My Part-Time Story
I got a few private requests on what I was doing, so I though I'd post it here. Maybe it helps you, maybe it doesn't...but it's what worked for me in part-time work.
Part I
Well, here’s what I did. In 2003 I was flying for ACA, which later became Independence Air. I realized then that I had to have a plan B in case Independence didn’t work out (it subsequently failed a few years later). Now I realize almost everyone should have a plan B – in today’s world nobody can count on an employer for anything.
Anyways, I was lucky. My wife’s family owned two businesses. Long story short – in talking with her uncle who was a principal in their financial planning business, I was convinced that pursuing a plan B in the business of money (insurance, investments, lending, etc) was the best route for ME (it’s not for everyone).
So, I got a life insurance license (study a book, take a state test, pay a testing and state licensing fee, get a license). I had just moved to Arizona and needed a market. So, I bought some life insurance leads (I don’t recommend this unless you don’t know ANYONE). I worked the leads, and sold a few policies. From there I got a investment license (6 & 63) and went back to all of my insurance clients (by now I had about 40 clients) and sold or took over their investments.
That’s the short version. Now, here’s what I wish I would’ve known when I started thinking about other opportunities to make money besides flying. I love the financial business, but having almost 5 years under my belt now, I know MUCH more about what people looking into the business as a part-time gig or full time career NEED TO CONSIDER.
1.Have or develop a passion for something. If you fly, you know what I mean. If you don’t or can’t develop a passion for a line or work or a business, don’t waste your time. If you don’t already have a passion for something, I firmly believe that if you try it for a year, only then can you truly decide if you have a passion for it or if it’s not for you – that goes for ANYTHING in life.
2.Get in business with the right people. After passion, nothing…and I mean NOTHING, matters more. Product doesn’t matter, investments of money and time don’t matter – nothing is more important then being in bed with the right people when it comes to business. Just look at the failing airlines – idiots running the show! If you look at any business (as an investment or a place to work), the success or failure of that road is the result of who you are in business with, period. One of my favorite books, “Good to Great” by Jim Rohn sums it up like this: “get the right people on the bus, get them in the right seats, then decide where you are going to drive the bus.” This is a great analogy to business, be it as a plan B, an employee, or an investment.
3.Leadership. Poor leadership equals poor results. Great leadership equals great results. This goes almost hand in hand with being in business with the right people. The attitude at the top trickles down in an organization. However, finding great leaders is by far the most difficult task in business. This is why great leaders make so much money!!! Think of a time you flew with a lousy captain vs. a time you flew with a great captain - that’s what I mean (on a small scale) about solid leadership. One question you have to ask yourself about being in business is “Do I want to and can I be a great leader?” It’s o.k. if you don’t want to lead or can’t do it well (you can develop this skill quite quickly). But, if you don’t want to be a leader, don’t waste your time in any business venture or leadership position, it and you will fail.
4.Platform. The platform on which you operate is VITAL. This is one reason I LOVE the money business (insurance, investments, lending). This business is structured (like almost all businesses, but this one has a twist) such that you can really make a TON of money helping people.
5.Product. Do people need what you are selling? Is your product recession proof? Is your product THE most competitive on the market?
6.Success – it DOES NOT happen overnight in ANYTHING. The question you have to ask is not “Will it be hard?” It will be hard. The question you have to ask is “Will it be worth it?” Then you can put up with the inevitable B.S. that goes along with everything we do in life!!!
Let me give you an example of what I do using a simple term life insurance policy in my business.
You sell a 20 year term life insurance policy to a husband and a wife (I mostly sell AIG, the largest in the world and highest rated, and subsequently, typically the cheapest). These people you’re selling to typically have kid(s), a house (mortgage), and jobs. The life insurance is there to replace a lost income if somebody dies (if the client dies, they can’t work, if they can’t work, their income that the family depends on goes away, too).
Let’s assume this husband and wife couple purchase $1,000,000 of insurance each (very standard) 30 year term policies. Each month they pay $83 for both policies (my wife and I pay $75 for our $1,000,000 AIG term policies).
1.$83 premium per month x 12 months = $996 (call it $1000 to make the math easy) – this is called 1st year premium.
2.1st year premium of $1000 minus a $50 policy fee (the various life insurance companies do not pay you on the policy fee) = $950.
3.A new agent contract is 50% of the 1st year premium…or…$950 x 50% = $522.50 commission to you.
4.If paying monthly (most clients do), initially you are paid 75% of your commission up front, or $391.88.
5.The rest of your commission ($130.63) comes to you in months 10, 11, and 12. After the first year, you have been paid your full commission.
6.The process from start to finish to sell a policy typically takes about 2 or 3 hours in the beginning – you get better / more efficient as you get more experienced (think of your first flight plan when you started flying vs. how fast you can flight plan now). That’s about $175 an hour – not bad.
Continued...
