When to start adding downlines

[KandKsmommy]

Hi Guys,

At what revenue level where you before you started bringing on down lines?

For compensation do you pay them a salary and commission splits as an employee or do you do just commission splits and 1099?

I reached my 5 year goal in just under 3 years so now I'm looking for my next 5 year goal. I'm thinking expansion

Thoughts? Tips?

 

[axeman462]

Hi Guys,

At what revenue level where you before you started bringing on down lines?

For compensation do you pay them a salary and commission splits as an employee or do you do just commission splits and 1099?

I reached my 5 year goal in just under 3 years so now I'm looking for my next 5 year goal. I'm thinking expansion

Thoughts? Tips?

if you are considering salaried agents, whatever amount of money you think you need to get by for the first 6-12 months, double it.

if you are doing 1099, you need to give them a reason to contract through you, as opposed to the eleventy billion other FMOs that are soliciting the same agents.

also, theres talk about CMS not allowing downlines, and overrides, and marketing money in 2025. so whatever profit margins you are expecting, shrink it.

 

[KandKsmommy]

Thank you for the heads up on the changes. I will keep that in mind

 

[DonP]

I really don’t see how there will be much override profit without overrides and marketing money . Also hra money is going away .A loa agent must net $1000 a week to have an interest . Also take into account the fmo made $250 override wether the sale happened in Jan or sept . If that goes away it means total comp on a aug 1 enrollment is about $125. Even if you only pay the agent $100 on the app after min $100 marketing dollars it takes to generate an app the agency lost money . Also no overrides on renewals is huge .

 

[mmike160]

I really don’t see how there will be much override profit without overrides and marketing money . Also hra money is going away .A loa agent must net $1000 a week to have an interest . Also take into account the fmo made $250 override wether the sale happened in Jan or sept . If that goes away it means total comp on a aug 1 enrollment is about $125. Even if you only pay the agent $100 on the app after min $100 marketing dollars it takes to generate an app the agency lost money . Also no overrides on renewals is huge .

When you have a Med Advantage downline it can raise your contract level on the business that you write.

 

[DonP]

When you have a Med Advantage downline it can raise your contract level on the business that you write.

That’s going away next yr . Proposal is no comp outside the cms maximinun agent comp $635 next yr. No overrides allowed above $635

 

[me112233]

That’s going away next yr . Proposal is no comp outside the cms maximinun agent comp $635 next yr. No overrides allowed above $635

I know it seems un-Republican of me, yet I think the private sector has run amuk on this MAPD compensation thing. Way too much money flying around on the marketing side. $600 for a sale with $300 renewal is plenty to keep a writing agent well fed and happy. The crazy advertising budgets have made a mess of things. And it's not just agent compensation . . . when a Medicaid enrollee is paid $180/month for groceries, utility bills, etc., just for enrolling in a plan, something is bad wrong, as it goes way way beyond simply making sure poor people have access to quality healthcare. That's $2,160 per enrollee per year that, ultimately, comes out of the pockets of Americans who actually work for a living, and the money has absolutely nothing to do with providing good healthcare. That's just crazy. The $2,160 could be trimmed out of the plan, the cost to the taxpayers dropped accordingly, and the dual-eligible individual would still get a free-ride on his/her healthcare (the stated intent of Medicare and Medicaid). People need good medical coverage -- payment for their care and access to providers/medications; they don't need a $102 "giveback" just for signing up. And those mass-market call centers need to be shut down -- the calls themselves are illegal, and the guy on the other end of the phone only cares about selling something; they won't take the time to sort through all the mess of a patient with four distinct health issues and uncommon/expensive medications; the sales pitch is about givebacks and groceries, with little concern about the actual needs of the patient. And yes, a lot of consumers respond to such foolishness, with little concern as to what will happen to them when it's their turn to deal with a major illness or accident (which is the real reason to have insurance).

In summary, the local sales agent needs to be paid for his time and efforts, while major marketing firms with a mindset of volume over quality need to be put out of business. Medicare beneficiaries need to take a haircut, and have their insurance plans provide legitimate medical benefits (lower deductibles and copays maybe?) instead of handing out cash equivalents as a bribe to enroll. And the United States Congress needs to start paying down the debt instead of handing out excessive freebies to trillion-dollar corporations, welfare bums, and everyone in between.