PajamaMan Doing MedSups by Phone?

[HealthGuy]

WTF? What do you guys, med sup veterans especially, think of this? Please don't hold back...

Is this a viable business model?

PajamaMan Introduces Medicare Supplements & Final Expense by Phone

 

[Crabcake Johnny]

Andy Ross did great with transparency regarding his individual health production. The Pajama-Man - Show Me the Money

I can only assume that if he's going to promote selling supps online he'll offer that same level of transparency.

 

[YouGotMyMoney]

I don't have an opinion one way or another , but the contact name at the bottom is Christopher Westfall....aka....DaytonaGuy.

 

[Crabcake Johnny]

MyUnlimitedLeads.com - Referrals for Insurance Agents - MyUnlimitedLeads.com

 

[sman]

The majority of my Med Supp sells are done over the phone and through the mail. I may see one out of every twenty. So yes, it's a viable business model. Would I pay $5k to learn it? Absolutely not.

WTF? What do you guys, med sup veterans especially, think of this? Please don't hold back...

Is this a viable business model?

PajamaMan Introduces Medicare Supplements & Final Expense by Phone

 

[Crabcake Johnny]

I'm more of a fan of the entire breakdown. That depends on what's being promoted.

If, for example, "earn six figures selling supps online" is being promoted I'd want to know the math details.

Internet leads? How many at what cost from what sources? Cold calling? How many dials to gain a client?

We have that math for health. Sell 1 out of 20 internet leads with an average volume of $2,200 and (until reform) a 20% comp.

Easy math there - at $7/lead it's $140 to gain a client to return $440 and net $300. Want to earn $2K a week? Sure - that's 6.5 deals per week and $910 per week in lead charges.

Again - would like to see similar math for supps.

 

[YouGotMyMoney]

I'm more of a fan of the entire breakdown. That depends on what's being promoted.

If, for example, "earn six figures selling supps online" is being promoted I'd want to know the math details.

Internet leads? How many at what cost from what sources? Cold calling? How many dials to gain a client?

We have that math for health. Sell 1 out of 20 internet leads with an average volume of $2,200 and (until reform) a 20% comp.

Easy math there - at $7/lead it's $140 to gain a client to return $440 and net $300. Want to earn $2K a week? Sure - that's 6.5 deals per week and $910 per week in lead charges.

Again - would like to see similar math for supps.

Close 1:20 medicare leads and your ass is grass.

If the avg med supp prem is 1500 a year, and you sell MOO for 15%, you're fyc is $270........cash flows issues right off the rip.

Even at 21% for Family Life in NC, your fyc is 315.....still not gonna pan out for 90% of agents out there......and don't forget if you only have a 9 month advance.....that $270 is a $202 advance.......

 

[Crabcake Johnny]

This is why I'm digging into "SELL SUPPS ONLINE!" A lot of agents are getting this pitch lately.

If an advanced comp for a supp averages $300 and an average supp lead is $7 you'd have to close 1 out of 7 to realize a decent ROI.

Do I believe anyone's closing 1 out of 7 internet med supp leads? Ummm...no.

Six figures selling supps online would mean 6.5 issued apps per week. Even if an agent could realize that with a $50 per app acquisition cost it's still $325 a week in lead costs.

There's a lot being pitched. Let's talk about what's not being talked about.

 

[HealthGuy]

John: This is a good initial analysis: Anybody else want to get into this fray?

 

[sman]

For a limited time (about 6 months back in 2006 I believe) I had a lead source where I was closing 4 out of 10. They were internet leads at $13 a pop. They were exclusive to me from that source. Of course, I don't believe ANY lead is exclusive these days. The people from whom I was getting these leads started tweaking how they were getting them and it quickly dropped to closing 1 out of 10. While still profitable, it just wasn't worth it any longer. I haven't purchased leads since with one short exception with NetQuote. I don't think I need to say anything about NetQuote.

All of my Med Supp business is referral now. I get maybe 5-10 per month and pick up a few just from talking to people. From November through December I'll probably get 20-30 referrals per month (that's about what I got last year).

This is why I'm digging into "SELL SUPPS ONLINE!" A lot of agents are getting this pitch lately.

If an advanced comp for a supp averages $300 and an average supp lead is $7 you'd have to close 1 out of 7 to realize a decent ROI.

Do I believe anyone's closing 1 out of 7 internet med supp leads? Ummm...no.

Six figures selling supps online would mean 6.5 issued apps per week. Even if an agent could realize that with a $50 per app acquisition cost it's still $325 a week in lead costs.

There's a lot being pitched. Let's talk about what's not being talked about.