Originally Posted by Residentzombie
If you spend $1,000 on a mailer campaign you will be lucky to make $1,000 in commissions. You will spin your wheels and not make any profit or you will lose money.
Your sales ability needs to be great and this is one of the worst industry to sell in since commissions are so small and the legal liability and regulations are so large. You can make more money selling real estate which you already tried and failed. This is not different on how to market and the results will be the same unless you learn how to be a great marketer and salesman.
Go back to real estate and make your fortune their instead. Unless you have a lot of free time and money and have a passion for helping stuck up seniors save $30 per month on their Medigap policy. Also you have a decent amount of competition as well that is competing against you.
If you can master the art of selling by building rapport, asking tons of questions, and being a fantastic listener then you need to ask yourself why you are selling your butt off and only making $300 per year on a sale that usually lasts for 2 to 3 years when you could sell a home worth $150,000 to $250,000 and make 3% to 6% commission all at once. If I could start over knowing what I know about the Medicare industry, I would have choose to sell real estate instead as the struggle is identical, but the commissions are 10 to 20x higher.
If you don't genuinely have a passion for helping others you will fail.
First I appreciated you taking the time to write such a detailed response. The videos are really good. Although, there are about 2 hours of videos. I did get through them all.
Do you have any real numbers for the $1,000 mailing and not making $1,000 in commissions?
"time & passion for helping stuck up seniors" - Why do you say this? Also, if you feel this way about them why do you continue to try to sell to them?
I've worked in the Real Estate market. Have you? couple things. In my market, $120,000 is probably the average price of a house. Commissions are normally split four (4) ways. so normally 6% or 7% commission. Once between buying & selling side. Then between the agent & the managing broker. So 1.5% of $120,000 = $1,800. If you are taking a family around they may want to look at 20 houses. Then you have inspections. Then you have bank approval. Then you have then you have. Then you have move in dates. Then you have then you have. Let's put it this way. Getting a senior a supplement = $1,800 if you can get them to stick around for 6 years, seems a heck of alot easier than being a Realtor. I would have been ok with this scenario, but back in 2008, the housing market wasn't the hottest it's ever been. Also, from what I can tell the big dogs in Real Estate like Keller Williams seem to get the listings & the buyers. It's very challenging if you aren't a big dog. So, although I haven't recently sold insurance (i had brief experience selling cancer insurance D2D). If you can't make money in insurance, I think you'll have a harder time in Real Estate, IMO
. Sidenote, one thing I really disliked when I was listing a house was taking the measurements of every single room in the house. PITA.
commissions 10 to 20x bigger in Real Estate in my experience not even close. Maybe the transactions in Real Estate are 10 to 20x the work compared to insurance. I would say the complexity is much much greater than an insurance product involving an insurance agent, a client, & an insurance company. Real Estate = buyer & seller. 2 agents. a bank. an inspector an appraiser etc. etc. etc. etc.
too many realtors trying to get too few transactions & the Keller Williams get 90% in my market these days.
From what I've read there are insurance agents are getting older. Although I think someone said insurance agents never retire they just move to Florida to sell insurance (FE in particular). & there are more seniors requiring insurance products.
Why do you write such lengthy posts? I've seen some of your other posts & they are very lengthy so I didn't spend the time to read them. If you are just using your posts for personal journaling? ....Again I appreciated the links to the good videos.
Little more back on how much are your monthly expenses:
One more thing I just remembered. To have access to local MLS (pretty much necessary to do business), you're looking at $1900 a year or $150/month. I don't think there is a cost like this in insurance.