I noted in a former post about GR advancing weekly and people thought I was mistaken. I'm through Anthony Agoglia and they do indeed advance Golden Rule weekly just like Assurant. If you want his contact info just email me.
So let's talk about advances since there's two camps; advance vs no advance. With either system if the client drops off the books you don't get paid. With either system if you have a rather large amount of cancellations you'll be quitting - and quickly. And actually, if you're that worried about a lot of clients canceling, or have experienced clients canceling this is not the career for you. Out of 500,000 in volume you should have 1, maybe 2 cancellations per year.
That being said there's a saying in Vegas "Always play with the houses money." And actually, in business it's the same - never play with your own money. If you have $300,000 to your name, and a business costs $250,000 what do you do? Take a loan for $250,000.
However, some insurance companies are asking you to do just that - use all of your own money. So somehow, some way you're supposed to pay all your bills and all your marketing expenses for almost a solid year? If you open a business with $200,000 of your own cash you at least (hopefully) have immediate cash flow from the business.
Just imagine opening a restaurant. Then you pack the place for a month and generate $60,000 in sales. Visa calls: "Listen, we know you earned $60,000 but these people put it on credit and it takes them years to pay us back. So obviously we can't advance you the whole $60K when we haven't even got a payment yet. You'll get $4,000 this month." Right - and you'd go BK.
When I sold cars I got finance reserve - 10% and it was a significant portion of my pay. If the buy rate is 5% and we sold the loan for 8% we held 3 points and got commissioned by the finance company. But wait...the client hasn't made a payment yet! And it's a 5 year loan! The client could default and cost the finance company thousands. The client could BK. In any case, we got the commish the next week.
How do mortgage brokers get paid? As-earned over 30 years? Lol. Just look at how hard the mortgage companies are getting slammed now over ARM loans. Yet all those brokers who sold those loans have been paid. If the finance company has to foreclose, loses $50,000 at auction and the client BK's they're screwed. But the COMPANY takes that risk!
Don't listen to these agents who probably have working spouses or happened to come into this biz with a lot of cash talking about "go as-earned." I've never heard worse advice. If I could get advanced hourly I would. I'm a salesman and proud of it - a deal gets approved? Pay me!
The bottom line is the advance allows you to pay your bills and market. It also makes this job fun - unless you think it's fun to close a deal, wait 3 months then get $22.35. No - it's exciting to get $2,600 in a week.
Don't let anyone tie ethics to advances. Again, there's not a sales job in this country where you sell and close a deal, and wait over the course of the next 12 months to get paid. Not one. The sales industry would collapse. I have no idea how ethics are tied to me selling GR and getting paid next week, or me selling GR and waiting 12 months.
Friday, November 9, 2007
Thursday, November 8, 2007
Simply unbelievable
Out of all the business I write I have about two or three clients cancel a year. Because of the methods I use to sign up clients, there's really no reason for a cancellation - especially in the 1st year. One of the reasons my closing percentage isn't that great is because I actually go over case scenarios to show people how the plan will perform - a lot of "no takers" after that since most people are spoiled with group and want everything at a copay.
If you've been in this biz a while, you learn to go into detail about the plan since it's inevitable that months later you get the "I just got a bill" phone call. I never get those calls. My clients know how the plan works.
Got a nasty call just now - lady I signed up on Aetna's PPO 30 a few months back launching into a speech about $40 copays for seeing a specialist - which of course she knew about, but that wasn't the gripe. The gripe was simply the cost. She found it, and I quote, "absurd that I have to pay a high premium and also pay $40 to see a doctor."
There was no appeasing her. She was canceling to find a plan with a $20 or less copay. I don't even have one available - $35 copay for Assurant and GR. $20 for Coventry but she's on meds so that's a decline - no drug coverage anyway on the Coventry 2500. She's a Blue Cross decline - wouldn't matter since Personal Comp doesn't have copays for sick visits.
So after I go over all of this we get to "we'll I'll just have to shop around on my own I guess." All I could say was "let me know how it turns out." I reminded her never to cancel coverage until she gets a new plan. Her reply? "I already canceled Aetna."
If you've been in this biz a while, you learn to go into detail about the plan since it's inevitable that months later you get the "I just got a bill" phone call. I never get those calls. My clients know how the plan works.
Got a nasty call just now - lady I signed up on Aetna's PPO 30 a few months back launching into a speech about $40 copays for seeing a specialist - which of course she knew about, but that wasn't the gripe. The gripe was simply the cost. She found it, and I quote, "absurd that I have to pay a high premium and also pay $40 to see a doctor."
There was no appeasing her. She was canceling to find a plan with a $20 or less copay. I don't even have one available - $35 copay for Assurant and GR. $20 for Coventry but she's on meds so that's a decline - no drug coverage anyway on the Coventry 2500. She's a Blue Cross decline - wouldn't matter since Personal Comp doesn't have copays for sick visits.
So after I go over all of this we get to "we'll I'll just have to shop around on my own I guess." All I could say was "let me know how it turns out." I reminded her never to cancel coverage until she gets a new plan. Her reply? "I already canceled Aetna."
Wednesday, November 7, 2007
Both marketers at it today!
The Reader's Digest version is Lisa's moving from Colorado to MD and just moved into her place yesterday, but won't have phone/cable until early next week - earliest Verizon can get out there. Jenn warned me yesterday that her son is sick and she'd try to work today. So basically, I expected nothing today.
However, the power of employee status with benefits comes through again. Lisa drove to her father's house just to work - got 8 leads. Jenn ended up taking her son to the doctor, however still snuck in a hour of calls - 4 leads. Extremely impressive. This is quality. I've never experienced this kind of consistency before and it's having a dramatic impact on my pay.
It can't be this easy. If it's this easy I'll kick myself. Offer a good pay package, W2 'em, offer health, and hire the best. I'm not saying there won't be any BS, just far, far less.
But if this actually works I'll be stunned. I simply want 30 leads a day, two deals a day and cross-sell a quarter of them life. I won't even run the math - it's crazy.
Telemarketing script
Warning; long one:
The emails I've received lately all about telemarketing scripts - most people with lacking results. All of the people who are getting their ass kicked, or their marketers are getting their ass kicked all have something in common - they are trying to qualify.
Listen, imagine you're running any retail business. What's your job? Generating traffic. But don't get confused with operating something like a restaurant where almost everyone who walks in is a client and operating a clothing store where most people are just looking. You're the clothing store owner.
Would you pay someone to stand at the entrance of your clothing store and qualify people? Good luck with that: "Hi, welcome to Ann Taylor. I'd just like to ask you a few credit questions before you come in the store."
Yes....they are gonna come in, try on clothes, waste your staff's time, buy stuff and return it the next day. However, do you give a crap if at the end of the day you made $2,000 net? Say you have 200 people come through your store each day and only 30 buy. Are you really looking for ways to stop the other 170 from coming in? No...you're looking for ways to get 400 people through.
Imagine the VP's at Sears at the board table: "Listen, we have on average 10% of all store traffic purchase. Let's put our heads together and figure out a system to reduce our traffic by 80% and still keep all the buyers."
And we come to insurance agents who are racking their brains to find ways to not deal with "tire kickers" or "unqualified leads." All leads suck, you just need a lot of "sucky" leads to make great money.
I can see some of us actually trying to run that clothing store: "Hi, I'm the owner and I see you've been with one of my sales associates for 20 minutes now. Are you planning on buying something, because this is looking like a waste of time."
The hunt for the "qualified lead" is like the hunt for the Loch Ness Monster. Out of all the agents I know who are actually making money all of them deal with high volumes of leads, be in internet or telemarketed. I heavily prefer telemarketed since although they suck, they are at least exclusive and small biz owners. I also can take my time with them and not worry about another agent, a month behind on their car payment, slamming them into a lacking plan.
I have my marketers simply ask owners if they want health insurance information emailed to 'em. Do I care if one is diabetic and just had a stroke? No. That's a 20 second phone call for me, at least he has my info, knows my business exists and I might get a referral.
The flawed mentality is this: "Hey, if I close 1 out of 15 maybe there's a way where I can just get 5 and close 1 out of 5." Stop looking to do less work. Stop getting frustrated when you call a prospect and they say "I just wanted the info, thanks." Stop pestering people who don't want to buy.
I'll include myself in this bust; I've never seen, as a group, a lazier bunch of people than insurance salesmen. Nowadays we want to pick up the phone, sell in our t-shirt and jeans and basically have no hassles. If we put in just half the effort of other sales professions we'd make $200,000 a year - easily.
You think you're getting stroked when talking to an unqualified lead? Sell cars. Take someone on three test drives, spend 4 hours with them then find out they have a 540 beacon and are $10,000 flipped in the trade. But does it matter if you sell 5 cars that week and make $1,500?
We sit in our offices - home or physical, and incessantly look for ways to make more and work less. I was on the phone with someone yesterday who said he wrote over a million last year using webinars. I made him laugh; "Can you make my next house payment for me?" Although he laughed, I said I was serious. He replied "of course not." I said "Good, because I've never written a mill. writing online so I meet with my clients." I really don't think my family cares how I write business - just that I write it.
And yet we fall for this don't we? We hear of these people making "thousands" a week and say "well I'm a sucker if I don't do the same thing." Right...but you try it and get your ass handed to you. Then you make $240 for the week and do what - tell your spouse "but there's this guy honey, he writes a million a year over the phone."
The emails I've received lately all about telemarketing scripts - most people with lacking results. All of the people who are getting their ass kicked, or their marketers are getting their ass kicked all have something in common - they are trying to qualify.
Listen, imagine you're running any retail business. What's your job? Generating traffic. But don't get confused with operating something like a restaurant where almost everyone who walks in is a client and operating a clothing store where most people are just looking. You're the clothing store owner.
Would you pay someone to stand at the entrance of your clothing store and qualify people? Good luck with that: "Hi, welcome to Ann Taylor. I'd just like to ask you a few credit questions before you come in the store."
Yes....they are gonna come in, try on clothes, waste your staff's time, buy stuff and return it the next day. However, do you give a crap if at the end of the day you made $2,000 net? Say you have 200 people come through your store each day and only 30 buy. Are you really looking for ways to stop the other 170 from coming in? No...you're looking for ways to get 400 people through.
Imagine the VP's at Sears at the board table: "Listen, we have on average 10% of all store traffic purchase. Let's put our heads together and figure out a system to reduce our traffic by 80% and still keep all the buyers."
And we come to insurance agents who are racking their brains to find ways to not deal with "tire kickers" or "unqualified leads." All leads suck, you just need a lot of "sucky" leads to make great money.
I can see some of us actually trying to run that clothing store: "Hi, I'm the owner and I see you've been with one of my sales associates for 20 minutes now. Are you planning on buying something, because this is looking like a waste of time."
The hunt for the "qualified lead" is like the hunt for the Loch Ness Monster. Out of all the agents I know who are actually making money all of them deal with high volumes of leads, be in internet or telemarketed. I heavily prefer telemarketed since although they suck, they are at least exclusive and small biz owners. I also can take my time with them and not worry about another agent, a month behind on their car payment, slamming them into a lacking plan.
I have my marketers simply ask owners if they want health insurance information emailed to 'em. Do I care if one is diabetic and just had a stroke? No. That's a 20 second phone call for me, at least he has my info, knows my business exists and I might get a referral.
The flawed mentality is this: "Hey, if I close 1 out of 15 maybe there's a way where I can just get 5 and close 1 out of 5." Stop looking to do less work. Stop getting frustrated when you call a prospect and they say "I just wanted the info, thanks." Stop pestering people who don't want to buy.
I'll include myself in this bust; I've never seen, as a group, a lazier bunch of people than insurance salesmen. Nowadays we want to pick up the phone, sell in our t-shirt and jeans and basically have no hassles. If we put in just half the effort of other sales professions we'd make $200,000 a year - easily.
You think you're getting stroked when talking to an unqualified lead? Sell cars. Take someone on three test drives, spend 4 hours with them then find out they have a 540 beacon and are $10,000 flipped in the trade. But does it matter if you sell 5 cars that week and make $1,500?
We sit in our offices - home or physical, and incessantly look for ways to make more and work less. I was on the phone with someone yesterday who said he wrote over a million last year using webinars. I made him laugh; "Can you make my next house payment for me?" Although he laughed, I said I was serious. He replied "of course not." I said "Good, because I've never written a mill. writing online so I meet with my clients." I really don't think my family cares how I write business - just that I write it.
And yet we fall for this don't we? We hear of these people making "thousands" a week and say "well I'm a sucker if I don't do the same thing." Right...but you try it and get your ass handed to you. Then you make $240 for the week and do what - tell your spouse "but there's this guy honey, he writes a million a year over the phone."
Tuesday, November 6, 2007
Life insurance idiocy and consistent leads
Well, I made a committment to cross sell life so I did an app. Actually, pretty easy cross-sell if you're committed to it. I've just never been committed. This was an extra $400 commish for basically doing nothing. Punched into my status - open requirment for verfiying mode of payment. What? Payment is listed to the left - credit card monthy.
Called the company and a less than pleasant lady - told me "obviously" it's a requirment because I forgot to put the mode of payment. She pulled up the app - goes "ooops." Then she says she has no idea why that's a requirement and fixed it. Welcome to life insurance. I am indeed committed to cross-selling life now - I think 1 out of 4 health apps should be a life deal.
On the lead front, another great day from Jenn - 9 leads. Making the marketers employees is a night and day differce. I have had telemarketers working for me since last summer and results were always all over the map. I've never experiened this kind of consistency. When Lisa's back up and running next week it should be insane.
Kudos to Aetna
Going through my email this morning I found my Aetna compensation statement. I was confused since Aetna doesn't pay until next week and a bit dismayed that it was only for $11.
So I called and they told me it was a client I just signed up who made a late payment and they wanted to make sure I got the commish as soon as the client paid. Wow - I'm geniunely impressed. What a 180 for them since when I started writing in '05 commissions were a nightmare. They now seem to be very broker focused. It's a shame they jacked the MD rate; family rate, 40 years old, $2,500 ded? $616. Ouch.
So I called and they told me it was a client I just signed up who made a late payment and they wanted to make sure I got the commish as soon as the client paid. Wow - I'm geniunely impressed. What a 180 for them since when I started writing in '05 commissions were a nightmare. They now seem to be very broker focused. It's a shame they jacked the MD rate; family rate, 40 years old, $2,500 ded? $616. Ouch.
GR approves my deal!
GR finally approved my case. Fantastic....and slow. I take some hits for not selling more GR, I guess the theory is because of the Assurant weekly advance. Well, I get a GR weekly advance. In fact, one of my agent friends gets paid on submit for GR cases and still doesn't give them much business. One of my very good friends in CT who writes a LOT of business is struggling to give GR 50 cases a year to keep his broker contract.
The truth is I'd like nothing better than to write a lot more GR cases - they kill Assurant's rates. The problem is GR doesn't play nice with people who have on-going conditions - especially those on meds. And it's not rider vs. no rider. Lately they've flat out declined a few cases of mine. I have no problem with riders on recovered conditions although I've not a huge fan of ridering on-going conditions. But heck, I'd take a rider in a lot of cases if they'd just approve the deal.
I have other tiny issues with GR:
1) I hate the "80/20 to $10,000" in the brochure. Unless explained, some prospects think they need to reach $10,000 before GR pays 100%. While on sit-downs I always have to explain it. I have no clue why they don't just state the $2,000 OOP like other carriers.
2) Going through the brochure coverage is listed at "80%" on Copay Select again leading people to believe they only have 80% coverage - then I explain that's only until they hit the OOP. I would like it better if they just stated these items were "covered."
3) Online E-sig - where clients have to type their name in over and over and over and over.
4) Online app - bank address. I always have to hop onto Google since no one knows the address of their bank. I know this info isn't necessary to draft since no other company requires it.
5) Online app - inablity to put in detailed pre-ex information. Assurant's online EASE app allows the agent to enter extremely detailed pre-ex info necessary for proper underwriting.
6) No wet signature. I love Assurant's offer to accept/attest. For those who don't know, Assurant clients must review the typed app when they receive the policy, sign and return a document stating it's correct. This is a HUGE CYA move.
7) Inability to get riders signed when the app's approved. With Assurant I can email the counter off to my client which I think is imporant. GR just sticks the rider in the policy.
8) The software is awkward and nonfunctional. I can't email proposals to clients and do not like the way rates print out. I would think with the finaincal power of UHC they could have incredible software.
These or course are just nit-picky and have nothing to do with my recommendation or the sale. The truth is if GR dealt better with clients who are on meds they'd be 80% of my business. I do not work with internet leads where the average client is under 35 and healthy. That's a GR feeding frenzy. I work with 45+ biz owners who have to run to their medicine cabinet to read off their meds to me.
My suggestion is to have a flexible drug deductible. $100 is nice.....if you're not on meds. I think they should allow a $500 drug deductible option and deal better with people on medication.
The truth is I'd like nothing better than to write a lot more GR cases - they kill Assurant's rates. The problem is GR doesn't play nice with people who have on-going conditions - especially those on meds. And it's not rider vs. no rider. Lately they've flat out declined a few cases of mine. I have no problem with riders on recovered conditions although I've not a huge fan of ridering on-going conditions. But heck, I'd take a rider in a lot of cases if they'd just approve the deal.
I have other tiny issues with GR:
1) I hate the "80/20 to $10,000" in the brochure. Unless explained, some prospects think they need to reach $10,000 before GR pays 100%. While on sit-downs I always have to explain it. I have no clue why they don't just state the $2,000 OOP like other carriers.
2) Going through the brochure coverage is listed at "80%" on Copay Select again leading people to believe they only have 80% coverage - then I explain that's only until they hit the OOP. I would like it better if they just stated these items were "covered."
3) Online E-sig - where clients have to type their name in over and over and over and over.
4) Online app - bank address. I always have to hop onto Google since no one knows the address of their bank. I know this info isn't necessary to draft since no other company requires it.
5) Online app - inablity to put in detailed pre-ex information. Assurant's online EASE app allows the agent to enter extremely detailed pre-ex info necessary for proper underwriting.
6) No wet signature. I love Assurant's offer to accept/attest. For those who don't know, Assurant clients must review the typed app when they receive the policy, sign and return a document stating it's correct. This is a HUGE CYA move.
7) Inability to get riders signed when the app's approved. With Assurant I can email the counter off to my client which I think is imporant. GR just sticks the rider in the policy.
8) The software is awkward and nonfunctional. I can't email proposals to clients and do not like the way rates print out. I would think with the finaincal power of UHC they could have incredible software.
These or course are just nit-picky and have nothing to do with my recommendation or the sale. The truth is if GR dealt better with clients who are on meds they'd be 80% of my business. I do not work with internet leads where the average client is under 35 and healthy. That's a GR feeding frenzy. I work with 45+ biz owners who have to run to their medicine cabinet to read off their meds to me.
My suggestion is to have a flexible drug deductible. $100 is nice.....if you're not on meds. I think they should allow a $500 drug deductible option and deal better with people on medication.
Monday, November 5, 2007
Another marketer
Ok, it's time for a second marketer and I had it narrowed down to three people, but Jennifer ended up winning out. Great experience - used to set home-improvement appointments - fantastic attitude, single mom who needs the job and bene's. She did her 1st day today and got 6 leads in 2 hrs. Very respectable. After getting off the phone with her a little bit ago she's very focused on quality leads.
Lisa's moving now - getting set up by mid-week so she'll be making calls by Thursday. Lisa wants to give me 30 hrs, Jen wants to give me 20. I think that's wishful thinking on Lisa's part but she's good for 20. Fourty hours a week even at 4 leads per hour is 160 a week or 10 deals -which is my goal; run 2 appt's a day, close both and back by dinner (I don't run night appt's.)
This will all actually be very manageable. Calling 30 leads a day is very easy since I'm only looking for people who want to use my services. I let everyone else off the hook. I don't have much follow up. With my system they either want my help or they don't. There's not a lot of middle ground with me.
That's doesn't mean I don't have some call-backs. What it does mean is I don't chase people down with little to no interest. That'll drive you up the wall. Good app't setting day - shold have two GR deals going on Wednesday. Amazing...finally run into biz owners who aren't on medication.
Lisa's moving now - getting set up by mid-week so she'll be making calls by Thursday. Lisa wants to give me 30 hrs, Jen wants to give me 20. I think that's wishful thinking on Lisa's part but she's good for 20. Fourty hours a week even at 4 leads per hour is 160 a week or 10 deals -which is my goal; run 2 appt's a day, close both and back by dinner (I don't run night appt's.)
This will all actually be very manageable. Calling 30 leads a day is very easy since I'm only looking for people who want to use my services. I let everyone else off the hook. I don't have much follow up. With my system they either want my help or they don't. There's not a lot of middle ground with me.
That's doesn't mean I don't have some call-backs. What it does mean is I don't chase people down with little to no interest. That'll drive you up the wall. Good app't setting day - shold have two GR deals going on Wednesday. Amazing...finally run into biz owners who aren't on medication.
Quality spam?
Got spammed yet again for health insurance, yet I was pleasantly surprised when I saw that "agent will contact you" is prominently displayed. Obviously this is an attempt to reduce the very high level of agent complaints against affiliates. Regardless of how a lead is generated, if the prospect knows and expects an agent to call, that's a decent lead.
Did a domain search on the owner - Howard Knaster who seems to be in the lead biz. While doing some research I pulled this up - hilarious. This is Netquote being accused by Mostchoice of clicking on their PPC ads to rack up charges: casedocs.justia.com/colorado/codce/1:2007cv00630/101284/62/0.pdf
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