Even with inflation, “6 Figure Incomes” are still a milestone for many insurance agents. Similarly, making it into the “1%” of earners is also a goal of many brokers. Let’s take a look at both of these milestones and how they relate to success today. Finally, we will look at insurance sales as a possible vehicle for reaching the 6 Figure, then 1% goals.
How Much is 6 Figures & Who is the 1%
How much is 6 figures? To be simple, making six figures is making $100,000 to $999,999 a year. However, when someone asks this question, they are often really asking – what is a successful salary.
Let’s look at what it means to reach success.
The One Percent
The idea of the top 1% has fascinated Americans over the last several years. When you look at the discrepancy between the top 1% and the 99% rest of us it’s hard to even fathom how these people have reached such high levels of success. This definition of top 1% is kind of vague however, and how we measure it has not been well defined.
There are two ways to look at who would be considered the top 1%; total income per year or total net worth. Considering that income per year can vary greatly, especially with those who own a business or work in sales, total net worth is more likely to be an accurate representation of the top 1%.
Total Income Per Year
Typically, when people think of the top 1%, they are thinking of income per year. Looking at this measurement the average earnings of someone in the top 1% is 1.32 million per year, while the average income for the bottom 99% is a mere 50,000 per year.
However, making it into the top 1% is a lot easier than the 1.32 million; you would need to earn over 361,020 a year. This is still a high target but much more achievable. Making it into the top 10% is even easier, an individual would only need to earn $125,105 every year.
Total Net Worth
Despite typically thinking of the top 1% in terms of income per year, the total net worth of these individuals is probably a better way to determine who qualifies to be considered the top 1%. When looking at it from this perspective the top 1% have a net worth of over $11,000,000 and the top 10% have 1.2 million dollars in net worth.
Total net worth is a better way to determine this because it takes into account how much these individuals have managed to save overtime. You can earn 1.32 million a year and spend 1.3 of it and be no better off than the rest of us. However, if you have $11,000,000 it doesn’t matter how much you’re making or spending; that is how much you have. Unfortunately, net worth doesn’t take into account earned wealth as opposed to affluence.
Making 6 Figures
Your first stop on your way to the top is reaching the six-figure mark. This includes everyone who earns over $100,000 a year, and is very attainable for those in the sales industry. By working hard, putting in the time, and learning from others you can begin making your way to the top 1%. There are several things that you can do to improve your income in the sales industry.
As you’re well aware rapport is one of the biggest things in the sales industry. Finding a personal connection with your clients and creating a funnel of referral business is essential to creating something sustainable. Try to turn all conversations personal when appropriate. This will help develop that genuine relationship with everyone you meet and they will think of you first with any business options.
· Target the right group
Another major thing to do to increase your sales is make sure that you’re focusing on the right target group. Finding people in a similar age range and lifestyle situation as yourself is going to be your best bet at increasing your sales and finding people who connect with you and want to buy from you. For example, if you are an insurance agent, put together a group of likeminded sales people that can keep you motivated.
· Use social media wisely
It’s no secret that social media is slowly taking over business as we know it. So, getting your feet wet and involving yourself in the social media aspect of sales is essential to growing your business. However, this does not mean that this is the only or even the most effective way to grow your sales. Sales is still entirely dependent upon personality and personal connection. While you can use social media to generate interest, you still have to make sure that you develop those relationships.
So, you’ve worked hard, increase your sales, and increased your overall income. But now your next goal is a lot loftier.
How to Reach the Top 1%
Reaching the top 1% can seem impossible. Although this is a hefty goal with the right planning and training you can get there. Looking at habits of the top 1% can help give us a road map on how to get there ourselves.
Make your own luck
The top 1% actually create their own luck. Despite the common belief that those in the top 1% are born wealthy, which some of them are, the majority of them have actually created this income for themselves. They work hard, they learn, and they set themselves up for success. In essence they believe that they can do it. They go after what others are afraid to reach for, because where no one else is trying it’s a lot easier to succeed.
Think of business as a game
The top 1% don’t view the ups and downs of business as pros and cons. They view this all as part of life, as part of the game that they’re playing. This makes it easier for them to take risks; to go after the bigger things in life. When you’re playing a game, life seems less scary.
Don’t care about the market
Along the same lines, they don’t worry about the market. They, as said, make their own luck. They play their own games. They make their own rules. The market simply affects how they play. So, don’t let a downturn in the economy, or other outside factors affect your drive; simply change the way you’re playing the game.
Reaching the top 1% is going take a lot of work, but many have done it before, and there is no reason that you can’t follow in their footsteps. Don’t let fear stop you from reaching your dreams.
Fear is the number one reason we fail. We think that by not acting, by not trying, we avoid failure, but this is the completely false. By not trying, we never succeed and that in and of itself is a failure.
So, get out there, be brave, and go for it. Soon, the question won’t be how much is 6 figures, but how much is seven figures.