Genuine Discussion on MA Regulations

[TIMOTHY SEBASTIAN]

New agent here so feel free to correct me if I'm wrong.

Using the same direct mail marketing scheme cost per acquisition should be lowest on 67+ direct mailers. T65 is pretty well a foot race so the response rate is much higher on 67+ than T65 or FE. The reason being the mailers pretty much say we have reason to believe your medicare supplement has gone up in price, send in this card for information no how to make it cheaper. Compared to a card that says we have cheap life insurance send in this card if interested. Response rate on 67+ is like 2.5%+ that's 25+ leads out of 1000 mailers. Should be able to assume 20% close ratio that's 5+ new clients per 1000 mailers. 1000 mailers costs like $500 if you use a good mail house with a targeted list so that's $100- per acquisition.

I'm assuming the absolute lowest cost per acquisition one could achieve would be cold calling a scrubbed, targeted list of 67+. However, one would spend 12 hours on the phones in order to generate enough leads to work for the week. That takes 12 hours out of the field one could be making sales instead of calling for leads. Even though the acquisition cost would be low the time it would take away from making money would probably more than make up for the savings.

 

[sshafran]

I market via direct mail for inbound calls (letters, postcards, etc.). I highlight my website... so some go there first, others just call... some just quote request me via the website and give me a fake number... some send me an e-mail peppered with questions...

some call me and leave me crazy voicemails about how they are going to get the attorney general to shut me down because, clearly, I stole their identity if I sent them an ad about Medicare supplements...

Most who call, I can close. They called me after all. Some go with other agents after calling me... I'm not perfect.

CPA is high - my only criteria for each campaign is that the FYC must cover the cost of the mailing. It usually does, but it's definitely not an exact science.

Because it's an inbound call from an ad - my CPA is likely higher than outbound calling a lead card or calling a list. But it's low-stress.

There you go. Another direct answer to your question.

Get creative and market yourself. That's been a game changer for me when I started doing this rather than relying on a lead card and chasing the prospects.

 

[sshafran]

New agent here so feel free to correct me if I'm wrong.

Using the same direct mail marketing scheme cost per acquisition should be lowest on 67+ direct mailers. T65 is pretty well a foot race so the response rate is much higher on 67+ than T65 or FE. The reason being the mailers pretty much say we have reason to believe your medicare supplement has gone up in price, send in this card for information no how to make it cheaper. Compared to a card that says we have cheap life insurance send in this card if interested. Response rate on 67+ is like 2.5%+ that's 25+ leads out of 1000 mailers. Should be able to assume 20% close ratio that's 5+ new clients per 1000 mailers. 1000 mailers costs like $500 if you use a good mail house with a targeted list so that's $100- per acquisition.

I'm assuming the absolute lowest cost per acquisition one could achieve would be cold calling a scrubbed, targeted list of 67+. However, one would spend 12 hours on the phones in order to generate enough leads to work for the week. That takes 12 hours out of the field one could be making sales instead of calling for leads. Even though the acquisition cost would be low the time it would take away from making money would probably more than make up for the savings.

It doesn't seem far outside reality, however, I have not sent out lead cards to the 67+ group in years. Where did you get the data that its 2.5%+?

Thin air or do you have a source? Legitimate question, not saying it's not 2.5%, I'm just surprised.

 

[TIMOTHY SEBASTIAN]

It doesn't seem far outside reality, however, I have not sent out lead cards to the 67+ group in years. Where did you get the data that its 2.5%+?

Thin air or do you have a source? Legitimate question, not saying it's not 2.5%, I'm just surprised.

FMO said I would probably get about 25 leads. It is summer time so I'm not sure. I'll let you know how many I get out of 1060 when they come in. So like 3 weeks.

 

[Chazm]

New agent here so feel free to correct me if I'm wrong.

Using the same direct mail marketing scheme cost per acquisition should be lowest on 67+ direct mailers. T65 is pretty well a foot race so the response rate is much higher on 67+ than T65 or FE. The reason being the mailers pretty much say we have reason to believe your medicare supplement has gone up in price, send in this card for information no how to make it cheaper. Compared to a card that says we have cheap life insurance send in this card if interested. Response rate on 67+ is like 2.5%+ that's 25+ leads out of 1000 mailers. Should be able to assume 20% close ratio that's 5+ new clients per 1000 mailers. 1000 mailers costs like $500 if you use a good mail house with a targeted list so that's $100- per acquisition.

I'm assuming the absolute lowest cost per acquisition one could achieve would be cold calling a scrubbed, targeted list of 67+. However, one would spend 12 hours on the phones in order to generate enough leads to work for the week. That takes 12 hours out of the field one could be making sales instead of calling for leads. Even though the acquisition cost would be low the time it would take away from making money would probably more than make up for the savings.

I'd doubt you'll get better than my T65 response rate. Don't think that 67+ isn't hit hard.

I slowed down my DM's last year and i completely stopped them this year to transition into seminars. But here's my %

 

[Rob Lion]

I found DM for Medicare to be frustrating. I'd get a good return rate, but had a hard time getting people to pick up the phone. The ones that did call back would either say they were already working with another agent, or planning on working for a few more years.

I've done a few educational events, they work and I will be doing more. Lately I've been getting referrals. I was doing food banks, but the people I met seemed to be on SSDI and nowhere near their Medicare effective date.

I got myself into chargeback hell/lead debt with financed DM leads when I was new to FE a few years back. Had no idea what I was doing and was on an 80% contract as well. After that fiasco I started cross-selling it to my Medicare clients instead of buying leads.

Tomorrow I'm buying a batch of Facebook FE leads and am going to try that and cross-selling Medicare as well.

Take a course on FE Ad Gen. Lead Vendors lately have been absolute dog shit, the knowledge you get from the course can translate directly into medicare fb leads.

 

[TIMOTHY SEBASTIAN]

I'd doubt you'll get better than my T65 response rate. Don't think that 67+ isn't hit hard.

I slowed down my DM's last year and i completely stopped them this year to transition into seminars. But here's my %

I also do not believe I'll do better than that response rate. I guess medicare response rates must be higher in general than FE. 2.5% response was a minimum for those so my assumption of 2.5% should be relatively accurate. They had 1060 people total in the county in the targeted ages and incomes. I only know of one other agent in the county working medicare. He's 72 and just sits in his office all day. Not to say there aren't more people working from home, but all the new agents I know of are final expense and pretty much only writing for Transamerica. TA does have a med supp here but it's hot garbage as far as price goes. I don't know if any out of county agents are dropping mailers here or not either. The only ones I know of in the surrounding counties are ancient as well. I don't know that they would even be able to get out and work leads. Seems like people in Eastern Kentucky just don't want to get into medicare sales for some reason. They would rather work at the call center telemarketing phone service for $10.50 an hour. Makes no sense.

 

[somarco]

T65's seem pretty straightforward. Pound them until they say no lol.

Not sure if the LOL is a serious comment or not.

Consider this.

Many (most) folks have caller ID.

Most will not answer the phone if the ID is not a familiar name.

Let me know how that works for you.

LOL

 

[somarco]

I was looking for a discussion on how Medicare agents target their market.

That would be me.

All internet.

All self gen.

 

[somarco]

quite a few of the 55-65 FE people will be on disability

Good Medigap candidate . . . . unless they are Medicaid eligible. Could also be dual candidate.