If you understand how the dollar flows, you understand why every pain point we sell against is real money on the table. This module makes the economics concrete.
An insurance agency doesn't buy policies and resell them. They earn a commission on every policy they sell, paid by the carrier. So the math is simple:
Here's the magic. Once an agency binds a policy, they get paid commission EVERY YEAR that policy renews. So a $200 first-year commission becomes $200 every year for as long as the customer stays.
Most agencies leak money in 3 places. Every one of these is a hook you can use on a cold call:
Quote sent, never followed up on. Customer signs with whoever called them back. 30-50% of quoted leads die here.
Customer's policy comes up for renewal, no one calls them, they shop and leave. 10-25% renewal loss is normal.
Customer has auto only, no one ever offered them home or umbrella. Average household has 1.5 policies, should have 2-3.
When you talk to an agency owner, you should be doing math in your head, even if you don't say it out loud.
| If they say... | What it really means |
|---|---|
| "We get about 50 quotes a month" | If they're closing 25% they bind 12-13. If we add 30% more closes via follow-up, that's 4 extra binds/mo = ~$800-$1,200/mo extra commission |
| "We have about 800 customers" | If they lose 15% to renewal lapse, they're losing 120/yr = $24K leaked annually |
| "Our average policy is around $1,800" | ~$216 commission per policy. Multi-policy households worth $400-$700/yr to them. |
| "We do about $X in revenue" | That's commission revenue. Their book of business (premium volume) is roughly 8-10x that number. |
Each link opens a YouTube search. Pick whichever video looks best in the results.
Each module builds on the previous one. Hit next when you're ready.