In this episode we discuss what an Insurance Agent needs to close on a daily basis to cover all the necessary overhead. More importantly, we discuss the process how you can figure out your magic number to not only survive but to thrive in your sales job. The numbers are the life blood of your business and you must know what your goals are in order to develop an action plan to get there. Show notes below in case you want to calculate your own Magic Number. Join the conversation on our website or schedule your free coaching call www.SiasFirst.com you can also find us on Facebook @SiasFirst. Music by www.bensound.com
Magic Number
Required Monthly Income (RMI)
What is your monthly overhead?
Add up all bills, rents, personal and business
Multiply by 1.35 for taxes
$4000 x 1.35 = $5400 (RMI)
Calculate Required Monthly Premium (RMP)
Take RMI and divide by your contracted rate
$5400/.70 = $7714.29
Multiply RMI by 10(or by average commission rate from carrier)
$7714.29 x 10 = $77,142.90 (RMP)
Average annual premium for your clients
Management system can help you determine this
Home and auto will be less than commercial
For example $2000 premium per policy (PPP)
You Magic Number
Take your RPM divide it by PPP
$77,142.90/$2000 = 38.5 Magic Number
If you focus on commercial your PPP will be larger and you Magic Number will be smaller
This should be your goal per month
Means you need to write 2 policies per day to meet your goal of 40 ish policies per month
Means you need to talk to 6 people per day about insurance to close 2 for each of the 20 working days in the month.
If you double your efforts and talk to 12 people per day
Close 4 per day
You could earn $15k per month
This doesn't even include renewals or broker fees
Balls in your court