Why You Should NOT Sell Final Expense Face 2 Face...

Going on. Ladies and gentlemen, in this video I'm going to explain why you should not sell final expense life insurance face to face in 2024 and beyond. If you guys stick around to the end of the video, I'm actually going to break down the numbers and show you guys how much profit you would make with final expense face to face versus how much you would make selling telesales. But first, let me explain who I am and I'll explain why I don't think you should sell final expense face to face. At the end, we'll get into the numbers. So first and foremost, my name is Tim Shooker. I run the life insurance sales channel. We post free content to help insurance agents six figures over the phone. Now, I got into the insurance industry back in 2021 and I was recruited to a face to face free lead model where basically, you know, we would drive out, knock on doors, we had paper mailers, which is how a lot of people get recruited into the business. And after being in the industry for the last three and a half years or so, I've realized that that is probably one of the worst ways that you could sell insurance. One of the least profitable and least efficient. Right. And here's why. So basically what you have to realize is that as an insurance agent or as a salesperson, or really just as a person in life and in business, your most valuable asset is your time. Right? We all have the same 24 hours in a day. And the only difference as to what kind of results we get, whether they're poor results or outsized, extremely amazing results, is really just how you allocate and how you spend your time. Right. When I first got in the industry, I didn't really realize this and I didn't understand this. I think I kind of like in the back of my mind heard it and I knew it to be true, but I didn't know how to apply that to my own life. Right. And so what I mean by that is like when you get into this industry and you go out and you sell face to face, the majority of your time is spent driving, right? Whether it's to the area that you're going to sell or whether it's from house to house door knocking, most of your time is spent in the car right? Now there's a few reasons that you wouldn't want this. One, you're not making money when you're in the car. Two, it's pretty dangerous being on the road all the time. Like as a face to face insurance agent, like you Practically have the same amount of risk as like, an Uber driver or a trucker, right? Because car accidents happen and you're on the road all the time, and so majority of your time is spent on the road, right? I used to drive about two and a half hours to an area, right? I was selling in North Carolina. I lived in, like, the middle of the state, like the Piedmont Triad area. And I would drive all the way to the coast, and then I would drive all the way to the mountains and like, everywhere in between. So, like, we were on the road two hours to even get to our area, and then driving from house to house to house to house to house. Knocking, right? And so when you allocate your time towards driving, that's a bunch of time where you're not actually making money. In fact, you're actually spending money on gas, right? And so when you look at the value of your time.

You. You realize that face to face is really a very inefficient way of doing business, right? And the reason, like, what people will say is, like, hey, well, you know, it's a great way to learn the business, and you're gonna, you know, it's easier to sell in person, which, like, maybe that's true. Maybe that's true. But also there's a few other factors that, like, those people don't account for, which is that, you know, a lot of times the people that you're gonna sell face to face, the people that send in mailers, which is what most people use face to face, they usually have less money, right? And you may be saying, like, that doesn't make any sense. They're just sending in something in the mail. Well, the people that fill something out online, in order for them to do that, they have to have, one, a phone, two, an Internet connection. They have to be tech savvy enough to use both of them. And they also usually have to have like a Facebook account or Gmail or something to be able to use the Internet. So for Internet leads and for telesales, like, just the prerequisites to even talk to this person means that they have a little bit more money than your average person sending in a mailer. Like, you can, like, the houses that I would go to, like, somebody could literally be living in a shack and, like, scribble their name on a. On a note card and send it back, and I would end up at their house, right? And so again, that's. That's kind of the way that people, like, try to push agents into doing this is like oh well, it's easier to sell maybe, but also you gotta realize that the average person has less money. And so, you know, we ended up getting more chargebacks. Our policies were smaller when we sold face to face. But back to the time aspect, right? Cause that's really the main thing. When you're spending most of your day behind a windshield, you're not spending most of your day doing what I call dollar producing activities, right? And if you want to make money selling insurance or really just make money overall, you need to figure out what the most efficient way is to allocate your time, right? And what I found is that the agents who make the most money, all of their time is doing dollar producing activities. And so for an insurance agent, it's calling and talking to people, right? When you're calling, like outbound dialing and talking to people, that's when you're making the most money specifically talking to people, right? And when you actually look at the day in the life of a face to face agent versus a day in the life of a telesales agent, a telesales agent, they get to take so many more shots, right? They're just dialing and dialing, dialing. And you know, yeah, maybe they might deal with like a low pickup rate or something like that from day to day, but they're getting more shots because you can reach hundreds of people every single day. When you're outbound dialing versus, you can maybe reach 20 to 30 people or knock 20 to 30 doors. That's a really busy day if you're selling face to face, right? And so for ultimately, like for me, that's what it comes down to is how much output can I get in my day, right? And what I've seen, I've been a face to face agent and I've been a telesales agent and I've coached hundreds of agents on how to, you know, write more business and make six figures like selling insurance. And what I've seen is that the people who are selling over the phone, their time is just better allocated. It's more spent towards dollar producing activities, right? So that's what it ultimately comes down to. Now let me show you guys. I'm gonna actually break down the numbers and kind of review what it actually looks like if a face to face agent writes 30k AP versus if a telesales agent writes 30k AP. So let's transition over here. All right, so here we are. I have this Google Doc pulled up and as you can see, we're going to look at the numbers. If you write 30k AP as a face to face agent versus as a telesales agent, right? So first and foremost, face to face, your primary lead source is going to be mailers, right? Average mailer, this is kind of on the low end, to be honest, is going to be about $50 each. If you have them like subsidized by your IMO, they might be less, but you're also going to have lower commission. So let's say you're paying about $50 each. And for face to face, let's say you're actually closing a higher percentage of your leads, right? Let's say for every lead you get, you close about 15%. So you get 100 leads, you close about 15 policies, right? And we're going to base this off of how much you need to write 30 policies. So let's say your average policy size is about 1000 bucks and about 20% of that charges back, right? Which means that in order for you to write 30 policies, right, if we just divide 30 by 0.15 or 15%, we need 200 leads to write 30 policies, right? 200 leads to write 30 policies as a face to face agent based off of these numbers. I don't know why that looks like a six, but it's meant to be 200. So if we pay $50 a lead for us to buy 200 leads, it's going to cost us about 10 grand, right? So we're going to spend about 10 grand to write 30, which you may be saying, okay, that sounds great, but then you have to factor in chargebacks, right? So if we say 20% falls off, that means that we get 24k AP after chargebacks minus 10,000 that we spent on leads equals $14,000, right? Now the other cost, what people don't account for, is gas that you're going to spend. And if you're driving face to face and you're driving anywhere near as much as I would I was, you're going to spend $800 per month or more just on gas, not including maintenance on your car or oil changes or anything else that comes up $800amap per month. And this is actually for a Honda Accord. So if you drive like a truck or a Tahoe or something bigger, this is going to be quite a bit more, right? So 800amonth on gas, $250 a month on food and eating out. Because when you're driving and you're on the road constantly, guess what? You're going to be eating A lot of fast food and you're going to be eating out a lot, which means we have to subtract from $14,000 off $1,050, which leaves us with about $12,000 in profit, which you may be saying, like, hey, that sounds pretty great. And you're right, it does. To write 30k.

Make about 12, we spend about 10 on leads. That's really not a. That's not terrible, right? But the only downside is that your lifestyle is really, really rough when you're selling face to face. When I was doing it, you know, I was like working 80 plus hours a week. When you account for time on the road, right, you leave your house at like seven o', clock, drive two and a half hours or two hours to your area door, knock all day, come home at like, you know, nine o', clock, and you get back to your house at like 11 and then go to sleep and do it all over again. So it's like a really rough lifestyle if you want to do it. And honestly, like, in my opinion, it's really just not worth it to make less money, as you guys will see. Now let's look at telesales, right? Let's say that we do telesales. We work Facebook leads. Let's actually say that these are eight bucks each because you can realistically get these for a lot lower. Let's say you're paying $8 a lead for a Facebook lead. Okay? Now let's say that you actually close half as many Facebook leads as you do direct mailers. Let's just be like really conservative here. And let's say you close about like double what you do face to face versus what you do on telesales, which is realistically not going to be the number. But we'll just be conservative and say that. So if we close 8%, average policy size is the same, 20% charge back. That means to write 30 policies, we need about 375 leads, right? Let me update these numbers real quick. So, whoops, if we do $8 a lead and we need 375 leads to do it, that means we're going to spend about $3,000 on leads, right? I'll show you guys right here. Calculator, just so you guys can see. 3, 7, 5 times 8 is 3,000, right? So we spent 3 grand on leads. 24k AP after chargebacks, minus 3k on leads, 21,000 bucks. Let's say we pay for a CRM and a dialer. That's a total of, you know what is that 247 bucks. That means we make 20 grand, right? So we're making 8,000, nearly $8,000 more working over the phone, working from home in our pajamas, not having to drive and not having to work 15 hour days.

Like that just makes so much sense. So that is why I don't think that Face to Face is a good business model anymore. That's why I think telesales is so much better if you can learn how to sell over the phone and learn how to do a script and learn how to, you know, get those word tracks down like it's not that much harder to sell than it is in person and the lifestyle is just like a thousand times better. Better. So ladies and gents, that's why I think Face to Face is dead in2024 and beyond. Let me know your thoughts in the comments down below and I will see you guys in the next one. Take care of.