So over the past few months I've invested about $5,000 into Final Expense leads and wasn't all that happy with the return. But to be 100% honest the return isn't the main issue. I don't want anyone to get the wrong idea about me, when I do walk into a cat piss filled trailer and meet a prospect that hasn't bathed in awhile I absolutely sit down with them and have a conversation. I never just dive out the door unless I'm running late for my next appointment.
So I'm a nice guy, but annual premium be damned I really don't see myself buying more FE leads and getting better at holding my breath.
So, Med Supps. Always liked the idea of them and it seems like a more consultation type sale. You are saving them money, not taking.
1. I don't want to sell over the phone. I see that pushed around here and maybe I'll come around but in the beginning I'd really like to learn the ropes face to face with clients. Plus I'm to good looking to confine myself to a home office
2. I know Florida is no good to sell them in. But I'm right beside Georgia so the plan is to set appointments, get a cheap hotel, and work there 4 days a week. I realize many states are even better and Georgia is no peach (get it?) but it is what it is.
3. Will certainly be signing up at Medicare Training 101 and MedicareAgentTraining.com and absorbing all the info I can. If you guys have any other sites or reading materials to suggest that would be great.
4. Leads. Are Direct Mail leads the way to go for Med Supps just like FE? Do TM leads perform a little better or about the same? Will I need to plan for another $5000 in lead startup costs to really get going?
That's pretty much where I am right now. Any advise and input is appreciated.
To answer your original question, look at the math:
- Cost of DM is about $500 per 1,000
- With 2% return that's 20 leads, probably 3-4 sales at most if all you are offering is Med Supps
- 4 Sales x $208= $832 or $332 profit per 1,000 mailers, probably 45-60 days to see that money
- Multiply these numbers by however many you want to mail per month and the economics are pretty easy to see, that you aren't going to make a living for the 1st year and will have to work for a couple of years before you have a large enough book to make a decent living
It's a great business long term, it's up to you whether those numbers can work for your situation-you can adjust the numbers somewhat based on region but Florida overall is a tough state for supplements, the areas without much MA penetration also have much smaller populations.