The Secret to Selling Medicare Supplements

[Glen Shelton]

So you're spending around $500 per month ($6,000 per year) in leads ... About 50 leads per month (600 per year) ... What's your conversion percentage around 20% (10 new clients per month)?

Most agents buying leads for Med Supps have a customer acquisition cost in the $200 - $300 range (This comes from multiple call centers that focus exclusively on Med Supp).

If you can be successful with telemarketed leads, you can easily get your acquisition cost well below $200, in the $120 - $160 range.

If you are selling F2F these numbers might look a little different.

If you are new to Medicare that might sound crazy, "Spending $200 for a $300 FYC !?!? How am I going to make any money doing this !?!?"

Lifetime client value = About $1800 (maybe double that if you rewrite them in 6 years)

... And with a persistency over 90%+ (see other thread) on Med Supp business, spending the $$$ to acquire a client is a NO BRAINER.

 

[somarco]

Some find success in phone sales. Others F2F.

This guy was successful F2F. If he can do it anyone can.

https://www.youtube.com/watch?v=lIKxmCp_fho

If you can't find the key to phone sales there are two solutions.

Practice, practice, practice.

Or move on to something that works for you.

 

[TDFnCali]

So you're spending around $500 per month ($6,000 per year) in leads ... About 50 leads per month (600 per year) ... What's your conversion percentage around 20% (10 new clients per month)?

NO, it doesnt cost 500, maybe 350-400 and NO, I cant covert 20%, I wish. As others have pointed out, 20% would be a dream & they'd do it all day long, so would I. As I said earlier, IF I could get to 10-15% consistently with every order, Id buy more & sell more this way. I sell apprx 5% (2-3) per order, so my FYC is typically $600-1000 (older ppl premiums make more commish). That already covers my cost of the leads....and then on avg, Ill make 4-6 more yrs of commish on them, so its worth it.

 

[JaBrooklyn]

Question about med supps if anyone can help me: In NY state where I am just starting with supplement plans, people can enroll year round (no underwriting).

Of course you are not supposed to have a medicare advantage with a medicare supplement. What if client does not disenroll from medicare advantage and signs up for a supplement?

Would carrier block it?
If carrier does not block it, who will pay out claims?

Thanks. I am new to supps, been selling MAPD's for two years now.

 

[senior-advisor-indiana]

Most agents buying leads for Med Supps have a customer acquisition cost in the $200 - $300 range (This comes from multiple call centers that focus exclusively on Med Supp).

If you can be successful with telemarketed leads, you can easily get your acquisition cost well below $200, in the $120 - $160 range.

If you are selling F2F these numbers might look a little different.

If you are new to Medicare that might sound crazy, "Spending $200 for a $300 FYC !?!? How am I going to make any money doing this !?!?"

Lifetime client value = About $1800 (maybe double that if you rewrite them in 6 years)

... And with a persistency over 90%+ (see other thread) on Med Supp business, spending the $$$ to acquire a client is a NO BRAINER.

Most agents spend $200 to sell a med supp? That's insane...

 

[Bevo]

Most agents spend $200 to sell a med supp? That's insane...

I just had a long convo today about this with a trusted affiliate. Seems some of the big boys are paying $400+ with ease for Med supp clients.

 

[sman]

Question about med supps if anyone can help me: In NY state where I am just starting with supplement plans, people can enroll year round (no underwriting). Of course you are not supposed to have a medicare advantage with a medicare supplement. What if client does not disenroll from medicare advantage and signs up for a supplement? Would carrier block it? If carrier does not block it, who will pay out claims? Thanks. I am new to supps, been selling MAPD's for two years now.

MAPD is primary so the Med Supp wouldn't pay anything. And if you get caught knowingly selling someone a Med Supp who has a MAPD, you're going to get in serious trouble.

 

[Glen Shelton]

I just had a long convo today about this with a trusted affiliate. Seems some of the big boys are paying $400+ with ease for Med supp clients.

Why not right? I'd spend $400 for $1800 all day.

Correct me if I'm wrong, but don't most "financial advisors" tout doubling your money in 7 years?

The call centers who are getting near the $200 range said they were primarily using shared internet leads ... Which seem to be taking a dive in quality

 

[somarco]

Seems some of the big boys are paying $400+ with ease for Med supp clients.

That's a lot, especially if you are not cross-selling. Looking at my per client comp that's almost 18 months to break even.

I scream if it takes me 6 months to break even.

 

[kgmom219]

That's a lot, especially if you are not cross-selling. Looking at my per client comp that's almost 18 months to break even.

I scream if it takes me 6 months to break even.

$200??? You lost me with that figure.

Then you said $400???

There's no way. Plus, $1800 assumes 100% persistency for 6 years. I'm at 95%, including death of policyholder.