- 283
Medicare supplements - rough business plan
Working on rough conservative business plan for using DM F2F to sell med supps in boonies. I've heard about 10% of new agents are around sfter two years in insurance.
20 DM leads/week
$30/ lead
15% close ratio(very conservative)
10% lapse ratio
$250/policy commission
20 leads 15% close = 3 policies x $250 = $750 - 10% = $675 income.
Lead cost =$30*20=$600
Vehicle mileage cost = $0.15/mile for 2005 Prius. Maybe 20 miles/lead = 400 miles = $60.
$675-600-60=$15.
As long as government doesn't end med supps.
be angrified if gov ends med supps. Makes me almost want to consider FE. Year 2 should be $675*4=$2,700/month without lead cost & mileage. With year 6 looking something like $2,700*6=$16,200/month*12=$194, 400 annually. I'll probably have more policies drop off but my closing ratio should go higher than 15%.
.............
Way too much detail right now buttttt 2024 taxes on $194,400:
self-employment tax of $20,979 comprised of $15,773 Social Security tax and $5,206 Medicare tax. 4.95% IL state grrr = 9622.(0% in FL btw) Fed is $44501. Total tax = $75102. $119,338 left.
Have to save about 39% to pay for taxes. unless i move to FL then only 34%.
..............
How much will companies advance? How much interest do they charge on advance? As earned, I would need to spend $2,400/month oop.*12=$28, 800?
I'm hoping my numbers aren't way off. Appreciate feedback/input.
Seems like 1st year is gonna be RUFFFFFF! Numbers I'm showing I'll have $60/month left over.
Working on rough conservative business plan for using DM F2F to sell med supps in boonies. I've heard about 10% of new agents are around sfter two years in insurance.
20 DM leads/week
$30/ lead
15% close ratio(very conservative)
10% lapse ratio
$250/policy commission
20 leads 15% close = 3 policies x $250 = $750 - 10% = $675 income.
Lead cost =$30*20=$600
Vehicle mileage cost = $0.15/mile for 2005 Prius. Maybe 20 miles/lead = 400 miles = $60.
$675-600-60=$15.
As long as government doesn't end med supps.
be angrified if gov ends med supps. Makes me almost want to consider FE. Year 2 should be $675*4=$2,700/month without lead cost & mileage. With year 6 looking something like $2,700*6=$16,200/month*12=$194, 400 annually. I'll probably have more policies drop off but my closing ratio should go higher than 15%.
.............
Way too much detail right now buttttt 2024 taxes on $194,400:
self-employment tax of $20,979 comprised of $15,773 Social Security tax and $5,206 Medicare tax. 4.95% IL state grrr = 9622.(0% in FL btw) Fed is $44501. Total tax = $75102. $119,338 left.
Have to save about 39% to pay for taxes. unless i move to FL then only 34%.
..............
How much will companies advance? How much interest do they charge on advance? As earned, I would need to spend $2,400/month oop.*12=$28, 800?
I'm hoping my numbers aren't way off. Appreciate feedback/input.
Seems like 1st year is gonna be RUFFFFFF! Numbers I'm showing I'll have $60/month left over.
Last edited: