How to Invest $1500 to Make $245,000 in Your First Year of Life Insurance Sales (with Roger Short)

in today's video we're going to talk about how to invest fifteen hundred dollars one time to make 245 000 in the life insurance business every year for the rest of your life if you enjoy these videos please go ahead like and subscribe to this video and turn on notifications for the life insurance academy on youtube so you can be notified when we release new content just like today's video so how do you invest fifteen hundred dollars one time to make 237 thousand dollars for the rest of your life in the life insurance business well this goes back to when i first got started in the life insurance industry i did the math i was coming out of a another business i was a partner in another company and i did the calculations on how much money we needed to provide the lifestyle and income that i wanted for my family what i wanted and what i needed i did the math and i knew i wanted to make north of two hundred thousand dollars a year in this industry and after watching someone just for a few days i realized it was very doable in this business now if you're watching this video for the first time or you're jumping into the industry and you're brand new that number may seem large but hopefully after today's video i'm going to give you some math and i'm going to break down some numbers that this is going to make sense to you and maybe for the first time you could see a possibility to make north of 200 000 yourself in this incredible industry so i did the math i broke it down and i i looked at what my investment needed to be to get a return out what i've realized in life and in business to get a return of anything you have to invest that thing and so what i wanted from this industry is i wanted more time and i wanted more money i wanted more money and i wanted more time i wanted to create financial independence or financial freedom for me and my family i want to be able to dictate when i went to work when i was able to take time off so those are the things i wanted now as a as a result of those things that i wanted i realized that i would have to invest time and or money in to the business also to get that back out now when you first start you either have money or you have time some people have both but i hope that in this video you're going to see that it doesn't take a big investment of money to return to you an opportunity where you can leverage your time and make a massive difference in the amount of people that you can see on a weekly basis so if you're like me and when i got started i got started in the leads business and where i was looking to acquire leads or purchase leads so that i didn't have to go and call on all my own family and friends and as a result i was in the simplified issue space looking for a lead source mortgage protection final expense are two good primary areas that we continue to do business in today that are both leads driven and you can outsource leads from a variety of vendors there's direct mail leads there's uh direct call transfers there's digital leads there's google leads from adwords there's youtube leads there's facebook leads there's all kinds of leads that you can acquire why would you want to do that well the reason that i wanted leads was because i didn't want to have to take all of my time investing and creating relationships to maybe sell a policy once i go through the warm market i wanted people who were already interested in our product and service so i want to clarify this a lead is simply an opportunity to have a conversation with someone who's expressed an interest in your product or service that's what it is so i went looking for lead sources i did the math i broke down the numbers so i'm going to show you some math today on how i did it for me and hopefully this can also help you once i determine how much money i wanted to make and that was north of 200 000 i realized it was going to take an upfront investment in leads and so this was the math that i broke down that i want to share with you today so if you invest fifteen hundred dollars one time one thousand five hundred dollars one time now some of you might say well i don't have 1 500 but i want to tell you in this industry this is probably the lowest uh barrier to entry in any business in the united states of america for you to be able to get started for less than two thousand dollars in any business is unheard of so how would you creatively come up with that first fifteen hundred dollars well here's what i did i opened the new credit card it was for my business and i was going to process all of my lead purchases and all of my marketing through this card i was going to use it for points i was going to pay it off every month so i wouldn't have a debt but i was going to leverage the credit that i could put on there to upfront start this business and always run everything through that card that's what i did well if you put a fifteen hundred dollar investment into a um into a lead program and let's say um that was uh today in today's market that should get you somewhere uh about 40 to 60 leads 40 to 60 qualified leads now uh with an investment like this and it should get you a good majority of brand new leads that are untouched but you can have a mix you can have a mix of really high quality high intent leads to a lower intent lead and do a combination of those but it should get you somewhere between 40 and 60 leads now i knew that even at my worst day if i was diligent in contacting all 40 to 60 of those that i should be able to set up 50 i should have a 50 set ratio that should be your goal as a minimum that's the baseline 50 so if i got a 50 set ratio of leads to appointments that should put me somewhere about 20 to 30 appointments now appointments that might be face to face it might be over the phone it might be telesales or zoom okay multiple ways that we can do that today but it should get me 20 to 30 qualified appointments of people who agreed yes i want more information and yes this time works for me so you got to block out call days obviously you've got to be very diligent in working through this and working through these numbers you can't let any go unturned but you need to stay committed to the process so you can get 20 to 30 leads now added 20 to 30 i knew again at my worst day because of the law of large numbers and because of the intent of the leads of the people who want to buy it if i knew about my products and services and i spoke with a level of confidence in what i was doing to help them and i looked to truly meet their need that i would close again about 50 percent close ratio on the appointment so that would be somewhere between about 10 to 15 applications that i would set up for people for life insurance 10 to 15 applications that was a key number for me i wanted to have at least 10 qualified applications going in each week on a submit basis to hit my number of north of two hundred thousand dollars now let's start here with this premise and you might you might have been coming out of a captive industry you might be coming from a shop where leads were provided for you but in the independent side which is where i started if you're running appointments and you're writing at least 10 to 15 applications a week in this industry in the simplified issue final expense or mortgage protection space you can expect contract of at least somewhere around a hundred percent so i'm gonna set everybody up with an approximate hundred percent contract some of your products may be a little higher than this so maybe a little lower but let's just use this as a nice round number in our industry today where we can do some math on this so you can understand how this works so now if i'm writing 10 to 15 applications what is the average premium per application in life insurance sales we get paid our contract times the annualized premium well i'm going to lower that probably a little lower than you might expect some people might think i put in a thousand or 1500 there for the annual premium i'm going to lower it all the way down to about 800 in annualized premium per application okay 800 in annualized premium per application now if i have 10 of these applications times 800 i now have 8 000. in annualized premium eight thousand dollars in annualized premium that's my number but uh and that's a good number if you're writing that each week but that's only if you commit to this process some people try to do it on less and the numbers start working against you i didn't want to work the numbers against me i wanted to work the numbers for me the law of large numbers is a law for a reason because it's based on large numbers so don't try to minimize your ability to convert to to get to the result that you're looking for by reducing the number of opportunities maximize the number of opportunities so on an 8 000 annualized premium here's how this is going to work i'm going to give myself grace and i'm going to tell myself that only 80 percent of that business is going to stick eighty percent eighty percent of that is going to stick it's gonna some people are gonna change their mind someone's gonna fall off before the end of the year so i've gotta deal with that attrition on that piece of business so if eighty percent of that sticks now i have sixty four hundred dollars in annualized premium that i'm getting paid on each week on this contract of one hundred percent one hundred percent is also going to mean that my commission is 6 400 now that's broken down into two ways i'm gonna get an advance of approximately forty eight hundred dollars up front which is nine months of commission and then uh after that i'm going to have an as earned balance coming in in months 10 11 and 12 of sixteen hundred dollars okay sixteen hundred dollars i might have gone out of frame there we'll catch it uh adam's gonna catch that for you 4 800 and 1600 this is the upfront commission's earned and this is the as earned balance that's coming in in months 10 11 and 12. so here's what happens i earned 6 400 in commissions after my attrition of 20 80 remaining i get an advance of 4 800 i now have 1600 coming in as earned business here's where the magic happens what was your initial investment your initial investment was 1 500 and if your initial investment is fifteen hundred dollars here's what i want you to tell yourself in order to get time and money out of something you gotta put time and money in have i put money in yes am i committed to putting the time in yes to work the leads to get to the opportunities to sit with the people have i given myself a reasonable close ratio fifty percent and fifty percent it's really a close ratio about twenty five percent on the total number of leads the numbers work out at eight hundred dollars in annual premium per app that gives me this number here out of the 4 800 this is my cash flow number guys this is my cash flow number cashflow means the number that i have to operate on now that's my business's money that's not my money yet it's my company's money i'm in business for myself as a 1099 life insurance agent out of the 4 800 what's the very first thing that i need to cover out of that in order to keep my business going here's the magic and here's where this happens out of the 6 400 that are out of the i'm sorry out of the 4 800 that you have coming in each week here's where the magic happens out of this 4 800 that's coming in each week the very first thing that needs to come back out of that is the 1500 that you put in on the front end and it needs to go back into the cycle and start the cycle over again 1500 comes out that leaves you a remaining of three hundred dollars in cash flow positive after your lead investment you withdraw your lead investment and you put it back in the system and let the numbers work through again the remaining amount is sixteen hundred that's coming up back to you in the back end if you add these numbers up you've made uh what is that number we got 1600 and uh let's do some math here we got 40 4 900 a week in annual earnings that you have for the year and if you take that number and you multiply by i'm going to take that number i'm going to do 4 900 times 50 weeks i'm going to give myself two weeks off guys that number i don't know if you can see that right here is 245 000 245 000 now you might decide to take an extra week off but you'll still end up with about 235 to 240 000 in annual income when you run this program and you work the numbers the key is this most people think that they're spending 1500 a week on marketing what you're doing is you're only spending fifteen hundred dollars investing fifteen hundred dollars one time one time into your business you're putting it in the system you're working the system investing your time and your money when the money comes out on the other side the very first money that you remove from that is the 1500 you put it back in the pipe and you repeat you put it back in the pipe and you repeat you put it back in the pipe and you repeat this is not a new fifteen hundred dollars that you're spending every week you're just taking the money out of the cash flow putting it back into the funnel invest 1500 one time into your business work the system put in your time put in your money you're you're on a trajectory to make 235 to 245 000 a year in life insurance for the rest of your life now that's the numbers however much higher you want to go above that is just the law of numbers increase the number of leads increase your revenue decide how much can i work how much do i want to work how little do i want to work but if you work those numbers that's a way you can set a dial almost put a clock on it so that it's guaranteed income for you to go make that 245. that's what i did that's what you can do so if you like this video today hit like and subscribe and turn on notifications and please leave a comment how much money do you want to make how much money do you want to make in your business and if you need some help with the math and how to do the consult you can reach out to us leave us a comment leave us a question we'd be happy to engage with you and help you figure that out for you guys we're in one of the best businesses in the world it's created more millionaires than any other industry and you are in it you get your hands on it now you go make yourself 240 000 you can do it we'll see in the next video [Music] you

Channel: LIFE INSURANCE ACADEMY

Views: 7,340

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: WWDVAeNc85M

Length: 14min 46sec (886 seconds)

Published: Fri Mar 25 2022