How to Be Succesful in the Individual Side

[Crabcake Johnny]

I only manage my book and referrals so I can only comment on what my IFP friends are doing - they are cross-selling life when they never use to.

Why did they never used to? They never had to. Now they do. I know everyone wants to think that solid IFP producers are "done." Not a single agent I know who was doing very well at IFP has left or switched to another main product line.

50% comp cut is a broad statement. Solid producers working carriers with bonus programs don't have anywhere close to a 50% cut.

 

[DS4]

Given the 50+% cut in comp......
......I don't see 10% IFP health comp as sustainable for me...

If your primary focus isn't health, then yes, these percentages would apply.
For us hardcore health guys, I can easily make the new numbers work.
I see the glass half full, not half empty.
First, both the blues in California have grandfathered my existing blocks of business. THIS was my primary concern.
Second, with all the recent premium increases these past 2 years, making 14% 1st year in 2011 (Anthem, tier 4) will almost be like making 20% 1st year in 2009.

 

[YouGotMyMoney]

I don't work IFP net leads... mainly for the reason that from what I've read here over the years... they are a waste of time and money.

Couple of thoughts here Al3:

1. If you don't have capital, skill set, and a selling system in place, then internet leads will suck, cause you suck at closing or if you don't have enough capital or know how to work an internet lead, you will not have a good ROI.

2. Many agents buy unfiltered leads. Example: Vimo, InsureMe, Netquote. I've talked to agents who buy their leads and they are always unfiltered leads. To be successful with web leads, you need to have a targeted niche you go after.

3. Most don't buy enough leads consistently. You want to have 5 placed apps a week, you really do need to purchase 20 highly filtered leads a day. Now to get these filtered leads in volume you need to work a non-resident state or two as well.

Agents who don't filter leads end up with:

Uninsurables
Young
Broke
Stupid

4. You need to have realistic expectations. You know it's natural to think because someone filled out a form about insurance, that they are a buyer or even remotely serious.

But with web leads, you got to know that closing 5-7% of purchased leads before return credits is good to great. You should be closing 1:3-1:5 people who are qualified that you pitch.

5. B2B or Telemarketing should provide for a higher caliber of client, but most agents haven't ever cold called themselves so how would they train/hire someone else to do something they are clueless about?

Given the 50+% cut in comp, I wonder if IFP net lead prices will go down?

If you are a volume buyer, you will get discounted rates.

It is moot to me because I don't see 10% IFP health comp as sustainable for me... except as a marketing loss-leader for cross-sell.

That might be the deal in Cali, but for example here in Florida, a top writer can get:

Cigna: 12%
UHC:14%
Humana:13-14%
BCBSFL: Who knows...

Between Cigna, UHC and Humana that's an average commission of 13%

UHC and Humana top agents were getting 22-24%, Cigna 20%...so the drop works out to be:


Cigna: 40%
UHC: 40%
Humana:40%

Now Humana has the worst bonus so far, so I will be looking for top markets for UHC and Cigna.

Even though Cigna doesn't offer advance and they are 2% less than UHC and 1% less than Humana, by writing 10 family apps a month with 3 members per app, you can earn an extra $10k per quarter, or about $100 per app.

I will also be looking at any carrier that offer 15% or higher commissions.

Don't forget with UHC/Humana they offer full comp on STM 20-24% depending on production.

 

[ABC]

Maybe I can build better relationships.. Since you told me my current business model is not working. Can you give any suggestions to what might work? Currently our income is about $2500 a month

Cold callling! Cold call small businesses and bust up their group health plans. Try meeting with people?
If you are writing $2,500 a month in annual comp you are going after low cost policies.

You might be better off selling Term Life with your business model. Since you are use to buying leads that might fit you better. Avg term policy is around $800 in premium.

 

[Crabcake Johnny]

Absolutely age needs to be filtered...and especially with reduced comp. For me, I wouldn't get anything under age 30 and if your vendor doesn't allow age filtering, dump them for a vendor that does.

 

[YouGotMyMoney]

Absolutely age needs to be filtered...and especially with reduced comp. For me, I wouldn't get anything under age 30 and if your vendor doesn't allow age filtering, dump them for a vendor that does.

30? Let's try 40, currently insured, min of two, no major pre-ex.....
I want avg app of $350-400 a month, like our boy Bill from NC.

 

[Crabcake Johnny]

Wow. You're fishing for Marlin. I just don't want minnows.

 

[YouGotMyMoney]

Wow. You're fishing for Marlin. I just don't want minnows.

I'm trying to stay away from parents looking for child only apps.

They slip through and u can't return them.

Don't forget I'm buying a couple old day aged leads, and starting to telemarket after Christmas. Can't justify $5-8 per real time lead.

 

[Crabcake Johnny]

I'm gonna hire the same kinds of girls that used to come into our dealership selling aftermarket products. I'm gonna put 'em in "Let me Quote You" t-shirts and send them BtoB in working class business districts and retire.

 

[YouGotMyMoney]

I'm gonna hire the same kinds of girls that used to come into our dealership selling aftermarket products. I'm gonna put 'em in "Let me Quote You" t-shirts and send them BtoB in working class business districts and retire.

make sure they are cute and busty, maybe some college girls would like to do that kind of work, ya know the kind who aren't 100% about stripping....ha.