Im seeking advice from health agents!!
- Thread starter Ramond B
- Start date
- Thread starter
- #12
- 385
I hear what your saying, thank you for the advice. So basically if I make them really good then they could be worth up to $50 but if they are the standard crap then I would basically be out of luck. Makes sense.
As far our criteria i started with every new business in the Clark County area. At the time of the test There were only about 1100 business that had opened in the last 30 days of that date. Of those 1100 there were only 800 or so with active phone numbers. We then pulled another 2000 numbers of businesses that had been set up with in the last
8 months of that date. Then one more list of 2500 Business contacts that were in business for over 2 years. I wanted to see the difference in the lists and scripts and thankfully since i am a list provider it all comes at cost.
We then pounded the phones with 8 reps to generate what i call a lead. They were literally generating 2-3 of these per hour per rep so I only ran it for an hour and a half at the most per day. Then we took the leads to our verifiers which called them back and verified the appointment date and time and of course gave the name of the agent and his company to the prospective appointment. Out of the 15-18 that they would start with only about 5-6 would make it through to be sent to the agent. I think double verifying each appointment is the best way. This particular agent also did dental so maybe his numbers included any dental plans he got.
Salpro since you seem to have a thorough method Id like to hear what all you would want to know going to your appointment. How would you do it for yourself if you could hire a TM or Two? Any more help would be great!
Thanks a lot and I'm glad this forum is so helpful.
As far our criteria i started with every new business in the Clark County area. At the time of the test There were only about 1100 business that had opened in the last 30 days of that date. Of those 1100 there were only 800 or so with active phone numbers. We then pulled another 2000 numbers of businesses that had been set up with in the last
8 months of that date. Then one more list of 2500 Business contacts that were in business for over 2 years. I wanted to see the difference in the lists and scripts and thankfully since i am a list provider it all comes at cost.
We then pounded the phones with 8 reps to generate what i call a lead. They were literally generating 2-3 of these per hour per rep so I only ran it for an hour and a half at the most per day. Then we took the leads to our verifiers which called them back and verified the appointment date and time and of course gave the name of the agent and his company to the prospective appointment. Out of the 15-18 that they would start with only about 5-6 would make it through to be sent to the agent. I think double verifying each appointment is the best way. This particular agent also did dental so maybe his numbers included any dental plans he got.
Salpro since you seem to have a thorough method Id like to hear what all you would want to know going to your appointment. How would you do it for yourself if you could hire a TM or Two? Any more help would be great!
Thanks a lot and I'm glad this forum is so helpful.
- Thread starter
- #13
- 385
Wow, small world hugh, Mike M in PA, hmmmm???? Martin? Nice to see you if it's you and if it's not nice to see you anyhow. lol We are definatly looking to do everything on the insurance side that we have done and are still doing on the mortgage side. I just have to start somewhere. I learned so much form the mortgage forums that I figured I would start on the insurance ones as well. Another one of my old clients told me about this one and Im glad he did because its sure beginning to teach me a lot so far.
Good luck to you my friend and thanks for the shout out. Different world over here and I hope I can help as many people in this field as I am in the other field.
Good luck to you my friend and thanks for the shout out. Different world over here and I hope I can help as many people in this field as I am in the other field.
- 14,808
I like the verification.
I'm trying to establish what your cost would be and see if the model would work.
1 rep generating 2 to 3 leads per hour is right on track - par for the course if you would. If only 6 make it through verification for every 18 generated it's 2/3rds in the circular file.
That would mean 1 qualified appointment set per hour - if you're paying reps $10/hr to telemarket with other expenses there's no way you're selling them for less than $20 per lead. That being said anyone would kill to close 50% of their appointments and if that came to pass $50 per appointment would not be unreasonable.
You have a few problems on this specific board. Very few members do group. Most of us selling health sell individual health and I'd say 95% of this board sells online with 5% meeting with any client.
Closing ratios drop substantially for small biz owners who were telemarketed when you close online as opposed to in person. 50% sounds about right for face to face - more like 1 out of 10 online. You won't get many bites charging anything more than $15 per lead to online agents.
I'm trying to establish what your cost would be and see if the model would work.
1 rep generating 2 to 3 leads per hour is right on track - par for the course if you would. If only 6 make it through verification for every 18 generated it's 2/3rds in the circular file.
That would mean 1 qualified appointment set per hour - if you're paying reps $10/hr to telemarket with other expenses there's no way you're selling them for less than $20 per lead. That being said anyone would kill to close 50% of their appointments and if that came to pass $50 per appointment would not be unreasonable.
You have a few problems on this specific board. Very few members do group. Most of us selling health sell individual health and I'd say 95% of this board sells online with 5% meeting with any client.
Closing ratios drop substantially for small biz owners who were telemarketed when you close online as opposed to in person. 50% sounds about right for face to face - more like 1 out of 10 online. You won't get many bites charging anything more than $15 per lead to online agents.
- Thread starter
- #16
- 385
My cost was right around $23-25 per lead because I pay my reps good and my verifiers very well. I Had a vision initially of the leads selling between $40-$50 depending on quantity. I'm just curious what the ROI would be initially for the agent on lets say 50% policy per appointment ratio, approx. Also what would the residual be?
I kind of figured the members here would be more inclined for internet generated since its a web forum I was more looking for advice from veterans which you gave me some and I appreciate that greatly. In my honest opinion from what I saw in internet marketing game in the mortgage industry I don't want to even think about the insurance online game. I never got into the internet leads myself because no matter how honest you are as a provider the potential client is shopping on more than one site. This causes saturated leads no matter what you do. I'm assuming its no different in this field and that's why they are so cheap.
As far as having higher closing ratios with face to face your exactly right. thats true with any sales or life service you offer such as real estate, mortgage, insurance investments, etc.....Thats why i like telemarketing for appointments. it gets a person face to face with a client and all three of us win. The clients gets the service, you get the sale and I make a small profit on the front leaving you with the residual. The model will work I know it will but what type of budgets to agents have? I'm trying to figure out my packages as far as minimums and price breaks on quantities.
Where would be the best place to go to find agents that actually beat the streets and like going face to face with small businesses? From what I gather so far when an agent goes into a NEW business a lot of time he expected to walk out with individual plans? Is this correct? Is it possible to get multiple plans on one appointment and if so how often does it realy happen. What is a range in difference on a group plan of lets say 4-5 and an individual plan?
man i love education. this is great!!!
I kind of figured the members here would be more inclined for internet generated since its a web forum I was more looking for advice from veterans which you gave me some and I appreciate that greatly. In my honest opinion from what I saw in internet marketing game in the mortgage industry I don't want to even think about the insurance online game. I never got into the internet leads myself because no matter how honest you are as a provider the potential client is shopping on more than one site. This causes saturated leads no matter what you do. I'm assuming its no different in this field and that's why they are so cheap.
As far as having higher closing ratios with face to face your exactly right. thats true with any sales or life service you offer such as real estate, mortgage, insurance investments, etc.....Thats why i like telemarketing for appointments. it gets a person face to face with a client and all three of us win. The clients gets the service, you get the sale and I make a small profit on the front leaving you with the residual. The model will work I know it will but what type of budgets to agents have? I'm trying to figure out my packages as far as minimums and price breaks on quantities.
Where would be the best place to go to find agents that actually beat the streets and like going face to face with small businesses? From what I gather so far when an agent goes into a NEW business a lot of time he expected to walk out with individual plans? Is this correct? Is it possible to get multiple plans on one appointment and if so how often does it realy happen. What is a range in difference on a group plan of lets say 4-5 and an individual plan?
man i love education. this is great!!!
- 14,808
AV for small biz owners for individual health are around $4,000 with the average commission being 20% or $800 in commission on average. Renewals are 5% on average.
You'd be selling appointments for around $50 a pop and I don't think you'd have complaints with a 1/3 closing ratio.
You're obviously targeting agents who meet with clients and are well established closers.
And again, you're looking for rare health insurance agents who still meet with clients. You cannot pull this off with agents selling online. The closing ratio would be 1/10 and at $50 a pop you have no takers when a deal costs $500.
You'd be selling appointments for around $50 a pop and I don't think you'd have complaints with a 1/3 closing ratio.
You're obviously targeting agents who meet with clients and are well established closers.
And again, you're looking for rare health insurance agents who still meet with clients. You cannot pull this off with agents selling online. The closing ratio would be 1/10 and at $50 a pop you have no takers when a deal costs $500.
- Thread starter
- #18
- 385
Your right I do want the type that still do the appointment thing. How I got this idea in the first place was a guy called us from NC and set an appointment for the agent to come in. While the agent was pitching me on the difference between individual and group my wheels were spinning in my head. I honestly didn't hear anything the guy said I just told my VP to make a decision..Lol.
As soon as the agent was done I started asking him about how he ended up in my office and how I was generated as an appointment. He told me that it was a company out of NC that is an agency and pais him 50% of the commission and then if he ever leaves they keep his clients and the residual. I thought about that model for a second and form a business stand point it looks good at first glance. However as I dug deeper the maintenance of health clients and retaining them if the agent left was too high a risk for me to go that route. It was too easy for the agent to just steal "their" face to face client if they left my company and went to another one. The retainer value for me on a national level wasn't worth the risk although I do know that company does do very well. I just figured that getting paid an expected margin on the front of a good product is the better way to go.
Are their brokers that buy leads or appointments for their agents? That is who I would really like to find. One person with 3-4 guys or gals that can go out and flat out close people down. I just don't know if it works that way in this industry like the mortgage. I'm assuming so. If so how can I find these agents/brokers?
As soon as the agent was done I started asking him about how he ended up in my office and how I was generated as an appointment. He told me that it was a company out of NC that is an agency and pais him 50% of the commission and then if he ever leaves they keep his clients and the residual. I thought about that model for a second and form a business stand point it looks good at first glance. However as I dug deeper the maintenance of health clients and retaining them if the agent left was too high a risk for me to go that route. It was too easy for the agent to just steal "their" face to face client if they left my company and went to another one. The retainer value for me on a national level wasn't worth the risk although I do know that company does do very well. I just figured that getting paid an expected margin on the front of a good product is the better way to go.
Are their brokers that buy leads or appointments for their agents? That is who I would really like to find. One person with 3-4 guys or gals that can go out and flat out close people down. I just don't know if it works that way in this industry like the mortgage. I'm assuming so. If so how can I find these agents/brokers?
- Thread starter
- #19
- 385
On a side note am I really not aloud to read your blog? Not sure if your kidding there or not. Also I actually just noticed that I mis spelled my name in my user name and left out the y. Is there anyway tot change this or am I azzed out? Its cool if I cant change it I just thought I would ask since I'm obviously not the best typer. My name is Raymond and not Ramond lol. Sorry.
So your insurance agent pays this agency out of NC (MGA perhaps??) for leads and he gets 50% of the commission. Not a bad deal if all he has to do is sell the plans. If you're looking to do something similar with agents you'll gonna have a hard time pitching that idea to agents, although some might bite.
Having said that, I'm sure as hell not going to pay for ANY leads IF I'm splitting commission. Now, if it's a matter or splitting commission and "I'm" the agent of record, I might be open to doing something like that.
I'm also going to insist the person I split with understands how commissions work and that they fill out the appropriate legal documentation.
2-3 leads an hour is a good ratio depending on what you consider a lead to be. I like that you have a callback first before handing off the lead. That cuts down the BS. The rest depends on your script and qualifying questions.
Feel free to PM me and we talk sometime.
Having said that, I'm sure as hell not going to pay for ANY leads IF I'm splitting commission. Now, if it's a matter or splitting commission and "I'm" the agent of record, I might be open to doing something like that.
I'm also going to insist the person I split with understands how commissions work and that they fill out the appropriate legal documentation.
2-3 leads an hour is a good ratio depending on what you consider a lead to be. I like that you have a callback first before handing off the lead. That cuts down the BS. The rest depends on your script and qualifying questions.
Feel free to PM me and we talk sometime.
