- Thread starter
- #21
LearningGood
Expert
- 20
You are right for a 500K 20 year term policy for a 30 year old would be $384 (approximately what policy genius says). Also, what was stated by the number of policies sold/year can help with commission. How long the business stays on my books helps with residuals. Lastly, if I am selling a lot of good policies my commission could be 120% on the first year of the policy. I read on other threads that you want a good insurer...the amount of commission paid is not everything.
I do not care about my income (commission rate) in the first few years. All that I care about is will my business model work. So looking at an average healthy customer staying with the policy I write for 5 years. Me writing a 500K policy for 20 years on average...my gross revenue per customer will be in essence $500. This is just for term life. Not looking at permanent insurance...this is great if I get it but all that I care about is term life insurance. Not looking at FE insurance, etc. may sell as a side line someday with expansion but I only care about term.
$900/sale would have been nice but $500 is the reality...now I can go back and plug this number into my business model to see if it works.
I do not care about my income (commission rate) in the first few years. All that I care about is will my business model work. So looking at an average healthy customer staying with the policy I write for 5 years. Me writing a 500K policy for 20 years on average...my gross revenue per customer will be in essence $500. This is just for term life. Not looking at permanent insurance...this is great if I get it but all that I care about is term life insurance. Not looking at FE insurance, etc. may sell as a side line someday with expansion but I only care about term.
$900/sale would have been nice but $500 is the reality...now I can go back and plug this number into my business model to see if it works.