AgentGeneral
Guru
- 510
Are you doing seminars? What's getting you to 30 new a month? With an aquisition of $175.
Is Medicare a business without a future?
- Thread starter Marco Capaldi
- Start date
- Thread starter
- #22
Marco Capaldi
New Member
- 5
I appreciate the simplify advice. It does seem I spend a lot of energy and time here, and my headaches and service woes are all Medicare related. My cost per acquisition is a mix of my t-65 breakfasts $600 each, and Facebook ad spend, my leads live transfer $35 each, and postcards, most costly at $380 per 1000. I know $100 is possible, just never fell anywhere close. Just being honest. The problem with just doing life and annuity is higher cost per seminar and longer sales cycles. Can generate the 15-20 Medicares to cover expenses but Annuity sales in summer June, July, Aug always slow. Anyone been good with webinars?
I don't do any seminars. My business comes from mail (direct and inbound) and referrals.
I'm confused. Your acquisition cost for T65 breakfast is $600?!? That's insane. Do you get a lot of annuity business from them because I don't see how they are worthwhile otherwise?
To arrive at $175 per sale, your cost per sale with live xfers and postcards must be extremely low? You only provide your cost per lead and per thousand. Or maybe you aren't calculating it right? If those numbers are right, I would reallocate the breakfast money to other more effective marketing methods.
Jeff Fowler
Expert
- 29
I sold vacuum cleaners door-to-door in college. I was good, not the best at it, but I did learn that if I wanted to eat, I needed to sell.
That aside, I would like to offer more basic insight to Medicare business. Do you know what it takes to certify for Medicare and to remain in compliance during the sales process? These are some real time and money costs apart from marketing costs. So the total to be in the Medicare business is much higher than being suggested.
I focus on two states, AZ and MN. The time to certifiy via AHIP and then be ready-to-sell with each carrier is between 45 to 60 hours per year. I might be a slow learner, but that is what it takes me.
CMS Compliance during the Medicare sales process is expensive and challenging as well. I won't do the details, but just say it is a lot to learn and manage.
I reduce my marketing cost by being rerferral based. The growth is slower, but it is organic and sustainable. I have also done this for 22 years and love what I do. So I can manage my business well and retain about 95% per year. A lot is invested in each new and existing client in order to do that.
The other financial advisors I work with asked what my business is like and once they are told, they welcome me to handle the health/Medicare business for them.
Bottom line, I do not see the point of doing Medicare unless it is your primary business. If you are doing it as a secondary line, I think you are nuts. I have seen many agents come and go with this strategy. Again, if you are committed to making it your primary business, I think now is as good as time as any. You just need to be willing to do what it takes to make it in a very fluid, competive, and regulated business. There are a lot of agents, but not too many good ones. There is always room for a good agent.
If it is not going to become your primary business, then I would advise against it.
That aside, I would like to offer more basic insight to Medicare business. Do you know what it takes to certify for Medicare and to remain in compliance during the sales process? These are some real time and money costs apart from marketing costs. So the total to be in the Medicare business is much higher than being suggested.
I focus on two states, AZ and MN. The time to certifiy via AHIP and then be ready-to-sell with each carrier is between 45 to 60 hours per year. I might be a slow learner, but that is what it takes me.
CMS Compliance during the Medicare sales process is expensive and challenging as well. I won't do the details, but just say it is a lot to learn and manage.
I reduce my marketing cost by being rerferral based. The growth is slower, but it is organic and sustainable. I have also done this for 22 years and love what I do. So I can manage my business well and retain about 95% per year. A lot is invested in each new and existing client in order to do that.
The other financial advisors I work with asked what my business is like and once they are told, they welcome me to handle the health/Medicare business for them.
Bottom line, I do not see the point of doing Medicare unless it is your primary business. If you are doing it as a secondary line, I think you are nuts. I have seen many agents come and go with this strategy. Again, if you are committed to making it your primary business, I think now is as good as time as any. You just need to be willing to do what it takes to make it in a very fluid, competive, and regulated business. There are a lot of agents, but not too many good ones. There is always room for a good agent.
If it is not going to become your primary business, then I would advise against it.
Damn. I wish you'd told me this sooner. It looks like I'm nuts.
Been doing life for 50 years and medicare for 40 plus I run two other businesses on top of that.
Took AHIP and NABIP plus two more. Plus about 10 certs and couldn't tell you how long it took.
More than one way to skin a cat.
whats the other 2 businesses?
Coffee and Vending company and a light and sound company.
If you can sing just rent the civic center. We'll come light your ass up.
Medicare should be on its final tour. There is too much FWA, and it would be easier to control if it was ACA for everyone or something similar. This should start to take shape over the next few years.
Jeff Fowler
Expert
- 29
Since I have being good to my clients, I do other things besides Medicare too. The point is, it is a bit more involved than it appears. I do not think it is a worthwhile side line of business for most advisors to consider branching into, especially if they already have found success in another primary line.
By the way, I am assuming "good agent" and "good business" do overlap, but do not mean the same thing. Agree?
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