Do you want to add $100,000 in commissions to your income?  Do you know exactly the steps you need to get there? From what I’ve seen in speaking to agents — most don’t. I’m going to show you exactly how to break it down in a few easy steps.

The first thing you need to do is reverse engineer your numbers. Marketing plans, referral networks — you name it — are worthless if you don’t know exactly what you need to do daily to get there. So let’s figure that out…

The first step in reverse engineering your numbers is to find out what your average premium is per client. In my experience, most agents average about $2,800 in premium per account. If they write mostly commercial lines like I did, that number changes, but we will run with $2,800. 

If you average 10% commission per account (the number could be up to 50% higher if you’re independent), then your average commission per account is about $280. So if we take $100,000 (our target in new business commissions) and divide by $280, we get 357.14. That means we need 357 new accounts to hit our target of $100,000 in new revenue. 

Next, we need to figure out exactly how many of these new accounts we need to write daily. If we used 2020 as an example, there were 252 working days if you excluded weekends and holidays. By dividing 357 new accounts by 252 working days, we would get 1.42. You’d need to write 1.4 clients per day or roughly $3,920 in premium daily ($2,800 average premium per account/1.4 clients) to reach your goal. 

Lastly, we need to know your closing rate. I know, I know, you’re a beast! You’re a closing machine! But let’s be real — in order to do this much business, you’re going to have to reach out to a LOT more people than you probably are currently. When you do that, your close rate might go down. Most captive agents I talk to who work with one of the ‘Big 5’ close 20% on the high end.  Most indie agents I talk to are closing closer to 40-60% because they have more products to work with (i.e. they aren’t constantly trying to fit a square peg in a round hole). 

So let’s say your close rate is 20%. You take the 1.4 clients per day and divide by .20 (express the % as a decimal) and you get 7 if you’re captive. For indies — 1.4/.4 = 3.5. 

That means you need to run 7 quotes a day if you’re captive (or 3.5 if you’re indie). And how many calls do you need to make to get there? How many leads do you need to buy? In my experience, you need to have about double the conversations than quotes you need to run. 

If you need to run 7 quotes, you need to have 14 real discussions about insurance.  A ‘real discussion’ is defined as an exchange of information, whether it’s information for a quote today or something else — but it’s a real conversation that takes place where you give them something and they give you something as well. 

Now you know that at the above conversion rates, you need to have 14 real conversations — multiply that by 252 working days and you have 3,528. You’ll need to have 3,528 REAL conversations about insurance over the next 12 months to convert your next $100k of commissions if you’re a captive agent. That number drops to around 1,764 if you’re indie. 

But don’t take my word for it — plug in your numbers and see for yourself! Let me know what you find.