Does anyone Know of a Million Dollar Medicare Producer??

[ExProgrammer]

When comparing med supps to FE most would agree that the overall commission, say for six years, from a med supp is higher because the product is more expensive in the majority of cases. And the persistency should be a lot better than for FE. Of course with FE the money comes in quicker because of the large first year commission. In addition to the favor of med supps is that you're more likely to sell an FE policy to a med supp customer than vice versa. That would help offset the faster money for FE if you sold both but focused on one.

And most would agree that it's a personal thing. Do what suits you.

But one thing that hasn't been mentioned here is the question "How long does it take to make a sale?". If you exclusively sell med supps what is the rate of sales per hour? If you exclusively sell FE what is the rate of sales per hour?

It seems that some of the high producing agents on the FE forum will hit it for 8 hours and maybe make 6 sales. So that would be .75 per hour. With med supps it seems to be smaller.

Comments?

 

[goillini52]

When comparing med supps to FE most would agree that the overall commission, say for six years, from a med supp is higher because the product is more expensive in the majority of cases. And the persistency should be a lot better than for FE. Of course with FE the money comes in quicker because of the large first year commission. In addition to the favor of med supps is that you're more likely to sell an FE policy to a med supp customer than vice versa. That would help offset the faster money for FE if you sold both but focused on one.

And most would agree that it's a personal thing. Do what suits you.

But one thing that hasn't been mentioned here is the question "How long does it take to make a sale?". If you exclusively sell med supps what is the rate of sales per hour? If you exclusively sell FE what is the rate of sales per hour?

It seems that some of the high producing agents on the FE forum will hit it for 8 hours and maybe make 6 sales. So that would be .75 per hour. With med supps it seems to be smaller.

Comments?

Good points. Of those 6, how many don't have the 1st premium clear...how many make it past 9 months? How many times do you have to chase the NSF premiums? The Med Supp sale takes longer, but as long as you keep in touch, it's much more solid and requires very little service work.

With many Med Supps you get the FYC for longer than 6 years...as long as their health allows them to switch.

Also, like you said you can cross sell FE to the Med Supp client along with other ancillary products.

 

[Bevo]

The ones I know own pay a salary base plus bonus per app is that what you are doing as well?

I pay my agents residuals, so they are building long-term wealth right beside me. They're well aware of the extraordinary opportunity they have and take full advantage of it.

 

[sshafran]

Good points. Of those 6, how many don't have the 1st premium clear...how many make it past 9 months? How many times do you have to chase the NSF premiums? The Med Supp sale takes longer, but as long as you keep in touch, it's much more solid and requires very little service work. With many Med Supps you get the FYC for longer than 6 years...as long as their health allows them to switch. Also, like you said you can cross sell FE to the Med Supp client along with other ancillary products.

Service work on a Med Supp:

For every 100 clients, you'll get 3-4 of these calls.

Client calls in February: "Hey, I got a bill. I don't normally get bills, what happened?"
Agent: "Just like last year, we have that Part B deductible."
Client: "Oh yeah, I forgot. How are the kids?"
Agent: "Kids are great, thanks for asking. (15 more seconds of small talk...)"
Click.

Phone won't ring again until aep...


Service work on FE:
You have to remind them to keep the piggy bank filled with at least $35 to pay for their surance. They aren't sure if they can do it this month... After all, their dead-beat 40 yr old son needs bail money...

Sent from my iPad using InsForums

 

[Bevo]

I have seen companies try to scale the "salary" model and it seems you attract the dead beat agents who stick around to collect a check every two weeks.

It gets tricky and as I mentioned. I for one firmly believe every person in an organization should get compensated based on the value that they themselves bring to the company.

Hiring for a salary plus a commission per app stuffs everyone in the same box, and if you have a superstar agent and don't compensate them more in some way, they'll leave (and they should leave). You can't pay top producers $40K per year and expect $100K production out of them, yet I see agency owners attempt to do this all the time.

Your biggest expense walks on two legs and these guys have a revolving door of people who are burnt out, or simply not getting compensated properly. And not everyone is just motivated by money. Smart agency owners recognize this and treat their agents accordingly to keep people happy.

As I mentioned I talk to the guys who try to do this "box" method and are hoping that one day it'll just work and they'll have a dream team and their company will get voted "Best place to work in our city!"

It's a fine line though, as you need to watch expenses while building up an agency as well.

 

[FL P&C Broker]

^what is your compensation model? Just curious.

 

[ExProgrammer]

Good points. Of those 6, how many don't have the 1st premium clear...how many make it past 9 months? How many times do you have to chase the NSF premiums? The Med Supp sale takes longer, but as long as you keep in touch, it's much more solid and requires very little service work.

With many Med Supps you get the FYC for longer than 6 years...as long as their health allows them to switch.

Also, like you said you can cross sell FE to the Med Supp client along with other ancillary products.

So the problems you mentioned would knock off maybe 15% - 25% of the day's work. Call it 20%. That would drop the .75 rate, which would be for someone really good, down to .6. Which would still be about 5 sales for 8 hours in the field.

Todd King said to aim for one med supp sale a day:

http://www.insurance-forums.net/for...calling-abd-referrals-t82383.html#post1102612

He was talking to someone getting started, though.

Of course the lead cost would eat up a lot of first year med supp sales, but I'm curious as to what other folks think about the approximate per hour rate of sale for med supp vs. FE.

 

[Bevo]

That would drop the .75 rate, which would be for someone really good, down to .6. Which would still be about 5 sales for 8 hours in the field.

I know nothing of FE and haven't ever sold it, but you're saying that there are FE guys doing 5 policies per day? If so what types of leads are they working?

And you mentioned in the field so I'm assuming F2F and not phone?

 

[goillini52]

Service work on a Med Supp:

For every 100 clients, you'll get 3-4 of these calls.

Client calls in February: "Hey, I got a bill. I don't normally get bills, what happened?"
Agent: "Just like last year, we have that Part B deductible."
Client: "Oh yeah, I forgot. How are the kids?"
Agent: "Kids are great, thanks for asking. (15 more seconds of small talk...)"
Click.

Phone won't ring again until aep...


Service work on FE:
You have to remind them to keep the piggy bank filled with at least $35 to pay for their surance. They aren't sure if they can do it this month... After all, their dead-beat 40 yr old son needs bail money...

Sent from my iPad using InsForums

Yep....or when the Med Supp client calls and says, "My premium went up, can you switch me to something cheaper so you can get a fresh 6 years of FYC?"

 

[ExProgrammer]

I know nothing of FE and haven't ever sold it, but you're saying that there are FE guys doing 5 policies per day? If so what types of leads are they working?

And you mentioned in the field so I'm assuming F2F and not phone?

Most of the ones who do really well use DM and see people F2F. What do you think about the rate as I defined applied to med supp sales?

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Most of the ones who do really well use DM and see people F2F. What do you think about the rate as I defined applied to med supp sales?

Of course what Chris Westfall says, and most on here agree with, is that TM leads and phone sales work great. So even though the sale rate per person would be lower you'd talk to more people.