Does anyone really get "rich" selling Medicare

[straightnochaser]

Just Don P

 

[Special Agent]

Hey everybody, thought i'd put this out here for general discussion and to share my thoughts.

We all know what a Medicare renewal pays, approximately $300 per year. To gross $90,000 a year you need approximately 300 clients, then you have business expenses like marketing/leads, office space, CRM, and other general business expenses.

I understand those things are the cost of doing business but a small office space could easily cost you $6,000 a year. My point being, that even if you were to say achieve a remarkable client base of 1,000 individuals you're only making $300,000 a year and having to service all of these people. Then factor in churn of 10% a year between switchers/death/moving/adverse events. Now you're needing to still add 100 additional new clients a year just to keep pace.

Now while $300,000 is nothing to scoff at it takes a lot of time and resources to even reach that 1,000 client mark in the first place.

Then at that point you ask yourself do I need to hire staff to help handle renewals and service calls? Another expense.

I was brought into this business in a MLM life only outfit and sold the dream. It just seems almost impossible to scale your way to $500,000 $600,000 $700,000 $1,000,000 a year without becoming some faceless call center. With overrides going away you can't really hire 1099 agents anymore and collect a small override on there book either.


Is there anyone here with a large book (500+) who could give this situation some clarity? I don't want to work a salary job my entire life but when you look at cost of acquisition + how many people it takes to make a decent living it makes you wander.

took me a while to get here but now i have money coming out the Wazoo

 

[vic120]

You have to register with the SBE first. Once you have a profile, you help the client set up their profile, either do the app for them or walk them through the app. At the end, you go on your broker profile, look for the client and add them as yours. They get a notification that you claimed them and as long as they don't say they don't want you, they are yours.

I did a few like this on the VA SBE this year.

I did not know what to do with it, the FMO I first did ACA with told me there are so many hoops when it goes state based that its not wort it

On the other hand when I went to move contracts I found 2 that wont move are Ambetter and Oscar so I am stuck with that FMO for those

another thing that is kind of an issue with ACA

 

[Jim Wright]

I did not know what to do with it, the FMO I first did ACA with told me there are so many hoops when it goes state based that its not wort it

On the other hand when I went to move contracts I found 2 that wont move are Ambetter and Oscar so I am stuck with that FMO for those

another thing that is kind of an issue with ACA

Sure, there are some hoops but if you have enough clients in an SBE state, it's worth it.

Also, Ambetter and Oscar WILL move but there are some complications. It's not easy but we move agents Ambetter and Oscar appointments to us all of the time.

 

[vic120]

Sure, there are some hoops but if you have enough clients in an SBE state, it's worth it.

Also, Ambetter and Oscar WILL move but there are some complications. It's not easy but we move agents Ambetter and Oscar appointments to us all of the time.

Oh man

I just changed FMO's mainly because of Medicare , but the new FMO had done all my rebranding and print website and everything, I also wanted to leave my current ACA FMO for reasons

but they said with these 2 carriers they would not let me move without a release which my current ACA FMO refuses to do

I really wanted this under the new FMO because I am writing Ambetter every here and there

But i was told there is NO WAY to do this, without a release, all other carriers where not an issue

what can I tell them to move forward?

 

[Jim Wright]

Oh man

I just changed FMO's mainly because of Medicare , but the new FMO had done all my rebranding and print website and everything, I also wanted to leave my current ACA FMO for reasons

but they said with these 2 carriers they would not let me move without a release which my current ACA FMO refuses to do

I really wanted this under the new FMO because I am writing Ambetter every here and there

But i was told there is NO WAY to do this, without a release, all other carriers where not an issue

what can I tell them to move forward?

I misunderstood your first post. That's correct, you can't move them without a release. We're on Ambetter's advisory board and we've been pushing them to change their release policy and how the release happens.

If you have someone anyone else that works with you and is licensed, there are ways to get creative.

I'm sorry you're stuck. I hate the FMO's that refuse to release. It doesn't really help anyone in the long run.

 

[goillini52]

Oh man

I just changed FMO's mainly because of Medicare , but the new FMO had done all my rebranding and print website and everything, I also wanted to leave my current ACA FMO for reasons

but they said with these 2 carriers they would not let me move without a release which my current ACA FMO refuses to do

I really wanted this under the new FMO because I am writing Ambetter every here and there

But i was told there is NO WAY to do this, without a release, all other carriers where not an issue

what can I tell them to move forward?

Who's the FMO that won't release?

Can you self terminate and wait 6 months?

 

[vic120]

Who's the FMO that won't release?

Can you self terminate and wait 6 months?

nope no self term

BP Marketing

 

[goillini52]

nope no self term

BP Marketing

STAY AWAY FROM BP Marketing, THEY DON'T RELEASE!!!

STAY AWAY FROM BP Marketing, THEY DON'T RELEASE!!!

 

[aheff]

Hey everybody, thought i'd put this out here for general discussion and to share my thoughts.

We all know what a Medicare renewal pays, approximately $300 per year. To gross $90,000 a year you need approximately 300 clients, then you have business expenses like marketing/leads, office space, CRM, and other general business expenses.

I understand those things are the cost of doing business but a small office space could easily cost you $6,000 a year. My point being, that even if you were to say achieve a remarkable client base of 1,000 individuals you're only making $300,000 a year and having to service all of these people. Then factor in churn of 10% a year between switchers/death/moving/adverse events. Now you're needing to still add 100 additional new clients a year just to keep pace.

Now while $300,000 is nothing to scoff at it takes a lot of time and resources to even reach that 1,000 client mark in the first place.

Then at that point you ask yourself do I need to hire staff to help handle renewals and service calls? Another expense.

I was brought into this business in a MLM life only outfit and sold the dream. It just seems almost impossible to scale your way to $500,000 $600,000 $700,000 $1,000,000 a year without becoming some faceless call center. With overrides going away you can't really hire 1099 agents anymore and collect a small override on there book either.


Is there anyone here with a large book (500+) who could give this situation some clarity? I don't want to work a salary job my entire life but when you look at cost of acquisition + how many people it takes to make a decent living it makes you wander.

Yes, you can indeed make a GREAT living only selling Medicare. Been selling insurance for well over 30 years. First 15 years, I did fine, made a nice living, selling life, disability, annuities. Fifteen years ago, I jump whole hog into Medicare. My timing was lucky, with MAPD and Med Sup just taking off in my area- exploding, for the first five years. I would say it took me about eight years to transition from doing well to going off the chart great.
So to answer your question...IF the Medicare biz doesn't change radically, and if you work it smart and hard, and if you give it 5-10 years, you can do amazing.