Med Supp Cold Calling?

[Frank Stastny]

What do you think the pricing model will be for the new YIO?

I haven't decided 100% yet but my current thoughts are to keep it pretty much the same as it is now. There also may probably be an annual fee of around $50.

I'd like to increase the price to around $50,000 per user but I think that might just be a little bit excessive, what do you think?

 

[arnguy]

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If I had something I could give Frank in return for him giving me some training I would have done it already.

You can give Frank a kid (baby goat)!

 

[billyg]

I haven't decided 100% yet but my current thoughts are to keep it pretty much the same as it is now. There also may probably be an annual fee of around $50.

I'd like to increase the price to around $50,000 per user but I think that might just be a little bit excessive, what do you think?

Frank,

I used to be in the software/services industry (everything from software engineering/product management/sales & marketing). We grappled with the same issue of pricing models when we switched from traditional software user licenses to SaaS (Software as a Service aka Web Based Hosted Solutions).

Something that worked well for us in converting our existing customer base was the following:
- Offer to convert customers' data from existing software at no charge.
- Give a credit equal to the original license fee paid for the legacy product.
- Charge the normal monthly fee but apply the credit until it is exhausted.

Without seeing the product, it is hard to say what a competitive price for the monthly fee would be. I have looked at a few other products available and they seem to be priced between $15/mo & $30/mo (for a single agent fee). IMHO this is more than fair if it does what I need it to. Of course, you have to make sure the IT back side of it is secure and managed professionally (appropriate security, redundancy, backups, etc.). Taking responsibility for the safety and availability of your customers' data is a very big responsibility, though it can be very profitable if you do it well.

I am trying to hold out for your new product. I think the existing YIO does a pretty good job for my needs, my biggest complaint is that it ins't SaaS (web based). That means I have to worry about back ups. Assuming I am doing this properly, there will still be a hassle when my laptop crashes in that I will have to either wait until my system is rebuilt or buy a new system and then re-install YIO (get license keys, etc) and restore the data from backup. I would much rather pay a small monthly fee to let my vendor handle this so long as I trust it is being managed professionally.

Just thought I would share my thoughts.

 

[Frank Stastny]

Frank,

I used to be in the software/services industry (everything from software engineering/product management/sales & marketing). We grappled with the same issue of pricing models when we switched from traditional software user licenses to SaaS (Software as a Service aka Web Based Hosted Solutions).

Something that worked well for us in converting our existing customer base was the following:
- Offer to convert customers' data from existing software at no charge.
- Give a credit equal to the original license fee paid for the legacy product.
- Charge the normal monthly fee but apply the credit until it is exhausted.

Without seeing the product, it is hard to say what a competitive price for the monthly fee would be. I have looked at a few other products available and they seem to be priced between $15/mo & $30/mo (for a single agent fee). IMHO this is more than fair if it does what I need it to. Of course, you have to make sure the IT back side of it is secure and managed professionally (appropriate security, redundancy, backups, etc.). Taking responsibility for the safety and availability of your customers' data is a very big responsibility, though it can be very profitable if you do it well.

I am trying to hold out for your new product. I think the existing YIO does a pretty good job for my needs, my biggest complaint is that it ins't SaaS (web based). That means I have to worry about back ups. Assuming I am doing this properly, there will still be a hassle when my laptop crashes in that I will have to either wait until my system is rebuilt or buy a new system and then re-install YIO (get license keys, etc) and restore the data from backup. I would much rather pay a small monthly fee to let my vendor handle this so long as I trust it is being managed professionally.

Just thought I would share my thoughts.

Thanks for taking the time to answer, I really appreciate it. There are suppose to be three versions. One will reside on the agent's computer, the second will be web based and the third will be for a PDA. It is requiring a total rewrite of the program just as though it didn't exist.

Current users will be able to get v6.0 for a nominal fee for the desktop version. (Upgrading from v4.0 to v5.0 is only $49.95.) I seriously question the value of an independent agent paying a monthly fee to have it internet based but everyone seems to think that an internet based version is the $hit. However, I guess if they want to pay say $30 per month, $360 per year, who am I to refuse to take their money.

Personally I will not use the web based version for a whole host of reasons. I want it to reside on my computer but that is just me. I really don't see an advantage for me as an independent agent to have it internet based. People say you can access your data from "anywhere" if it is web based.

That is true but when Jacqueline and I travel I'm not about to look for a library or internet cafe if I need access to my data. It will be on my laptop which will be with me. (We occasionally go places where internet access is very difficult to get, cell phones doing work either.) As far as backing it up and or reinstalling if necessary, it literally takes a couple of minutes. The "Demo", which is the actual program, can be downloaded in minutes and all one has to do is call and ask for the Key Code. (I trust agents not to "screw me".)

I burn a CD once a week of the YIO-5Data file. I never have to be concerned about the safety of my data or worry about not having an internet connection. I think you are perceiving it to be more of a hassle than it really is, maybe.

I'm not trying to get rich off of YIO, I'm still an insurance agent, not a huge software development company. I didn't even originally design it to sell, I needed something and couldn't find what I was looking for that was affordable and simple and easy to use.

It serves a specific nitch market. It is point and click and anyone who can use a mouse and keyboard can load it and begin working immediately, it is affordable for any agent. The sale of one policy typically pays for it, from that point forward the agent is using it for "free".

There is no learning curve and support is unlimited and toll-free. Is it everything every agent wants? Definitely no. It probably never will be, I don't think a program like that will ever exist. (You wouldn't believe some of the requests I receive.)

All I want to do is have it be a program for people like me who neither want nor have the time or expertise to design and make work what they think they "need". I currently have agents throughout the US and now in thirteen foreign countries using YIO.

I'm really struggling with the cost of developing the next upgrade, the upper end of five figures, and what I as an agent would consider a reasonable and fair price to pay.

Once again, thanks for taking the time to share your knowledge with me. I don't have a whole lot of experience with this and I appreciate your input.

 

[healther]

I have signed to apps this week from people returning my messages. I leave 'em, but I don't stop there.

 

[justing]

what is the message you leave?

 

[healther]

It's just a standard message telling them who I am and how they can reach me. I often tell them I will be in there area and would be glad to sit down and explain the details of the plan. Most seniors, if they are interested in hearing what you say, don't want you to go out of the way for them. Be clear that it is absolutely no problem for you to come by. And don't try to sound like a sap, use a mildly commanding voice, they want to trust that you know what you are talking about.

That said, two apps in one week is a fluke. It's definitely not normal but goes to show it's worth laying them down. And star 67 like crazy. I don't know why that works, but it does.

 

[mickeyma]

I ALWAYS LEAVE A MESSAGE ON VOICE MAIL.

It is like dripping on the prospect, the same as done with direct mail or emails. The more they hear my name, the warmer the lead when I do get in contact with them.

The goal is NOT to get them to call back, which they never do. It is to remind them who I am and why I'm calling.

And, if you tell them something special about you, it reinforces that. Also, if you can speak in a pleasant voice with enthusiasm, it conveys to the prospect you are a friendly, caring person.

 

[VaDwayne]

I have signed to apps this week from people returning my messages. I leave 'em, but I don't stop there.

it's TWO, not TO

 

[Ron Van D]

it's TWO, not TO

I'm thinking too months later is a little to long two correct someone's spelling. (Ain't English grate?)

Sorry, Arn!