New to Medicare biz, but the math doesn't work

[LostDollar]

Is Justin even still in the biz? He used to be very active here but I haven’t heard his name in several years. Anyone know?

@Justin Bilyj 's site info here shows a website.
It's hard to know how current the info is, but Google shows that you might be able to communicate with him via Linkdin or Facebook if you wish to do so.

 

[goillini52]

(caveat, not an agent)

Hey guys, remember OP is a new agent building a business plan from info in a 6 year old book. I can't remember post details here from back in 2016/2017 but I suspect a $10 lead was a much better quality lead then than it might be now.

If that is the book I'm thinking about, I thought it was a pretty good book for a new agent and it contains a lot of very good "undated" selling tips from experienced agents, you would recognize many of the contributors as forum members. It's just that this particular piece of information is a dated piece of financial information rather than an undated piece of information about dealing with people or situations.

Edit 12/09/2022:
https://insurance-forums.com/practi...mbers-focuses-on-final-expense-and-med-supps/
End Edit.

Those $10 leads would've been Telemarketed leads. Thad and Glen used to run $4 specials.

 

[LostDollar]

Hi everyone, I've just gotten into the Medicare Supp sales biz after reading How to Qualify, Present & Sell to Seniors by Justin Bilyj. He's a really great writer who explains the ins/outs and its inspired me. But I'm really struggling with the math in my business plan. In the book he creates a model where you buy Medicare leads for $10 each and close 1 out of 12 to generate a net commission of $240 per sale. That's great, I could make that work (I know the plan will change soon as I hit the real world, but its just a baseline to work against for me).

But the problem is I can't find any legit lead vendors close to the $10 lead cost. If I look at the lead site that the book mentions, the price is $40 per lead. Assuming I'm closing 1 out of 15 for the first year at best (newbie + teles-ales), it makes it difficult.

Is there something I'm missing? I know the benefit of this biz is in the renewals, but it seems like the costs of real-world leads don't match up to what's in the book even remotely.

Appreciate all the advice and direction members of this forum share with newcomers.

@sshafran has a program called T65 inbound which you could take a look at for some leads.

(I am not an agent so I have not personally tried the program. He is one of my forum haters so I have him on ignore and I am not being paid to mention the program. Just passing on a piece of info. I think I have seen 2 or 3 mentions of his program by other agents posting in the forums.)

 

[Travis Price]

Oh - also Obama is not in office (not sure if that was mentioned in the book or not, but it could be relevant).

That's not what I heard. I heard he's running the country as a shadow President under Biden.

Back to the point, as an Independent Agent, you will start out at a loss. Which is why you should assess lifetime value of a client.

For example, if you sign someone up for new to Medicare and an MAPD, you can expect to keep them for 3-6 years, reasonably.

You paid 300$ for the sale.

Current MAPD fee:

Year 1 600
Year 2 300
Year 3 300

Medigap comm (I'll use MI because we're the worst)

Year 1 400
Year 2 400
Year 3 400

So, you spent 300$ to acquire a customer that will pay you 1200 over time.

That's a 25% cost and considering most businesses want a 30% profit, you're coming out way ahead.

 

[Travis Price]

@sshafran has a program called T65 inbound which you could take a look at for some leads.

(I am not an agent so I have not personally tried the program. He is one of my forum haters so I have him on ignore and I am not being paid to mention the program. Just passing on a piece of info. I think I have seen 2 or 3 mentions of his program by other agents posting in the forums.)

I use Scott's dumb program and if you're in Northern MI I would not suggest it at all, because he blocks out territories to stop oversaturation and honestly, he's the worst.

Anyone else, I highly recommend. He has great customer service, it's "pricey" but the leads are literally lay-ups.

I mean, I'm super blunt with prospects and when you take real prospects (ones that are qualified as buyers) my close ratio is virtually 100%.

 

[T Sparks]

I use Scott's dumb program and if you're in Northern MI I would not suggest it at all, because he blocks out territories to stop oversaturation and honestly, he's the worst.

Anyone else, I highly recommend. He has great customer service, it's "pricey" but the leads are literally lay-ups.

I mean, I'm super blunt with prospects and when you take real prospects (ones that are qualified as buyers) my close ratio is virtually 100%.

I had pondered that as a side deal...
TY

 

[Travis Price]

I had pondered that as a side deal...
TY

I ONLY do 1500 letter per month. It's approximately 1100$, monthly.

Reasonably, probably about 15 people will call. 40% will buy (I'm conservative in estimations)

6 sales.

I'm still ahead

 

[LostDollar]

I use Scott's dumb program and if you're in Northern MI I would not suggest it at all, because he blocks out territories to stop oversaturation and honestly, he's the worst.

Anyone else, I highly recommend. He has great customer service, it's "pricey" but the leads are literally lay-ups.

I mean, I'm super blunt with prospects and when you take real prospects (ones that are qualified as buyers) my close ratio is virtually 100%.

Caveat, not an agent.

Reading here has suggested to me 3 things an agent should consider in regard to that program (there may well be more) (and I may not be right in the things I say below):

1) There is definitely a cost involved. I think it can be varied somewhat and I don't know if the relationship between cost adjustment and amount of leads received is a straight line relationship.

2) There are limits on the amount of leads received. An agent probably would not be able to depend on this as a sole source of new prospects.

Edit 12/9/2022
@Travis Price disagrees with my number 2 comment, see post 39 below.
End Edit.

3) There will be a long lead time between the time the agent initiates the purchase of leads in the program and the time they first receive leads from the program.

Before the time when his posts toward me reduced to snipe and bile and I blocked him, I found his comments about Medicare insightful. His comments were helpful to me way back in deciding about my initial Medigap product to purchase, and later, in avoiding a terrible (for me) Medicare Advantage purchase mistake. I would expect to find his lead program to be well thought out and well executed.

 

[Fisher]

I'm still ahead

My business model is that if I ONLY break even on Year 1 marketing costs, I will continue with that particular marketing strategy.

 

[BennyTrenton]

I've not read that book (justin was active on here for quite a while - haven't seen him in a while. I believe we're friends on Facebook and I think he is still active).

I highly doubt you'll get $10 leads anywhere.

I think it's difficult to generate leads under FYC via paid marketing.

Networking, referrals, setting up a booth, youtube, knocking on doors [compliance police - I'm referring to med supps in "not ohio"] -- those are going to be low-cost options.

Here's the deal - it's a long-term game.

Spend even $300 for a new client and you've essentially generated $300/yr in comp. Those numbers do work long term if you can make it on little income for a long time.

Other business start at a loss - this one pretty much does too unless you put in time rather than $. Can't be afraid to market to make it work.

Thanks, that was what I suspected.