A Silly Idea...or Is It Just Devious???

Nov 20, 2007

  1. CHUMPS FROM OXFORD
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    CHUMPS FROM OXFORD Guru

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    Ok. Here it is. Although, almost all of business is written in Ohio and PA, I am licensed in many other states. In one of those states, there's a pocket of about 4-5 counties where Blue Cross in the king. Their rates in those areas can't be beat, and the coverages are equal or better to their competition.

    So here's my idea. Assuming I buy about 100 leads per month for that area at a cost of about $850, I will send a Blue Cross application to all of them. No calls, but perhaps 3-4 emails over a 14-day period. Nice cover letter with explanation of coverages (brochure) will be enclosed along with a SASE to return the app.

    Total expenses will be approximately $1000 and the average commish will be about $350 per case. Can I expect four people to return the app, leaving three to be issued and approved?

    Interested in hearing your thoughts. Well, actually, I can't really hear your thoughts unless I'm a psychic. But don't call me because I'm really pressed for time today. I know. Can you post your comments on this thread?

    Thanks.

    From the city that is trying to emerge from the depths of hell (Beirut)...

    Chumps
     
  2. TXINSURANCE
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    TXINSURANCE Guru

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    No - 4 will not return. Also having an Ohio return address isn't going to help matters.

    If you do get returns, the apps will be filled out wrong, missing MONEY and you will get into this back and forth mail game.

    The biggest issue is the PREP time for the mailers since the carriers do such a bad job of giving us "mailable" materials.

    At once time I was mailing about 50,000+ apps / brochures per year (or more) - I was running a postal substation basically. While I did indeed get some response it was a VERY VERY small percentage - most called in, hardly anyone filled it out and returned it without a prior or multiple conversations - EXCEPT the uninsurables of course, they all mailed it back.

    I don't know any way of doing mailers like you are suggesting profitable in the blind. It can be a good compliment to your existing model - but you are going to need to pre screen these people and work the leads like any other model.

    Ohhh and my favorite - they will take your brochure and app to their Allstate, State Farm agent - had that happen all the time.
     
  3. CHUMPS FROM OXFORD
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    CHUMPS FROM OXFORD Guru

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    That's what I thought. The Blue Cross Direct captive agents around here are notorious for sending apps to everybody. Some prospects think they can only get the product from these guys and return the apps.
     
  4. saieddie
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    saieddie Guru

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    What if you emailed them the apps and brochures and had them fax back to you? That would save you time and $$.
     
    saieddie, Nov 20, 2007
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  5. CHUMPS FROM OXFORD
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    CHUMPS FROM OXFORD Guru

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    Interesting idea.
     
  6. TXINSURANCE
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    Some Blues don't accept faxes, or credit cards and they want a "check" - faxes are hardly legible, never filled out correctly - and you would get back relatively nothing back.

    We send out thousands of email quotes per day - email is like screaming in an open field - the response is horrible. We basically only send out automated emails and drip marketing now - the days of "can you email to me?" are long gone - complete waste of time.

    If you can setup a nice AUTOMATED email with quote and brochure - sure go for it, try it.
     
  7. BKrocko
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    Chumps - I prefer hanging blank applications up on the bulletin board at the nearby grocery store - then go back once a week and collect all of the ones that have been filled out. Man, I'm telling ya it's a cash cow!

    It also reminds me to pick up a loaf of bread and a gallon of milk. LOL
     
    BKrocko, Nov 21, 2007
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  8. somarco
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    somarco That Medicare Expert Guy

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    I go behind you & put my name & agent number on them.

    Surprised you hadn't noticed . . .
     
    somarco, Nov 21, 2007
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  9. BKrocko
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    BKrocko Guru

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    A Silly Idea...or Is It Just Devious???

    And to think that all this time I was blaming the carrier. Bob, you just took a silly idea and turned it devious - good one! I think Ed (Chumps) now has his answer.:twitchy:
     
    BKrocko, Nov 21, 2007
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  10. Consultant
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    Consultant Super Genius

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    Hey Ed, I think they just saved you a few thousand dollars in marketing costs. Will you be splitting that with them for the time saved?
     
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