Question for Saleswolf...

[Delta76]

Sales Wolf-

I know you have been very successful in the business, I'd like to know how you got to that level of production. Was it through hiring on multiple telemarketers? Do you operate mainly in one state or multiple states? Through your website? How do you drive traffic to it? If you don't mind, I'd like to hear from someone knocking the ball out of the park like yourself.

Thanks-
Delta

 

[TheSalesWolf]

QUICK BIO

Back in 2001 I was working with a company in San Diego that was marketing online through Overture.com (yahoo search marketing now) for individual health insurance. There were spending somehwere in the neighborhood of $10,000 a month on marketing their website and giving us an ungodly amount of leads. These are back in the days when the Term Blue Cross Blue Shield was only .20 a click.

At the time I was writing over 100 applications a month in my territories, which was mainly the Southeast. I was getting paid about $5 to $6,000 a month, which isn't bad but I was bringing the company in around $30,000 a month.

So I dediced to start doing the same thing they were doing on a smaller level.

So I started markeing health insurance Nationwide. I was licensed in about 5 states at the time and was getting leads all over the country.
So I started to contact other insurance agents and start selling the leads I didn't need to them.

Back in the day that was great because my per cost on leads was only about $1.50 and I was selling them for around $3 to $3.50 shared and sometimes even more to at least 2 to 3 agents. This really allowed me to open up my marketing.

I started spending around $6,000 a month on my marketing but bringing in $8,000 just on lead sales. So this allowed me to really to get paid to get leads.

Anyway that's how I grew my business just selling over the phone to people in certain states. I would add a couple more states each year, now I'm in about 15 or so.

I have only done internet marketing up until recently. My cost per lead is still better than a lot but it's increased to around $11.50 per lead. It keeps increaseing because I can't compete with larger companies like Ehealthinsurance.com on bidding online.

After a recent conversation with John Petrowski I hired some telemarketers and that has been phenomonal. I am averaging only around $5.50 per lead now and my closing ratio has increased.

So now I still do internet marketing but the telemarketed leads might be the only thing I do down the road. IT's so cheap, THANKS JOHN.

Anyway, for any newbies out there it's not a magic formula. I still work a lot of hours, but never the weekends. I hardly ever take time off of work, but if I get burned out I'll take an afternoon off.

The best advice I can give you is never get captive through one company, try to go in states that you can offer BlueCross Blue Shield and other top companies and always do what you think is the best for the client. Never sell an Assurant policy to someone because they pay you more than BCBS.

BTW- the telemarketers I pay $7 an hour and $2.50 per lead.

 

[J.R.]

Thank you for the information Wes.

 

[Crabcake Johnny]

We followed similar paths - although you write about 50X the business I do:-) Yes, my cost-per-click was going up and up as I was trying to compete which became futile so I developed a telemarketing campaign that's resulted in the cheapest and highest quality leads around. Handle the marketers yourself - don't farm it out.

 

[Delta76]

Thanks for taking the time to answer. I always enjoy hearing how someone became successful. I currently market through my own efforts but I'm looking at adding some more telemarketers. My state pays fairly poor on individual health (MN), I've thought about learning another state's market to supplement mine, hiring telemarketer(s), and growing the business at a faster rate. What do all of you think, should I expand to another market or stay in my own?

 

[J.R.]

Thanks for taking the time to answer. I always enjoy hearing how someone became successful. I currently market through my own efforts but I'm looking at adding some more telemarketers. My state pays fairly poor on individual health (MN), I've thought about learning another state's market to supplement mine, hiring telemarketer(s), and growing the business at a faster rate. What do all of you think, should I expand to another market or stay in my own?

Depends on what you want to do. You can either increase production in your state or go to other states and market there.

 

[Crabcake Johnny]

Sometimes it is what it is. I get questions on how to make a living in states where Blue Cross has fantastic affordable plans but pays 7% commission. The answer is you don't. Sell in other states or get into another line of business.

 

[TheSalesWolf]

What do all of you think, should I expand to another market or stay in my own?

I agree with John. There's no need to limit yourself to a state that pays crappy commissions.

I strongly encourage you to sell companies that annualize commissions like Assurant and Golden Rule when you're starting out. One $250 app can pay you $600 that's better than getting 42.50 each month when you're new.

 

[Crabcake Johnny]

Almost no one can break into this biz with as-earned unless they have a working spouse and a lot of savings.

 

[Delta76]

I would assume that I could work just about any state. Does anyone have a bias as to what a good state to work would be?