Dear Cody...

I Fully Recognize This Post Will Earn Me Hate Mail and I Dont Care!
"Dear Cody,
Do mailers still work well?
What are your favorite FE Companies?
How many appointments do you run to write 6 figures?"
 

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I got a question today and I thought I would respond to it using my blog.  The question today comes from Steve.  He asks,

"I have some questions:
1) Do mailers still work well?
2) What are your favorite Co's for FE?
3) How many appointments do you run a week to write 6 Figures?"

Thanks, Steve.  Here ya go...


Steve,

Thanks for your business and questions.  I run mailers every week. 
They still do pretty well but are expensive.  My average lead cost is about $25
and I can close 1/4.  I try to work about 25-30 leads a week.  Of those leads I
take, I will sit down and actually present to 50% or 11-14.  I can close about
1/2 of my sit downs.  That will get you about 100K a year.

As far as companies go... it all depends on you.  There is a ton of
emphasis in this industry about being 'independent' and I think its reckless. 
Not everybody can be a salesman and not every salesman can be a business owner. 
  An independent agent is essentially a business owner with 100% of the risk and
reward.  Here are some things to consider...

Do you have the cash reserve to float personal mailers?  You typically need
$2,000-$5,000 to make this work and all the risk is on you.  This number is a
minimum.  I would recommend 5-10k.  What is the response rate for mailers in the
zip code you want to mail in?  What does the copy on the lead card say? and what
is your average cost per lead coming in?  If you don't know the answers to all
these questions, you have no business being independent (for now) and you should
probably look to an established company for help until you can get yourself
established.  Once you know what you are doing... then you can become independent if you choose.
 
Contracts
What is the contract level for years 1-5.  Notice I didn't say first year? 
That's because the huge first year contracts usually result in a very low 2-5
year renewal and if you are in this business for longevity, you should care
about renewal percentages.  Only slimy agents care ONLY about first year contracts
because they know that in 12 months, they will be switching over their client
base to another company in order to collect again.  This way of thinking is short term and will result in
your utter demise as a FE Superstar.  I would rather have a 95% first year with
a 17% second and a lead program, than a 110% first year and a 3 % second w/o
support.  Simple math will tell you why.

Company Support and lead programs. 
What is 110% of 100,000?.. $110,000.  Now, what is 95% of 150,000?...
$142,500.  A company sponsored lead program will get you to 150k in production
in the most cost effective way possible but to get these programs you need to
show some loyalty. 

In summary, I don't know a lot of independent agents who make over $100k a
year.  Most successful agents, I know, write business with 1-3 companies and use 
all the resources those companies have to offer.  I fully recognize that
this way of thinking goes against what 80% of the industry thinks but I really
don't care because the 5,000 agents preaching independence are not paying my
bills or preparing me for my retirement.  This system works for me.  You have to
decide what works for you. 

Cody