Non Carrier Call Center Agents

[azmedsupagent]

So I've got medicare supplement phone sales down to a science and I want to start a small call center. This is not an offer as I wont be completely ready until next year some time. If the moderator Sam thinks this should be in the offers section please kindly let me know I will happily move it.

My hope is that I can get some insight as to a competitive compensation for call center agents if, leads and office space are provided. I think I remember reading on this forum at some point that hourly plus commission is common. If so what would be considered a competitive hourly rate and commission per sale? Any ideas for bonuses?

If I had to guess I would say between $12-$15 per hour with commission based on a sliding production scale. I.E. 5 issued policies gets 5% of first year premium, 20 sales gets 12% annual premium and on up. Am I about on track here or does this sound generous.

 

[Thad.Sipple]

Don't expect to make much first year, expect them to close 20% of what you do.

 

[azmedsupagent]

20% of what I close? Thats like 7%! I'm ok with with breaking even on first year commission. Maybe 100% commission with a sliding scale based on close ratio would motivate better? My thoughts are if they can't close 20% they are in the wrong business.

 

[Thad.Sipple]

Ok I didn't type that right. I would budget my money on the sales people closing much less than what you can do. If you can sell 8 on X amount of leads the sales people will sell 3 to 5, won't matter how much you pay them or not, the more you pay them the less they will work, the less you pay them, and they will work just enough. You can't necessarily duplicate you, because your good and your one of the 5%.

Put them on an LOA contract and do the best you can to pay them $2500 to $4000 per month, if you get lucky and find a really good person adjust it.

As much as it would be great to hire 5 top guys, it's not that easy.

Anyway just some of my opinions, hope it helps a bit

 

[azmedsupagent]

And there lies the problem. It's hard to find 6 figure talent with a 5 figure price tag. If I can't find a ready made phone guru hopefully I can train one. A close rate of less than 20% means it's a first year loss. This definately gives me a better idea of what I'll be getting my self into.

 

[keith48]

The problem would be that after you spend time training that guru and they discover what they could make on their own, they'll be out of there. I wouldn't put all of time into one superstar because of that. Your profit is going to come in finding the ones between superstar and dead weight.

 

[somarco]

One of our forum members did something similar with Medigap. Contracted agents, provided them with free DM leads, paid them 100% of first year street level commission.

He managed to break even on that, hoping to generate profit from renewals.

Lead and sales volume during AEP was great. Outside of AEP sucked.

He has moved on to something different now.

 

[socal401]

I remember seeing a job posting for a sales position in a Medicare supplement call center in north county San Diego. Pay was $16-$20 per hour plus bonuses. I remember it didn't say anything about commissions.

 

[BuckNasty]

So I've got medicare supplement phone sales down to a science and I want to start a small call center. This is not an offer as I wont be completely ready until next year some time. If the moderator Sam thinks this should be in the offers section please kindly let me know I will happily move it.

My hope is that I can get some insight as to a competitive compensation for call center agents if, leads and office space are provided. I think I remember reading on this forum at some point that hourly plus commission is common. If so what would be considered a competitive hourly rate and commission per sale? Any ideas for bonuses?

If I had to guess I would say between $12-$15 per hour with commission based on a sliding production scale. I.E. 5 issued policies gets 5% of first year premium, 20 sales gets 12% annual premium and on up. Am I about on track here or does this sound generous.

Where is the line drawn for what a non-licensed rep can do? For example, if you hire a telemarketer, can they give quotes? Obviously they can't write the apps, but can they ask about the person's existing plan?

 

[Medigap Bill]

My suggestion would be to hire twice as many as you want to keep. I think the 80/20 rule will apply across the board. The ones that stay, the ones that close, the ones that close the most. Your initial pay scale seems similar to what I have heard out there. I would try to keep it as simple as possible. When you find a rock star you will figure out a way to keep him/her interested.

What method will you use to generate enough leads to keep them busy?