MA opportunity, good deal or not?

[sman]

The MGA commission for Pyramid is $350. I don't know about other plans but the highest I recall hearing is $400. At any rate, $150 is very low for an independent agent, especially with having to pay for leads. Captive agents with one carrier I know of make around that for MA sales and in addition have a salary, car and cell phone allowance, seminar expenses paid, etc.

I recently spoke with the Agency Coordinator at Instil about contracting. The GA commissions there are $425 (they only pay $250 to the writing agent) and they've recently added another $50 to that, making it $475. I have this information in an email if you need proof. I find it hard to believe that the likes of Network Insurance, Senior Market Sales, Kingdom Insurance, etc. are only making $20 a pop on someone selling an MA plan. As a matter of fact, Network Insurance was running a deal with Secure Horizons where they were paying $400 for an app. Are you telling me they were losing $50 per sale?

I stated I wasn't exactly sure of the amount, but again I doubt very seriously that these MGA/FMO's are only making $20. I could be wrong though. I'll email someone I know at an FMO and see if he can shed some light on the subject. Seems like a lot of work for $20 a sale. Who knows? I do know that Instil is paying the numbers posted above. Hopefully my contact can let me know about a few other carriers. I'll post my findings.

 

[sman]

The MGA commission for Pyramid is $350. I don't know about other plans but the highest I recall hearing is $400. At any rate, $150 is very low for an independent agent, especially with having to pay for leads. Captive agents with one carrier I know of make around that for MA sales and in addition have a salary, car and cell phone allowance, seminar expenses paid, etc.

O.K., just got some additional information from a large FMO. And maybe that's where I messed up in the beginning by using the term "MGA". The typical commission on MA plans to the FMO is $425. So, if you are contracted with an FMO and they give you $330 (street level), they are making at least $95 bucks off each sale. There are times where the carrier offers additional incentive, such as what Secure Horizons was doing and Instil. The numbers from this FMO line up with what the Instil guy told me as well.

 

[Juddzilla]

I sent the broker an email stating my concern. He immediately responded with "Call me at..." so that he could explain it to me. I called and and left messages with a front office person both yesterday and today, with no response....

 

[honestagent]

You have to ask yourself how you plan to drum up your bz. and find these qualified folks. The operating word here is 'qualified.' Okay. You just don't want to be booked with anything breathing and running all over different ends of town with gasoline going up to $4.00 bucks a gal., meanwhile you're racking up the miles on your car for nothing. Think of what that will cost you in one month!!!!

Are you good on the phone? Do you have your own telemarketer? Sometimes, a lead program with pre-sets and a lower commission level can be a good deal (though I have yet still to find one but still searching) because I would prefer to GET OFF THE PHONE and run more qualified appointments than spend 1/2 my week on the phone to go out one or two day/s to run. But doing that with street level contracts is an okay deal for now.

Now, it is very rare but in my opinion, THERE ARE FEW BODIES out there that will qualify, schedule appointments as close together by zip code, and get prospects excited about your visit than you. Okay. So, if you're a strong closer and attain alligned zip code appointments on the phone, than work the phones yourself - get the top contracts, and field one or two day/s in the week. You will save and make more money that way. However, if you feel you can operate with a company that provides quallified leads with pre-sets than that may be your way to go. And I'm talking if you have 8 appointments every day - that are qualified buyers and you're a good closer, times that by 5 days a week, than you do the math minus your expenses. Like I said, I have yet to find such an institution and highly feel I never will. Don't forget, these folks are in control of your livelihood because the sales starts on the phone.

But it could exist; I just have not found this yet.

Also, it's total bull shat that they're taking so much and wanting to charge that much for the leads. they're already making quite a hefty override on commission only. It can well be worth justified if an agency is supporting, I mean really supporting the writing agent (ie: service work: follow up calls, mailings, copying, out bound calls to clients doctors, pharmacies/ marketing, in bound calls from upset clients...etc. etc. then it's justified. But most do not. Most doufises sit behind their darn desk and have never even been in the field! And some are not even licensed!!! How do you like that???! So when you ask in advance about something and they sit on their fanny and take forever to respond, it's costing you or could cost you hundreds or thousands b/c that one answer you're waiting on determines which company to go with or can I write... bla bla bla.. You see, but they don't know what it's like to be out there and that every minute counts and costs money.... that's what we straight commission folks have to contend with... and ca sa ra sa ra.....

So this is where I HAVE A HUGE ISSUE when fmos want to take such a spread. !!!! Slow down charlie, you know.... like what are you doing to 'support' me to earn that money. That's right darn it! EARN IT!!!
They're doing me favors. Please. Spare me. Believe me; if I could directly contract with the carrier, I would; but unfortunately, we cannot always do that.
I'm the agent out there making it happen... and trying to keep it all on the books....you know! Hot damn I have some issues with fmos presently.

Bottom line is this: you can have the highest contract where you can get 100% of something or 100% of nothing; or you can get a less amount on commission and make more money if they have a sufficient way to get you in from of qualified buyers but the key is how are you going to prospect and what will that cost you in the short and long term? You do not want 100% street level contract if you cannot drum up your own activity.

Your opportunity costs as well.

Hope I helped.

 

[Juddzilla]

Thank you again to all that have replied.

I received another email from the broker (with a change in the commission), stating:

[FONT=Verdana, Helvetica, Arial] We are marketing Medicare Part C, Medicare Advantage, We provide a pre set appointment, and pay $200 for each Enrollment. Our market is dual eligible Medicare/Medical/Aka : Medicaid.
They are not restricted to open enrollment as other Medicare Beneficiaries are.

[/FONT]Does this make any sense to the vets here?
[FONT=Verdana, Helvetica, Arial]
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[midwestbroker]

That is true. Duels have the option to change during lock-in.

 

[Juddzilla]

That is true. Duels have the option to change during lock-in.

Good news, then. OK, does this new information (and commission) make this deal sound better or the same? I really want to start doing MedSups and MA...if these are well qualified appointments, is it worth it? Thanks!

 

[sman]

Good news, then. OK, does this new information (and commission) make this deal sound better or the same? I really want to start doing MedSups and MA...if these are well qualified appointments, is it worth it? Thanks!

I personally feel if you have to pay for the leads, you should get the lions share of the commission. The only advantage to you is that you don't have to create your own leads and appointments. However, you are paying someone to do that by paying for the leads. You could find someone else to do it for about $20 a pop and get $330 commission. A much better deal IMO. Just my $.02.

 

[Insuranceman]

From my experience with companies that provide leads or appointments never come thru with what they promise. There are usually strings attached that they never tell you about till its time to get paid. I learned thru the school of hard knocks to do my own lead generation.

I've run into agents in a nearby area who are running pre set appointment for marketing companies selling MA plans. Most of the doctors in this area don't accept MA plans. These poor guys don't have any controll over where they run their appointments and are going to loose their ass in charge backs.

 

[Juddzilla]

Yet another email:

[FONT=Verdana, Helvetica, Arial] I checked with Zahrinsurancemarketing, we are paying $200 for an enrollment
With 80% advanced. It seems the Medicare Advantage market is very slow in paying up to four or more months from submission to pay. We are paying weekly, the balance of the 20% withheld is paid when the agency is paid. They are premium financing involving an interest cost.

So $200 is the commission and the appointment/lead cost is $17.50 with a 35% appt to enrollment ratio.

We would love to have you in our sales organization.

[/FONT][FONT=Verdana, Helvetica, Arial]I'm still interested in doing this, IF I can determine if it's a fair deal. Thoughts on new info? Thanks![/FONT][FONT=Verdana, Helvetica, Arial]
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