If memory serves me right that threat came from the owner of a lead company, or at least that is the only lawsuit threat that I recall over bashing.
Lets Get to Some Facts About Telesales
- Thread starter digfesales105
- Start date
If memory serves me right that threat came from the owner of a lead company, or at least that is the only lawsuit threat that I recall over bashing.
- 19,657
FE telesales is a failed proposition for the producing agent. They keep claiming that I don't know it but in fact I know a lot about it because I have researched it quite a bit. All I do is FE. If there was a better or more effective way to do it don't you think I would be all over it?
There does seem to be money there for the recruiters. Since that hold no interest for me I don't get involved with it.
Some insurance niches can be sold over the phone quite successfully. FE is not one of those niches. Most agents that fail in FE, no matter the method, do so because they never understand the FE market.
Of course everyone's definition of success is going to be different. What I consider a successful FE agent may be pie in the sky to someone else.
So let's just the model works? Most of the marketers say they have to work at least 20 leads, most say more but let's just go with 20 at say $25 each. That's $26,000 lead cost per year. Let's just say this is one of the better telesales agents and that agent writes $100,000 for the year. I'll even assume a 100% contract, {which is not likely but let's err on the generous side}. Even the most optimistic of the telesales people will tell you that they will lose 30%. So the agent made $70,000 and then paid $26000 for leads. $44,000/yr after lead costs? Is that successful? If one thinks it is then they should be hooking up with one of the marketers.
- 11,280
20% for 6-8 years. I'm getting about 17k a month right now in renewals from med supps...
- 19,657
Maybe, but one of the telsales recruiters here was always threatening legal action. Sometimes veiled, sometimes not.
I still have private messages from another saying I'm going to hear from his attorney. maybe I still am but that was over a year and half ago and I haven't heard from that attorney yet.
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Med sups pay 1st yr commissions for 6-8 years in most states. In some, like Mich, they pay much more for years 2-3 and then drop off.
In Ky it's level for 6 years. In In it's level for 8 years. But we are not comparing apples to apples. You are talking 20-23% for med sups vs 100%+ for FE.
So, say I write a $140/mo med sup, {if it's plan F I'm only going to get paid on about $125 of that}, at 21% commission. Over 6 years I make about $2100. If I write that same $140/mo on an FE plan at 100% commission and say only 5% renewals, over 6 years I make about $2100.
But I got my money fast on the FE. I will say that if one worked the med sup market and cross sold FE they would work with a more affluent clientelle.
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- 3,165
Damn, I get about 4-8% for yrs 2-6 sometimes its 2-10. So you're saying, if u do NO work in March at all, you'll still make 17k in renewals? How long have u sold Med Supps?
I always wondered if I should dapple in Med Supps, but from post here its not the same market & most things if ur not in it 100%, u wont make much! But man, thats awesome!!
I wonder if I could do it for the few peeps that may need it like JD does?
- 11,280
Ok, well my renewal numbers might be a bit inflated(20% 6-8 yrs is correct though)...
I have been doing med supps for 10 years but have taken some long vacations from work from time to time. One was about 2 years long so my renewals aren't what they should be. I can stay home and not make any new sales though and have every bill paid plus extra. My monthly bills equal a little more than 1/3 of my renewal check...
- 3,165
Ok, well my renewal numbers might be a bit inflated(20% 6-8 yrs is correct though)...
I have been doing med supps for 10 years but have taken some long vacations from work from time to time. One was about 2 years long so my renewals aren't what they should be. I can stay home and not make any new sales though and have every bill paid plus extra. My monthly bills equal a little more than 1/3 of my renewal check...
WoW, thx for the info...maybe Ill talk to a few here about adding that. I think I read only about 10% of the FE market we go after will be a potential candidate for Med Supps...does anyone know? Id like to capitalize on that 10%, or whateva it maybe, but FE is my main biz!
How do I go about learning it? Does it require a lic? Does it have IMO like FE, where do I begin to see if its worth adding?
I say its worth it. That lady I got a Table 2 rating for with RNA is dual eligible and has a MA plan now (0 premium). She isn't that happy with having to switch doctors and said she would rather me deal with it for her at the AEP. I haven't even got my training in yet for MA and rather deal with just sups. It could be very well worth it if you are building your business on relationships and gives you reason to see them once a year for a review and add more life coverage or add a child, grandchild, etc.
I am still not wanting to do the training is my problem and have to deal with the big rush of AEP. Rather just sell sups, but in my areas its usually a no go on sups...FL is full of MA's.
- 11,280
I would definitely have it in my bag if I were you. I'm not sure how well you would do selling supps in CA period, let alone to the FE market. Ask Rick or DS4 about it.
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