New to Medicare biz, but the math doesn't work

[LostDollar]

I disagree.

You can max out at 1500 names per month, per mailing. So, March April May would pushed 4500 letters for the month. 1% call rate is 45 leads, or 12.45 calls per week.

I do a two step sales process sometimes (but, most people want to deal with it.

Less time on the phone with quality leads is ALWAYS more profitable than more time one the phone with crap.

I mean, you can scale with more money, you only have a fixed amount of time.

I'll have to defer to your judgement on that.

I put an edit in my post referring to your post.

 

[InsuranceGuy29]

As Lost Dollar mentioned, leads are more money nowadays. And not trying to be discouraging, but even if most leads were still $10 in 2022, all you're gonna be doing is dealing with absolute strangers who don't know you. Nowadays, there is an EXTREME distrust of strangers. There was some decent suspicion of strangers 6-7 years ago, but it's gotten IMMENSELY worse nowadays.

In 2022, I'm finding even direct referrals from great people I know and trust are extremely suspicious of me and any advice I give them. Bottom line, people have a really hard time trusting strangers nowadays, and that's not gonna improve in my lifetime. People aren't just buying insurance (they can get that from anyone), they're buying you as well. They want a personal agent they can trust, and that takes a personal meeting and a lot of time to cultivate.

If the trust isn't there, and these folks (and anyone they personally know) haven't ever spoken to you, and you're just a voice on a phone, believe me, they're gonna constantly switch plans on you and cost you lots of time and money. There is no easy or quick way around this. The old school way is the best, but it takes lots of time, effort, and money.

You have to be able to not make a lot of money for at least 5-6 years, all while throwing a good bit of money in your business at the same time. This is why I genuinely feel bad for newer agents in 2022. A lot of the tactics that worked even as recently as 3 years ago, no longer work. The pandemic circus obliterated "stranger trust." You just have to build slow and steady to form a solid foundation. No easy way around that.

 

[DonP]

As Lost Dollar mentioned, leads are more money nowadays. And not trying to be discouraging, but even if most leads were still $10 in 2022, all you're gonna be doing is dealing with absolute strangers who don't know you. Nowadays, there is an EXTREME distrust of strangers. There was some decent suspicion of strangers 6-7 years ago, but it's gotten IMMENSELY worse nowadays.

In 2022, I'm finding even direct referrals from great people I know and trust are extremely suspicious of me and any advice I give them. Bottom line, people have a really hard time trusting strangers nowadays, and that's not gonna improve in my lifetime. People aren't just buying insurance (they can get that from anyone), they're buying you as well. They want a personal agent they can trust, and that takes a personal meeting and a lot of time to cultivate.

If the trust isn't there, and these folks (and anyone they personally know) haven't ever spoken to you, and you're just a voice on a phone, believe me, they're gonna constantly switch plans on you and cost you lots of time and money. There is no easy or quick way around this. The old school way is the best, but it takes lots of time, effort, and money.

You have to be able to not make a lot of money for at least 5-6 years, all while throwing a good bit of money in your business at the same time. This is why I genuinely feel bad for newer agents in 2022. A lot of the tactics that worked even as recently as 3 years ago, no longer work. The pandemic circus obliterated "stranger trust." You just have to build slow and steady to form a solid foundation. No easy way around that.

I’ve had no issue with trust from referrals. But I have seen more distrust working with strangers on leads no doubt . Hearing “ there’s so many scams nowadays “ . How do I know your not a scam? .

 

[sshafran]

As Lost Dollar mentioned, leads are more money nowadays. And not trying to be discouraging, but even if most leads were still $10 in 2022, all you're gonna be doing is dealing with absolute strangers who don't know you. Nowadays, there is an EXTREME distrust of strangers. There was some decent suspicion of strangers 6-7 years ago, but it's gotten IMMENSELY worse nowadays.

In 2022, I'm finding even direct referrals from great people I know and trust are extremely suspicious of me and any advice I give them. Bottom line, people have a really hard time trusting strangers nowadays, and that's not gonna improve in my lifetime. People aren't just buying insurance (they can get that from anyone), they're buying you as well. They want a personal agent they can trust, and that takes a personal meeting and a lot of time to cultivate.

If the trust isn't there, and these folks (and anyone they personally know) haven't ever spoken to you, and you're just a voice on a phone, believe me, they're gonna constantly switch plans on you and cost you lots of time and money. There is no easy or quick way around this. The old school way is the best, but it takes lots of time, effort, and money.

You have to be able to not make a lot of money for at least 5-6 years, all while throwing a good bit of money in your business at the same time. This is why I genuinely feel bad for newer agents in 2022. A lot of the tactics that worked even as recently as 3 years ago, no longer work. The pandemic circus obliterated "stranger trust." You just have to build slow and steady to form a solid foundation. No easy way around that.

This is why local branding can help with several years of consistent marketing - especially in a smaller town.

You market in a tight local market long enough, you get people walking in who say, "You helped my wife's coworker and you also helped my older brother a few years ago."

I had one the other day: "you helped our next door neighbor and she is nuts and we don't take advice from her but then I was talking to John & Linda at church and they said how good you are, so we're here. I guess if you can put up with our crazy neighbor you must be patient."

It's literally at the point when new customers often know one other but sometimes even two other clients. Pretty cool. No issues with being a "stranger."

 

[FRJ]

Thanks for the guidance.

I will avoid (or minimize) MAPD.

Not sure on what the other guy is doing but MAPD sales year round is a fine business. Maybe he's replacing policies sold by call centers but as an example, I sell maybe 50% of my MAPD over the phone and enjoy 95+% retention rates. Offer both, you have to give the client what they want/need.

 

[InsuranceGuy29]

I’ve had no issue with trust from referrals. But I have seen more distrust working with strangers on leads no doubt . Hearing “ there’s so many scams nowadays “ . How do I know your not a scam? .

Most of my referrals from clients are still good with the trust thing, but over the past few years I've gotten WAY more questioning and pushback than ever before in all my previous years combined. It's still not necessarily a high amount, but I just notice small little things like that. It also doesn't help that I live around Chicago, for obvious reasons.

 

[BennyTrenton]

Back to the OP....
You need 500 policies to make $150K. That assumes $25PMPM average. Some people are great at leads and selling them. Some people (like me!) suck at it and do better networking.

At the beginning, having a second job or doing this part time is a great way to start. Trim your personal budget to the bone. Its a great business, but its also "get rich, slow". You need to pick an upline with great training and support. Figure out what works best for you and go for it!

Thanks, definitely this is something I will need to start as a parallell effort to my main job.

 

[BennyTrenton]

Not sure on what the other guy is doing but MAPD sales year round is a fine business. Maybe he's replacing policies sold by call centers but as an example, I sell maybe 50% of my MAPD over the phone and enjoy 95+% retention rates. Offer both, you have to give the client what they want/need.

Thanks for the feedback. Lots of varying opinion in this thread. But I will take your feedback on board.

 

[sshafran]

I use Scott's dumb program

Haha! When I go thru re-branding I'll rename it Scott's Dumb Program

 

[DonP]

Not sure on what the other guy is doing but MAPD sales year round is a fine business. Maybe he's replacing policies sold by call centers but as an example, I sell maybe 50% of my MAPD over the phone and enjoy 95+% retention rates. Offer both, you have to give the client what they want/need.

If your working dual/ lis leads on the phone you’ll be lucky to keep 70% 12 months . I gooble those up at 20 a month . Without face to face you got zero chance in the dual not . Go look at the stock price of select quote . Down 98% . There 90% dual/ lis. Now yes non low income cal be done on the phone or referrals.