Get The App

[somarco]

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 . . .

 

[BKrocko]

LOL Bob, people like that all use the same password for their accounts = 1d10t. I hope he got charged an application fee!

 

[CHUMPS FROM OXFORD]

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

 

[Crabcake Johnny]

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.

 

[Sam]

with the average volume being $3,000

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)

 

[Crabcake Johnny]

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.

 

[Crabcake Johnny]

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.

 

[TheSalesWolf]

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

 

[J.R.]

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

Wow!! They're making a killing. I believe they teamed up with AOL a few months back.

 

[somarco]

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