Help for FE in Rural Areas.

[simpsonian]

I am in Mississippi and work mostly in rural areas. I purchased 50 leads recently that were generated by phone from a local vender. I closed 4 cases but most of the people on the list are direct bill or simply can't afford it. What are the adjustments I need to make to be successful in this market (aside from moving). Example: Should I target homes from $15k to $50k, should I take some direct bill stuff, (what is the persistency?), should I travel out of state some, or should I do a little of it all? My goal is to close 10 -15 aps a week but can make it on 6 aps a week. Can rural area Mississippi alone support 6, or 10 to 15 aps a week? Any suggestions will be appreciated.

 

[jemelton]

10-15 apps a week seems unrealistic to me.....I think 6 would be doing pretty well......6 apps a week at an average of $500 commission would give you $150K a year before expenses....

 

[jdeasy]

I talk to FE agents regularly and I will hear stories from some about how bad the leads are and how bad the demographic is and how difficult it is to sell to people on medicaid. Those agents are right and they do very little business.

Then I hear stories about how good the leads are and how the demographic is great and how easy it is to sell to people on medicaid. Those agents are right and they do a terrific volume of business.

Agents from both groups are working the same leads and the same areas of the country.

There is a message in there somewhere.

 

[simpsonian]

Jdeasy, do you write much direct bill business?

 

[sshafran]

I talk to FE agents regularly and I will hear stories from some about how bad the leads are and how bad the demographic is and how difficult it is to sell to people on medicaid. Those agents are right and they do very little business.

Then I hear stories about how good the leads are and how the demographic is great and how easy it is to sell to people on medicaid. Those agents are right and they do a terrific volume of business.

Agents from both groups are working the same leads and the same areas of the country.

There is a message in there somewhere.

Wait, JD. You are saying that it may depend on the agent? And how hard he works? Interesting.

He is right. Leads are just that... they are nothing more than a list of people who have expressed an interest in learning more. They aren't necessarily closed deals, as you know.

I would say that you do want to target your customers. For instance, I live near Detroit, MI. I will never ever do a Final Expense mailing into Detroit unless the income is over $60,000. That may seem crazy to some people, but the ghetto is the ghetto and that's not necessarily where I want to spend my days.

However, the surrounding areas, 10-15 miles away from the city, my target is 20-50K. I won't even go as low as 15, like some suggest. That's just not my target.

I haven't done too much in the Rural areas, to be honest. But, I think the "direct bill" question has come up before. Here is what I personally have done. I have told people that they simply need to set up a checking account. I carry with me referral cards for my local bank. I give them the card, and if they open up an account the bank will give them $25 for opening an account (and I get $25 as well for the referral). They are normally OK with this and will set up an account.

If they insist on Direct Bill even though most companies want it to be done quarterly, I'll set them up on it and emphasize the importance of paying it.

My rule of thumb is this: If they want direct bill but can't pay it right now (i.e. when they say, "Come next month to pick up the check or money order or whatever to finish the app"), you know that it won't be worth your time. It is still worth calling them in a month to ask them if they have the money ready, but more than likely they won't. So, don't get your hopes up.
If they want direct bill and they write you a check that day (or they have cash to get their money order [never take cash]), you are good to go.

Basically, when they want direct bill, act as a field underwriter and try to determine this: "Is this person financially responsible enough to pay his bill?"

That's my $.02

 

[jdeasy]

Jdeasy, do you write much direct bill business?

Not a lot. Probably 2 to 3 apps a month that are direct bill. I write them when the situation calls for it.

 

[steveadlman]

Wait, JD. You are saying that it may depend on the agent? And how hard he works? Interesting.

He is right. Leads are just that... they are nothing more than a list of people who have expressed an interest in learning more. They aren't necessarily closed deals, as you know.

I would say that you do want to target your customers. For instance, I live near Detroit, MI. I will never ever do a Final Expense mailing into Detroit unless the income is over $60,000. That may seem crazy to some people, but the ghetto is the ghetto and that's not necessarily where I want to spend my days.

However, the surrounding areas, 10-15 miles away from the city, my target is 20-50K. I won't even go as low as 15, like some suggest. That's just not my target.

I haven't done too much in the Rural areas, to be honest. But, I think the "direct bill" question has come up before. Here is what I personally have done. I have told people that they simply need to set up a checking account. I carry with me referral cards for my local bank. I give them the card, and if they open up an account the bank will give them $25 for opening an account (and I get $25 as well for the referral). They are normally OK with this and will set up an account.

If they insist on Direct Bill even though most companies want it to be done quarterly, I'll set them up on it and emphasize the importance of paying it.

My rule of thumb is this: If they want direct bill but can't pay it right now (i.e. when they say, "Come next month to pick up the check or money order or whatever to finish the app"), you know that it won't be worth your time. It is still worth calling them in a month to ask them if they have the money ready, but more than likely they won't. So, don't get your hopes up.
If they want direct bill and they write you a check that day (or they have cash to get their money order [never take cash]), you are good to go.

Basically, when they want direct bill, act as a field underwriter and try to determine this: "Is this person financially responsible enough to pay his bill?"

That's my $.02

You can't judge a book by its cover and the same is for your prospects. I do not care about their income level. What I want to do is qualify my prospects; is there a need, can they qualify for any of the FE plans I offer and can they pay by bank draft. I choose not to write direct bill business.

 

[Newby]

Don't JD tell you we're all on an even playing field. In our area he gets all the good stuff and I get the scraps.
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My mantra is; It can't be me, it can't be me, it can't be me...

 

[scottishX]

I'll write it but it usually doesn't last. It seems to help if its set as a "family plan" with grandchild riders. What can you say about this group? It's sad. Most depend on government checks for everything and have for generations. I also try not to take advances on it.

Just look at it as getting some of YO taxes back!