I have had a successfull year selling Med Adv in 2016. This was my first year in the business and I learned a lot and have started to build a decent book of business. Most of my book is Med Adv with United Health Care w/ a few Med Supp policies w/ Manhattan Life but not many. I would like to start selling more Med Supps in 2017 and I am wondering about DM rates of return and standard closing % for this. What is a normal return rate for 1000 DM pieces and what should my closing percentage be? Thanks in advance!
Med Supp F2F Return %, Close Ratio
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- Start date
DM return rate will probably fall anywhere between 1.5% to 5%. Averaging 2.5%.
I probably close about 10-15% for t65. Not factoring referrals
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Thanks...Are these numbers based on only mailing to t65's? If not what is the age range of your mailers that average the 2.5%?
Yes I only mail T65's
So If you get 25 mail cards back from a 1000 piece drop and close 3 or 4 med sups. Thats about $900-$1200 for a $350 investment. But that $900 investment will keep giving yr after yr. So in 5 yrs you could have made $4k or more off that $350 mail drop. My question is why do so few guys do consistent mail drops week in week out. If an agent diligently drops 2000 pieces every week and gets 50 mail cards can he sell 8 a week yr round. I'm talking about a city like Dallas.Tx and the suburbs. He should be able to drop mail and work that 50 mile radius his whole career.Now of course over the yrs referrals will build and you can drop your mail back or discontinue it. From med sup guys in the business a long time is the above possible?
A T65 drop will cost you more than $350. It's usually around $450-475
Luckily I get my first 1k piece per month discounted to $225 but I pay regular for additional.
Also, here in FL i write more mapd than med supp so I get $450 per mapd and $220 per supp
I'm not sure you would send 2k pieces weekly. Just better to send out 8k monthly but you will have to travel pretty far to mail that many. I know I wouldn't here.
Luckily I get my first 1k piece per month discounted to $225 but I pay regular for additional.
Also, here in FL i write more mapd than med supp so I get $450 per mapd and $220 per supp
I'm not sure you would send 2k pieces weekly. Just better to send out 8k monthly but you will have to travel pretty far to mail that many. I know I wouldn't here.
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I know you've said you do your own mailings a few times. How do you handle the return part where they respond? I've done my own mailings for home insurance and it runs about .27 each. I just have a call to action for them to call though. No response card.
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Thanks for your input here Chazm. I have read many of your posts and it sounds like you have this game figured out pretty well...Would you mind sharing how many mailers you send out each month and roughly how many apps do you try to write a week on average? Are these all F2F?
I'm in an area w/ high Med Adv penetration kind of like Fl but I want to start writing more Med Supp apps to balance things out. If you don't mind...what is the lead vendor you are using and what is the name (code) of the t65 Mailer? I would like to see if the vendor will send me a sample.
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Just curious why it would be better to send out 8k monthly vs 2k per week? I'm still new to this whole thing. lol
There are a lot of variables impacting your closing ratio. Most agents will have a higher close ratio for F2F vs phone sales.
But that is only part of the story.
Agents that focus on phone sales are willing to swap a lower closing ratio for a more efficient and overall lower cost of acquisition.
If you want to sell more Medigap over MA plans, you have to target that market. Buyers for MA plans generally have a different focus and decision process from those interested in Medigap plans.
Agents too often think the decision is all about economics and monthly premium. That is faulty thinking.
But that is only part of the story.
Agents that focus on phone sales are willing to swap a lower closing ratio for a more efficient and overall lower cost of acquisition.
If you want to sell more Medigap over MA plans, you have to target that market. Buyers for MA plans generally have a different focus and decision process from those interested in Medigap plans.
Agents too often think the decision is all about economics and monthly premium. That is faulty thinking.
I agree, but if an agent has their demographics set to a low income level, it really can be about the money at that point. Which is the reason you don't drop to a low income if you want to target for Med Supps.
