How To Make $100,000/yr As A Life Insurance Agent

Alright, ladies and gentlemen, in this video, I'm going to be showing you how to make $100,000 per year selling life insurance entirely over the phone. Right? We're going to break it down here on the whiteboard with real numbers so that you can see exactly what you need to do in terms of how many dials you need to make, what you need to spend on leads, and all of the numbers so that you can hit that $100,000 a year mark. So without any further ado, let's go ahead and dive right into it. I have a couple notes right here that I'm going to be referencing throughout the video, but let's just go ahead and start off by writing $100,000 on the board right? Now, typically, this is the most common goal that I hear, especially for people that aren't currently making six figures in their job and they're getting into this to do so. Right? So $100,000, right? What does this actually break out to on a monthly basis? Right. We're going to kind of break this down incrementally. So $100,000 actually breaks out to, I believe the exact math is like 8300. Whatever. We're just going to say $8,000 for easy math, right? It's roughly $8,000.

But the thing is, usually people don't actually know this. People, people just. They don't think about the math and they just think $100,000 is 10k a month. Right? So typically when people say they want to make $100,000, they actually want to make 10k a month. They don't want to make 8k a month. So what I'm gonna do is I'm actually just gonna change. Where's my little eraser? I'm gonna Change this from $8,000 per month, and I'm actually just gonna make this 120. Because in all reality, this is what most people's goal is, is 120 and 10k per month. Right? They really want to make 10k a month from what I found. Not $100,000, not $8,000 a month. Okay. Okay. So we're going to base all this math off of $10,000 a month, right? So now all we need to do is solve backwards to figure out how we can get here, which I'm going to do for you guys. I'm going to kind of show you guys how this works. There's a couple things that we need to take into account when figuring out how to get to $10,000 a month. And the first thing is our comp, right? So we need to figure out like how many policies do we need to sell, what is the average policy size, you know, all these different things. But to reverse engineer this to get to 10k a month, we need to know what we're getting paid on each policy, right? So comp can range pretty widely across the industry. You know, the top comps for like big IMOs are, you know, 145, 150 plus. You're not going to be able to get that as a new agent, right?

Some agencies will give you like 50 or even 35 point comp. So there's a very wide range. Generally what I've found is that a fair or reasonable comp to get starting off is anywhere between 80.

To 100, right? This is not 700. That would be insane to 100%, right? This is generally what I find to be fair, especially if you're starting off just depending on what the agency is giving you. So if you're getting 80% comp and you're getting a bunch of training and support, cool. If you're getting 100% comp and you're getting none of that, cool, right? So really it just depends on what commission you're being put at. For this example, I'm just going to assume 100% because this is, you know, easy math. You guys can kind of sub this in. Use your own math. I'll even include a link to a free resource down below that you guys can use to kind of work backwards and figure this out for yourself. But we're going to use 100% comp. So what I've found is with the insurance business, you usually want to take whatever this income is and kind of just like double it. So if we say, hey, we want to make 10k a month, we probably need to shoot for about $20,000 a month in annual premium, right? If we're at 100% comp, $20,000 a month in AP right now, how did I get that number? Why do I say that? Well, there's a couple things, right? First, we're going to have a percentage of the business that charges back, right? Some of it's going to charge back and some of it's never even going to issue, right? Like we're going to write some business, but it never actually pays us and it never actually gets on the books because for whatever reason they don't pay their first payment or they change their mind or they get declined, whatever. It doesn't matter which product you sell, you're always going to have some form of chargebacks. It just depends on the amount of chargeback. Right. The other thing we also have to take into account is the advance. Right. So let's say that, you know, 25% of our business is going to charge back at some point. So 25% might charge back. We also have an advance. So what this means is basically you're going to get a portion of your money up front and a portion of your money after they've made a certain amount of premium payments. Usually this is what's called a nine month advance. Okay, so nine month advance, meaning the way that this kind of works out is I'm just going to draw this. So now let's say we write a thousand dollar policy, right? So thousand dollar policy, we're going to get $750 now.

In nine months. In month 10, 11 and 12, you're going to get what's 250 divided by three? I think it's like 75. Probably not. Let's do the math.

250 divided by three. Okay. So in months 10, 11 and 12, we're going to get $83. $83. $83. Right. Does this make sense? So it totals up to us getting $1,000, but we get only 750 upfront and then we get the remaining in month 10, 11 and 12. Right. So if we sell this in January, we're going to get this in October, November, December, basically once they make their final premium payments. So we have to factor this advance in because we want to make 10k a month now. And even though it's great that we're building this back end, how can we get to where we're making $10,000 a month ASAP? And so that's why I say we want to basically double the AP and shoot for about $20,000 per month. Now what I found is with like final expense, your average policy size is going to be roughly about 1,000 bucks, give or take, usually a little higher, but $1,000 makes it easier. Math. I'm going to use that number just for the sake of this example because it's, you know, easy to do. So if our average Policy size is $1,000. Right. You guys can probably do this math. I hope. $1,000. Avg. Policy.

Size. How many policies do we need to write in order to write 20k a month?

20. Right. So we need 20 policies per month. So how do we do that? That's what we need to solve in order to get to this. Right. Hopefully you guys are tracking with me so far. Is this making sense? So far, we got 10K, 100% comp. We need to write about $20,000 of AP. This is just kind of like mental math. Usually you want to kind of double this number. Thousand dollars, average policy size. We need to write 20 policies a month. So the only thing we need to figure out is how can we do that? How are we going to write 20 policies a month? Let me just clear this whiteboard here. And that is how we can get to $10,000 a month, right? So 20 policies per month. So I'm going to introduce you guys to a stat, or I guess you could call it a metric that I track with all of the agents and clients that I work with, right? We have a program where we basically, like, coach people to help them do this. And one of the numbers that I always look at for my clients and how I can tell them, hey, do you need to spend more on. On leads? You need to spend less on leads. What do you need to do is I use this metric, which I call premium per lead or ppl. Premium per lead, Right? And so basically, the way that you calculate this is you take the total AP that you write.

Total AP.

And then you just divide it by total leads, right?

So a healthy number for you to be at with this metric is about $50. You want to be at at least 50 bucks, right? Some people, their PPL is 100, which means they can spend a lot more on leads. Some people is 300, which means they can spend way more on leads. Some people, it's like 20. And in that case, they need to make more out of their current leads before they go and scale up. Right? So this is a good target to shoot for for, like Facebook leads, which is the best lead type out there, just because it's so easy to scale. But $50 is the ppl we want to shoot for. Okay, so why is this helpful? Well, to figure out the amount of leads that we need, all we have to do is divide 20,000 by 50, right? Pretty simple.

So I'm going to take $20,000 divided by 50 ppl, which is kind of the metric we want to shoot for. And guys, again, the reason that I'm using 50 ppl is we want to write $50 of premium per lead that we get. So for writing $20,000, I'll just add dollar signs here to make it simpler.

We can solve to figure out how many leads we need in order to get there. Right? And 50 ppl is just kind of a good metric to be at. If you're doing that, you're making money. It's also conservative because, I mean, I'd like this number to be more like 75 or 100. At that point, things start to get, like, you know, really tasty. But for sake of example, if we are at 50, that's like a good. It's a good number to shoot for, right? So 20,000 divided by 50 is just 400, I think. Let me make sure.

Before I tell you guys something wrong. Divided by 50, up 400.

So we need 400 leads per month in order to get here, right? I need 400 leads per month in order to write $20,000. So now I can figure out what do I need to spend on leads per day, per week, per month, whatever, right? So I need 400 leads a month in order to get to $20,000 a month. So the leads that I typically prefer to use are what I call Facebook leads, or that's what they're called. It's not just me that calls them that. We use Facebook leads because they're very easy to start generating. They're very easy to scale. We're really freaking good at it. You can look at our channel. We have tons of tutorials that show you how to do it. We've literally taught. I mean, we have a Facebook group with like 5,000 people that have learned how to generate leads from us.

Tons of client results. Anyway, we also have a program that helps people do this. If you guys want us to help you generate leads, just click the link down below in the description. There's going to be a video that explains how that works. Just says apply to join our program or something like that. But that's kind of besides the point. I recommend using Facebook leads because they're very easy to scale. It's like, time and time again, we've been able to do this for people, and there's other people that do it outside of us, too. So it's just a very, very good method. So the average cost, if you're good at doing Facebook leads, you can get them for under $10. But the average you're going to see, right. Is about $10. So $10 per lead.

And we're usually able to get it to this number or even lower for all of our clients. So $10 per lead. So 10 times 400. We need to spend about $4,000 per month on leads in order to write 20 and make 10. $4,000 per month on leads. Right? So if we know we need to spend $4,000 a month. What does that break out to per week? Well, obviously it's $1,000 a week. So in order for us to do 20 policies, we need 400 leads, $4,000 a month, and spend about $1,000 a week. Cool. So now we got our first. First keys to get here. So we need 400 leads. 400 leads.

4,000. This is per month. 400. $4,000 per month on leads. Boom. So 400 leads, $4,000 a month on leads. Now how do we figure out how many dials we actually need to make per day? One thing, this is a little bit of, like a secret sauce for you guys is whenever you're making calls, a lot of people will go out and they'll start making calls using this, right? The problem with this is, like, 100 dials takes you like, seven hours to do. If you're manually coming in here and, like, typing in these numbers, it's just going to take forever. So a lot of the clients that I work with, like, when they come to us, they're using their cell phone or they're like, clicking to call every time, even like, if they're using a CRM. What you need to use to speed this up is you have to use what's called a power dialer. Okay, so there's two power dialers that I would recommend to you guys. One is called Wave, and one is called Kixie. Okay, so I'll tell you guys briefly, this is not going to be like a power dialer video, but I'll just explain it real quick. So Wave, the nice thing about this is it integrates into what's called Go High level CRM very, very well. And it's super easy to set up. Right.

It's also a little cheaper up front, which is good. Both work. Right. The other thing about Kick, the thing about Kixie, you have to pay three months in advance, or it might even be six. Three or six. They, like, constantly are changing it, which is kind of why we went to Wave. But the nice thing about Kixie is they rotate the numbers for you. So it's like, a little easier on the back end in terms of, like, workload that you have to do. But it is a little more complicated to integrate and you'd have to pay more up front. So use a power dialer. You can, you know, talk to both Kixie and Wave, decide which one's the best for you. But both are great, right? So use a power dialer. What we found is for new agents.

So the two numbers that we track again are premium per lead, right. Ppl. And this other one that I call dial or dials per sale or dps. Ppl and dps. So your dials per sale is literally just how many dials does it take you? So the dials divided by sales, right? And that's how you get this number, dps. So if we know these two numbers, we can predict how many calls do I need to make per day and how many leads do I need to get to get there. It's like so simple. But nobody in the industry like actually breaks it down like this. I don't know why, but they just don't.

So what I found is this metric, the dials per sale. For most agents, it usually kind of works out like this. Like, let's just say this is like, you know, 500 and then this is like 100. Okay.

And then. Yeah. So usually people that kind of start off here and then over time it starts to dip.

And then they kind of like mellow out here. Right? This is kind of like a general graph of like how many dials per sale. It takes somebody when they're first getting in, when they first get in, they suck. So they have to make a lot of dials to get a sale. And then slowly they get better and then they get a lot better and they get more and more follow up. That kind of builds up in their pipeline and then they kind of level out here around like, you know, 150, 200. And then they get even better and better and better and then it dips down below. Usually if you can get your dials per sale to like, you know, 50 or 80, like you're literally printing money. Right? And the way that you get this lower, right. That's ultimately your goal is getting better for one, and then building a pipeline and getting referrals. That's how you get this lower. Right? But that's kind of besides the point. The dial per sale metric I'm going to use for you guys is 300.

Dials per sale. The reason I'm going to use that is if you have any like sales experience and you get into this, this is a solid number to be at.

And the cool thing is when you guys know your dials per sale, if you want to do a sale a day, all you have to do is just do whatever this is every day. It's so, so simple. So like so simple. So if we assume 300 dials per sale, Right. Hopefully you guys are tracking with me.

300 dials per sale. Well, if we want to make 20 sales per month. Right. We said 20 policies a month. All we need to do is multiply 20 times 300. 20 times 300 equals 6000. Right? So we need to do 6000 dials per month, which breaks out 2. 1500 per week. Not 15,000. That would be insane.

1500 dials per week.

And if we're working five days a week, it's going to be 300 dials a day.

Dials per day. So.

Now, ladies and gentlemen, we have our math, so we know exactly what we need to do. If I want to make $10,000 a month.

I need 400 leads per month. I need to spend about $4,000 per month on leads, and I need to make about 300 dials per day.

That's it.