I'm going independent and I need some pointers.

[Carne]

Background: I work with one of the bigger agencies that primarily sells medicare plans. I get free leads and a reduced commission, it's a call center. I get paid once on a sale and that is it, no residual. I've really enjoyed working with this company, but I just feel limited and want to do things on my own and actually manage a book of business.

Questions:

FMO/IMO to work with?

Which states to be licensed in and what carriers to work with? I am currently licensed in every state and appointed with many carriers. When I go independent I am thinking of doing maybe 10 states or so and maybe 5 carriers.

I signed a 12 month non-compete. I need to look over the document and perhaps get a lawyer to check it out too. They definitely won't release my appointments with the insurance companies but it is my understanding that the insurance companies will release them after 6 months. Will I be able to get new appointments with carriers after 6 months? I'm not planning on selling any plans to my clients I have established with my current company I just plan on starting fresh in AEP. Any experience on this? Do you think it will be a problem?

Lastly, am I being stupid? I've had success selling medicare plans with this company. Should I just stick it out? I don't have much control in my day to day schedule, but the incentive structure is pretty generous. I made 83K last year which was my 2nd year selling insurance.

Any tips you have will be welcome. Thanks!

 

[Mega producer]

Ritter insurance marketing is a good FMO, and you're not being stupid.

 

[somarco]

I was a carrier rep for 18 years before going out on my own. Expense account, salary, bonus, trips, health insurance, profit sharing.

And a 2 year non-compete . . .

Walking away was one of the hardest things I had done to that point.

Almost as hard as working for 16 months before taking a dime in commissions for anything other than business expenses.

Your $83k in compensation will most likely require $160k in gross revenue to equal your current net after business expenses.

Most folks who fail are under-capitalized and have lofty expectations of what lies on the other side.

Don't be one of those people.

 

[Carne]

I was a carrier rep for 18 years before going out on my own. Expense account, salary, bonus, trips, health insurance, profit sharing.

And a 2 year non-compete . . .

Walking away was one of the hardest things I had done to that point.

Almost has hard as working for 16 months before taking a dime in commissions for anything other than business expenses.

Your $83k in compensation will most likely require $160k in gross revenue to equal your current net after business expenses.

Most folks who fail are under-capitalized and have lofty expectations of what lies on the other side.

Don't be one of those people.

I really appreciate the words of caution, I take it you don't regret walking away? When you say under-capitalized do you mainly mean being able to afford leads?

 

[kgmom219]

How are you going to get your leads?

This business isn't hard. Its finding enough people to talk to that's hard.

Then here's my advice for anyone who is jumping off the cliff (And I did it 20 years ago. Best decision ever. BUT.)
1. Your household budget should be stripped the bone.
2. The first year, you are going to eat Ramen.
3. The second year, you get McDonalds.
4. And at the end of year 3, if you can't order a steak whenever you want, its time to get a real job.

 

[somarco]

I take it you don't regret walking away?

Not in the least.

My only regret is not going into the Medicare side of things instead of wasting 17 years continuing in group health and U65 major med.

The last 10 years working ONLY with Medicare clients has been relatively stress free.

When you say under-capitalized do you mainly mean being able to afford leads?

Yes, leads.

And food.

And housing.

And utilities.

And taxes.

And . . . .

Too many new agents can't go more than a month or two without an income. As soon as the commissions come in they start spend it on necessities plus things they don't need.

They often flame out in 90 days

 

[DonP]

How are you going to get your leads?

This business isn't hard. Its finding enough people to talk to that's hard.

Then here's my advice for anyone who is jumping off the cliff (And I did it 20 years ago. Best decision ever. BUT.)
1. Your household budget should be stripped the bone.
2. The first year, you are going to eat Ramen.
3. The second year, you get McDonalds.
4. And at the end of year 3, if you can't order a steak whenever you want, its time to get a real job.

I agree with this . Your going to need a 10 k mailer into aep to have 200 leads to call on . That’s about $5k . If you sell 75-100 your a super hero . You want to sell 150-200 you’ll need a 20 k mailer to get 400 leads . That’s working 12 hrs a day 7 days a week and doing most by phone . It’ll be 4-5 yrs plus before your making $83 k net . My friend writes 150 a yr for 4 yrs and he made $72 k last yr in renewals . I’ve replaced 12 aep mapd from aep . I bet 10% of seniors have told me they’ve made a change in oep already . 80% of seniors have told me there being hammered on the phone . Your going to lose 10-15% of your book and early . There’s sharks everywhere. Those are the facts . Long term worth it but short term it’s tough . The moral of this story you better have a nice bankroll are you’ll fail .

 

[Carne]

How are you going to get your leads?

I plan on doing mainly mailers and also experiment with other lead sources.

Yes, leads.

And food.

And housing.

And utilities.

And taxes.

And . . . .

I should have the funds to get off the ground. I'm prepared for a few lean years, my wife works and we get Insurance through her work so that really helps. I'd be lying if I said I wasn't nervous though.

 

[PaBroker]

How are you going to get your leads?

This business isn't hard. Its finding enough people to talk to that's hard.

Then here's my advice for anyone who is jumping off the cliff (And I did it 20 years ago. Best decision ever. BUT.)
1. Your household budget should be stripped the bone.
2. The first year, you are going to eat Ramen.
3. The second year, you get McDonalds.
4. And at the end of year 3, if you can't order a steak whenever you want, its time to get a real job.

I hear this all the time, and it's basically on point. I'd add that if you are comfortable with public speaking, sales seminars can be a great way to meet prospects, especially if you have a solid carrier to partner with. Getting in front of people and demonstrating mastery of the subject and a personable presence is the best advertising you could do, in my opinion.

 

[Carne]

I signed a 12 month non-compete.

How about this non-compete? I have a tentative plan to quit at the end of February and cancel my contracts then wait 6 months and sign on with a FMO and cert up. I'm not going to be selling to any of my old business I will just be starting fresh. Are there any holes in this thinking?