should be thinking through implementing this into your business. So let's dive in. Alrighty, Cool. So in this book Alex talks about how there's basically four types of offers. Okay? So the first offer is. Whoops, let me grab my pen here.

Alright, so the first offer is what you call a attraction offer. Okay. So basically what this is designed to do is attract somebody to your business. Okay. So most of the time in insurance this is, you know, most. Honestly there's not too many people that have like a specific attraction offer. But as an example, I'll give you one that I see a lot of people in like the retirement space use is they'll do like a free retirement guide or free retirement plan, right? Well, they'll basically create you a, a model, right, of what your retirement would look like. So like this could be like a free guide that has like, you know, some upsells, maybe it's like $7 or something. A free guide or a low ticket, low ticket product. Another example of an attraction offer could be like, and I'm not endorsing this, I'm just using this as an example is like how people will do.

They'Ll do an offer where it's like, see if you qualify for extra help, which is, it's a Medicare term. And so basically this is, I used to do this back in the day is you would go out to someone's house and then you would see if they qualify for this government program called extra help, which, I mean, if you make any bit of money, you don't qualify for this. But it's essentially where the government will pay for your part B premium. And so by doing this survey for extra Help, you have to ask somebody about all of their assets. So they have to tell you how much money they have in their 401k, what their net worth is, what the value of their cars are, what their income is. So obviously by getting this, you then now have their information where you can sell them other things. Okay. An attraction offer could also be something like helping somebody with an iul, right? So you Sell them an IUL or an attraction offer. Could be you teach them about Social Security.

Like you could literally sell like a $50 or like a $100 guide on how to use Social Security as a high income earner, for example. That would be a great idea. And so basically your traction offer is. Basically the whole idea is you get somebody into the door, right? The idea is that you get somebody into the door. From there you have your second and third types of offers, which are upsells.

And down sells. Okay. Now an upsell is like, let's say somebody comes in and they buy an IUL from me. Well, what I could now do is I could say, hey, you got this iul. Let's say I'm using this for their tax free retirement or whatever. I could now also say, hey, by the way, you should also get a term policy.

To give you extra coverage.

In addition to the iul, right? So that would be an example of an upsell. Or let's say someone comes in and they get an annuity. Well, I could say, hey, by the way, you should also get this other life insurance policy, right? And upsells and down sells in the insurance industry can kind of be synonymous. Usually an upsell is going to be something extra. And then a down sell is if they said no to your something extra, then you then you pivot to the downsell. So an upsell is like once they've said yes.

So once they said yes, you're getting another yes. And then a downsell is they said no the first time. And so then you're trying to get another yes. Right. That's the easiest way to remember it is upsell is they said yes the first time they get another yes. No is they said no to your first offer. You're trying to get them to say yes to a second thing. So for example, if somebody came in for an annuity but they didn't, you know, they didn't end up buying it or they didn't qualify. Well, I could be like, hey, no problem. Let's at least make sure that you do have some insurance to cover you in the event that you pass away. And then I could sell them an IUL or I could sell them a term policy or a whole life policy or whatever. Okay, upsells down sells. Now the last type of offer and then I can kind of give you an example of how you could put all this together is what is called a continuity offer. Me move this back over. Here we go. Cool. The last piece is what's called a Continuity offer. So one of the amazing things about the industry that we're in, which it being the insurance industry, is that you start to build renewals, right? You start to build renewals and you start to build recurring income, okay? So a continuity offer, in an ideal world, what a biz, like an ideal business would look something like this, okay? So you pay to acquire the customer. So you pay some money out, and then that person comes in, you get this big, like, spike of revenue and cash, right? Which is when they pay, you see this big spike of cash, and then over time they continue to pay you, but it's just like less and less and less. It's a small amount of money. So let me actually map this out a different way to kind of show you. So in terms of like lifetime value, the lifetime value you pay to. You pay for advertising, right? Their LTV is zero.

And then all of a sudden you get this big spike of cash, right? Let's say I sold them an annuity, and then all of a sudden they just continue to pay me a little bit over time for the rest of their life. So their LTV just continues to go up, right? So this would be ltv. They come in, you get a big spike of cash with the first initial purchase, and then they continue to pay you forever. That is the ultimate goal. That is a really good business because. Because this spike of cash here covers your cost to acquire a customer. It covers your lead cost. So basically, that's essentially the idea of a continuity offer is this is where you really make your profit, is in the continuity. Because once you've acquired the customer, if they keep paying you for the rest of their life, all of that money is profit, right? This is like the stuff that people don't really understand, but this is how people actually, like, really get rich. So an example of a continuity offer, a lot of times, health insurance is this health insurance. Another thing here would be like, assets under management.

Another one could be.

Literally just life insurance renewals. So there's a. There's an element of continuity built into all life insurance products. Whoops. Don't know why that happened. What is going on here? Okay, that was weird. Just going to delete whatever that was. But anyway, all life insurance products do have like an element of renewals just kind of like built into them fundamentally. Okay, so that's kind of a cool benefit of the industry that we're in, specifically, so renewals. And then also with certain annuities. The cool thing about annuities is after a few years, once the Money quote, unquote annuitizes, then you can roll it into another annuity again. So these are all examples.

This pen is whacking off. There we go. These are all examples of continuity. Okay? These are all perfect examples of continuities. So let's kind of break this down and I'm going to show you guys a specific example of how you could do this in your own business. Alright, cool. So we wiped the slate clean. Let me show you guys kind of an example of how you could work this into your business. So this is actually something that I've seen a few people do and I think this is a really good model. It's actually something that I'm gonna do myself with. One of the brands that we're gonna start is basically selling to business owners. So an example here, you would basically kind of position yourself as like a tax.

Not a tax expert, but like helping business owners save money on taxes. So tax savings and legacy planning for business owners.

This would essentially kind of be like your business. So what you would do is I would run an ad.

For like a free guide or I mean it could be a free guide or a low ticket ad, low ticket guide on how to save, how to save.

Money.

On taxes.

For business owners. Right.

And then what I would do here is essentially I would sell them a, like a infinite banking policy. Probably a whole life is what I would do where they could basically avoid having to take out loans.

They could save money on taxes because they could then pull this money out and it would grow tax free and they would essentially kind of be able to start building their own bank and getting some compounding on the wealth. Now I would make a lot of money from selling people these policies, right? So the infinite banking policy, I would get a lot of cash up front, probably thousands of dollars. Talked to a guy that does a lot of this and he said the average commission is like five grand. So you get one of these and granted some of them could be like hundreds of thousands. So I would sell them the infinite banking policy and then what I would also do is I would rec like I would recommend them to a tax strategist that I would be partnered with and that tax strategist would then give me a kickback for referring them over business.

Right? So they would then give me a percentage of the money that they make. So as you can imagine, I'm getting this big spike of lifetime value and then another small spike of lifetime value from an affiliate. Then I could now look at this person and I could say, okay, Cool. Well, do you have anybody that or do you have any W.2 employees? Hey, maybe I start selling them a group health plan, right? And this has renewals every single year. Group health boom. So now all of a sudden, the LTV goes here and it continues to grow steadily. Well, what are the other things that I could sell this person? Well, maybe I could. I could have a Rolodex and I could start referring them to different people. Rolodex. And I could refer them maybe to a lawyer that I partner with. I could refer them to.

Like a. Well, lawyer. We got tax, tax strategists. I could return them to a accountant, like a. Or a bookkeeper. Right. And so I basically kind of like become the go to person.

To recommend them to, to other people because I'm essentially like, helping them make more money with their business and save money on taxes. So a lawyer, a bookkeeper, and then I could even refer them to, like a wealth manager. Right? And so if I'm the one that is referring this wealth manager money, do you think that they're going to try to stab me in the back and say something that would be against this infinite banking policy? No. So now I have, like their group health plan. I'm. I'm selling them their insurance. I'm referring them out to tax strategists, lawyers, bookkeepers, wealth managers, et cetera. And so the LTV just continues to rise. But I only had to pay to acquire this customer one time. So all of this over here is just profit. And ladies and gentlemen, when you have that, you can outspin every single other person in the industry and you can beat all of your competitors when you have a superior money model. Now compare that, what I just showed you here with what most people do. And it's just like, like this is how most people are told to get into the industry. They literally are just like, okay, cool, I run an ad for final expense.

And then I make. I sell one policy and I make 500 to a thousand bucks.

This person is gonna get absolutely destroyed by that other money model that I just showed you. So this is a very important thing in terms of, like, what, how you're gonna structure your business. You really want to think about what the money model is and how you can add as many things onto it so you can ultimately succeed in the industry and beat your competitors. See you guys in the next one.