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Reply to Supp Number$ Getting Started     
Old 08-01-2017, 08:35 PM   #1
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entrep1776 on Supp Number$ Getting Started
 
Join Date: Dec 2016
Posts:217
State: entrep1776 is an Insurance Agent from
Supp Number$ Getting Started 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.

------------------------------------
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Last edited by entrep1776; 08-02-2017 at 11:08 AM.
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Old 08-01-2017, 10:13 PM   #2
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sshafran on Supp Number$ Getting Started
 
Join Date: Dec 2009
Posts:1,078
State: sshafran is an Insurance Agent from Ohio
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Supp Number$ Getting Started Re: Supp Number$ Getting Started
Originally Posted by entrep1776 View Post
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.
From one who likes to over-analyze to another - don't go crazy trying to figure out everything before you do it. So many variables...

You'll have AEP spikes and maybe even a few weeks of no apps.

Are you planning on targeting T65 with your DM leads or a different segment of the market?

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  Reply With Quote to Supp Number$ Getting Started
Old 08-02-2017, 06:06 AM   #3
Guru
Newby on Supp Number$ Getting Started
 
Join Date: Apr 2007
Posts:13,306
State: Newby is an Insurance Agent from Indiana
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Supp Number$ Getting Started Re: Supp Number$ Getting Started
Originally Posted by entrep1776 View Post
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.
A= You are thinking too much. Just go sell all you can sell. Quit guessing what's going to happen.

B= Your lead cost will be much lower than that. $30 would be a horrible response on Med Sup leads. They respond much better than that. Should be in the area of $20 per lead.

------------------------------------
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fexcontracting is about helping independent FE agents get good contracts with the top quality companies and get them up to speed fast with product knowledge and a plan to succeed.
  Reply With Quote to Supp Number$ Getting Started
Old 08-02-2017, 08:53 AM   #4
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GreenSky on Supp Number$ Getting Started
 
Join Date: Mar 2007
Posts:14,709
State: GreenSky is an Insurance Agent from Nevada
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Supp Number$ Getting Started Re: Supp Number$ Getting Started
Originally Posted by Newby View Post
A= You are thinking too much. Just go sell all you can sell. Quit guessing what's going to happen.

B= Your lead cost will be much lower than that. $30 would be a horrible response on Med Sup leads. They respond much better than that. Should be in the area of $20 per lead.
I agree with the overthinking.

I disagree with the cost of a lead. I stopped doing direct mail when the response dropped to about 1%. But even if using 1.5%, at a $450/K mailing, each lead is indeed $30.

Unless the response rate is over 2%, the lead cost will certainly be over $20 each.

Rick

------------------------------------
Now offering Washington National contracts. Great cancer plans!
YIO is now available at http://yourinsuranceoffice.net/.

insure(at)greenskyins(dot)com
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Old 08-02-2017, 08:58 AM   #5
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Bevo on Supp Number$ Getting Started
 
Join Date: Jul 2010
Posts:634
State: Bevo is an Insurance Agent from Texas
Supp Number$ Getting Started Re: Supp Number$ Getting Started
It's PRE-AEP.

Just Sell. Then Sell more.

Med Supps going away you say? Convert your worry time into selling time.

If you're over-thinking this much what's going to happen at game time?


P.S. - Don't spell like a teenager texting her BFF. Have some respect.
------------------------------------
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Old 08-02-2017, 09:11 AM   #6
New Member
 
Join Date: Apr 2017
Posts:8
State: TMerwin is an Insurance Agent from
Supp Number$ Getting Started Re: Supp Number$ Getting Started
Cross-market final expense to every single med supp you close and that can help keep your pockets full first year while you're building your med supp renewals for the latter years.

Alternatively, why not flip your sales model to phone sales and see more people for less money?
------------------------------------
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Old 08-02-2017, 10:26 AM   #7
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Chazm on Supp Number$ Getting Started
 
Join Date: Mar 2009
Posts:3,484
State: Chazm is an Insurance Agent from Florida
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Supp Number$ Getting Started Re: Supp Number$ Getting Started
First off 15% close ratio is not conservative at all.

Secondly if I were to pay $30 per Dm lead I would be out of biz. Think more $10-12

Edit: I'm referring to T65's in FL. Some months I'm around $8
------------------------------------
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Old 08-02-2017, 11:29 AM   #8
Guru
Todd King on Supp Number$ Getting Started
 
Join Date: Jul 2008
Posts:5,942
State: Todd King is an Insurance Agent from Virginia
Todd King is a member of 5000 posts Super VIP club
Supp Number$ Getting Started Re: Medicare supplements - rough business plan
Originally Posted by entrep1776 View Post
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.
I'm going to agree with everyone about overthinking this. One thing you're leaving out of your equations is cross-selling FE. If you do it correctly, your FE sales should be enough to buy your leads.

------------------------------------
Todd R. King
800-590-7207
540-400-6275
888-748-3978 Fax
TRKingIM.com

Do the right thing because it's simply the right thing to do.

Finalexpense101.com
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Old 08-02-2017, 03:24 PM   #9
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sshafran on Supp Number$ Getting Started
 
Join Date: Dec 2009
Posts:1,078
State: sshafran is an Insurance Agent from Ohio
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Supp Number$ Getting Started Re: Supp Number$ Getting Started
Originally Posted by Chazm View Post
Some months I'm around $8
That's insane. Seriously - that's awesome.
------------------------------------
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Old 08-02-2017, 04:57 PM   #10
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Chazm on Supp Number$ Getting Started
 
Join Date: Mar 2009
Posts:3,484
State: Chazm is an Insurance Agent from Florida
Chazm is a member of 1000 posts VIP club
Supp Number$ Getting Started Re: Supp Number$ Getting Started
Originally Posted by sshafran View Post
That's insane. Seriously - that's awesome.
Really depends on the month. The summer I'm only getting 2.5% so that number gets around $18/per lead but with my discount, it drops to $14/lead.

Beginning of the year for the first 4 months it's $8.65/lead and with discount, it dropped to $7.15/lead this year.

Before I get bombarded with PM's, no I don't sell leads. Go to any lead company like Target Leads, Lead Concepts, Need a lead and they are pretty much all the same. The farther you mail out the better response you get. I use the generic "your open enrollment" letter
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