newbie2001
Super Genius
- 246
Hey everybody, thought i'd put this out here for general discussion and to share my thoughts.
We all know what a Medicare renewal pays, approximately $300 per year. To gross $90,000 a year you need approximately 300 clients, then you have business expenses like marketing/leads, office space, CRM, and other general business expenses.
I understand those things are the cost of doing business but a small office space could easily cost you $6,000 a year. My point being, that even if you were to say achieve a remarkable client base of 1,000 individuals you're only making $300,000 a year and having to service all of these people. Then factor in churn of 10% a year between switchers/death/moving/adverse events. Now you're needing to still add 100 additional new clients a year just to keep pace.
Now while $300,000 is nothing to scoff at it takes a lot of time and resources to even reach that 1,000 client mark in the first place.
Then at that point you ask yourself do I need to hire staff to help handle renewals and service calls? Another expense.
I was brought into this business in a MLM life only outfit and sold the dream. It just seems almost impossible to scale your way to $500,000 $600,000 $700,000 $1,000,000 a year without becoming some faceless call center. With overrides going away you can't really hire 1099 agents anymore and collect a small override on there book either.
Is there anyone here with a large book (500+) who could give this situation some clarity? I don't want to work a salary job my entire life but when you look at cost of acquisition + how many people it takes to make a decent living it makes you wander.
We all know what a Medicare renewal pays, approximately $300 per year. To gross $90,000 a year you need approximately 300 clients, then you have business expenses like marketing/leads, office space, CRM, and other general business expenses.
I understand those things are the cost of doing business but a small office space could easily cost you $6,000 a year. My point being, that even if you were to say achieve a remarkable client base of 1,000 individuals you're only making $300,000 a year and having to service all of these people. Then factor in churn of 10% a year between switchers/death/moving/adverse events. Now you're needing to still add 100 additional new clients a year just to keep pace.
Now while $300,000 is nothing to scoff at it takes a lot of time and resources to even reach that 1,000 client mark in the first place.
Then at that point you ask yourself do I need to hire staff to help handle renewals and service calls? Another expense.
I was brought into this business in a MLM life only outfit and sold the dream. It just seems almost impossible to scale your way to $500,000 $600,000 $700,000 $1,000,000 a year without becoming some faceless call center. With overrides going away you can't really hire 1099 agents anymore and collect a small override on there book either.
Is there anyone here with a large book (500+) who could give this situation some clarity? I don't want to work a salary job my entire life but when you look at cost of acquisition + how many people it takes to make a decent living it makes you wander.
