Don't Panic!

[arnguy]

Yeah, Ed, that's the problem here, too. Edited for content because it is going out on the air. The other night they had the one where Larry and Jeff write an obituary staing "a loving aunt" that had a misprint in the newspaper. They blocked out the misprint, but it was easy to figure out what it was.

 

[CHUMPS FROM OXFORD]

That's one of my all-time favorites.

 

[ABC]

Very fair question.
My theory is the agent that are producing low health numbers with the carriers will be in jeopardy of losing their contracts or being forced to take lower comps.

Let's say you are producing $20,000 a year in comp. (pre MLR)
Lets go ahead and assume that block is with two different companies. Now that block is only worth $10,000 and its split with two carriers. So you are writing $100,000 in annual premium. Assume 40 policies a year.

The carriers are now saying to make the 10% you have to have atleast 50 policies in place.

Will the agent whos primary focus is not health continue to write at these low levels?

The agents that are going to be successful in the individual health market are going to be producing at least 20 apps a month. With the least amount of overhead to get their leads.

My goal is to write at least 30 a month. I am banking on a lot of agents dropping out of the market. If 2/3 of the individual producers drop out then I think its very possible for agents specializing in health to write 50 a month if they have invested in their own web sites to generate leads.

I will find out 1st and 2nd quarter if my theory is right.

I don't understand just exactly what kind of agent is "the perfect example" of one who will not be in the health market "anymore."

It seems to me that "sman" is rather representative of most agents that I've spoken with with regard to the comp cuts that have been made.

Why (or how) are you (or someone else) going to be successful in this market next year?

Do you have a "secret" (not asking you to reveal it) on how you can make up a 50% cut in your income? I've worked, re-worked, and re-re-worked the numbers and I just don't see how to do it.

Can you please elaborate on your hypothesis?

Thank you.

Al

 

[Crabcake Johnny]

One thing is certain; selling only individual health insurance from your home as a way of making a living is over. Agents selling health insurance will either cross sell - hopefully life or they'll literally make half of what they earned last year, play WOW all day and live of their spouse's income.

I am actively telling agents wanting to come into this business that they will not earn enough of a living and absolutely not "six figures" only selling indie health.

The math is the math. 12% on average. Six figures only selling health would mean over 800K in volume places which is around a million submitted.

But that's half the math. The other half is most agents cannot come into this industry on as-earned commissions. They need the advances.

Write GR at 12% with a 6 month advance with a client costing around $100 and it's easy: 3K annual volume X .12 = $360 with $180 advanced - $100 marketing = $80 net.

Ain't gonna happen. And it's also not gonna happen throwing a few accident plans on the policy. It'll only happen cross selling term life.

 

[JE INSURANCE]

One thing is certain; selling only individual health insurance from your home as a way of making a living is over. Agents selling health insurance will either cross sell - hopefully life or they'll literally make half of what they earned last year, play WOW all day and live of their spouse's income.

I am actively telling agents wanting to come into this business that they will not earn enough of a living and absolutely not "six figures" only selling indie health.

The math is the math. 12% on average. Six figures only selling health would mean over 800K in volume places which is around a million submitted.

But that's half the math. The other half is most agents cannot come into this industry on as-earned commissions. They need the advances.

Write GR at 12% with a 6 month advance with a client costing around $100 and it's easy: 3K annual volume X .12 = $360 with $180 advanced - $100 marketing = $80 net.

Ain't gonna happen. And it's also not gonna happen throwing a few accident plans on the policy. It'll only happen cross selling term life.

Why would you say that? you got my money mentioned that he knows agents that write 30-40 apps a month and will easily make 6 fig a year and surpass it? doing those numbers seems to me it would be easy to make a living at home...now if you do 3-5 of course your done

 

[Crabcake Johnny]

I don't base my advise to agents who count on my recommendation on super star agents who make up 1% of the 1%.

 

[YouGotMyMoney]

I don't base my advise to agents who count on my recommendation on super star agents who make up 1% of the 1%.

True. How many agents have $3-6k a month for internet leads?

Now how many new agents have $1k a mo for internet leads? 0.0001%.....

Moving forward it's either aged leads or telemarketing/b2b.

 

[bill3173]

The truth is that due to most people's natural level of self-motivation there will never be any system in place where most independent agents will be even moderately successful.

Some agents seem to be motivated when it comes to training and seminars and those sorts of things, but what good does all of that do you, if you need money?

My wife told me about an agent that was always going to attend seminars in, and, out of town, etc. and asked me why I didn't do those things.

I told her seminars and training are for people that are rich or playing on their parents money. Two months later she told me that his wife said they are broke.

 

[Guest]

I'm curious as to how you have a $100 cost per sale. That sounds wicked high, that would be 20 to 25 internet leads, 4% or 5% closing is way too low.

Also Humana has a 9 month advance so if you wrote 3 Humana, and 2 Golden Rule (or vice versa, whatever is best for the client) that makes a difference. 5 sales a week is not hard (one a day, c'mon man), and yes, you should cross sell accident, dental etc.

You can at the very least least struggle by on $65 to $75K while building a decent residual and that's only if you just started this business, if you're an existing agent you should have some sort of residual already.

Too many people came into this sold on how easy it is, buy a dialer, get a website, buy leads, send out emails, etc. BUT, tools and technology will never close the sale for you, when it does, we will all be obsolete.

One thing is certain; selling only individual health insurance from your home as a way of making a living is over. Agents selling health insurance will either cross sell - hopefully life or they'll literally make half of what they earned last year, play WOW all day and live of their spouse's income.

I am actively telling agents wanting to come into this business that they will not earn enough of a living and absolutely not "six figures" only selling indie health.

The math is the math. 12% on average. Six figures only selling health would mean over 800K in volume places which is around a million submitted.

But that's half the math. The other half is most agents cannot come into this industry on as-earned commissions. They need the advances.

Write GR at 12% with a 6 month advance with a client costing around $100 and it's easy: 3K annual volume X .12 = $360 with $180 advanced - $100 marketing = $80 net.

Ain't gonna happen. And it's also not gonna happen throwing a few accident plans on the policy. It'll only happen cross selling term life.

 

[YouGotMyMoney]

and technology will never close the sale for you, when it does, we will all be obsolete.

i hear that's next on obama's to do list.