Question on Med Supp Commission

[SecureHealth1]

Free leads is all I get. I get 16% on first year only. I give up all residual.

I work from home, it's all phones. I was going to go out on my own, after working at a call center for 4 years, but the husband thought this might be a better first step.

Aep was ok. Sold about 85 plans. I had hoped it would be better than that but I was new and still learning the system.

Know anything better?

Free leads is all you get?

That's all this business is about, how to get leads, that's it. There's a million companies to contract with and get full commission, the #1 thing people struggle with and fail so often with in this business is leads. You should go into work tomorrow and thank them for the "free leads", once you figure how to do what they are doing and foot the bill, don't even think about trying to go Indy. Sorry to be harsh, but there is a whole other side of the business that you don't understand

 

[justsayinisall]

Free leads is all you get?

That's all this business is about, how to get leads, that's it. There's a million companies to contract with and get full commission, the #1 thing people struggle with and fail so often with in this business is leads. You should go into work tomorrow and thank them for the "free leads", once you figure how to do what they are doing and foot the bill, don't even think about trying to go Indy. Sorry to be harsh, but there is a whole other side of the business that you don't understand

Well that's why I'm here, I'm trying to learn and understand how it all works. Everyone has to start somewhere.

I gather from your post that I have it pretty good where I'm at? Others say I'm taking it in the shorts.

 

[russelltw]

The point is, if you are taking calls and answering the phone, you don't understand how to generate leads. People forget or don't understand how difficult that can be. Some one calling you will be in a completely different mindset than you calling them.

There are multiple ways to generate leads, so you have to find something that works for you. It might take a few months or 6 or 12 to get your lead generating system working. Once you can generate your own leads consistently, take off on your own and don't look back.

I was with a multi-line (home, auto, life, health) agency, I developed my own ways to get leads while working there. Once I had a system going, I left them and I didn't miss a beat. My leads were generating 90+% of my production, so I knew I didn't need them anymore.

As soon as you can consistently generate your own leads....go indy.

 

[kgmom219]

Here's the deal.

You can obviously sell. That's about 10% of the job. 10% will be the service work. The other 80% is getting in front of enough people (leads) so you can eat.

You need to decide if you can "jump off the cliff" and go individual. How much do you need to make so you can quit? You are going to starve in year 1. Eat McDonald's in year 2 and if you can't afford steak at the end of year 3, then its time to get a job.

Talk to your husband (you mentioned that earlier) about what the budget looks like for your family.

 

[somarco]

Not a Dave Ramsey fan but one of his favorite lines to teach you how to budget and reduce debt is to eat "beans and rice, rice and beans".

 

[Bevo]

Well that's why I'm here, I'm trying to learn and understand how it all works. Everyone has to start somewhere.

I gather from your post that I have it pretty good where I'm at? Others say I'm taking it in the shorts.

Most people on here will tell you that you're getting screwed and you should go on your own and for the higher comps, for example the 20-22% or whatever. Well what 22% of nothing? Because most people are also NOT writing 200 Med supps per year on their own. Everyone claims how great residuals are (true) but to get the big prize, you have to DESERVE the big prize. And it's way harder than just sitting home and making calls and selling policies, which is why most people fail at generating a large book of Med Supp clients.

It's extremely difficult to generate enough leads, or pay for them (IF you can even get a reliable lead source) on your own. Sounds like you were just starting out, learning the business, and the agency owner paid you 16% while he or she took all the risk and expense to get you those leads. You got a GOOD deal. IMO a really good deal as you got paid training.

 

[Todd King]

Well that's why I'm here, I'm trying to learn and understand how it all works. Everyone has to start somewhere.

I gather from your post that I have it pretty good where I'm at? Others say I'm taking it in the shorts.

Taking it in the shorts is a nice way of putting it. Look at it this way....The Med Supp market is all about building renewals. If you aren't getting those you are only building someone else's renewals! Not only are they shorting you on the 1st year commission, but they are really raping you by not giving you the renewals!

Look around here for an FMO that will treat you better than that. I think most on here would. Disclosure: We are one of the FMO's that you should be talking to.

 

[Todd King]

Most people on here will tell you that you're getting screwed and you should go on your own and for the higher comps, for example the 20-22% or whatever. Well what 22% of nothing? Because most people are also NOT writing 200 Med supps per year on their own. Everyone claims how great residuals are (true) but to get the big prize, you have to DESERVE the big prize. And it's way harder than just sitting home and making calls and selling policies, which is why most people fail at generating a large book of Med Supp clients.

It's extremely difficult to generate enough leads, or pay for them (IF you can even get a reliable lead source) on your own. Sounds like you were just starting out, learning the business, and the agency owner paid you 16% while he or she took all the risk and expense to get you those leads. You got a GOOD deal. IMO a really good deal as you got paid training.

16% isn't bad if you are getting free leads, but NO ONE, (I repeat), NO ONE should be selling Med Supps for 1st year commission only. I personally think her upline should be flogged for doing that to her! To me that's just as good as stealing from her. Good deal my ass!

 

[Bevo]

16% isn't bad if you are getting free leads, but NO ONE, (I repeat), NO ONE should be selling Med Supps for 1st year commission only. I personally think her upline should be flogged for doing that to her! To me that's just as good as stealing from her. Good deal my ass!

Okay settle down champ you might blow a gasket, it's only the 2nd day of the year.

So Todd, based on your response am I safe to assume you as an FMO provides enough FREE quality leads to your downlines for them to make a good living out of the gate, and let's them get residuals?

There are two sides to the coin, and agency owners often provide a lot for agents and are the ones taking all the risks fronting the leads. Personally I DO pay my agents residuals, but I find it hilarious that people on here (including YOU, an FMO who would love to recruit her...big surprise) think it's just a walk in the park for someone like this OP to go out and be able to get a ton of deals because in your world getting leads seems like a cakewalk.

Why is it then I get several calls and emails each week and nearly all of them are trying to get leads? Hell even the big boys who buy from me are continually griping they can't get enough leads. I'm giving a strong dose of reality Todd, while you seem to live in fantasy land. But then again you'd love to have her under you to help your numbers, so I understand your story.

Take a chill pill man, seriously.

This is PRECISELY why I go on record and post things in various threads such as "Hmm, this will make a very interesting case study, let's see your results in a year."

So to the OP, yeah go for it. I'm all for encouraging people to shoot for the stars, I'm also not selling you anything (contracts), and I've been where you're at. I never said STAY at 16%, but last I checked even getting paid first year brought revenue into your house hold. It takes a slick FMO to tell you to drop ALL THAT REVENUE, tell you "you've been screwed" and come join him. Again, I'm all about you being independent. But that's just walking the plank IMO.

Can't wait to see where you are in a year, do keep us posted.

 

[Newby]

16% isn't bad if you are getting free leads, but NO ONE, (I repeat), NO ONE should be selling Med Supps for 1st year commission only. I personally think her upline should be flogged for doing that to her! To me that's just as good as stealing from her. Good deal my ass!

There are certain personality types that prefer to work that way. They want a job. There is an agency in our town where they hire people and get them licensed. They pay them minimum wage and like a one time $100 bonus for each Medicare sale. The agency owner makes all the real money and 100% of the renewals.

I used to think, how in the world does he get people to work for that? But he just hires the right kind of people. If they show any sign of independence he probably doesn’t want them.

He’s been at it about 20 years and I’ll bet he has 15,000 clients on the books in our town at a minimum. All face to face. And he doesn’t even live in this area and that isn’t his main location. He does a ton of advertising and drives business in the door.

Should Agents take that kind of offer? Hell no! But if you opened an agency like that up tomorrow you would have no problems staffing it. I’m convinced of that.