How Much Can One Make Per Year Selling Med Supps?

[G.Gordon]

All these replies and no answer to my question. Why?

Because it has an almost infinite number of possible answers. Those is us that concentrate on selling supps do so in several various ways, some specifically ONE way while others use a combination of methods to gain clients.

Use that along with the various levels of personalities and intensity... and you have a long list of answers from each of us. Hang around, read, learn who knows what they're talking about and who's full if crap... don't come in here wanting a detailed dissertation of our careers and then cry when you don't get it.

Welcome... we're all a bit crumpy once in a while.

 

[jdeasy]

All these replies and no answer to my question. Why?

How much "can" one make? That's why there are no answers. There is really not an average. I know a couple of med sup agents that make north of $250,000/yr. I also know a few that make less than $25,000/yr. I know several that make around $100,000/yr that don't just sell med sups. They sell FE, MA and med sups.

What you "can" make is limited only by you.

 

[Frank Stastny]

I'll give it a shot but you are going to have to wait a few minutes while I finish counting my money.

Be right back.

The money to be made selling Med Supps is obviously is not in the first year commission like it is with virtually all other insurance. Agents make their money through renewals. Renewals occur by communicating with clients.

Several months ago I received a PM from an agent asking what I cross sold to my clients, he said he had heard that an agent couldn't make money selling Med Supps.

I posted in a thread an example of a very realistic goal for an experienced agent who is going on appointments.

Let's assume the average Med Supp premium is $135 per month and the agent's average commission is 18%. I think that is fair to use as a national average.

If an agent will write one app a day, 5 days a week, 52 weeks a year, a total of 260 applications a year. (There is no logical reason why all should not be issued if sold properly.) That will come to $75,816 in first year earned commission.

If an agent has sold himself in the process and stays in contact with his new client then there is no logical reason why that agent should not carry at least 90% of that forward into the second year in renewals, $68,234.

In essence, the agent will start the second year with renewals, almost like a salary, of $68,000. Then once again write one app a day. After three or four years I think you can see that the agent will be making a pretty good income from just Med Supp sales not counting the ease with which agents can add a small FE policy after completing the Med Supp sale.

Can an agent do that? Absolutely yes! Can a brand new agent to Med Supps write an average of one app per day? It's up to the agent and how hard he wants to work and how dedicated he is. The "average" agent will probably write around three apps per week when first starting.

"Success" (Craig), an agent on this board who is 20 years old and still a full-time college student wrote four apps last week when he was on Spring break. That was his first week as an agent. He did it without buying leads and no, he didn't sell them to his relatives.

Will most new agents do that well their first week? Only if they have a work ethic like his.

 

[Success]

Thanks for the kind words Frank. I was about to "try" to answer the question, but Frank has said it all!

Just like most other jobs, you must actually "work" to earn money.

I worked around to 50+ hours last week. Each and every one, I was "working".

I have always thought... getting good grades, or higher education is not what makes someone "smart", it is how well they can use the resources available to them to succeed.

Use your resources very efficiently, and you "can" make a shi* load.

I used my resources (Frank Stastny), and I had an awesome week!

 

[somarco]

Here is a tip from someone who has been around the block more than a few times.

If you want to be successful, follow the lead of someone who is already successful.

This industry, and this forum, has quite a few mentors who are willing to share their knowledge. They do so unselfishly, without expectation of a monetary reward. Frank is a perfect example of this. He has trained quite a few folks on this board and never, to my knowledge, asked for a penny in exchange.

Some have taken his advice and training and done well. Others have used the information he freely shared, changed a few words, then claimed it as their own.

But some, quite a few actually, have given Frank the credit he so richly deserves.

Congratulations on your success. No doubt you will become one of Frank's many success stories.

 

[Yoda]

Making 75,000 the first year you sell med supps is pure bull! That aint happening. Who you want to believe is your choice folks. You can listen to these con artists like "Frank" who sit around all week doing nothing but trying to con new agents in this forum to contract with him or you can take the advice of a working agent like myself who is way to proud to use this forum as a means to exploit others and make money off them. No you are not going to sell 1 med supp per day 5 days a week 52 weeks a year. In reality if you dont have another source of income or a hefty stash of cash you are going to starve the first couple of years while you build up your renewals. New agents need to ask themselves this simple question. Would guys like "Frank" who claim they can make 75,000 dollars their first year of selling supps need ot go on an internet site like this that they dont even own and use it as a free source of leads? Of course not! If "Frank" was making 75,000 dollars a year selling med supps and he claims he has been in this business 15 plus years then he would be making "300,000" a year. I can assure you he is not even making 100,000 a year after a lifetime in the business. First year income selling med supps is probably going to be more in the ball park of 20,000 to 30,000 after expenses if you are lucky.

 

[Russ]

Yoda...you just turned my eyes bloodshot red and no, I haven't been smoking weed.

Can you please turn off the bold button?

I'll put my shades on now and read what you said.

EDIT...after reading your post....I've been writing med-supps since 1987. I've never made $100,000 a year at it. I've come somewhat close and then Tricare came into play and my pay went down $20,000 from losing renewals. Also, med-supps use to pay as much as 60% commission the first year and then they leveled commissions and that hurt too.

You can make good money at it. One-hundred thousand a year is possible if you sell like heck consistently. Problem is...people die...get on Medicaid...companies cut you off from any commissions after so many years too. You have to factor all of that in. But, you can make good money at it! Real good money!

 

[moonlightandmargaritas]

First year income selling med supps is probably going to be more in the ball park of 20,000 to 30,000 after expenses if you are lucky.

My educated guess is this is probably pretty close. At average annual revenue of $281 per ($135/mo - 18% fyc), if a newbie did one hundred the first year, they would gross $28,100.

I don't believe 250-260 apps in the first year is a number too many (if any) are going to accomplish.

 

[Professor Leads]

I agree with moonlight. 250 apps per year can be had but most will not get there until their 3rd year in the business. I am sure there are a few studs that do this in their first year but most do not.

Russ: you have been selling Medigap exclusively for 23 years and never made over $100k? I would guess it is not because you couldn't but didn't want to. If you only wrote 10 apps per month for 5 years at 20% (using avg AP of $1350) that would be a renewal income of $162k. My guess is you do not focus exclusively on Medigap. Not being critical of you, just pointing out that $100k is a realistic income after a few short years.

 

[Russ]

Russ: you have been selling Medigap exclusively for 23 years and never made over $100k? I would guess it is not because you couldn't but didn't want to. If you only wrote 10 apps per month for 5 years at 20% (using avg AP of $1350) that would be a renewal income of $162k. My guess is you do not focus exclusively on Medigap. Not being critical of you, just pointing out that $100k is a realistic income after a few short years.

Didn't want to?

Half of the people that live within 40 miles of me are...(1)on Tricare...(2)on Federal BC/BS....(3)on state BC/BS...(4)on Medicaid.

Yeah...that's an excuse, but it's the truth. Plus this isn't exactly a rich area.

If you're making six-figure money..congrats to you.