Building a Medicare Book Without Prospecting

[kstein]

I would say advisor referrals because the cost is nominal but finding them and getting an introduction/getting the right advisor with a large book of retiree age clients is key.

The worst ROI is probably the direct mail but it is the most consistent and still justifiable.

I always find it difficult if not impossible to calculate the ROI if a marketing campaign because when does it "end"? You might add up FYC but what about terminations, how about a referral 8 months later that results in a sale from the original campaign?

I had an internet lead from insureme in 2010 result in an introduction to an advisor and mushroomed into 10 or so advisors referring me clients, probably 100 sales or so. I felt like I was flushing money down the toilet with internet leads and then bam, a grand slam!

In summary, I find it almost impossible to accurately calculate ROI given the craziness of this job.

 

[G.Gordon]

You won't have a sustainable flow of referrals from your book until you pass the 700 client mark. That is what several brokers with books in excess of 1000 have said.

Now that we're closing in on 1300 the referral stream is pretty dang nice.

We have a physical office, provide exceptional service, walk in conversations are welcome, and do a monthy newsletter. It cost to have those referrals come your way.

 

[kgmom219]

You won't have a sustainable flow of referrals from your book until you pass the 700 client mark. That is what several brokers with books in excess of 1000 have said.

Now that we're closing in on 1300 the referral stream is pretty dang nice.

We have a physical office, provide exceptional service, walk in conversations are welcome, and do a monthy newsletter. It cost to have those referrals come your way.

Define "sustainable flow"

10 apps a month? 20? 5 a month Jan-Sept, but a 100 new in AEP?

Just wondering what the magic number is.

 

[G.Gordon]

To keep the business growing at a desired rate. In other words, the OP wanted to do little other than be an order taker and is willing to shell out 80% of FYC per client. I was saying that until that book exceeds 700 clients the OP better be ready to shell out that much per client for the next five to six years to get to 700. That is assuming that the lack of will to chase leads also translates to a lack of will to serve the client after the sale. Referrals only go to those that do an exceptional job, stay in touch, and leave an impression that is referable.

 

[FLM2]

To keep the business growing at a desired rate. In other words, the OP wanted to do little other than be an order taker and is willing to shell out 80% of FYC per client. I was saying that until that book exceeds 700 clients the OP better be ready to shell out that much per client for the next five to six years to get to 700. That is assuming that the lack of will to chase leads also translates to a lack of will to serve the client after the sale. Referrals only go to those that do an exceptional job, stay in touch, and leave an impression that is referable.

As the OP I can tell you that your assumptions are 100% wrong, I give my clients exceptional service and get lots of referrals on the ACA side. I rarely lose a client for any reason.

I live in an area with exceptionally high Med Supplement rates ($250 for T65 Plan F) and don't have an office or any other overhead other than marketing; I want to add 150 new Med Supp clients to my book, at which time there won't be a need for me to do any more than that.

 

[coachd]

I mail postcards and have the people call me. It is a better lead from what I have seen. It may cost a bit more, but better than trying to get the person back after they send in a BRC. As for referrals.... I get a lot of them. I just want to grow my book of business. I am willing to pay and just trying to find a better way to qualify people.

 

[G.Gordon]

As the OP I can tell you that your assumptions are 100% wrong, I give my clients exceptional service and get lots of referrals on the ACA side. I rarely lose a client for any reason.

I live in an area with exceptionally high Med Supplement rates ($250 for T65 Plan F) and don't have an office or any other overhead other than marketing; I want to add 150 new Med Supp clients to my book, at which time there won't be a need for me to do any more than that.

Great, then you have the hardest part beat. In this market there are plenty of order takers. I call em hit-n-run agents. They want that app, but don't want the work that goes with it. They don't want a relationship, they want a paycheck and that is it. They wonder why their turn over ratio is so high. Take care of the client the client takes care of you.

 

[FLM2]

Great, then you have the hardest part beat. In this market there are plenty of order takers. I call em hit-n-run agents. They want that app, but don't want the work that goes with it. They don't want a relationship, they want a paycheck and that is it. They wonder why their turn over ratio is so high. Take care of the client the client takes care of you.

Exactly, I just don't like chasing down leads and have reached the point where I don't have to do that and can spend the money to acquire new clients without real regard to the cost.

 

[axeman462]

Thing is. If it were that easy, to just spend money and create a sustainable enough business to have the customers comes to you, and not have to prospect at all, then we agents wouldn't exist. the insurance companies would only be doing that.
The insurance companies advertise a lot on TV, send out mail, enroll people on their websites etc... But they still contract us to do outside sales for them. Why? Because they need us. They understand, that they cannot create a sustainable business without agents constantly prospecting for them.
If it were that easy to just throw money out there, and watch the commission checks roll in, the insurance companies would eliminate us in a heart beat.Stop trying to find a short cut, and get to work.

 

[FLM2]

Thing is. If it were that easy, to just spend money and create a sustainable enough business to have the customers comes to you, and not have to prospect at all, then we agents wouldn't exist. the insurance companies would only be doing that.
The insurance companies advertise a lot on TV, send out mail, enroll people on their websites etc... But they still contract us to do outside sales for them. Why? Because they need us. They understand, that they cannot create a sustainable business without agents constantly prospecting for them.
If it were that easy to just throw money out there, and watch the commission checks roll in, the insurance companies would eliminate us in a heart beat.Stop trying to find a short cut, and get to work.

I guess you don't know how to generate referrals, which take no prospecting. I've tripled the size of my ACA book of business in the past two years, to over 300, through referrals without spending anything on marketing-it's the result of doing a good job for clients.

As for the Medicare business, all of the insurance companies spend enormous sums of money mailing to people aging in because they understand that once they enroll them their is little or no marketing cost in future years. UHC has a large call center that enrolls people turning 65 directly with no agents, my original question was based on reproducing that for a single person (me)-you just don't get the concept.