Not writing any health business. Whats happening?

[Crabcake Johnny]

I don't do residential door knocking, but I do the residential doorhangers. And today I also started doing cars. My partner convinced me to try it. It's next to nothing in cost. What I did was take a normal flyer and make three columns then cut it in three (turned the paper sideways.) So for 5 cents per copy I get three marketing pieces, or 1.3 cents a piece. We got 1,000 copies today for $50 and that yielded 3,000 "leaflets." Staples cut them for us. We hit parking lots today - put out a quick 500 or so. Between the both of us we got out 500 in about 30 minutes. People are people - shouldn't be a difference whether you get marketing material on your door or car.

This job is marketing. Signing people up is easy, the marketing is what kills people. If you're not working 5 quality leads per day you're struggling.

When you're new almost all day should be spent marketing. There should never be a point in time when you're home if you're not cold calling. Set your phone to call forward and you'll never miss a call.

QUALIFY PROSPECTIVE CLIENTS!!! Go tell a good real estate agent you want to look at $500,000 homes without a pre-approval letter or having them pull your credit. Wrong.

When I get any lead here's the main questions:

1) What's your health like?
2) What's your affordability?
3) What's your time frame?

I'm getting an agreement on the first call that if I find what they're looking for we're doing an application. If I can't get that committment we're done. I don't work for free. If they want to view quotes plans they can go here: http://healthsolutions.mymedicalquotes.com They can play around there for months - doesn't waste my time.

I'm running a business - not a free information stand. You want info? http://assuranthealth.com http://www.goldenrulehealth.com http://aetna.com and http://carefirst.com - "ok, sir - have fun."

Here's what I say to every single prospective client after I do the needs analysis and pre-screen:

"Ok, I'll get to work for you immediately. It'll take me some time to get all my research done for you so you should have the quotes and plans in about an hour. I'll call you back tomorrow at 3pm, we'll choose a plan then I can do the application for you online. It should take you about a week to get approved then I'll immediately send you the policy after I check to make sure it's accurate."

This way there's no mistake on their part - they know I'm here to do business. If you're not saying stuff like that on the phone they think you're just giving free information.

 

[Guest]

I write about 150 individual health cases per year.

Do you keep any stats as to what the average or median annual premium is for your book of business? My guess is $3,000. Do you think I'm close?

I'm getting ready to start my own one-man health ins. agency next month or in early Nov. and I don't mind working hard, but I sure as hell want to come out a year or so later with an income better than if I got a job selling cars (in which you can easily make $60K a year if you work the hours.... which I did at one time.)

Al

 

[Crabcake Johnny]

The average monthly premium is $300 X 12 = $3,600 annualized volume. You should be writing a majority of your cases at 20% so 150 cases for the year should get you $108,000. I'm averaging $750,000 a year in business at 20% average commish for $150,000 not including renewals.

However, this will not be as easy as selling cars - which I did for 5 years. Customers walk up on the lot and you sell them a car. No biggie. It's actually quite boring. It's also not your own business and if you want to sell cars at 60K a year for the next 20 years more power to you. There's no light at the end of that tunnel. Successful car salesmen work "bell to bell" which are 12 hour days. If you leave when your shift ends you'll be labled a "clock watcher" and be shunned.

This is all about renewals and building relationships with your clients. At 5% average renewals and $500,000 on the books your next year is $25,000 just in renewals. It builds year after year.

 

[somarco]

5% interested in getting a quote which is 20 businesses to get one quote. 25% closing ratio. So there's the math - I need 4 leads to get one deal which means 80 businesses

hit 30 places in an hour

average monthly premium is $300 X 12 = $3,600 annualized volume

I'm averaging $750,000 a year in business

30 businesses = 1.5 quotes

4 quotes = 1 deal = 2.67 hours of B2B for each sold case

$750,000 / $3600 = 208 sold cases per year

208 sold x 2.67 hours = 555 hours per year

 

[Golddoor]

What do you guys consider a lead? Most of the time I am not able to talk the business owner and I usually get a receptionist or an employee and I get allot of yes we are looking or we already have coverage but none of us are happy with our plans. Then when i do get the business owner they don't want to change or are to busy.

What types of businesses do you go into? I have been hitting allot of Doctors offices. They seem to be the most responsive and there are allot of new Doctors offices going up in my area. I was curious about how new car dealerships and restaurants would be to hit? Also I know that hair salons are good, but how about the salons which are chains like Pro Cuts?

Today I wasn't able to get out until 12:00 because I was following up with the leads I already had, but from 12:30-3:30 I hit 23 businesses and got 4 solid leads. I have one that wants an individual quote and the other 3 want group quotes.

 

[James]

Stay away from chains, go to self owned businesses. I find contractors, lawn services, plumbers, mom and pop shops, resturants, nurseries etc etc..

First thing you have to do is sell the apointment not the product. Use lines like, "do you pay too much for your H/C now?". More then likely they'll say yes and you go straight to setting the apointment, after you get the apt. get the basic information you need to come up with a initial quote. Go to the apointment and then you sell.

 

[moonlightandmargaritas]

al3, my average annual premium for an individual health case this year is $3,480.

I use it as a "door opener" to get to life and disability sales with the business owner.

It's all sold over the phone, I don't see people in person.

A lead to me is someone ready, willing and able to buy my product TODAY. Not next week, month or year - TODAY. I do have a marketing program to keep in touch with peeps for when they are ready.

Asking rhetorical questions like "Are you paying too much for health insurance?", makes you look stupid like most of the insurance agents out there. You've got to be DIFFERENT.

"Selling" an appointment likewise is dumb. You'll find all kinds of people that would like to talk to you, but won't do any business. Qualify 'em, qualify 'em, qualify 'em. Then qualify 'em again! Otherwise you're wasting your time.[/quote]

 

[Crabcake Johnny]

Absolutely. When you're new it's exciting to get any lead. But what you'll find quickly is you'll do a lot of work for free if you don't qualify them.

Regarding marketing, you should be creating a marketing spreadsheet. You need to log how many businesses you're hitting and how long it takes to hit them. If I'm reading you post right you hit 23 places in three hours? That's horrible - far too spread out of a territory.

 

[James]

al3, my average annual premium for an individual health case this year is $3,480.

I use it as a "door opener" to get to life and disability sales with the business owner.

It's all sold over the phone, I don't see people in person.

A lead to me is someone ready, willing and able to buy my product TODAY. Not next week, month or year - TODAY. I do have a marketing program to keep in touch with peeps for when they are ready.

Asking rhetorical questions like "Are you paying too much for health insurance?", makes you look stupid like most of the insurance agents out there. You've got to be DIFFERENT.

"Selling" an appointment likewise is dumb. You'll find all kinds of people that would like to talk to you, but won't do any business. Qualify 'em, qualify 'em, qualify 'em. Then qualify 'em again! Otherwise you're wasting your time.

[/quote]

I'm not sure how to say this, I simply taken this with a grain of salt. I know I could never be able to make a living trying too sell health or any insurance over the phone too business owner or anyone. I know, some will say things like they don't want the intrusion of a actual visit or something of that nature and really appreciate such things being taken care of so quickly over the phone. Yet I know when I write business the people tend to like having me there. Esp to explain things to them or their family members and or employees.

So for those selling over the phone, you call up a small business owner that has his wife and two other employees. Now tell me, how to you explain or advice the business owner on what to say and what the plan includes to his wife and two employees? Oh, I know, you send them a brochure or tell them to go visit your website. Or better yet, just tell them to shut up and sign on the dotted line, they are not worth the time for a visit to explain and answer their questions in person.

No you sell the apointment, go and talk to the owner and explain the plan and more then likely if they are serious they will have the wife and the two employees there when you are there this is something you should ask for. They'll ask you a bunch of questions, you answer and then you give them the rates and pull out the App's. Once they are approve they cancell their old contracts. Some will sign up immediatly others will not, just a part of the business. The bottom line is this, the more apointments you make the more sales you'll have. No apointments, more then likely you'll be out of the business real quick. Health Insurance is not a commodity and likely treating it as such will not work or I have yet seen the Ultimate Salesperson that can pull it off.

Now we know certain things, this market of ultra small businesses is highly underserved. So exactly whom are you going to sound like? What now we are too believe the small business owner is getting calls from multiple health agents that just so happen using lines like, "Are you paying to much", or better the 5 way by Meisel? Yea the underserve market gets hit up all the time that is why we call the underserve or neglected.

Or you can say people just want to talk to you! Yea these are the same people you are claiming you are selling boat loads of contracts too. So in one ear out the other, it just doesn't add up.

 

[moonlightandmargaritas]

James, your post is kind of disconnected. It's not that people are "not worth the time", it's a matter of efficiency.

Exactly what questions can be answered in person that can't be answered over the phone? Given the choice, I guarantee that 95% of people would prefer to do it by phone than seeing you. I've asked them. The other 5% I don't worry about.

Going on appointments for appointments sake? Wishing/hoping/praying that they'll fall on their back, spread their legs and say, "I'll take it!"? Way too emotionally draining.

I don't "pull out the apps" - it's all electronic!

It's 2006 man.