My First 3 Months in the Business

[Billy Ray]

Thank you to those of you that spoke with me on the phone and were so generous with time. I am working for someone in California. Here are my stats since May 1. These are conservative numbers not bragging. The leads are mostly InsureMe $11.95 leads, a few LeadCO. We use NORVAX, QUOTIT but I track my people on paper and use OUTLOOK. I should be making many more calls but I find myself procrastinating.

Leads Purchased 378
Calls 1400
Sales 11 health/19 total lives
Sales 5 dental/5 lives
Life/LTC/MED SUPP 0

Applications pending
5 health/6 total lives
2 dental/2 lives

These applications all look pretty strong and I will be surprised if they don't get approved/worst case 1 +25 on one of them.

This is a very difficult way to make a living. I bartend at night about 35 hours a week and dial for dollars 35 hours a week during the day and I hardly see my family.

 

[Full Throttle]

The leads are mostly InsureMe $11.95 leads, a few LeadCO. We use NORVAX, QUOTIT but I track my people on paper and use OUTLOOK. I should be making many more calls but I find myself procrastinating.

Leads Purchased 378
Calls 1400
Sales 11 health/19 total lives
Sales 5 dental/5 lives
Life/LTC/MED SUPP 0

Applications pending
5 health/6 total lives
2 dental/2 lives

Guessing on your revenue:
$3000 Avg Health Premium X 11 Sales X 20% Commission = $6600
$420 Avg Dental Premium (singles) X 5 Sales X 10% Comm = $210

Total Revenue over 3 Months = $6810
Lead Expenses = $4517
Income Before Overhead/Taxes = $2293

3 months average = $764 per month
@ 35 Hours per week / 4 weeks per month = $5.46 per hour

I realize these numbers are a guess, but bottom line, that's a tough way to make a living. I've never worked internet leads, so I'm not sure if 378 leads is enough of a sample to see a trend. If this is a trend, you need to change something. Either buying more leads or generating them differently. If it were me, I would be telemarketing to business owners with 1 to 20 employees during those 35 hours or going B2B, I think you'd have a lot more to show for your time.

Out of curiosity (I don't say this to ridicule you): with the future of profitably being able to sell health insurance having so many unknown variables at this point, what made you decide to start in the business from scratch? You obviously have a work ethic, what made you pick health sales.

 

[Billy Ray]

Thanks for the response and the input/concern.
I actually work under a broker for a set amount per sale.

Yes I have done the same math as you. If I were running the business on my own it would not be sustainable. In my current situation I have no expenses, no pressure to produce, no customer service to worry about, and yes no real upside or future. I am testing the waters I guess.

Why health?? It's too long of a story to tell, but this broker owns some valuable URL's, one in particular that is very valuable. I thought they were being used to generate business, they are not. I doubt I will continue with health because of the uncertainty around reform, I am too old to take that chance.

I have good scripts, (I am constantly working on this); I wrote some and use some of my broker's scripts. I know what a bad script is I think.

I am closing around 1/25 if the 5 current applications close. I think they will. It is not possible for me to close 1/10, no way. I am often not the first or even second call to the prospect. I track important data related to the business and again I can't ever see closing 10% of these leads. Maybe if the leads were more expensive/higher quality, I don't know.

 

[Full Throttle]

Once again, I don't work Internet leads and never have in the past. That being said, I seem to remember John of IHIAA fame say that 1 in 20 shared leads is about average.

 

[YouGotMyMoney]

1 in 20 shared leads is about average.

Not at $11.95 per lead.

 

[kheyknee]

The broker has valuable URL's that are not being used to generate business. You sound like a hard working professional, with some preliminary lead conversion metrics. If you can work out an arrangement that provides you "a real upside and future" it makes sense to continue. Both you and the broker would increase revenues. If not perhaps it's time to find something else.

 

[somarco]

Where have you been, Mark? Haven't noticed you posting much lately or maybe you are on different threads from me.

 

[Labman]

You are damn right that this is a hard business. A VERY hard business. If I did not have a retirement check coming in I would have been out of the biz in the first year, if that.

My hat is off to you for making so many dials. I get a lot of head trash going when I'm not having success. Then the discouragement sets in and I think maybe I'd be better off at McDonalds. Just too hard headed to quit I reckon.

 

[YouGotMyMoney]

Where have you been, Mark? Haven't noticed you posting much lately or maybe you are on different threads from me.

Hey Bob, I've been lurking, it's pretty much a full time job selling crack on the streets ya know?

Ha

 

[Billy Ray]

Is 4-5% close with these leads respectable? Here are more detailed stats so far....

~5% of these leads I never have any phone contact with, meaning there is no answer, there is no voicemail, nothing. Email yes, but the phone is useless.

~4% hang up repeatedly or say, "don't ever call me again"

~2% respond by email, I already have coverage, take me off email.

~6% have no money for anything and plan on going to the ER or to county for health care or are completely uninsureable due to pre existing.

And yes we filter and do all the other stuff that a business that has been in existence for 20 years selling health should do. It's nobodys first rodeo where I am working.

Thoughts??