What is My Next Move ?

[rmattgonzales]

Alright, new game plan in the works. I'm going to learn prospecting, obviously because it will build my strength as an agent over time. Generating my own leads may be the only way to sell in a flooded market. I may also try to buy cold leads at a percentage of new sale rate from another brokerage to work that angle. I am usually successful at turning around non-sales. I'm new to this, does any of that sound practical? I look forward to putting in the hours to see the eventual gain, I am not interested in a dollar figure (I don't HAVE to make 50-100k this year. If I make 20k this year, hopefully I'll make 30k next year.

 

[Chazm]

While I do agree that leads "can" be a waste of money in the senior market. I definetely don't agree that they are for myself and the 3 other guys that I work with.

Just this September I made 15 times more than my marketing cost. All 4 of us work off of lead cards and referrals (from the lead cards). I'm not usually the top earner in our group but I did it last month, granted the usual top earner missed the first 10 days from being on vacation.

If I were talking to someone brand new in the business I would definitely tell them to learn how to prospect and run appointments first before buying any leads. But, I would be in a lot of trouble if it weren't for the lead system we use.

edit: Most of my sales are MAPD's and Med Supps with the occassional life policy. So I'm hoping for some decent residuals in a couple of years

 

[HomeService]

I have personally discussed Frank's prospecting methods with him-and they are very similar to mine, however I am in the trenches in the cities of TX and he is out with the farmers in rural MO. No biggie, it's all the same. Just talking to people. You drive out there and you talk to people. You have to leave the house - to do it. Right Frank?

 

[Frank Stastny]

I have personally discussed Frank's prospecting methods with him-and they are very similar to mine, however I am in the trenches in the cities of TX and he is out with the farmers in rural MO. No biggie, it's all the same. Just talking to people. You drive out there and you talk to people. You have to leave the house - to do it. Right Frank?

Spot on! Yes, Med Supps can be sold over the phone and because of time constraints it is the way I'm doing most of them currently. Is it the "best" way to sell Med Supps? I'm not sure but my gut feeling is one has a better opportunity of keeping that new client for a lot longer if they are sold face to face.

When I sell over the phone I'm pretty much just selling them a policy. When I go on an appointment I can do a better job of educating them and selling myself. When I get a new client I plan on having that client for years and years. I still have seniors I sold in 1993 and I'm still earning commission on them.

I'm going to make a WAG that the persistency of those sold face to face is going to far outweigh those agents sell over the phone. I am a real person to my clients, they know all kinds of personal things about me. They think of me as a person first and the guy who sold them the policy second. It is very difficult to create that same rapport over the phone.

That is much more important when selling Med Supps than when selling other kinds of insurance. Med Supp companies typically pay first year commission for the first six years.

Agents selling in their underwear may sell more policies but do they keep their clients well into the future? If they don't then being paid first year commission for six years really doesn't mean very much. Large renewal checks are going to be very tough to build.

Healthy renewal checks on policies sold years ago is the only reason I can afford to play on here.

 

[Chazm]

^I wish I could fast forward to 2 years from now to start getting some good renewals

 

[HomeService]

^I wish I could fast forward to 2 years from now to start getting some good renewals

It goes by quickly. 2 years will go so fast your head will spin.

 

[Chazm]

Well I'm almost done with my 2nd year now. The problem is, I won't get my first residual until January 2011 because I left my company and went Indy in March.

 

[HomeService]

Well I'm almost done with my 2nd year now. The problem is, I won't get my first residual until January 2011 because I left my company and went Indy in March.

If you are talking about collecting your vested renewals from a previous captive company- be careful with counting your chickens before they hatch. The client could have dropped the coverage, or another agent could have gone in there and become agent of record. At any rate, your renewals may be lower than expected. However, on a positive note, I did one time go back to a major captive in another state 12 years later, and they pulled up all my renewals from the previous state and printed them out- and a lot of the people were still on there. I could not get the renewals 12 years later, though.

 

[VolAgent]

Re: What is My Next Move>>????

When I explain to agents that they are going to have to learn to prospect and find clients on their own they don't believe me. They tell me that is too much work and will hire someone to do what they consider the "grunt" work. Almost like that is beneath them.

It's how I make money and making money has never been "beneath me". I've been doing it that way for seventeen years and I'm still doing it that way. It is the easiest, most successful, most cost effective way for me to get new clients.

IMO there is only one task that can be called grunt work and farmed out, and that is paperwork. That is the task of running quotes, cleaning up applications, and getting an application through the underwriting process. Additionally, an assistant to help with service issues can be valuable. And quite frankly, except for LTCi, that doesn't exist in the senior market. A Med Supp app is not that difficult, and I doubt an MA app is either. Also, most final expense apps are just as easy. You'd have to be cranking out more than 20 apps a week consistently to justify the expense.

 

[Chazm]

If you are talking about collecting your vested renewals from a previous captive company- be careful with counting your chickens before they hatch. The client could have dropped the coverage, or another agent could have gone in there and become agent of record. At any rate, your renewals may be lower than expected. However, on a positive note, I did one time go back to a major captive in another state 12 years later, and they pulled up all my renewals from the previous state and printed them out- and a lot of the people were still on there. I could not get the renewals 12 years later, though.

I think you misread what I said. I will get residuals in January of 2011 because I left my captive company in March. Nine months after you write a med supp you start to get residuals. I wrote my first med supps on my own this march