Recent ad - real or not?

[Crabcake Johnny]

I have a newely licensed agent asking me if this ad is legit:

http://baltimore.craigslist.org/sls/289122848.html If this is "do-able" then it doesn't sound like a bad place for new agents to start.

 

[James]

I guess yes, if they are paying $100 per application as commission then there is about $200 plus floating somewhere!

 

[Crabcake Johnny]

Doesn't seem bad for a new agent - 8 appointments per day when you're new may be worth a reduction in commission - especially if you can realistically make $1,500+ per week.

In fact, even with the extra $200 per deal it would arguably be near impossible for a new agent to set 8 appt's a day for themselves. They'd need to hire marketers and provide them with scripts and lead lists.

 

[Bob_The_Insurance_Guy]

Please be advised that they need to train and certify the agent. Just putting warm bodies out there will result in a large percentage of "charge backs". It's very time consuming and difficult to get trained and certified with that many companies, and still know what you are talking about.

That being said, it is easy sales. Once call closing, most of the time. However, you are dealing with a segment of society that won't remember you, once you leave, and may sign up with another agent that comes in behind you.

I signed on with a company that trained and certified me with 4 carriers. I began using their leads, but chose to get my own referrals. By now, the Medicare Beneficiaries have been inundated with sales reps calling on them, and they are really confused.

Medicare Advantage is a great product, and one that is well overdue. I believe in them entirely.

Things to be educated on for the sale of Medicare Advantage Plans:
(if your company is not doing this for you, do it on your own)

Medicare Parts A and B
Medicare Part D
The Summary of Benefits for each product you represent (read this over and over and over, until you know it by heart - they vary, depending on each product)
Medicaid
Special Needs Products
The Difference between MA's MAPD's and SNP's
TriCare for Life
VA Benefits
Retiree Plans
Medicare Supplement Plans (pricing and what they do/don't cover)
What physician's in your area take each Medicare Advantage Plan (not all Dr's. take all companies)
Chronic Illness Plans
Dates for Open Enrollment, Annual Enrollment, and who can and cannot move in and out of plans and when


Get a copy of "Medicare and You 2007" and read it cover to cover, concentrating on the following pages:

Page 1
Page 33
Page 35
Page 41
Page 55
Page 74
Page 104

 

[James]

Now lets not placed to much emphasis on training, most of it is being sent via PDF files, you read them and sign off you read them. That is about the amount of training one can expect. Sure if you go captive with say Sterling, they send you to their home office in Bellingham WA for a week of classes but I find such agencies we are discussing do not come close to that! In fact Sterling pays 150 dollars Vs the $100 dollars we are talking here, plus what about the Renewals, who owns them?

I have no doubt this may be for real, for every 100 dollars the agent makes this agency will double or more then what the actual agent will recieve.

Now please people, I don't care if you like the idea or not, if its a good idea or not for any new agent. I'm simply stating the financial viability of this being for real or not.

 

[Crabcake Johnny]

Sometimes new agents should worry more about what they're actually making and less about top commission. I could put a brand new agent on a 20% contract, give them very basic training and say "see ya" and watch them make next to nothing. But how 'bout a 10% contract with lots of free leads?

Say I run a call center and I send the agent 20 exclusive leads a day, every day - he closes 1 out of the 20 or a deal a day. That's around $17,000 AV or $1,700 for the week. But then the agent figues out "Hey....I'm getting ripped off! I can get a straight 20% deal!"

So the agent blows out, grabs the 20% contract but now sees that he has to do all his own marketing. Now it's tough to manage the cash flow and production goes in the toilet.

I guess my point is that it's not about your contract level, it's about support, training and leads. How many life agents have 100% deals and live check to check? I know I hired well over 50 agents last year and put them on 20% levels which is top contract. Where are they all now? Anyone's guess.

Going after top contracts and taking on your own marketing are great once you're establish financially and really know your stuff.

There is one factor that could change that; ability and willingness to create your own leads. That's free. Unfortunately I think it's about .01% of all new agents who have the tenacity, ability and motivation to generate their own leads when they're new.

 

[James]

I agree, but the question was, "Is this for real?". I'm simply stating that financially speaking it could very well be for real. Yet though the cut does seem to be rather draconian to say the least. This is more than half, this be more in the neighborhood of say you cut them down to 5-6% commssion not 10%. At $100 dollars a sale, and they provide up to 3-5 a day, depending upon the close ratio there may or may not be much left after expenses. I find most leads in this area will end up being mostly trash unless you can earn the commission for Medicaid recipients. If your end up with one or two sales out of 3-5 leads depending upon the distance traveled and hours required of labor and other expenses one may or may not find it all that grand of a deal.

Once again, depending upon the leads and closing ratio and other factors. This may be a NAA type of agency within the senior market of MA Plans, really don't know?

 

[Crabcake Johnny]

I see your point - even though they might actually make $1,500 in a week they still shouldn't be getting ripped off. And if that's the equivalent of me paying new health agents 5% then it's a rip-off. This new agent I'm in contact with is digging deeper - like making sure there's no charge for the appointments. If there's a cost for the appointments it might be something to walk away from.

I don't envy new agents. I really don't see a lot of legitimate ethical agencies out there offering fair starting commissions and free leads. This is another case of an agent who doesn't have any money and needs free leads to start.

What might be best is just taking the offer (if the appointments are free) and busting butt, making that $1,500 a week and simply saving money. Then you can blow out when you're little more financially stable.

Lord - if anyone started an agency with a sole purpose of getting new agents off the ground, ran it ethically and offered a fair deal they'd be filthy rich.

 

[James]

Worth looking into I suppose but the cut is something! Plus I don't see how they are coming up with that many leads with appointments? Must have one hell of a Boiler Room kicking out some apt's! I would suggest there just isn't enough information to declare this worthy or not, maybe if your friend calls them you can post what they say?

 

[midwestbroker]

The have the same posts here in Kansas City. I called them and asked them what they were selling. They said everything here in KC: Humana, Coventry, Wellcare, etc.

I was cut short with him (client called) and Emailed asking him why I would take $100 comm for a coventry sale when street level is $330. That is $230 for an appointment.

They never emailed back. Go figure.

There is no way they are setting up that many quality appointments. Unless you have 1 appointment in St. Louis, and the next in Kansas City (4 hours apart one way).