New Agent Seeking Direction

[NewbieNewbie]

I just registered but I have been reading up quite a bit over the last couple of months on this forum. Here is my situation and background.

I just passed my exam, and should be licensed within a couple of weeks. My background is in sales. I have about 10 years experience. I started selling copiers out of college, and the transitioned into b2b financial services.

What I can not discern is what direction to go? Here are a few of my thoughts. I would love to get any feedback based upon the industry and my back ground as to what you would do if in my shoes. Thanks in advance for any assistance.

1. Individual Health: I have access to several dialers. Predictive for b2c and broadcast for b2b. My only concern with "invasive" marketing is persistancy. I am going to need to take some advances (hopefully 50/50), and don't want to end up in chargeback hell. that said the marketing cost is relatively low. I can also sprinkle in some internet leads if I can find a good ROI with a company, but that said it seems a good lead company is very difficult to find.

2. Med Sups: It seems a lot have mentioned that as a good route for a rookie. I am interested, but admittedly clueless about the Med sup alphabet. Also I have read some posts regarding being unable to telemarket for supplements. or is that just for MA. If one can telemarket do most just purchase lists of those who either are about to turn 65 or who have just turned 65?

3. FE: It seems to be some quick commissions, but I worry about persistancy. I presume from what I read the market is obviously lower income which is fine with the exception of the persistancy problem that may arise. I would prefer to do most of my work over the phone. From what I have read it seems face to face is the way to go with FE. Again I would drive if it was the right opportunuty, but I have many years of driving 30k miles a year under my belt in heavy traffic. I could do without it.

4. Mortgage Protection: This seems to make a lot of sense. It is relatively simple decreasing term, and a product I believe everyone should absolutely have. I assume you could purchase data, new home owner, recently married, just had a child etc, and sit on a predictive. That said I have read several posts in which people have said this is a depressed market. I am guessing the housing market has something to do with it. Why pay for mortgage protection when I can't even pay my mortgage? That said I am in Texas and we have not been hit by the housing crunch nearly as bad as most areas.

So those were the areas I am considering going into. I know I wrote a mouthfull. So looking at what I wrote and my background which direction would you suggest I go in, and any prospecting/marketing tips in that niche. Thanks in advance for any assistance.

 

[briko3]

If you've done financial services for businesses, why not just add insurance to your bag of tricks. (ie., buy-sells, COLI, etc.)

 

[NewbieNewbie]

Thanks for the reply. I am still going to keep what I have in my bag so to speak. That said the financial products that I have available to me ( 7 years of payment processing) is an industry I am burned out on. If you think insurance agents get a bad rap...

 

[souldeux]

It's not necessary to have laser focus on one specific demographic - you can branch out and work in two, three, or four different arenas if you want.

John (Independent Health Insurance Agent Association president) can speak much more intelligently about getting started with health insurance than I can, although I'm no slouch. Persistency isn't going to be an issue unless you're slamming policies - take the time to talk with your client, make sure they're actually interested and not just filling out an app to shut you up and let it happen. Chargeback hell happens when you're twisting arms and putting clients into plans they aren't comfortable with or can't afford.

Final expense is good, quick money but if you're anything like me it'll burn you out quickly. If you're worried about chargeback hell, this is where you'll find it. New FE agents can get excited about writing $10k of FE business and spend it all before the check arrives. When you get your comp and it's just $8500, and then another $3k charge back next month...yuck. If you're doing final expense, then my recommendation is to live on about a third of what you make until you get your chargeback reserves up. You can do it, but be disciplined. If you're doing FE, you should do it face-to-face - the increased persistency and closing ratio is worth it.

MP isn't as easy as you're making it sound simply because everybody else in the world is buying and calling that same list. When you buy a home, you get hammered pretty quickly with all sorts of stuff about mortgage protection, home warranties, homeowner's insurance, PMI, loans, new furniture, blah, blah blah...it can get overwhelming (my fiancee's a real estate agent and I worked with a client of hers once who described the flood of marketing as her own personal tsunami). When you add in the fact that the decreasing term policies hold very few advantages over level term policies, you kinda have to wonder why you wouldn't just sell a full term to a client. I don't mean to sound overly negative, but the MP market wasn't a pushover when things were great and it's even less so now.

I agree with briko - if you've got contacts in the business world already, you've got a great way to get in with some business products. That's a hell of a way to start, but if you hook up with an upline or training organization willing to hold your hand and walk you through then you can make it.

Don't discount the simple "personal term" market, either - sometimes, people just need life insurance for one reason or another (usually to insure against lost income). You can reach these people with a dialer, a website, purchased leads, mailers, networking - pretty much anything.

The truth is that even with passing the licensing exam you've got a lot to learn - product knowledge, underwriting, a totally different sales cycle, and the list goes on. What you choose in the beginning might not be what you're doing three months down the line. Get in, get your feet wet, start learning, and you'll find your way.

 

[VaDwayne]

I just registered but I have been reading up quite a bit over the last couple of months on this forum. Here is my situation and background.

I just passed my exam, and should be licensed within a couple of weeks. My background is in sales. I have about 10 years experience. I started selling copiers out of college, and the transitioned into b2b financial services.

What I can not discern is what direction to go? Here are a few of my thoughts. I would love to get any feedback based upon the industry and my back ground as to what you would do if in my shoes. Thanks in advance for any assistance.

1. Individual Health: I have access to several dialers. Predictive for b2c and broadcast for b2b. My only concern with "invasive" marketing is persistancy. I am going to need to take some advances (hopefully 50/50), and don't want to end up in chargeback hell. that said the marketing cost is relatively low. I can also sprinkle in some internet leads if I can find a good ROI with a company, but that said it seems a good lead company is very difficult to find.

2. Med Sups: It seems a lot have mentioned that as a good route for a rookie. I am interested, but admittedly clueless about the Med sup alphabet. Also I have read some posts regarding being unable to telemarket for supplements. or is that just for MA. If one can telemarket do most just purchase lists of those who either are about to turn 65 or who have just turned 65?

3. FE: It seems to be some quick commissions, but I worry about persistancy. I presume from what I read the market is obviously lower income which is fine with the exception of the persistancy problem that may arise. I would prefer to do most of my work over the phone. From what I have read it seems face to face is the way to go with FE. Again I would drive if it was the right opportunuty, but I have many years of driving 30k miles a year under my belt in heavy traffic. I could do without it.

4. Mortgage Protection: This seems to make a lot of sense. It is relatively simple decreasing term, and a product I believe everyone should absolutely have. I assume you could purchase data, new home owner, recently married, just had a child etc, and sit on a predictive. That said I have read several posts in which people have said this is a depressed market. I am guessing the housing market has something to do with it. Why pay for mortgage protection when I can't even pay my mortgage? That said I am in Texas and we have not been hit by the housing crunch nearly as bad as most areas.

So those were the areas I am considering going into. I know I wrote a mouthfull. So looking at what I wrote and my background which direction would you suggest I go in, and any prospecting/marketing tips in that niche. Thanks in advance for any assistance.

Here are my opinions, but here goes:

1. Individual Health-lots of starving agents. I just spoke with an agent today that has lost quite a few groups. Disclaimer: I hate selling group health so I'm biased

2. Med supps- you can cold call for supes but not MA's, so you are correct. The clients are loyal, and give lots of referrals. Lower commisions in the first year, but great renewals. Disclaimer: I love med supps, so I'm biased.

3. FE- great product to sell with med supps. Lots of people on this forum supposedly making tons of money selling over the phone, but they never tell us about their chargebacks, lead cost, etc. so it's tough to tell what the net income actually is. Disclaimer- I like final expense and have made a little money off of it this year. I only had 2 chargebacks in 2009 , and they were both final expense, 0 for med supps.

4. Mortgage protection- Who's buying houses? Nuff said!!

 

[roccosoprano]

The most important thing is to know the product. You can sell any product under the sun but always remember One important thing. Make sure that it fits their needs and not yours. I have seen many agents sell products that burn people. I have to let them Go. Leads are another way to get burned. Buy the good leads from a good company not just because there free. I prefer Norvax-Prospect zone. I have had the most success. I personally focus on just health and life. I don't have time to be driving all over the state.

Rocco Solorzano
GOHealthVMO
877-801-7236

 

[jody108]

I would start off with Final Expense and gradually move into other products. FE is a great door opener for new agents. Do it for six months or so and you are no longer a newby -- then start getting into other products and focusing on a more affluent clientele.

 

[NewbieNewbie]

I truly appreciate the feedback.

I am leaning towards maybe three days a week FE to get a little income in and three days a week on Med Supps to start building a decent long term book of business. I am single and don't have a huge overhead as far as personal expenses so I can survive the year one hurdle and learning curve without making a ton of money.

I have a couple of more questions if you wouldn't mind indulging me.

So for med supps it seems the most efficient marketing is in buying data and putting it in a predictive dialer is that correct. Do most of ya'll close med supps on the phone or in person? Or is it a mix?

As for FE is it the same buying data and using a predictive?

When buying data I presume the smart thing to do on both fronts is the middle market 20-50k a year. (ie make enough to afford the policy, but not so much that if you are replacing one saving 20-30 dollars a month isn't terribly important). I imagine that would certainly be the case for FE, but I was wondering if that is the case on med supps too.

That said does anyone know of where I can get some decent med supp training perhaps online. I know a few here on the forum offer it, but understand everyone's time is valuable. I do not want to be a burden.

Thanks again and ps I have probably learned more reading this forum over the last month than studying for my license.

 

[NewbieNewbie]

Well that stinks I just spent 15 minutes trying to reply and evidently my connection time out.

First off thanks for the replies. I truly appreciate it.

That said I have a few more questions of ya'll would indulge me.

I am leaning towards 3 days a week leading with FE and 3 days leading with Med Supps. Obviously I will cross sell as much as I can too. I figure that way I can generate some upfront money with FE and start building a long term book of business with Med Supps. I am single and have very little overhead so I do not necessarily need to make a ton of money in year one while I ramp up and gian experience and knowledge.

So from what I have read it seems the best way to gain leads for med supps and fe is buying data and putitng it in a predictive dialer. Does that sound correct? I also assume you want an income level of 20-50k (ie make enough to afford the policy but not so much that if you are replacing one $20 a month is chump change) I am nearly certain that would be the case for FE, but is it for Med Supps as well to. Also I understand FE is going to need to be face to face, but are most of ya'll closing Med Supps over the phone, in person, or a mix. Finally are as for data on med supps do you primarily buy for people turning 65 or older to replace existing supplements.

Finally any good resources for getting up to speed on these products. I see the hurdle for FE being it is an uncomfortable topic for many to discuss. As for the hurdle for medicaire supplements well that would be that I admittedly clueless.

If you made it this far thanks for taking the time to read this. If you have any advice thanks in advance for posting it