Supp Number$ Getting Started

Discussion in 'Senior Insurance Forum' started by entrep1776, Aug 1, 2017.

  1. entrep1776
    Offline

    entrep1776 Well-Known Member

    Posts:
    260
    Likes Received:
    0
    Medicare supplements - rough business plan

    Working on rough conservative business plan for using DM F2F to sell med supps in boonies. I've heard about 10% of new agents are around sfter two years in insurance.

    20 DM leads/week
    $30/ lead
    15% close ratio(very conservative)
    10% lapse ratio
    $250/policy commission

    20 leads 15% close = 3 policies x $250 = $750 - 10% = $675 income.

    Lead cost =$30*20=$600

    Vehicle mileage cost = $0.15/mile for 2005 Prius. Maybe 20 miles/lead = 400 miles = $60.
    $675-600-60=$15.



    As long as government doesn't end med supps.
    be angrified if gov ends med supps. Makes me almost want to consider FE. Year 2 should be $675*4=$2,700/month without lead cost & mileage. With year 6 looking something like $2,700*6=$16,200/month*12=$194, 400 annually. I'll probably have more policies drop off but my closing ratio should go higher than 15%.

    .............
    Way too much detail right now buttttt 2024 taxes on $194,400:
    self-employment tax of $20,979 comprised of $15,773 Social Security tax and $5,206 Medicare tax. 4.95% IL state grrr = 9622.(0% in FL btw) Fed is $44501. Total tax = $75102. $119,338 left.
    Have to save about 39% to pay for taxes. unless i move to FL then only 34%.
    ..............

    How much will companies advance? How much interest do they charge on advance? As earned, I would need to spend $2,400/month oop.*12=$28, 800?

    I'm hoping my numbers aren't way off. Appreciate feedback/input.

    Seems like 1st year is gonna be RUFFFFFF! Numbers I'm showing I'll have $60/month left over.
     
    Last edited: Aug 2, 2017
  2. sshafran
    Offline

    sshafran Well-Known Member

    Posts:
    1,154
    Likes Received:
    15
    State:
    Ohio
    From one who likes to over-analyze to another - don't go crazy trying to figure out everything before you do it. So many variables...

    You'll have AEP spikes and maybe even a few weeks of no apps.

    Are you planning on targeting T65 with your DM leads or a different segment of the market?
     
  3. Newby
    Offline

    Newby Well-Known Member

    Posts:
    13,413
    Likes Received:
    42
    State:
    Indiana
    A= You are thinking too much. Just go sell all you can sell. Quit guessing what's going to happen.

    B= Your lead cost will be much lower than that. $30 would be a horrible response on Med Sup leads. They respond much better than that. Should be in the area of $20 per lead.
     
  4. GreenSky
    Offline

    GreenSky Well-Known Member

    Posts:
    14,828
    Likes Received:
    27
    State:
    Nevada
    I agree with the overthinking.

    I disagree with the cost of a lead. I stopped doing direct mail when the response dropped to about 1%. But even if using 1.5%, at a $450/K mailing, each lead is indeed $30.

    Unless the response rate is over 2%, the lead cost will certainly be over $20 each.

    Rick
     
  5. Bevo
    Offline

    Bevo Well-Known Member

    Posts:
    643
    Likes Received:
    5
    State:
    Texas
    It's PRE-AEP.

    Just Sell. Then Sell more.

    Med Supps going away you say? Convert your worry time into selling time.

    If you're over-thinking this much what's going to happen at game time?


    P.S. - Don't spell like a teenager texting her BFF. Have some respect.
     
  6. TMerwin
    Offline

    TMerwin Member

    Posts:
    8
    Likes Received:
    0
    Cross-market final expense to every single med supp you close and that can help keep your pockets full first year while you're building your med supp renewals for the latter years.

    Alternatively, why not flip your sales model to phone sales and see more people for less money?
     
  7. Chazm
    Offline

    Chazm Well-Known Member

    Posts:
    3,565
    Likes Received:
    5
    State:
    Florida
    First off 15% close ratio is not conservative at all.

    Secondly if I were to pay $30 per Dm lead I would be out of biz. Think more $10-12

    Edit: I'm referring to T65's in FL. Some months I'm around $8
     
  8. Todd King
    Offline

    Todd King Well-Known Member

    Posts:
    6,078
    Likes Received:
    26
    State:
    Virginia
    Re: Medicare supplements - rough business plan

    I'm going to agree with everyone about overthinking this. One thing you're leaving out of your equations is cross-selling FE. If you do it correctly, your FE sales should be enough to buy your leads.
     
  9. sshafran
    Offline

    sshafran Well-Known Member

    Posts:
    1,154
    Likes Received:
    15
    State:
    Ohio
    That's insane. Seriously - that's awesome.
     
  10. Chazm
    Offline

    Chazm Well-Known Member

    Posts:
    3,565
    Likes Received:
    5
    State:
    Florida
    Really depends on the month. The summer I'm only getting 2.5% so that number gets around $18/per lead but with my discount, it drops to $14/lead.

    Beginning of the year for the first 4 months it's $8.65/lead and with discount, it dropped to $7.15/lead this year.

    Before I get bombarded with PM's, no I don't sell leads. Go to any lead company like Target Leads, Lead Concepts, Need a lead and they are pretty much all the same. The farther you mail out the better response you get. I use the generic "your open enrollment" letter
     
Loading...

Share This Page