GR 2011 Commission Going Live Today

[YouGotMyMoney]

Like I just said ... for some.
It's a volume / systemic deal.
You need 800 - 1000 leads a month and the software and know how to process them.

Forgetting about cash flow...

let's say you bought 800 leads at a net cost of $6 per lead, that's $5k in leads.

And let's say you close 1:20 of your leads, that's 40 apps....and I'll be generous and say they were all issued and paid on for 12 months.

Your average commission is going to be $300-420.

Now if you only sold UHC for the 6 month advance, your advance will be about $200.00 per case.....and for your COA $6 leads x 20 leads= $120 COA or even at 15 leads is $90 COA.

40 clients x $100 COA =$4k in lead cost

40 advanced apps x 300 mo prem x 6 mo adv x 14% = $252 per case or 10k for the month, $6k net

NOW, let's get real!

If you sell only advanced carriers , I'd say only 70-80% will accept the offer so....your down to 8k advanced, $4k Net.

And if your a legit agent in FLA, you'd have also sell Cigna/Aetna or BX depending on the market in order to stay competitive.
- - - - - - - - - - - - - - - - - -

How can one single person manage 800-1000 leads a month?

It's a pipe dream only a call center can handle that much volume.

 

[Evan]

In Florida its been Cigna or Blue Cross since 9/15 nothing has changed as of yet.

 

[djs]

Problem is, how many agents can single handedly process 40 apps a month? Seriously, its tough.

Thats 2 per working day, 5 days a week, 20 days a month.

On top of that, you are working 40 new leads a day, plus following up on previous leads.

Yes, you might do it for a month at this pace, perhaps 2, then the house of cards you just built will fall apart. You need to hire someone to help with the process.... then the numbers don't work.

It's doable, but it becomes a real job, not much fun, pretty quickly. And of course, you ignored the costs of the tools to automate much of the business to pull this off. Not outrageous, but it dings into that $4k a month pretty quickly.

Dan

 

[Crabcake Johnny]

Wow...a lot of talking about the 1% of the 1%. The average health agent who earns a living in this field writes 3 deals a week.

Typically, at $500 per app that returned $1,500 and it was a do-able career.

If you look at the leader board from any agency, you're killing it writing 30K a week. 1 to possibly 2 agents are capable of those numbers.

Around 10 agents write over 20K a week and the other 98% don't write 20K a month.

 

[CHUMPS FROM OXFORD]

I would love to know what states have the highest premiums.

 

[YouGotMyMoney]

Problem is, how many agents can single handedly process 40 apps a month? Seriously, its tough.

Thats 2 per working day, 5 days a week, 20 days a month.

On top of that, you are working 40 new leads a day, plus following up on previous leads.

Yes, you might do it for a month at this pace, perhaps 2, then the house of cards you just built will fall apart. You need to hire someone to help with the process.... then the numbers don't work.

It's doable, but it becomes a real job, not much fun, pretty quickly. And of course, you ignored the costs of the tools to automate much of the business to pull this off. Not outrageous, but it dings into that $4k a month pretty quickly.

Dan

I personally know 2 agents who write that kind of business.

All over the phone, and they work from home.

I'd say they work about 50-60 hours per week.

 

[Crabcake Johnny]

I know a few myself. 1% of the 1%.

 

[JE INSURANCE]

No one closes that much a month, this industry is done...time to go sell life plans, eveyone should leave the health insurance business asap before you become broke

 

[YouGotMyMoney]

Wow...a lot of talking about the 1% of the 1%. The average health agent who earns a living in this field writes 3 deals a week.

Typically, at $500 per app that returned $1,500 and it was a do-able career.

If you look at the leader board from any agency, you're killing it writing 30K a week. 1 to possibly 2 agents are capable of those numbers.

Around 10 agents write over 20K a week and the other 98% don't write 20K a month.

Let's talk about the average active agent who writes 3 deals a week.

We'll take 12% as the average commission and 1/2 the apps are advanced:

I'd like to take Jan 1 as an example:

Write 12 apps for the month all issued.

1/2 as earned, 1/2 advanced.

300 avg mo prem and 12% avg commish.

6 advanced cases w / a 6 mo advance is $1296

6 as earned cases is $216.

Total of $1512 paid in Feb, unless you get weekly or bi-weely advances/paydays.

Now 12 cases with an COA of $100 each is $1200 in lead costs, the gig is up!

 

[Crabcake Johnny]

Right. $100 to gain a deal at 12% with the terribly low $2,500 per copy AV (which is what you get when you troll for leads) and it's tough.

$300 per case comp even if 9 months is advanced is $225 with $100 in lead costs = $125 net X 3 cases a week = $375.

You can make more busing tables.

Back to the example of my average volume of 700K annually, it's a pay cut but I'm not on Monster.com.