How to Earn a Great Salary as a Life Insurance Agent (with Zach McElwain)

hey it's zach with life insurance academy and i'm back today with another training video for you guys and the training video is going to be how you can actually earn a salary in insurance sales as a 1099 agent now if you value our content and you find any of it helpful please like subscribe and share because you don't know how important that is to us and we really appreciate it now when we start talking about a salary as a life insurance agent that's kind of foreign to us because we're known as 1099 agents we're out there working for ourself or working in our own company and we make our own money now when we think of the word salary in general a lot of times we think of words like reoccurring or something that is guaranteed or maybe some sort of safety net for us or some type of security and a lot of new agents that are moving into this industry they are actually coming from maybe a salary job or an hourly job and they have that type of comfort and that can be one type of barrier when moving into this insurance sales so when we talk about how we're going to be able to actually pay ourselves a salary while having the benefits of being a 1099 agent is going to be very important for us so this all comes from the idea of a salary where the salary can some sometimes or we think it will remove some pressures or it will remove stress or it will give us a sense of comfort and it's really this relationship between time and pressure and this time and pressure is we need to have time to learn this business we need to have time to learn who our pro or our prospects are so we can better serve them we need to have time to learn all of the products that we're going to use in order to serve those clients and we also need to learn the processes and the skills and the techniques because maybe you're moving into this like i did years ago where i had zero sales experience and we want to lean on somebody else to provide that experience for us but that takes time it takes energy it takes focus in order to learn that and when you have financial pressures when the pressure side of this relationship let's say you just left another job where you had some sort of hourly or salary income coming in and or when you're making this transition over that you didn't save enough money for this transition or maybe you did save enough money and this happens a lot of the cases where you just kind of get lazy in the onboarding process or in the actual initial stages of training to where you kind of move and burn through that savings account that you had for this transition in order before you actually really got out of your comfort zone and started really learning the technique either way whatever situation you're in here it's going to create this time and pressure issue that we want to be able to solve now either way and in all of those situations you need money right and at that when you need money you become desperate you became you you have this urgency inside of you where your focus isn't technically on making sure the client is served to the best of your abilities or making sure you're putting them in the right product your focus is now is how can i make that next dollar how can i pay that bill how can i provide this or that for my family and a lot of times in the industry when you have to sell you can't sell and we call that having commission breath and the bad thing about having commission breath is all your clients can smell that on you and you you don't become genuine and you aren't really there to serve and help them which in the long term you're going to be out of the business very quick if you don't solve this problem so one thing that i'm going to show you today i'm going to walk you guys through is as i'm actually going to show you how you can relieve this financial pressure and actually buy yourself more time in order for you to become successful in this insurance industry to give your chance give yourself an opportunity and a chance to be a top producer and change your family's life and ultimately how to pay yourself a salary as a 1099 agent so the first thing i want to want to walk you guys through is we have something called commissions the commissions here is they're going to go move into our bank accounts they typically go from directly from the carriers into your bank account now when we start this traditionally we all have usually two different bank accounts we usually have some sort of personal checking you know that we go to the dinner we buy gas we buy our groceries with we pay our bills it's just our normal personal checking account and that will be represented on my chart here as pc and then we also typically have a personal savings account which we hope you have a savings account where you put some money back for your family's future or emergencies and i'm going to indicate that here with ps for personal savings account now one thing i want to walk you guys through is i actually want you guys to open up two brand new accounts one of which will be our bc which is our business checking account and then the other one would be our ts which is our tax savings account so these two accounts are just going to be normal accounts you don't have to go open up an official business account at the bank this is just another checking and another savings that we nickname business checking and tax saving and i'm going to show you why when we start earning commissions and those commissions flow through i want those commissions to go directly into our business checking account so we're going to have we'll draw our commission dollars and we're going to draw these commission dollars going right into our business checking account so it's like our little pot of money here now the reason we want this commission's going into our business checking account is because we want if it's a business related expense we want our business expenses to come out of this first for example this is going to be maybe lead purchases or something else that you bought for your business or it could be a training course or a you know which you can get that through life insurance academy but anything you're going to invest in your business any type of business expense we want that to be paid with our business account for other reasons it keeps your taxes very clean and very simple i don't want to use the same account that i buy leads and other business expenses for that i'm also going out and buying my you know my daughter brand new shoes or paying for gymnastic lessons or any of these other things i want to keep those things separate that is still going to be your personal checking so our idea here is we want all of our cash flow all of our commissions to flow into our business checking account now you may say well well how do we get that money from our business checking to our personal checking so that way we can pay our bills because hey zach i'm in this business because i need to make money and i need to pay bills well the first thing we need to do and this is very early on uh and i recommend starting this even before you get contract and if you already are you can you can make these adjustments from where you are today and this will make a positive impact but we need to determine what your number of the amount of money you're going to pay yourself on a weekly basis we need to determine what your salary is going to be and how you do that in my opinion is you need to sit down with your family with you with your spouse maybe with your upline or a manager or somebody that has interest in your on your team and if you don't have anybody else you can reach out to me or anybody on our team to give you some guidance on this but we want to figure out what is the smallest amount of money that you can pay yourself on a weekly or bi-weekly basis in order to survive in this business our goal here is to get you through the learning curve in the gauntlet of learning insurance and be a part of the eight percent that is successful getting started and launched into this insurance business again we know why these agents fails it's the time and pressure we want to give you more time so you can learn everything you need and relieve the financial pressure so for example if we say that we're going to pay ourselves um let's say a thousand dollars a week okay just pay ourselves a thousand dollars a week now that money is going to be coming out of our business checking but if we're gonna pay ourselves a thousand dollars a week no matter how good we did that week let's say we went out and but you're saying zach well but i had a really good week i made four or five thousand dollars this week that's great so we're gonna let all of that money and all that cash flow build right into our business checking account if we sold one thousand this week or three thousand this week or ten thousand it doesn't matter we're letting all of that money flow and accumulate inside of that business checking account now no matter if i had a good week or bad week or an amazing week i'm gonna pay myself a thousand dollars a week no matter what so how that money breaks down is i'm going to transfer the thousand dollars from the business checking and this is where it's going to be split up because now i need to tax myself that money every time i pay myself i need to tax myself so as i'm doing this and i'm paying myself a thousand dollars some of those dollars are going to come over here to the personal checking account and what i recommend here is this is going to be 70 percent okay so we'll put a big o seven zero so you can see it there so about seventy percent of that is going to come over here and that leaves thirty percent because i recommend in your first year that you're going to tax yourself thirty percent on everything you get paid um from my experience that has been more than enough and as you move into year two move into year three of the insurance business you can adjust that by the style of insurance you're working or how much you normally pay in taxes but to start off i would say 30 there which means that 30 on this side is going to be going into our tax savings so we have to break we have to break that amount up okay so what that means is if we're paying ourselves a thousand dollars a week that means 700 is being moved until our personal checking and 300 is moved into our tax savings this occurs every single week if you pay yourself weekly or every two weeks if you pay yourself bi-weekly so that's where that money breaks up now once you determine that number and that number could be different that number could be you pay yourself 500 a week or a thousand but you may say well i'm new in this insurance business but i'm killing it and i'm making all this money that's great one thing you have to realize is this money is on advances so it's not necessarily yours yet so no matter what you want to do you want to continue to allow that money to accumulate and you stay humble and stay hungry and pay yourself the minimum it's going to cost you to survive and get up and rolling okay now with that what we're going to see is yes we can still pay ourselves yes once we have this money accumulating in here that 700 every week is going in here this is the account that we pay our bills with right your mortgage your rent payment your car payment your daughter's gymnastics the shoes they're needing going out to dinner with your family going to a theme park this is your normal everyday expense account because you already accounting for your taxes over here now in the meantime if you're continuing to hustle and build that that income and get better at insurance your business checking account should be accumulating and building up so for example we want that to keep accumulating as that keeps building up where we pay ourselves a thousand dollars a week our business account now might have let's say ten thousand dollars inside of it and you may say oh well i got this student loan that i need to finish paying off or i only owe four or five thousand dollars on my car do not do that at all number one rule for an insurance agent that i tell everybody do not pay any major debts off or take any large amounts of money and put it down payment on something in your first year of insurance because you're operating on a 75 percent advance from the insurance carriers meaning if those clients do not keep that policy then you owe that money back that money is technically not yours until you're outside of that that advanced commission period that you've gotten advanced so you don't want to buy something that you can't give the car back to the insurance company so you want to make sure that keeps accumulating but here's the magic trick if we have ten thousand dollars built up inside of our business checking account what that lets me do mentally is that lets me know that i have 10 weeks 10 000 equals 10 weeks of automatic salary okay maybe i have 5 000 okay 5 000 equals 5 weeks of salary 12 000 equals 12 weeks of salary so what that does for me is a brand new agent is that lets me know that if i you know i'm into sports and i love playing basketball still hey if i tear my acl and i can't go sell insurance or i can't go out to the field i know for my family i have 12 more weeks of guaranteed income that no matter what no matter what changes i'm going to get paid the same exact amount for 12 weeks if i have a car accident or a family in need or if god forbid we have a natural disaster that hits our area i know that i have eight more weeks or five weeks of guaranteed income no matter what that is because i've disciplined myself on the good weeks and the bad weeks to pay myself the same amount of salary this builds everything we want inside of that it gives us the sustainability this gives us that comfort zone that security that safety net that guarantee everything that you think you have in a corporate job now you have the benefits and the limitless opportunity of insurance but you also have the ability to pay yourself a salary i'm not saying that you guys will pay yourself this amount of salary forever because as you're getting used to this and you've earned the right to buy that time and you've earned the ability to relieve that pressure for you to really excel in insurance yes you should have very large weeks and this business account should be growing very rapidly now after that continues to grow you may look down the road in six months or a year and a year and a half if you're staying disciplined you can look at saying yeah it might be good for me to increase my salary because you've earned that right to do it but the cool thing is is you still will have the ability to take some of your personal checking which you should normally doing on a weekly monthly basis anyways and roll some of those back in to your personal savings and saving for your future other things you want such as a house such as a car different things like that but also what you're going to find is when you pay your taxes at the end of the year you're going to have leftover funds in your tax savings account that then you would be able to move over here to your personal savings as well so what this is going to allow us to do is allow us to be smart and disciplined with our money it tricks our mind to being broke all the time because we're only putting the money into the personal checking the smallest amount we need to survive while at the same time letting this monstrous amount of money and our business checking continue to accumulate and build up which gives us that security and gives us everything we need it buys us time to get really good and understanding our our prospects our clients that we want to serve understanding and mastering the products that we need in order to serve our clients to best our ability and also learn all the sales process for you to start continuing to build your insurance and agency and build your own skill set and be the top producer you can so check us out on the next video hopefully this has helped you again if you didn't already earlier and you enjoyed this like share and subscribe we really appreciate it and we'll catch you on the next video [Music] you

Channel: LIFE INSURANCE ACADEMY

Views: 5,581

Keywords: final, expense, sales, final expense, final expense sales, life, insurance, life insurance, life insurance sales, mortgage, protection, mortgage protection sales, sales training, life insurance academy, life insurance sales training, life insurance training, life insurance agent, insurance agent

Id: O2yBv7z637c

Length: 16min 17sec (977 seconds)

Published: Fri Apr 08 2022