- 2,024
5% with full gi and subsidies will be fine with me. That means I can sell twice as fast since I won't have to worry about declines.
Exchanges and Agent Commissions
- Thread starter Crabcake Johnny
- Start date
- 3,352
Yea, the eternal debate goes on....5% GI is workable, but if history plays out, say as in NY, NJ, or MA - GI means NO commissions. Seriously guys, who really thinks we are gonna get paid selling GI? Lets take a vote : I for one think most states say NO commissions, but thats just me. Peanut gallery, tell us what you think...What way are the tea leaves lining up on this today? Maybe one of those 15,000 new IRS agents being hired by Obama to police this crock of crap health bill can sign up everybody who is now mandated to buy insurance? Why will any of us be needed and why would we be paid?
- Thread starter
- #23
- 14,808
I don't think anyone working up a 5% model is taking expenses and taxes into consideration.
As we all know, it's difficult at best to sell a $400 premium - so subsidies are irrelevant. The average premium will still have to be around $300/mo or there's nothing to discuss. We can see with the current nat'l risk pool that it doesn't matter that's it's GI if the premiums are $600.
So at $300/mo for GI at 3% = $180 commish. I hear a lot of people claiming their apps will double since it's GI. Fine - so take an agent who does 3 per week and make it 6.
6 apps X $180 = $1,080. Marketing costs will remain the same - $100 per deal to gain a client. Subtract $600 and you've made $480.
It might still be a great entry to get a client on the books if you're multi-line but there is no model for a career at 5%, even if it's GI.
As we all know, it's difficult at best to sell a $400 premium - so subsidies are irrelevant. The average premium will still have to be around $300/mo or there's nothing to discuss. We can see with the current nat'l risk pool that it doesn't matter that's it's GI if the premiums are $600.
So at $300/mo for GI at 3% = $180 commish. I hear a lot of people claiming their apps will double since it's GI. Fine - so take an agent who does 3 per week and make it 6.
6 apps X $180 = $1,080. Marketing costs will remain the same - $100 per deal to gain a client. Subtract $600 and you've made $480.
It might still be a great entry to get a client on the books if you're multi-line but there is no model for a career at 5%, even if it's GI.
- 3,352
John: Great analysis, this is good stuff - BUT is there somebody who can make the case that John might be wrong here? (I don't think you are John, but somebody play devil's advocate for conversations sake)...Is there a way to primarily still sell GI health with life insurance on one in ten GI cases you write up? Is that math workable?
- Thread starter
- #25
- 14,808
I also heavily doubt any state will have year round enrollment. Even Mass. has gone to open enrollment periods. If you try to sign up for new indie coverage now at the Mass. Connector you'll see it's closed. The next open enrollment period is July 1st.
So even Mass. has finally learned their lesson regarding people gaming the system.
Because of this, just imagine buying internet leads. Once OEP closes you'll be dealing with a ton of people thinking it's GI...and you'll be wasting $8 per lead saying "not for 3 more months."
So even Mass. has finally learned their lesson regarding people gaming the system.
Because of this, just imagine buying internet leads. Once OEP closes you'll be dealing with a ton of people thinking it's GI...and you'll be wasting $8 per lead saying "not for 3 more months."
- 3,352
Another good point and something I haven't thought of before! Thanks John. HealthGuy
- 2,455
In the end, the people that can roll with the changes and actually work their arses off are the ones who will do well and the ones who keep trying to second guess how this whole thing is gonna play out are the ones who will lose traction IMO.
I'm involved in a few other businesses and speak to several other business people and EVERYONE is experiencing changes in their chosen profession right now it seems, from construction workers to lawyers to teachers and firemen. Either people have too much money, too much work, different types of work than what they are used too, people too fat too tall or something. Lawyers who once concentrated on one thing now may have expanded into real estate law as well or are assisting other professionals with it. Folks who drew up plans for residential construction are now drawing up stuff for other types of projects.
In the end it's all about being able to roll with the changes and/or finding a niche. I think the guys and gals who can become an expert in health and have a system, even if they have to sell in another state will be able to make it. Just going to have to tighten up and actually WORK for it now is all and that is with anything nowadays. The free ride is definitely over in these uncertain times for just about everyone. At least it is going to look like it was a free ride for how much you have to work for things now IMO. We will be looking back and calling the recent previous years as the 'good ole days' just like we called the years before that period.
I'm involved in a few other businesses and speak to several other business people and EVERYONE is experiencing changes in their chosen profession right now it seems, from construction workers to lawyers to teachers and firemen. Either people have too much money, too much work, different types of work than what they are used too, people too fat too tall or something. Lawyers who once concentrated on one thing now may have expanded into real estate law as well or are assisting other professionals with it. Folks who drew up plans for residential construction are now drawing up stuff for other types of projects.
In the end it's all about being able to roll with the changes and/or finding a niche. I think the guys and gals who can become an expert in health and have a system, even if they have to sell in another state will be able to make it. Just going to have to tighten up and actually WORK for it now is all and that is with anything nowadays. The free ride is definitely over in these uncertain times for just about everyone. At least it is going to look like it was a free ride for how much you have to work for things now IMO. We will be looking back and calling the recent previous years as the 'good ole days' just like we called the years before that period.
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- Thread starter
- #28
- 14,808
This is why being very niche in your career can be quite dangerous. A lot of the long-term unemployed pigeon-hole'd themselves.
The dangerous part becomes when you get into your late 40's or early 50's, making "great" money and living the lifestyle that comes with it. Now you're out of work, 52 years old and trying to find something to replace that 85K salaried job and you're toast.
I'm just now starting to learn, and apply that multiple streams of income is the best way to go about this.
The other lesson here is to live below your current income by one half. That means if you're earning 80K a year, make sure you can handle all the bills at 40K.
The dangerous part becomes when you get into your late 40's or early 50's, making "great" money and living the lifestyle that comes with it. Now you're out of work, 52 years old and trying to find something to replace that 85K salaried job and you're toast.
I'm just now starting to learn, and apply that multiple streams of income is the best way to go about this.
The other lesson here is to live below your current income by one half. That means if you're earning 80K a year, make sure you can handle all the bills at 40K.
- 3,352
Good stuff Obie and John - wisdom for the ages....anybody else wanna jump in on this thread before it cools off?
- 2,024
I agree with you completely on that John. I'm basing my 5% is workable theory on me being multiline and I cross sell so what it is really doing is giving me a minimal profit and adding clients to the books that I can cross sell.
If I do their health, have them on my mail list, I can cross sell accident, life, Medicare, etc, and generate referrals.
5% really kills the call center model, and the website selling model.
I don't see ehealth bidding 20 bucks a click at 5%.
It'll change the lead vendors too, barring massive stupidity on agents part. I think we might see 3 dollar leads because the spread will be depressed so much.
If I do their health, have them on my mail list, I can cross sell accident, life, Medicare, etc, and generate referrals.
5% really kills the call center model, and the website selling model.
I don't see ehealth bidding 20 bucks a click at 5%.
It'll change the lead vendors too, barring massive stupidity on agents part. I think we might see 3 dollar leads because the spread will be depressed so much.
