Pros......What's the bottom Line?

Oct 21, 2007

  1. TonyC
    Offline

    TonyC Guru

    Posts:
    446
    Likes Received:
    0
    I'm anxious to know and I appreciate the input from the Pro's.

    I have just been licensed...and am hitting the pavement in search of a firm to work with. I know its sales...and from what i'm reading, i need to be independant to sell Health insurance effectively.

    Assuming good closing skills and product knowledge, here's my question:
    How much money does one need to spend on marketing as an independant health insurance agent?"

    I would like to close 2 policies (or more) a week.

    thanks for your constructive input!
     
    TonyC, Oct 21, 2007
    #1
  2. TXINSURANCE
    Offline

    TXINSURANCE Guru

    Posts:
    3,858
    Likes Received:
    28
    I would set your bar higher than 2 policies per week, I am of the opinion you can not make a living at 2 policies per week if Individual Health is your primary income source.

    The big issue is if you will have a large quantity of half way descent leads and a good competitive product to sell.
     
  3. TonyC
    Offline

    TonyC Guru

    Posts:
    446
    Likes Received:
    0
    thanks TX,...I'm trying to be realistic...and yet want to do well.

    What do you suggest for "beginners?"
     
    TonyC, Oct 21, 2007
    #3
  4. somarco
    Offline

    somarco That Medicare Guy

    Posts:
    28,777
    Likes Received:
    2,228
    State:
    Georgia
    You can spend a lot of money on promotion, leads, etc and never see a dime in return. While there is a cost to cold calling (in person or on the phone) it is one way to get your feet wet while building up your income.

    2 sales per week (that stick) will (eventually) generate about $1400 in commission (annualized). You may not want, or be able to qualify for annualized commissions, plus there is a lag between the pitch, the application, approval & getting paid.

    Figure a minimum of 6 weeks from the time you submit the app until you are paid. If you have weekly, annualized commissions you might see the $$$ a bit quicker.

    2 sales = approximately 100 lives per year = approximately $72,000 in annual income.

    Most agents need 300 lives on the books to be successful (by most standards). That doesn't mean you have to write 300 the first year (which would be a feat) but at 300 you will have new & renewal income.

    100 lives in renewal = $14,000 renewal commissions.

    300 lives in renewal = $42,000 renewal commissions. Add another 100 lives in new business will put you over $100,000 per year.

    Much of my business comes from referrals but I still buy leads and look for a 5:1 return on my investment. A rookie may be able to hit that or they may come up short.

    The worst thing in the world is to underestimate the time and money it takes to get up & running in this business.

    Most people will need 18 months or so to get to a level of comfort. Some longer and a very few will make it much quicker.
     
    somarco, Oct 21, 2007
    #4
  5. TXINSURANCE
    Offline

    TXINSURANCE Guru

    Posts:
    3,858
    Likes Received:
    28
    I agree don't underestimate time, this business there is a time delay due to everything from underwriting, billing , you name it.
     
  6. TonyC
    Offline

    TonyC Guru

    Posts:
    446
    Likes Received:
    0
    Thanks....so 6 weeks lag time....18 mths for comfort level.

    How much $ do you recommend spending...and where?
     
    TonyC, Oct 21, 2007
    #6
  7. TXINSURANCE
    Offline

    TXINSURANCE Guru

    Posts:
    3,858
    Likes Received:
    28
    This depends what your wallet can afford. I started off with about $500/mo in leads, now we do that before lunch time - easily.

    Grow as your wallet lets you and my best advice is to NOT TAKE ADVANCES!!!
     
  8. CHUMPS FROM OXFORD
    Offline

    CHUMPS FROM OXFORD Guru

    Posts:
    10,261
    Likes Received:
    49
    State:
    Ohio
    "2 sales per week (that stick) will (eventually) generate about $1400 in commission"

    That's what I hate about Ohio. Here, two sales equates to about $800.
     
  9. TonyC
    Offline

    TonyC Guru

    Posts:
    446
    Likes Received:
    0
    Thanks guys....if i could send you all a gift... i would. Never-the-less...thanks very much for your input!
     
    TonyC, Oct 22, 2007
    #9
  10. somarco
    Offline

    somarco That Medicare Guy

    Posts:
    28,777
    Likes Received:
    2,228
    State:
    Georgia
    .

    That's why I no longer solicit business in OH. Couldn't make enough to cover my long distance bill.
     
    somarco, Oct 22, 2007
    #10
Loading...