How To Calculate Your Commissions In The Life Insurance Industry!

our next presenter today right now this dude knows his stuff he is so freaking impressive uh he helps people make cells and make a much a bunch of money as Mike and ardini and Ursula and Rosie are like okay I like this man I like this dude uh Mike we just did a webinar what last week on the whole debt free for Life concept yeah Monday yeah well Monday you'll do literally this week that's right yeah yeah dude you crushed it on that thing by the way like y'all absolutely slayed that webinar so thank you for doing it thanks man thanks for having me again appreciate it yeah man excited for you okay those who don't know Mike uh special dude big heart former firefighter now he's helping agents get to six figures quickly um as he is on his way to seven figures dude I appreciate you appreciate everything you're doing appreciate the relationship and excited for you to be back training with us today as Mike is super enthusiastic I'm gonna go find his YouTube interview if you haven't watched it you gotta freaking watch it ladies and gentlemen Mike Hall thanks Cody appreciate it and uh man heck of a job to land and a way to go Landon thank you for all that information and we're in the people business right and so what a what a great uh what a great job there happy belated birthday to you as well and I'll tell you that my group is working with Landon some and it's just been an incredible experience through professionals over there and so if you've got the ability to work with him absolutely do that and so what I'm going to use my time to talk with you a little bit about today is actually probably going to tie right in with what Landon was talking about because I like to talk more about business ownership versus how do we go out there and make a dollar right teach a person to fish versus giving them a fish and when we think about business ownership inside of our country especially right now look at what's going on around our country right now inflation is at an all-time high they're talking about a recession coming up uh here sometime later this year they're talking about how job wages have not increased with the increase of everything else and I just think that what our country needs right now is we need more people like you more people that take the courage to go out there and to build something for them and their family you know I had the pleasure of um speaking at a eight percent virtual here a couple of a couple of months ago and I talked about I joked about how the uh how the pilgrims didn't come over on the Mayflower because they wanted a great job in good benefits they came for Freedom the freedom to screw up as many times as it takes to figure it out right the freedom to be able to to fight for something they believe in the freedom to not be under somebody else's thumb and so let me just kind of flip my camera here a little bit and see if you guys can see my page so hopefully you guys can see this so what I want to talk to you a little bit about it about business ownership and if you guys have heard Robert Kiyosaki or if you've read his book pass flow quadrons what he tells us is that there's actually there's actually two different ways of making money okay we got self-driven income and we've got system driven income and there's two different ways break down into four different quadrants and under self-driven income we've got what most of us are used to doing which is being an employee before I got into this business I was uh that's all I ever knew I mean I did have a small lawn care company you know but um and so that would have been self-employed but most of my most of my life I spent working in a job being a farm and working fast food things like that a lot of us though a lot of us when we get out of that a lot of us see this opportunity right and we jump out of that pan and we jump into the fire but here's the thing we go from having a job so what is this what Would S be S is self-employed right so a lot of people confuse this and they think that you're a business owner when you're self-employed see the way I look at it is you go from having a job to now you own a job well who are some people that are self-employed well let's hear we've got real estate agents we've got insurance agents we've got people that sell cars really anyone that goes out there and works for themselves they do a transaction and then the transaction's over right self-employed so Mom Paw shop if you've got a single location that would be a self-employed location right so when we go out there and I want to talk to you about how we make money with what we do in our business so right now I just want to talk about the self about the self-driven portion of it so in the Life portion of what we do here in in our industry at least with the numbers that we use at least with the numbers that we see over here let me just use the number of 84 dollars a month so I'm going to show you how we get paid in our industry okay so if we take 84 dollars and we multiply that by 12 months well that's going to be a thousand and eight but I'm just going to make it a thousand dollars for easy math here okay so the way that we get paid in our industry is we take what the client pays for the month and we annualize that to see what they pay for the year so eighty four dollars times 12 months is just over a thousand bucks all right now let's just say that you were to start maybe you start out on a 70 contract with wherever you're at with what we're doing so if we take a thousand dollars and we multiply that by 70 percent then our full commission on that product is seven hundred dollars okay now if we take that now typically in our industry with life insurance we get paid as if the client had paid for uh nine months even though they had only paid for one month so our clients are going to go in there and they're going to make their first payment of eighty four dollars and when they do that the insurance company is going to give us a seven month a nine month advance and we're going to make 525 dollars in upfront money 525 dollars for spending an hour hour and a half how however long it takes for you to spend with that with that client now Mike 525 isn't 700 so when do I get the rest okay I'm glad that you asked that so when the client pays their payment in month 10 you're gonna get the other commission that you had on the eighty four dollars right so eighty four dollars times since there's eighty four dollars times seventy percent 84 times 70 is 58.80 okay so you're gonna make fifty eight dollars and 80 cents a month ten you're gonna make fifty eight dollars and 80 cents in month 11 and the same 58 dollars and 80 cents a month 12. okay that's how you total the seven hundred dollars in commissions now that's a lot of money now what you're gonna learn about our business is that it's not talent that wins in what we do it's work ethic and just like and I guess I'm gonna switch back and forth between my cameras that way you can see me some as I'm talking to but just like in sports when you get up to the professional level when you get to the college level they're not looking for talent talent doesn't matter see we're in the people business like Landon just talked about and what we're doing is we're loving on people and we're solving problems for people and so it's and so it's just and so it's just numbers all right so we're doing what we can do so let me let me go ahead and switch back here so we're just looking for math okay so 525 for each person you're able to help now we know that it's a work ethic game and we know that if you're willing to work harder than the next person that you can out earn somebody else okay so in in my company what we like this and I know everyone does this a little bit different but we like to say and I don't want to make the minimum the maximum right we understand that we want to help you build a solid company we want to give you solid principles so that you don't feel like you're building a company on on cotton candy we don't want to make the the minimum the maximum right so for us if you're part-time we like to encourage you to run 12 to 15 appointments a week okay if you're full-time we like to encourage you to run 24 to 32 appointments a week now here's what we know we're in the people business and dealing with people is like well sometimes it can be like herding cats right it can be it can be difficult so if you're full time with us let's just say that you're full-time and you've got the ability to to master your schedule which we'll talk about here in just a minute if if we have time let's just say that you go run 32 appointments for that week let's just say that that you're okay at your appointment setting ability and maybe 20 of those people actually show up and you do 20 presentations and it doesn't matter whether you're face to face or virtual it'd be kind of difficult to do 32 face-to-face I guess you're grinding that's one of the benefits of virtuals it's more efficient but let's just say do you sat with 20 people and maybe you were only able to help 10 of them right because uh because you're not going to help everybody you see okay so out of the 10 you help if we know that the average premium is a thousand dollars in annualized premium and we multiply that by 10 applications then you're going to submit ten thousand dollars in annualized premium for that week now look we know that situations are perfect or but but uh reality never is so it's never going to happen where you're going to have all of those people that you're going to write and they're going to get approved and stay on the books so I like to use the number of about 70 percent about 70 percent of what you write is actually going to get issued so let's just say that you wish you seven thousand dollars for that week okay now we're talking about business ownership we're not talking about a job right so this is revenue that's seven thousand dollars there that's not that's not income that's Revenue we know that most small businesses go out of business in their first three to five years because of lack of cash flow we know that we've got a license to print money so as long as we're willing to see the people as long as we're willing to put the work in and to get in front of people even if somebody is more talented than you if you're willing to out work them you can now earn them okay so let's just say that out of the seven thousand in Revenue you spent the thousand dollars Landon said that he's he sees people do anywhere from like 500 right the two thousand uh I agree with that the the the big Heavy Hitters in our company are investing a thousand to two thousand a week and that's and that's helping them write ten to twenty thousand a week right so the more you spend the more you're going to earn so it's 7 000 times a thousand that will give you six thousand dollars after a lead cost because you've got to stay in business when you're a business owner you're the last one to get paid you got to make sure that you've got your office paid for you got to make sure you've got inventory which is what the leads are you've got to make sure you've got power in your building just whatever it is marketing all of that's got to be done before you even get any money yourself so this is so the so when we get back here to what we were talking about this is all self-driven income you can make a whole lot of money in either one of these quadrants and being being an employee or being self being self-employed a ton of money there's so many people that even make millions of dollars in these quadrants but what I find out what the problem is is that it's a hundred percent connected to your activity right so I told a story I've got a guy in our company he's a uh he's a bodybuilder and um he's a bodybuilder and when covet hit he got he got diagnosed with stage four cancer and he couldn't be in his business for six months he had to focus a hundred percent on surviving on fighting for his life and because he had a policy with living benefits that made a difference and he also had a team that went around that he built that rallied around him to go fight he only made ten thousand dollars less than he did the year before right because of the other income so I'm running short on time here so let me flip my camera back over and we're gonna flip over now now let's talk so this is all self-driven income it's incredible you can make an incredible lifestyle doing that but what happens not if but when you get tired see you can go out there and it doesn't matter whether you create a lifestyle making a hundred thousand a year whether it's 250 000 a year whether it's 500 thousand or whether it's even or whether it's even a million dollars a year you're going to get tired something's going to happen and eventually you're not going to want to keep doing that activity what happens if something hap if something happens and you get injured and you don't have the ability to do that like the guy that I just explained to you that got diagnosed with cancer see so what I'm big on is I'm big on this is great and we can do this in order to get us to hear but where we really want to be is we want to have a system driven income we want to make sure that see a business owner is a generalist and then they hire a specialist so they find people that are let me get my camera readjusted here they find people that are really good at where they're weak and they put them in that position so system driven right so what if I can go out there and I can find other like-minded people that think like me right what if I could go find a land in McCarter or Cody Askins a Joshua Young's you know a Roy star Caleb Combs what if I can find one of these people and I could go find somebody not that I can convince not that I can sell not that I can try to drag along with what I'm doing but I find somebody that wants to change their life as bad as I do and they're not going to do it because of me they're going to do it in spite of me right and so what I do is I just show them this incredible opportunity I show them that we've got an industry that you can go out there that's very predictable that's very simple that's just math that if you're willing to put in the time the energy and the effort to become an expert to learn it that you can literally scale to the highest levels that you want to go right so when I do that and I'm able to duplicate myself and now I find somebody that's going to go out there and they're going to build an organization regardless of what I do right like my upline was out of this business six months to be getting in when I got into this business I was the biggest introvert that I had ever known I had never done sales I was terrified to talk to anybody but I had a dream in my belly and I wanted more right so when we find those people because the reality of it is change is the most difficult thing in the world to do none of us not even Cody Askins is good enough to make anybody change you've got to be ready you've got to be ready because it's hard but when we find those people and we go out there now let's just say that in this same scenario I found somebody that was willing to go out there and they were able to duplicate themselves and now they earn their way up to 100 let's just say they're on their way up to a to a 90 commission right okay so if we're doing let's just say that we're doing the same math on a thousand dollars at ninety percent now your full commission is nine hundred dollars for everyone that you're able to help if you're still in the field helping people right so nine hundred dollars and if you get a seventy five percent commission on Advance on that that's 675 dollars per sale so we go from 525 up to 675 but check this out let's just go do the math and say that now you've got someone in your group that's duplicated what you're doing maybe now you've got three groups and each of them are doing 25 applications a week that are paid so we're going to call that 25 000 let's just say that's 25 000 in paid premium for the week right and if you've got a 20 spread on that that would be five so twenty percent of twenty five thousand is five thousand dollars a week what if you had three groups that what if you had three groups of people let me switch my camera back here what if you were able to go duplicate yourself three times and you found three groups of people that had the ability to go find agents to create 25 applications a week and now you're making fifteen thousand dollars a week in passive income right that's not quite true passive income yet because that person's got to build that business big enough to be sustainable but what if they grew it a little bit larger than that now that regardless of what you do they're gonna go build their income what if you did that five times what if you found 10 people just like you see the most dangerous place to be in this business is you as a producer by yourself because everything's on you the pressure's on you find a place where you can put pressure on the system make sure that you've got a growing upline that's going to coach you between the ears because the why is more important than the how because if the Y is strong enough and you've got that emotional connection if you've if if you're you know if you've got something that's going to get that's going to keep you going when things get tough this business can create it can take you to your wildest dreams it's taken me the heights that I've never even dreamed I've I'd ever um uh go to and I feel like we're literally just scratching the surface and being a part of this incredible Community has made all the difference for me thank you for your time today eight percent have a great day and I can't wait to see everybody else dude you're awesome man I appreciate you your heart I also like the I don't know what you did there but I love like the camera switching back and forth that was handy man like I didn't know you were like a brilliant I.T guy but you know that's cool we appreciate you um how can they get a hold of you how can they learn more if they would like to do that yeah you know what man you can uh you can shoot me a text 443-271-9317 and that's typically the best way to get get the rich rings I love to chat with you say it one more time I'll try to put in chat form again 443-271-9317-9317 boom Tex pregame dudes giving out a cell phone number text my call okay let's blow that dude's phone up okay let's just blow it up what's up Brian Moore from Maryland dude Mike thank you appreciate you have phenomenal weekend thank you eight percent you demand brother thank you thank you thank you hey if you enjoyed this I got another one it's right there click on it see you in there I'm so excited for today's CA Power Player podcast I'm your host Cody Askins we got a special guest he is back on the channel talking about how to sell life insurance from home here's what here's what I love about this person okay I'm telling you this will be the one of the best

Channel: Cody Askins

Views: 5,088

Keywords: Final Expense Insurance, How to sell insurance, Insurance Agent Training, Insurance Agent, Insurance Sales, Cody Askins, Sell Insurance, Sell Insurance From Home, Insurance Leads, Insurance Lead Generation, Life Insurance, Life Insurance Sales, Selling Door to Door, Insurance Marketing, Insurance Sales Training, Insurance telesales, Door Knocking Scripts, Telesales Training, insurance career, insurance, sales, sales training, 8% nation, agency building, 6-figures, money, growth

Id: yBqS76TpyAw

Length: 20min 26sec (1226 seconds)

Published: Thu Apr 13 2023