Individual Health Marketing Cost

[bill3173]

We know that commission cuts are coming in January but health insurance internet lead cost have sky rocketed (in real terms), since I first began purchasing them 6.5 years ago.

I've consistently purchased internet leads because they've been a predictable money maker for me, and a lot of others, but at the new commission levels, not really sure it's worth it anymore for health, what do you think?

 

[jbage007]

There won't be any other agents to compete with, so prices will plummet.

 

[YouGotMyMoney]

There won't be any other agents to compete with, so prices will plummet.

Let me know the name of your dealer, cause the S$#T your smoking must be GREAT!

I've said this is another thread, but it has to be repeated:

Ins Agent compensation has no bearing on the cost of internet leads.

Most internet leads come from affiliates, very few lead companies have natural seo traffic. Many affiliates use PPC, and just because agent comp drops 50% ( making internet leads unaffordable), you will have a select few will only make peanuts per deal in exchange for volume or the affiliates will just start generating leads for other products.

If you look at the affiliate payouts from any health lead vendor, the affiliates usually get $5-7 per net lead. Now, if becuase agent comp drops and the lead vendors have to drop their affiliate payouts by 50% let's say, to $2.50 per net lead----you can forget it, ain't gonna happen.

If you think cause we make less, that the vendors will charge less....U are on crack.

Best case, $2-3 leads.....no filters.....and ur the 20th person the get the lead.

 

[bill3173]

Let me know the name of your dealer, cause the S$#T your smoking must be GREAT!

I've said this is another thread, but it has to be repeated:

Ins Agent compensation has no bearing on the cost of internet leads.

Most internet leads come from affiliates, very few lead companies have natural seo traffic. Many affiliates use PPC, and just because agent comp drops 50% ( making internet leads unaffordable), you will have a select few will only make peanuts per deal in exchange for volume or the affiliates will just start generating leads for other products.

If you look at the affiliate payouts from any health lead vendor, the affiliates usually get $5-7 per net lead. Now, if becuase agent comp drops and the lead vendors have to drop their affiliate payouts by 50% let's say, to $2.50 per net lead----you can forget it, ain't gonna happen.

If you think cause we make less, that the vendors will charge less....U are on crack.

Best case, $2-3 leads.....no filters.....and ur the 20th person the get the lead.

It's not the nominal cost of the lead, but the real cost that's in question.

The nominal cost of the lead is the same now as it was when I started and a good agent could close 20-25%, even if he was a little tired.

Now good agents place 3-6% of the leads. Fewer buyers = lower lead cost in real terms.

 

[Crabcake Johnny]

Per a few lead vendors I know pretty well - health lead prices will not drop. As stated, because agent earn less doesn't mean they cost less to generate.

In fact, in speaking with two vendors, prices might actually go up since they won't be shared with as many agents. Agents buying health leads IF the comp drops will be multi-line.

 

[elitemind]

I believe they were still get over on us far as price.

 

[669comche]

I think it depends a lot on what the carriers do with advances etc.

They are going to have to be creative with their commission payments for agents to continue to be purchasing leads in any kind of volume.

As I have said before, for most, the key will be the advance period.

10% at a 12 month advance is still doable. Whether they do that or not is a different matter. I suspect that is highly unlikely. Anything less than that and its sianara for lots of agents and lots of lead companies.

 

[YouGotMyMoney]

10% at a 12 month advance is still doable.

If it's 10% flat every year, you may be right.

But we got cash flow issues right off the rip.

 

[SamIam]

Personally I don't see how anybody in their right mind would be selling Health if you don't' know what your compensation is going to be. Unless its a referral you have to be out of your mind.

Based on that the carriers know you will take anything so no matter what happens with the MLR, commissions won't stay where their at because the carriers know you will work for whatever they pay you.

 

[MzRSmith]

This is only the tip of the berg...I heard, whatever you are getting advanced now, is going to be charged back come January 1, putting you in the negative...which altogether sucks really...because they have to reflect the new commissions...now I don't know the exact numbers...but overheard this through another agent...what then?