FE Business Strategy Questions

[Rearden]

Hi all,

I am considering entering the insurance business and specializing in final expense.

After having read numerous helpful posts on final expense in these forums, I have mostly decided to go with Equita to feed me leads and get me going.

However, before totally pulling the trigger, I am gathering information on the business so as to develop a pro-forma/business plan to help me set reasonable expectations of what I can gain financially from this business, as I have no experience selling insurance.

So -- if you're an agent or run an agency and know your numbers regarding final expense -- here are my questions to you:

1. What is your average closing ratio on in-person consultations? More specifically, what was it when you first started in the business?
2. What do you gross initially per sale? Gross as a percentage concerning residuals?
3. On average, how many years does your client continue to pay final expense before discontinuing (reason doesn't matter)?
4. What is your average chargeback percentage?
5. For those who travel to clients in a rural/suburban area -- what percentage of revenue is your fuel/car expense?
6. Finally, what sets you apart from your competitors, ie, what compelling reason does a prospect have to preferably buy from you than the other guy? Price, expertise, service?
7. For agencies, what percentage do you pay your reps on (a) initial deals, and (b) residuals?

Allow me to apologize in advance for any confusion or misunderstanding I have of the FE business -- I am green to the business and am still learning more about it daily.

Thanks in advance for all your help. Your willingness to help is much appreciated.


Best,
David

 

[jacobtn]

these numbers are going to vary greatly depending on the person. they will suck for the newbies and improve with experience.

 

[FEproducerKen]

jacobtn stated it correctly. It aint easy. I have been in final expense for over 26 years. I am a full time funeral director and sell FE part time. I try and make the 15 hours per week I have time to work it as efficiently as possible to get the most value for my time. If I were starting over and were doing it full time, I would do as you are doing and start with Equita. Work the lead program and take every minute of training they will give you. Good training will eliminate a lot of lost time as compared to the trial and error methods. There are other IMOs one her such as Rosenthal, (I have one comaony through them) and others who will provide a continous flow of support resouces. Make sure and take advantages of their advice. I have been reading this forum now for several months and have improved my closing ratio and have found ways to increase the leads I work. Never stop learning.

 

[Newby]

All I can say is when things are going right it seems like 100% of the leads all meet and buy. When things get tough, no one wants to talk to you.

You are studying too much. Just buy some leads and get started. By the time you know what you own %s are, it won't matter anymore.

Also use the search button and search for final expense and all the answers you are seeking have been discussed and debated.

 

[jdeasy]

Hi all,

I am considering entering the insurance business and specializing in final expense.

After having read numerous helpful posts on final expense in these forums, I have mostly decided to go with Equita to feed me leads and get me going.

However, before totally pulling the trigger, I am gathering information on the business so as to develop a pro-forma/business plan to help me set reasonable expectations of what I can gain financially from this business, as I have no experience selling insurance.

So -- if you're an agent or run an agency and know your numbers regarding final expense -- here are my questions to you:

1. What is your average closing ratio on in-person consultations? More specifically, what was it when you first started in the business?
2. What do you gross initially per sale? Gross as a percentage concerning residuals?
3. On average, how many years does your client continue to pay final expense before discontinuing (reason doesn't matter)?
4. What is your average chargeback percentage?
5. For those who travel to clients in a rural/suburban area -- what percentage of revenue is your fuel/car expense?
6. Finally, what sets you apart from your competitors, ie, what compelling reason does a prospect have to preferably buy from you than the other guy? Price, expertise, service?
7. For agencies, what percentage do you pay your reps on (a) initial deals, and (b) residuals?

Allow me to apologize in advance for any confusion or misunderstanding I have of the FE business -- I am green to the business and am still learning more about it daily.

Thanks in advance for all your help. Your willingness to help is much appreciated.


Best,
David

I would congratulate you on your choice, David. In my opinion EFES offers the best and most stable opportunity out there for the fulltime FE agent.

If one wants to dabble in FE, EFES is not the place to go.

The questions you asked are too varible to have answers. I could tell you my numbers, Jacob could tell you his and Newby could tell you his, {all lies, btw}, and they would all be different.

The EFES University is great. Listen to all the presentations there and to all the plug and learns. I have. You won't do it exactly like any one of them, but, you can put together something that works for you by studying all of the experts.

Connect with you manager and be coachable and EFES will work for you. They subsidize the leads so they want/need for you to be successful.

Good luck.

 

[Rearden]

Thanks for the responses, guys.

Newby -- I too adhere to the "ready, fire, aim" principle, but having run my first business without much in the way of gauging expectations of client lifetime value and revenue projections based on closing ratio, I want to make sure I'm jumping in prepared with reasonable and challenging goals.

I'll do a more-thorough search of the forum to find the answers to my questions.

Additionally -- in case I do not run across the answer to my next question -- what did you full time FE-only agents net in the first full year of business? And what range do you think most reps fall into the very first year?

Thanks again for your help,

-Dave

 

[bpenn9]

What are renewals for FE typically?

 

[Newby]

What are renewals for FE typically?

They range from 5% to 12% on average for years 2-10. Minimal maintance renewal after that usually 1 to 4% years 11+

 

[jdeasy]

Thanks for the responses, guys.

Newby -- I too adhere to the "ready, fire, aim" principle, but having run my first business without much in the way of gauging expectations of client lifetime value and revenue projections based on closing ratio, I want to make sure I'm jumping in prepared with reasonable and challenging goals.

I'll do a more-thorough search of the forum to find the answers to my questions.

Additionally -- in case I do not run across the answer to my next question -- what did you full time FE-only agents net in the first full year of business? And what range do you think most reps fall into the very first year?

Thanks again for your help,

-Dave

Too broad a question to have an answer that would help you. I know people that stuggled to make $20,000 in their first year selling FE. I also know agnet that made over $200,000 in their first year. I've known about as many that made $50,000 as $100,000.

It's all over the place based on the agent's ability that brings to the table and the skills that he is able to learn by being coachable.

I couldn't tell you what an average new agent makes or even what an average seasoned agent makes, but, then again, I've never been interested in being average.