Individual Health Insurance Marketing

[Crabcake Johnny]

If I'm telemarketing I'm generating two leads per hour - that's two people per hour who convey interest in getting quotes. Doesn't mean they health qualify, will actually purchase, or I can even offer them a better deal. And you're not gonna go over all of that on the initial call with most people - guaranteed.

If anyone has found something where you're only dealing with health qualified leads who are ready to purchase then please let me know your secret.

To me it's all about just contacting people who have at least conveyed interest in quotes. Many won't health qualify, I can't beat what they have now, or they simply aren't buyers.

Another factor is enjoyment of what you do. I don't enjoy cold calling half the day - I did it for a long time and I'm over it. I'd obviously much rather call on people who have not only conveyed interest, but know I'll be calling. Part of my script is "....the owner, John Petrowski, will follow up with you to go over the information." If they don't agree to that it's not a lead and my marketers don't send me the info. They do indeed run across prospects who will say "You can send me the information but I don't want anyone contacting me." That junk and I don't deal with that.

 

[pocky4kitty]

Demographics

Well I think another important part of marketing health insurance is demographics. We cater mainly to the Asian American Market and people know us as such since more of our agents are Asian Americans. This forms a stronger bond between customer and agent since they would share a cultural understanding of a certain lifestyle, diet, habit, etc.

http://www.kcal.net

 

[Alfred jones]

Hi guru, the topic itself is wonderful and showing the use. now a days marketing is done through various methods to improve their business. but here in your post you would have beautifully explained how to do simple insurance business.but collecting the database and hiring the telemarketer for insurance business is good idea of making our work simple and easier. i wont agree to your topic that marketing sounds cool but doesn't work we can also try for it some how it definetly helps in its own way to improve our business.

 

[James]

Well, I guess John should now post yet another thread that is somewhat revised! I'm feeling pretty vindicated in some way as I occassionally check in on his blog! Seems as all those crazy ideas I brought up like local networking is now working for him!

As in things that may work now?

MARKETING THAT SOUNDS COOL BUT DOESN'T WORK (should read things that might just work after all?)

1) Postcard mailers
Expensive and low return. 40 cents a pop and mail 1,000 at a cost of $400. Return is .05% or 5 leads. That's $80 a lead and you might not close any of those 5 leads. Or you might close one but it's a low individual premium that doesn't even earn you $400 in commish.

2) Ads in local publications
Failed concept. Small ads that are inexpensive and don't get hardly any return. Quarter page or larger ads are expensive and the majority of your calls with be from broke or uninsurable people. Only works well on a large scale - thousands of dollars.

3) Friends and family then expand off referrals
This is the MLM mentality - you sell a friend, get 5 referrals then each one of them give you 5 referrals and after a while you have hundreds of people to call. Ummmm, no. Doesn't work. You'll sell one or two of your friends and family and it'll end there. Oh, then your family member calls you bitching about the plan.

4) Business by osmosis
Some new agents think they just have to pass around their cards and basically let everyone know they sell health and the phone starts ringing. No, it won't.

5) Networking clubs
Although this method might get you the occasional deal it by no means will get you those 4 to 5 consistent deals per week you need to make this work.

 

[CT Insure Guy]

One area I would have to disagree on is the Postcard Mailers.

Even when I worked with Schmega, and had to use their cheesy compliance approved "Finally - Affordable Garbage Plans", etc postcard, I found they worked well for a couple reasons:

First, even if you figure the cost is $.50 per piece between the postage and printing cost, and you do 1000 mailers(Infousa gives credit over 10% undeliverable so that can be added in to overall costs regarding returns/undeliverables) you're looking at $500 spent. Of those 1000 mailers lets say 75% actually reach their destination, so now you have 750 people who at least touched your card. Of those 750 let's say 50% have employee benefits and just toss them out, so you have 375 possible prospects left. Of those 375, 200 just toss out anything they get in the mail, so you have 175 left. Of those remaining, for various reasons, 100 are not interested after looking at your card, leaving 75 that might consider speaking with you. Of those 75, maybe 3-5 choose to call that week, and you sell 2 of them(these are averages that have always worked for me: mail 1000, sell about 2 of those, sometimes 3).

However, the intangibles of this type of marketing are many and include:

-I change colors of my postcards with each new run and I can't tell you how many times, when I used to go out and see customers personally, that they had a color I used 1,2,3+ years ago; folks often times hold on to these things until they're ready. So, even those that don't call right away might pop them on the fridge until later.

-Speaking of "popping them on the fridge", I have had numerous sales from customers who said "I was over at Bobs house and he had this card on his fridge...". It's maybe 2 sales a year that way, but they are sales.

-When doing direct mail, the people that call you or visit your website are generally not going to contact a lot of other reps or be contacted right then by other vendors (like Internet leads) so you have some exclusivity, which always helps.

-Lastly, my experience with Postcard sales, and this may be tied to being more exclusive, is that these sales remain on the books longer, as Internet shoppers, or those you have telemarketed, tend to always be looking for a better deal and have less loyalty, for whatever reason.

I agree that large ads in local publications and networking groups, etc are not the best ways to go but I will defend my postcards to the death!!

 

[RandeeLouisiana]

John,
can you re attach the door to door and doorhanger. These attachments don't work.

By the way,

Love your blog!

Thanks!

 

[samuel_haskins]

What could one do to increase the percentage of sales made other than doing the cold call thing?

 

[CHUMPS FROM OXFORD]

A lot of good ideas on this Board.

Call the self employed
Get a website
Hire a marketer
Join Associations
Network with P&C agents

and many more...

 

[CT Insure Guy]

Threats of violence and intimidation work well too.

Other than that and previous stuff listed I like putting magnetic biz cards on the doors of trucks at Home Depot...you'd think they'd get pissy but I get a good response in general.

 

[ins4life]

Go target small businesses and hand out a flier to the owners and tell them you can provide health insurance for a low cost. Most of these people do not provide health insurance to businesses. Tell them they can qualify for a group rate, since they have more than two people. It will be easier to issue with no strict underwriting guidelines, tell the owner you can start an HSA so the can deduct the premiums of his income tax