Insurance Agent Forum

[Ramond B]

I see what your saying. I think he gets the appointments for free from that company in NC. Then they split the commission and he retains the residual as long as he stays producing with that company. For him he liked it because he worked from home and went out on appointments 3-4 times a day Monday through Thursday. They send him the leads for free and he makes 50% pretty good I guess but its not my vision of this. I know my cost and I know what I would like to make. I just need to figure out what i can make my bottom line. The nice thing with me is I'm only planning on starting small and I'll build it from there. I figure with my experience and some great help this expansion shouldn't be that difficult. Ill pm you!

Originally Posted by salpro22

So your insurance agent pays this agency out of NC (MGA perhaps??) for leads and he gets 50% of the commission. Not a bad deal if all he has to do is sell the plans. If you're looking to do something similar with agents you'll gonna have a hard time pitching that idea to agents, although some might bite.

Having said that, I'm sure as hell not going to pay for ANY leads IF I'm splitting commission. Now, if it's a matter or splitting commission and "I'm" the agent of record, I might be open to doing something like that.

I'm also going to insist the person I split with understands how commissions work and that they fill out the appropriate legal documentation.

2-3 leads an hour is a good ratio depending on what you consider a lead to be. I like that you have a callback first before handing off the lead. That cuts down the BS. The rest depends on your script and qualifying questions.

Feel free to PM me and we talk sometime.

[TXINSURANCE]

Let me get this straight - from cold-calling small biz owners this guy wrote 58 policies half of which - or 29 were group policies. 29 group policies in 2 months? There's 50 working days in 2 months which means he closed a new group deal every 1.7 days.

This is complete BS.

Group is a slow process, turtle pace trying to get these business owners to cough up the money, get participation, and you need to pray someones brothers uncle doesn't walk in behind you and seal the deal.

Anyone who has ever worked group knows how much this doesn't add up.

Someone is blowing smoke around that's all.

Make sure these people are not holding your appointments hostage when you decide to leave and do your own thing, then find out you can't get appointed with XYZ carrier since your former business partner is deciding to hold your appointment hostage and prevent you from working.

[Ramond B]

AS I mentioned earlier I did not write the policies nor did I track what he was doing. He called me 3 weeks after we stopped sending him appointments and these were the numbers he gave us. Remember he did Dental as well so maybe some of the group plans were dental. Also who know if they were all done when he gave me those numbers, maybe he had some that were about to be complete that he counted. I didn't get into breaking it up between health and dental from him because he told me that most health agents also do life and dental as well. I was looking at his numbers as a whole and trying to figure out how I can make them better. This guy was kind of lazy and I think if i can fine tune my end and find a hard working group of agents this will be a very successful thing.

Like I said I don't know that much about this industry YET which is the reason I'm here. I do know I know a hell of a lot about marketing. I also know my call center is bad azz and we can generate some serious business. I just need more education before i go and start selling a brand new product. Thats why im here, not to bullshI! anyone. I'm looking for advice. Thanks for you for the nice post, now i feel a part of the family. You seem to be pretty knowledgable, do you have any construvtive advice for me. It would be greatly appreciated. Thanks!

Originally Posted by TXINSURANCE

This is complete BS.

Group is a slow process, turtle pace trying to get these business owners to cough up the money, get participation, and you need to pray someones brothers uncle doesn't walk in behind you and seal the deal.

Anyone who has ever worked group knows how much this doesn't add up.

Someone is blowing smoke around that's all.

Make sure these people are not holding your appointments hostage when you decide to leave and do your own thing, then find out you can't get appointed with XYZ carrier since your former business partner is deciding to hold your appointment hostage and prevent you from working.

[healthagent]

I think you got the best advice already - you're looking for a larger agency or brokerage to buy mass quantities of leads and have the bank to commit to a large campaign.

We have too many "big toe in the water" agents here who will buy 10 appointments, talk about how much they suck and cancel. It'll become impossible to manage your telemarketers with people wanting to "try out" 5 appointments. See the Vimo live transfer thread here with agents going bat-**** after buying 2 leads for $35 and not closing either of them - then canceling.

What I think you'd do is hook up with a few experienced local agents - maybe some friends of yours who are proven closers and run campaigns for them. Then they can track the results and you'll use them as referrals.

Referrals, for me, is where the rubber meets the road. When telemarketing services contact me - as they do all the time - the 1st words out of my mouth after they gloat about their fantastic leads are:

"Great, give me the phone numbers of 5 current agents you're running campaigns for now."

After that, the line always seems to go dead - or it's "we can't give out client information." I follow with "then give them my number and tell them to call me." Never happens.

[salpro22]

According to your website all leads contain the following information

Business Name
Number
Business Owner
Address
Number of Employees
Current Insurance Provider
Possible appointment time-date

These leads cost $40-$50.

If I was to spend that amount of money on a lead I would want additional information, such as;

Who the telemarketer spoke with? Was it the owner or Jill the secretary
Length of time with current insurance carrier?
Monthly Premium
Length of time in business
Website information

There are companies who offer similar services but charge less money. while providing the same information. Your gonna have to provide some additional value to make it competitive and worth the additional cost.

[Ramond B]

Perfect that is exactly the kind of stuff I was looking far. Actually Ill have to look at the site again but we do get some of that stuff you mentioned. Ill add the rest of it though. Thanks a ton!!

Originally Posted by salpro22

According to your website all leads contain the following information

Business Name
Number
Business Owner
Address
Number of Employees
Current Insurance Provider
Possible appointment time-date

These leads cost $40-$50.

If I was to spend that amount of money on a lead I would want additional information, such as;

Who the telemarketer spoke with? Was it the owner or Jill the secretary
Length of time with current insurance carrier?
Monthly Premium
Length of time in business
Website information

There are companies who offer similar services but charge less money. while providing the same information. Your gonna have to provide some additional value to make it competitive and worth the additional cost.

[Ramond B]

Your right the eventual target is going to be a company that already buys leads for its agents. But to start out I have to get a handle on tit and do smaller campaigns. 10-20 lead minimums are not an issue at first for me because I know they are good going out the door. As far as hooking up with local agents I do want to do taht however only after I get the national platform going. See my busines model in mortgage was to market nationally and work the Las Vegas market for myself. I have done this very successfully and honestly for over 4 years. My gold for insurance is no different. I want to learn it, market nationally and make other companies money so they continue to buy every month. Once I have that in place then I attack my own market. I will eventually get licensed myself and hire other agents under me to go to all the LV appointments at 50%. If I can keep my national clients happy they cover my cost and my agents write all the LV deals they can handle.

As I mentioned before though I am a long ways off from really launching htis. WE just put the stuff on our site the other day for SEO reasons not actually to take orders yet. I have a ton more research to do. The facts that I already know is that my price points were a little high, but its no different in my past field. I was always the highest priced leads but I managed to maintain one of the best reputations because I am honest and my clients NEVER had anything negative to say about me. They have no reason too because they all made money.

I'm starting to like this site. You all are so helpful. The other threads are teaching me as well.

Thanks again.

Originally Posted by healthagent

I think you got the best advice already - you're looking for a larger agency or brokerage to buy mass quantities of leads and have the bank to commit to a large campaign.

We have too many "big toe in the water" agents here who will buy 10 appointments, talk about how much they suck and cancel. It'll become impossible to manage your telemarketers with people wanting to "try out" 5 appointments. See the Vimo live transfer thread here with agents going bat-**** after buying 2 leads for $35 and not closing either of them - then canceling.

What I think you'd do is hook up with a few experienced local agents - maybe some friends of yours who are proven closers and run campaigns for them. Then they can track the results and you'll use them as referrals.

Referrals, for me, is where the rubber meets the road. When telemarketing services contact me - as they do all the time - the 1st words out of my mouth after they gloat about their fantastic leads are:

"Great, give me the phone numbers of 5 current agents you're running campaigns for now."

After that, the line always seems to go dead - or it's "we can't give out client information." I follow with "then give them my number and tell them to call me." Never happens.

[healthagent]

On a side note - loved Vegas - lives there for a few years; 1st at "Turtle Rock" apartments on Charleston then Sahara Gardens on Sahara and Nellis - worked as a security shift supervisor at the Riv. Don't ask me too many details - those years are still a bit foggy.

[Ramond B]

LMAO, thats funny. Yeah I live by the 15 and blue diamond but our office is on Sahara and Rainbow. Did you hear about the Monte Carlo catching fire the other day? It was like something out of a movie and we saw the whole thing from out office. Its about 4 miles away but we could still see it pretty good. Crazy stuff!

Originally Posted by healthagent

On a side note - loved Vegas - lives there for a few years; 1st at "Turtle Rock" apartments on Charleston then Sahara Gardens on Sahara and Nellis - worked as a security shift supervisor at the Riv. Don't ask me too many details - those years are still a bit foggy.

[healthagent]

Yeah - the Riv caught on fire when I was working there. I was there from '89 through '91.

Have some relatives that live in Henderson. Never got used to the pool being closed in our complex on some day "due to extreme heat"

On any given day I couldn't tell you what day or time it was. Clocks are banned in Vegas.

[Alsky]

Originally Posted by Ramond B

Did you hear about the Monte Carlo catching fire the other day? It was like something out of a movie and we saw the whole thing from out office. Its about 4 miles away but we could still see it pretty good. Crazy stuff!

You reminded me of a time in AC, when I was at the Trop on... eh hmm "business" and the fire alarm sounded... time to evacuate and the players would not budge! Place could have been burning down around them and they would probably want a hit. Funniest thing I ever saw.

[Ramond B]

That's what the radio was saying about this one. They were having a hard time getting all the players out of the casino area...lmao I can just see the guy holding the dice at the crap table ready to throw them at the first person that tells him "no you cant role sir". hahah

[JRoot]

Another thing to keep in mind is some states are "as earned" meaning we get the commission spread out over 12 months or as the client pays the premium.

IMO, It will be much harder for you to get consistent business in those states unless they are very established. Taking 10 leads a week at $40 a pop wouldn't be in the cards for a lot of indy agents on "as earned" commissions.

[healthagent]

Which is why you never take as-earned if you can avoid it. Simply destroys the ability to take advantage of new marketing plans.

I wonder how the mortgage and real estate biz would be going if they were as-earned too? Sell a house? Get your commissions over the next 12 months. Close a new mortgage or re-fi? Catch you 12 months later for all that commish. The entire sales industry would collapse.

Go open a restaurant and most people pay by credit card. Obviously Visa doesn't get all of their money for months or even years. However that owner will receive the money all at once.

Sell cars I got paid finance reserve. The finance company would give us the difference between the buy rate and retail rate. How long did it take the finance company to recoup the money? Standard loan is 5 years - we got paid next week.

Selling home improvements for Century 21 almost everyone did in-house financing - Century 21 offers 3 year loans - which means it took them 3 years to recoup the money.

We got paid next week.

[Ramond B]

Wow, thanks for the heads up on that. Any ideas on what states I should avoid?

Originally Posted by JRoot

Another thing to keep in mind is some states are "as earned" meaning we get the commission spread out over 12 months or as the client pays the premium.

IMO, It will be much harder for you to get consistent business in those states unless they are very established. Taking 10 leads a week at $40 a pop wouldn't be in the cards for a lot of indy agents on "as earned" commissions.

[Ramond B]

Now there is a freaking scary thought. Don't do that you will give me nightmares!

Originally Posted by healthagent

I wonder how the mortgage and real estate biz would be going if they were as-earned too? Sell a house? Get your commissions over the next 12 months. Close a new mortgage or re-fi? Catch you 12 months later for all that commish. The entire sales industry would collapse.

[somarco]

I have brokered a few loans in the past. Averaged around $3,000 per deal. Good money for the work but not my cup of tea.

Paying $40 for a lead isn't a bad deal even if you only close 1 out of 10.

I can't see paying anywhere near that for a health lead and I don't do appointments. All my selling is over the phone & email.

If you want to peddle your wares you probably need to hook up with a "career" shop with captive agents.

[GreenSky]

A few years ago I paid $13 each for MA appointments and wrote 4 out of 5 (maybe more). Due to time constraints, I only ran about 20.

A few months later I bought 15 more and maybe sold one. Timing seems to be everything.

Would I pay $25 per appointment for qualified individual health leads? Absolutely. Would I pay $50? Maybe not so much.

I guess my way of selling is a combination of face to face and on the phone. I actually prefer to see my clients because for most people, explaining that an HSA is the best way to go is easier when I'm in front of them. However, I have sold my fair share without meeting the client.

To be relieved of the task of calling, convincing, and then setting a appointment would be terrific. I've just never seen it work for very long. But I'm always up for another try.

Rick

[djs]

Originally Posted by healthagent

I wonder how the mortgage and real estate biz would be going if they were as-earned too? Sell a house? Get your commissions over the next 12 months. Close a new mortgage or re-fi? Catch you 12 months later for all that commish. The entire sales industry would collapse.

Mortgage and realtors do get paid 'as-earned'. They earn it at the close of the deal.

Dan

[healthagent]

But they receive their entire commission after settlement - not 12 months after.