Get The App

Aug 1, 2007

  1. somarco
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    somarco GA Medicare Expert

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    I am totally convinced that places like Health Benefits Direct and the other boiler room operations give their pushers a bonus based on apps submitted.

    Talked to a fellow today who said he already has an app in with Golden Rule thru someone out of FL.

    Me -Really? They won't take you?

    Him - Why not?

    Me - You had a 5x bypass, you take cholesterol meds, are a smoker, are overweight and have type II diabetes.

    Him - All of that is under control and the guy told me since the bypass was in 2003 it was not an issue.

    Me - They don't know what they are talking about.

    Him - Well, I guess there is no reason for me to continue wasting your time. Goodbye.

    I guess not . . .
     
    somarco, Aug 1, 2007
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  2. BKrocko
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    BKrocko Guru

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    LOL Bob, people like that all use the same password for their accounts = 1d10t. I hope he got charged an application fee!
     
    BKrocko, Aug 1, 2007
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  3. CHUMPS FROM OXFORD
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    CHUMPS FROM OXFORD Guru

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    So true. Health Benefits Direct reps are dishonest and fit the description of the "boiler room" mentality.
     
  4. Crabcake Johnny
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    Crabcake Johnny Guru

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    I've talked with two ex-agents from this outfit and both said the same thing; they are given free leads and management is extremely heavy-handed - either close or get out. One had a really great commission structure - they gave him $100 per app and wanted 3 to 5 apps a day out of him. Actually, not bad for $300 to $500 a day.

    But to your post Somarco - there are NO CHARGEBACKS!!! The reps are paid the $100 per app just to submit it and there's enough room in the commish to handle apps that don't go through.

    Here's your math:

    They're at 30% (or possibly higher) levels. Pay the agent a flat $100 just on submission with no chargebacks with the average volume being $3,000. That gives them $900 and they're giving up $100 leaving $800 to play with. So even with non-issued deals and charebacks they will make a hideous profit.

    Some of the better agents can get 40 to 50 leads a day and it's "one shot one kill" only. Other agents follow up on the non-closed leads but not the initial agent.
     
    Last edited: Aug 1, 2007
  5. Sam
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    Sam Founder Administrator

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    I would guess that the average volume is lower, since they are pounding the cheaper products. (I am sure that they still do very well)
     
    Sam, Aug 1, 2007
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  6. Crabcake Johnny
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    Crabcake Johnny Guru

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    True - you still can't say the average premium is less than $2,500 - that's only $208 a month.

    That's $750 to Health Benefits and $650 after they pay the agent. $550 gives them a lot of room and I can guarantee you Health Benefits are getting more than a 30% deal - more like 37% to 40%. They are massive.

    Bottom line is they do pay on submission and that's what you're fighting.
     
  7. Crabcake Johnny
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    Crabcake Johnny Guru

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    And by the way, all the leads not sold turn into "B leads" and agents call them periodically. So you sold that great HSA six months ago? Expect a Health Benefits agent to call and try to yank them off it.
     
  8. TheSalesWolf
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    TheSalesWolf Super Genius

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    From what I'm told Health Benefits Direct submit 1800 Golden Rule and 2200 Assurant apps a month.
     
  9. salpro22
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    salpro22 Guru

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    Wow!! They're making a killing. I believe they teamed up with AOL a few months back.
     
    Last edited: Aug 1, 2007
  10. somarco
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    somarco GA Medicare Expert

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    I doubt I have ever lost a client to HBD, or eHealth. But I have certainly taken a few away from them.
     
    somarco, Aug 1, 2007
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