Cold Calling Medicare Supplements: Realistic Hourly Rate in FYC?
- Thread starter TheGodEmperor
- Start date
- 15,041
More than I care to count, 0, 0.
Correction: Misread it initially. I receive more telemarketing calls than I care to count. I may answer a dozen by accident, if that.
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- Thread starter
- #13
TheGodEmperor
New Member
- 8
I don't know if Chris Westfall's method is outdated, but I was planning on calling on people older than 67 so I don't have to educate them about med Supps. At least initially until I get more skilled. You seem to be at odds with Josh who thinks $30k in a year is possible with just cold calling. I guess it's one of those things that's hard to predict until you do it. That's why I'm trying to figure out the experience of an average agent who commits to this. Because I have no reason to assume I'm above-average, and will certainly be below-average starting out, but I do feel I can commit to a solid block of hours if I know what I'm doing is going to yield results with enough hours.
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I almost always answer my phone, but I don't think a telemarketer has ever sold anything to me. I may be on the DNC.
That said, there's no doubt cold-calling works in some domains. Whether it works for med supps, I don't know. That's why I'd be happy with a fairly low hourly rate. I want to be realistic and conservative in my estimates.
I have a few things going for me: (1) the willingness to put in the hours into an enterprise I believe in (2) very few expenses and (3) some savings so I don't have to depend on cold-calling to feed myself, not enough savings for leads (4) time.
Most of the high-paying tech/telecom sales jobs require a huge amount of cold-calling and prospecting. Insurance seems to be more lead driven than almost any other business. I know there's a reason for it (efficiency). But those leads get generated on the phone, online, on TV or through the mail.
Don't many people on here have their own telemarketers? How much are they paid? Surely they generate more business than their hourly.
- 1,452
I'll send you my address!I assume a dialer is the best way to go. I'd have to pick between a single-line of a four-line dialer as I understand that anything greater than a single-line dialer will mean there's an obvious telemarketer delay.
I have a 4 line dialer, but I only use 2 lines at a time. Get some data, pick a 1 line and go at it, if it's too slow add a line or two. You will get better with time, but it is kind of an art/game, making cold calls. But if you're trying to figure out if you want to do this day in and day our for the next year, I think youll probably over analyze it. Just commit to one month, or two... and then re-evaluate
Residentzombie
Expert
- 89
Ah another Chris Westfall recruitee. Don't start off doing what Chris does if you have no experience in this industry nor cold calling experience. Asking for someone's Social Security number, banking information, and Medicare information is 10x harder over the phone than in person. You want to start with cold calling your local area with T65s and set appointments at their home. Due to the vast majority of numbers on the DNC list and cell phones far out numbering landlines, telemarketing is a dying art. Yes it can be done, but it takes the right person and even then you have very limited numbers to call. Chris gains trust easy because he was a police officer and he always tells people that in his pitch. You are not a former cop and people won't trust you with that information over the phone. The method that Chris uses does work; however, this tactic is the most difficult and you really have to have complete mastery of telelmarketing skills, sales skills, and have great industry knowledge to be successful in doing what Westfall does.
Cold call T65s and that should take you 1 week of work calling those numbers 3 to 4 times over (call late afternoons up to 8pm weekdays and Saturday late morning) and set appointments. The rest of the month, you will want to focus on door knocking the T65s who are on the DNC list and those that you tried calling and never answered. Use Excel and Google Maps to plan out the best route and bring a good sales training CD to listen to in your car. You can easily take the entire month doing this just with T65s and you should end up with between 5 to 8 applications minimum each month. This industry is rich in snowballing referrals, so it will be slow your first 3 to 6 months, but then you will start to get some referrals and then you are on your way to bucking the odds of 92% of insurance agents failing within the first 3 years. Buy exclusive leads if you can afford to and work those as well. Avoid the $500 Wal-Mart AEP program. You have to be at a very good location and most Wal-Mart locations are in terrible locations.
Once you master the basics of marketing and selling face to face, then consider joining Chris Westfall's organization. It's much easier to master your local market and work the people that are your neighbors versus being licensed in 40 States and understanding all the different nuances that each State has regarding Medicare. You also want to be certified to sell supplements, MA, and PDP plans or you are just leaving money on the table as 33% of Medicare beneficiaries have MA plans and only 30% have supplements. Most seniors simply cannot afford to have a supplement and many MA plans are great options for people over just having original Medicare. Plus MA commissions are lifetime commissions. You can sell Chronic MA and Medi-Medi MA and make money with those people as well. Chris Westfall bashes MA plans only because it is impossible for him to sell them over the phone due to outrageous CMS regulations. MA plans are fine for the right people in the right area. Your FMO should let you know the most popular MA plan in your local market.
Your cold call pitch must be short and to the point with a great value proposition. Close by telling the client that you have ___day or ___day available, which day works best for you? That close is extremely effective. You want your intro sentence, your value proposition sentence, and then your 2 option close sentence. Make sure to have rebuttals handy as well. Make sure you understand how to work around Part C and D CMS regulations and how to work with the Scope form. Focus more on marketing your services to T65s and they will set appointments because they don't understand Medicare and there are too many options for people to consider themselves. The biggest issue with T65s is the fact that they are still working and have employer group coverage. So get some index cards and start asking when they plan to retire. If they say 1 year or less from when you call, ask to call them back later and then do so at the correct time.
Personal update: Yes guys I now have clients and I am cold calling and door knocking T65s. Thanks for all your help and while I am off to a slow start, I have a nice client base at the moment.
Cold call T65s and that should take you 1 week of work calling those numbers 3 to 4 times over (call late afternoons up to 8pm weekdays and Saturday late morning) and set appointments. The rest of the month, you will want to focus on door knocking the T65s who are on the DNC list and those that you tried calling and never answered. Use Excel and Google Maps to plan out the best route and bring a good sales training CD to listen to in your car. You can easily take the entire month doing this just with T65s and you should end up with between 5 to 8 applications minimum each month. This industry is rich in snowballing referrals, so it will be slow your first 3 to 6 months, but then you will start to get some referrals and then you are on your way to bucking the odds of 92% of insurance agents failing within the first 3 years. Buy exclusive leads if you can afford to and work those as well. Avoid the $500 Wal-Mart AEP program. You have to be at a very good location and most Wal-Mart locations are in terrible locations.
Once you master the basics of marketing and selling face to face, then consider joining Chris Westfall's organization. It's much easier to master your local market and work the people that are your neighbors versus being licensed in 40 States and understanding all the different nuances that each State has regarding Medicare. You also want to be certified to sell supplements, MA, and PDP plans or you are just leaving money on the table as 33% of Medicare beneficiaries have MA plans and only 30% have supplements. Most seniors simply cannot afford to have a supplement and many MA plans are great options for people over just having original Medicare. Plus MA commissions are lifetime commissions. You can sell Chronic MA and Medi-Medi MA and make money with those people as well. Chris Westfall bashes MA plans only because it is impossible for him to sell them over the phone due to outrageous CMS regulations. MA plans are fine for the right people in the right area. Your FMO should let you know the most popular MA plan in your local market.
Your cold call pitch must be short and to the point with a great value proposition. Close by telling the client that you have ___day or ___day available, which day works best for you? That close is extremely effective. You want your intro sentence, your value proposition sentence, and then your 2 option close sentence. Make sure to have rebuttals handy as well. Make sure you understand how to work around Part C and D CMS regulations and how to work with the Scope form. Focus more on marketing your services to T65s and they will set appointments because they don't understand Medicare and there are too many options for people to consider themselves. The biggest issue with T65s is the fact that they are still working and have employer group coverage. So get some index cards and start asking when they plan to retire. If they say 1 year or less from when you call, ask to call them back later and then do so at the correct time.
Personal update: Yes guys I now have clients and I am cold calling and door knocking T65s. Thanks for all your help and while I am off to a slow start, I have a nice client base at the moment.
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- 2,055
"Once you master the basics of marketing and selling face to face, then consider joining Chris Westfall's organization. It's much easier to master your local market and work the people that are your neighbors versus being licensed in 40 States and understanding all the different nuances that each State has regarding Medicare. You also want to be certified to sell supplements, MA, and PDP plans or you are just leaving money on the table as 33% of Medicare beneficiaries have MA plans and only 30% have supplements. Most seniors simply cannot afford to have a supplement and many MA plans are great options for people over just having original Medicare. Plus MA commissions are lifetime commissions. You can sell Chronic MA and Medi-Medi MA and make money with those people as well. Chris Westfall bashes MA plans only because it is impossible for him to sell them over the phone due to outrageous CMS regulations. MA plans are fine for the right people in the right area. Your FMO should let you know the most popular MA plan in your local market."
I subscribe to Chris' site and nowhere does he say to get licensed in 40 states right away. One or two to start is fine. And I don't believe he bashes MA as he can't sell them over the phone due to the CMS regulations, he says that Med Supps are more comprehensive.
My focus is on the DSNP market, as they pay very little and Med Supps for everyone that can afford it. A lot of MAPD clients love paying the "0" premium but can't afford the plan when they get sick. They are enticed by the free gym membership, dental, etc.
I subscribe to Chris' site and nowhere does he say to get licensed in 40 states right away. One or two to start is fine. And I don't believe he bashes MA as he can't sell them over the phone due to the CMS regulations, he says that Med Supps are more comprehensive.
My focus is on the DSNP market, as they pay very little and Med Supps for everyone that can afford it. A lot of MAPD clients love paying the "0" premium but can't afford the plan when they get sick. They are enticed by the free gym membership, dental, etc.
- 1,900
Your time is your most valuable asset.
I think when you are brand new to the industry, it's not a terrible idea to spend some time doing your own cold calling (learning the sales process before spending your hard earned $$$ on marketing).
Once you have a grasp of the sales process though, you will make more money by outsourcing your cold calling and only speaking with prospects who have already shown some level of interest.
Remember - a Medicare Supplement client has a lifetime value of roughly $1500 - $2000. Possibly even more if you can get a referral or cross sell a different policy.
Residentzombie
Expert
- 89
Indeed, but the client has to initiate contact with you. There is no way that you can effectively sell C or D plans over the phone when cold calling. You would have to mail the cold call a Scope form, have them mail it back to you, and then you could sell them C or D over the phone. Prospects 90% of the time will never mail a signed Scope form back to you for you to call them back and be in compliance. This is why I said it's impossible to sell over the phone. I'm referring to cold calling since this is what the original poster was talking about.
I have a hard enough time mailing a Scope form to a cold call T65 and picking it up when I meet them at their home for an appointment. About 50% of the time they never signed it and I have to better explain why it is needed and that I must leave if they don't sign it. Remember that 65 year olds are a very paranoid age group due to all the scams they experienced in their life and all the 'good deals' that previous salesmen have told them that turned out to be a bad deal for them.
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