New Agent Needing Guidance

[sheilas62]

I have been researching for a long time trying to figure out how to get started as a new Independent Insurance Agent. Originally, I was most interested in Medicare Supplements and Medicare Advantage sales specifically because of the residual income and I still am but what I have been learning is that while MS and MA provide a very good stream of residual income, the upfront money isn't as good as FE sales which I have to have in order to pay my bills. Is this true and how would I overcome this and make enough to pay my bills?

As of late, I have been considering starting with FE because of the upfront money and then as soon as possible after getting started and getting established in FE, I would like to get the training needed to get up and going in MS (buying leads, etc) and in MA, which I understand is a natural market to go along with FE sales. I live in Cleveland, TN and have found a couple agencies locally to me. One is a very good, reputable agency for FE only who provides extensive training, field training, access to buy exclusive fixed leads, help with doing Senior Seminar sales but that can also get me hooked up with a company that can train me for selling medicare products, get me the carriers and DM leads. The other Agency is a smaller agency GMA who does it all and wants me to get signed up with all FE carriers MS and MA Carriers and begin selling them all upfront, but starting with FE for a few weeks while waiting till July to do the AHIP testing. But jumping into it all at almost the same time seems overwhelming to me and I have gotten over a dozen invitations from carriers to sign up for all under him right off the bat. Plus he believes primarily in Telemarketing Leads for FE and DM for MS and working Senior Seminars which he would train me to do. Not crazy about working TM leads for FE. I need some guidance and input from experienced agents PLEASE.

 

[efribush]

I personally tell people who come to work with us, if you don't have 2-3 months of money in the bank to live on minimum, you may want to consider something else. You have to build a pipeline. The one call closes will come here and there but most sales are going to take 2 or 3 touches if not more, especially if selling over the phone. And for the people who say otherwise and claim to be killing it with one call closes, I would love to see their persistancy rate.

 

[sheilas62]

I personally tell people who come to work with us, if you don't have 2-3 months of money in the bank to live on minimum, you may want to consider something else. You have to build a pipeline. The one call closes will come here and there but most sales are going to take 2 or 3 touches if not more, especially if selling over the phone. And for the people who say otherwise and claim to be killing it with one call closes, I would love to see their persistancy rate.

Thank you for replying and I understand and have learned about needing upfront money to get started in either Insurance field which I think I am okay on. But my main point in my question is trying to find out which field is best to get started in for making the most upfront money, FE or MS & MA sales? As I stated, I originally wanted to get into MS & MA but because of concern about not making as much upfront money as I will need to pay my monthly bills till I start earning renewals and build up my income, that is what I'm concerned about and why I am now considering starting in FE so that I can make more upfront money, then eventually add MS & MA so I can build up a good residual income.

 

[ModernInsGuyOH]

If your end goal is to build residual income then the answer should be clear. FYC is higher with FE but LTV per case will be significantly higher with a MA/MS client.

Do you have experience with the senior market already?

 

[sshafran]

If I had to go back in time, I would shut myself in a room and forget about anything else that "paid more upfront money" and build a med supp client base. You'll be poor for a while - it's OK... you'll be OK.... just work hard enough to guarantee that you won't stay poor.

 

[Bevo]

Thank you for replying and I understand and have learned about needing upfront money to get started in either Insurance field which I think I am okay on. But my main point in my question is trying to find out which field is best to get started in for making the most upfront money, FE or MS & MA sales?

So you state that you realize the importance of needing up front and you're okay on it, that you want the residuals from Med Supps, but still want to know which one pays the most upfront money?

This sounds like another unsuccessful story waiting to happen.

Here's my advice. Get a (or keep your) real job. Start doing Med Supps nights and weekends. NO other insurance products. Just Med Supps. You could absolutely get 5-10 deals per month if you work hard enough. The real job pays your bills and hopefully keeps stress levels low while you learn the craft of Med Supps and start building your base of residuals.

I'd work non-stop 14-16 hours per day until I could leave and do med supps full time. Because it's worth it. I often ask people "How bad do you really want it?" All will say the want it badly, few want it badly enough.

Sshafran is saying basically the same thing. I have a very good feeling however that you won't do this. I have a feeling you'll take the job with the agency (easy way out) and likely never see the light of day of the independent Med Supp agent world. Why? Because most people don't have the guts to do it. Are you the exception? Well there's always that slight chance, but it's doubtful. Sorry, those are just what they call....the FACTS. The fear in your posts alone tell me you likely won't do whatever it takes to succeed. I've seen it time and time again.

I sincerely hope in 1-2 years however, that you will prove me terribly wrong.

 

[springbokhouston]

Start with FE, learn MA and Supps as you go. I tell people to have 5 to 10k set aside to get on, and more importantly stay on a fixed price DM lead program.

Both MA and Supps are a natural cross sell (depending on where you're marketing), and with good training you'll be able to increase your ROI significantly over just selling one or the other. We provide support and training for both.

Good luck!

 

[kgmom219]

If I had to go back in time, I would shut myself in a room and forget about anything else that "paid more upfront money" and build a med supp client base. You'll be poor for a while - it's OK... you'll be OK.... just work hard enough to guarantee that you won't stay poor.

If you aren't expecting to be poor for 2-3 years, you need to modify your expectations.

 

[somarco]

Good, honest advice here. Whether you follow it or not is up to you.

FE, Medicare market is not difficult to learn but hard to master . . . especially if you are underfunded.

Rousemark (Louis) is a Medicare & FE agent on the forum that lives in your area. He doesn't recruit or train but would be a good local resource. You can also tap into his 90 years of experience in the business . . .

If you are under pressure to make sales, either because of finances or quota's from the agency that is "helping" you I can almost guarantee you will drop out in a few months. Potential clients can sense when you are desparate and either won't buy or will buy then cancel.

Good luck!

 

[sheilas62]

So you state that you realize the importance of needing up front and you're okay on it, that you want the residuals from Med Supps, but still want to know which one pays the most upfront money?

This sounds like another unsuccessful story waiting to happen.

Here's my advice. Get a (or keep your) real job. Start doing Med Supps nights and weekends. NO other insurance products. Just Med Supps. You could absolutely get 5-10 deals per month if you work hard enough. The real job pays your bills and hopefully keeps stress levels low while you learn the craft of Med Supps and start building your base of residuals.

I'd work non-stop 14-16 hours per day until I could leave and do med supps full time. Because it's worth it. I often ask people "How bad do you really want it?" All will say the want it badly, few want it badly enough.

Sshafran is saying basically the same thing. I have a very good feeling however that you won't do this. I have a feeling you'll take the job with the agency (easy way out) and likely never see the light of day of the independent Med Supp agent world. Why? Because most people don't have the guts to do it. Are you the exception? Well there's always that slight chance, but it's doubtful. Sorry, those are just what they call....the FACTS. The fear in your posts alone tell me you likely won't do whatever it takes to succeed. I've seen it time and time again.

I sincerely hope in 1-2 years however, that you will prove me terribly wrong.

I hope you are wrong as well and I do believe I can do this. I don't feel as if I have fear as much as I do information overload from weeks of researching (I'm too analytical) and trying to make the right decision. I've been in outside advertising sales for almost 20 years and working commission only for about 4 years of the past 7 years as an Independent Contractor with my home as my office and doing pretty good but not building any residual income that I can keep if I leave the company so that is why I want to make a change in it but I'm not afraid. I also was a Manager in this Advertising field for 3.5 years and hired and trained Independent sales reps in the industry I have been in for the past 7+ years have also found that very few can do this successfully no matter who hires and trains them but I have always been one of the ones that have been able to do it well. The percentage that make it in this field of advertising is likely as low or maybe even lower than as an Independent Agent in Insurance Sales

I just know I only have enough upfront money getting started for a couple months and I realize it takes a few $1000 to buy leads and for other things I will need. I have worked in the insurance field though somewhat limited - Worked a debit account captive with a company years ago for almost a year and did good, worked at Combined Insurance for a few months, worked at American General for a few months and worked part time selling MA plans in 2008 before the major changes were made to the MA world. I can also continue to do the Advertising Sales that I currently do part time to help with income which I have renewals and some residual income in.

Anyway, thanks for the input but your analysis and prognosis of my future in this seems very bleak and not very hopeful but I believe I have a lot of determination, am not a quitter, am a people person, love working with seniors and believe if I make the right choice or whether I start out in FE then eventually get into MS sales & MA sales then I can do this successfully or whether I choose to get into MS sales and later add FE sales and possibly MA sales that I can do this successfully. I'm just trying to make careful and the right choices before I jump in and find out from experienced agents if it is best to do one thing getting started or if I can tackle sales of multiple products and do this. I did that with Combined Insurance and did pretty well with it so I was just trying to find out the best way to get started in the Independent world of selling insurance. No offense meant at all because I am a very nice person but you don't really know me well enough to determine if I will be successful in this. I am also a Christian and I believe that with God all things are possible with His help and that I can do all things through Christ. Anyway, hope you have a blessed day. I just wanted to respond with a little more clarity.

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If your end goal is to build residual income then the answer should be clear. FYC is higher with FE but LTV per case will be significantly higher with a MA/MS client.

Do you have experience with the senior market already?

I have some experience, though not tons. In Insurance I worked a debit account for a company called Union National in Louisiana where I collected and sold policies to low income people, primarily seniors. I did that for almost a year and did pretty well with it but that has been a good many years ago. I also worked for Combined Insurance for a few months and did pretty well but that was back in 2010. I worked for American General for a few months several years ago and I along with my full time job in outside b2b Advertising Sales worked part time for a few months selling MA products to seniors back in 2008 till the Gov't made major changes to it and shut down our call center who set our appointments up for us and I did well with it. That is my experience which amounts to about 2 years.