So far I've received over 20 resumes from the workforce exchange. Not too shabby, but I'm running court records and workers comp searches on all of 'em. I've spoken to around 8 applicants today and it seems like there will be a few gems in there.
Honestly, I'm not overly thrilled to hire telemarketers again. It's a pain in the ass. I've been doing just fine generating my own local business but there's no doubt that I need at least an extra grand a week to launch my plans so I need to suck it up.
If you're hiring telemarketers, you will go through many of them before you find good ones. Some will be lazy - only make 20 or so dials per hour then gripe that they're not getting leads. Others are overly-aggressive and generate junk. They'll take info from secretaries, you'll follow up with the owner who doesn't know what's going on and doesn't want you calling.
That all being said, you can cut down on the BS with a signed agreement and some rules:
1) The person you spoke with must by the person requesting the quotes. Under no circumstances can a secretary request quotes on the owner's behalf.
2) The prospect must agree that an agent will be following up with them. If the prospect does not want an agent to follow up that will not count as a qualified lead.
3) All leads must have an email address for follow-ups. If someone is unwilling to give you their email then it's not a lead.
4) All prospects must understand that the quotes are for individual/family plans - not group plans.
I would not suggest having marketers attempt to qualify. I can put deals together where a marketer wouldn't stand a chance. The only think I want marketers doing is simply getting enough interest generated where they want information and an agent to follow up.
I also pay hourly and the pay goes up with the more leads they generate. If you want to pay more or give bonuses then tie them to the number of leads. This way, they have incentive to dial more numbers per hour. They still have to adhere to the definition of a lead in order to get paid so it's not like they can throw junk at you.
I would stay away from giving bonuses based on closing deals. First of all, that could be construed as commission sharing, which is likely illegal in your state if they're non-licensed. Secondly, you now have to report to them every week as to how many deals you closed. To be frank, it's none of their business how many sales I get.
Friday, October 12, 2007
Thursday, October 11, 2007
Getting creative
Ok, I've been assessing the stale mate; making enough money to live, not making the extra amount needed to accomplish my goals. Obviously I need more leads. Without more leads I can dream all I want about a store-front location and a local ad campaign.
I only like working exclusive leads from small biz owners. That's telemarketing. I've done well with telemarked leads for over a year now. I pay $12/hr, they generate 3 leads per hour for $4 per lead. Most are junk so I close about 1 out of 20. Fine - it costs me $80 to get a client.
Now we hit the real problem - volume. If I make $2,000 in a week my time is worth $50 a hour. Paying a marketer is $12/hr so calling 2 or 3 hours per day is not the best plan. I'd also need no less than 60 leads a week to pump up my production. At 3 leads an hour that's 20 hours a week. I do not have 20 hours a week to make calls.
Back to hiring and past problems. Telemarketers don't work. Most don't work at all - you hire and train them and they never call. Others will make 20 or so calls per hour (which is pathetic) then tell you they get zero to one lead. Good ones pound out leads for a while, then evaporate.
I will never hire a telemarketing company. A lead is a name and a number - period. All I'm looking for is owners with enough interest to at least want information. Having marketers attempt to qualify prospects is a mistake and doesn't work. I'm not gonna pay $15 per lead for junk when I can get junk for $4 a lead.
So I had an idea - enroll in the Maryland Workforce Exchange. Employers get to list a postion for no cost and most applicants are welfare, disabled, unemployed (receiving benefits) or are on some state program.
I'd like people who need and appreciate the money. For the right person at-home telemarketing for $12/hr is a dream come true. I'd imagine it would be fantastic for someone who's disabled. If I hire a qualified person I'd also receive a work opportunity tax credit.
A lot of my former good telemarketers simply didn't need the money. They were at-home moms with working husbands. It was spare cash for them and after making calls got a tad boring they quit. I'd rather offer the job to people who really need the money. I don't have a downside here - if someone doesn't work they don't get paid.
Let's see how this plays out. By the way, this will be in addition to continuing with my Assurant LEGS lead program, local chamber events and everything else I'm doing.
Wednesday, October 10, 2007
Let's talk about my shared lead program
This lead program I'm in is through Assurant called LEGS. I receive shared leads in real time and the leads are managed through my agent site. I can sell any company I want and it's $8 a pop but when I sell Assurant they give me free leads. So as long as I'm always selling a portion of Assurant basically the leads are free.
Since I abhor shared leads so much and my income is from local small biz owners I only called each lead twice - once with a message, one other time and shot out one email. That's it - never contacted them again. If someone really dug in they probably would have squeezed out a few more.
So here are my stats - 102 leads received, 4 closed for Assurant. I also did some state deals - really don't want to count those.
Now - we have two camps. One camp would say that's fine - 1 out of 25 and I'm making a profit. Even if I paid for them at $8 a pop X 102 = $816 and I probably averaged $650 commish X 4 deals = $2,600 - $816 = $1,784.
Then there's my camp and hopefully this post accentuates the problem most agents have with shared leads - volume. I like to close 4 to 6 deals per week - 4 minimum. That means I'd need 100 leads a week.
Raise your hand if you're getting 100 leads a week. Ok - now we know why most agents can't make a great living on these things - you need an insane amount per week. And even if you got 100 a week you're still only netting $1,700 or so after expenses and with $800 a week in expenses most agents don't have the cash to pay for 100 leads a week for 4 to 6 weeks before steady commissions start coming in.
Heaven forbid you're going as-earned. 4 to 5 deals a week off shared leads? Ok, $800 a week in lead costs X 6 months = ....well you only need around 20K. And now we start to see why we have such an incredibally high failure rate on shared leads.
Most agents I know are lucky to get 20 a week. I don't know many getting 30 or 40 but even if you are that's still only 1 to 3 deals per week - after leads expenses = squat. That's also assuming a 100% placement - which most agents don't have.
Summary? They are not bad as a small supplement to other marketing activities. In fact, I have a 54 lead credit so as long as I keep selling and they keep giving me free leads then why sould I cancel the program. Just note that those 4 deals and 100 leads are spread out over a 5 week period of time. So unless I think I can live off 4 deals in 5 weeks I'd better have some other lead sources.
Since I abhor shared leads so much and my income is from local small biz owners I only called each lead twice - once with a message, one other time and shot out one email. That's it - never contacted them again. If someone really dug in they probably would have squeezed out a few more.
So here are my stats - 102 leads received, 4 closed for Assurant. I also did some state deals - really don't want to count those.
Now - we have two camps. One camp would say that's fine - 1 out of 25 and I'm making a profit. Even if I paid for them at $8 a pop X 102 = $816 and I probably averaged $650 commish X 4 deals = $2,600 - $816 = $1,784.
Then there's my camp and hopefully this post accentuates the problem most agents have with shared leads - volume. I like to close 4 to 6 deals per week - 4 minimum. That means I'd need 100 leads a week.
Raise your hand if you're getting 100 leads a week. Ok - now we know why most agents can't make a great living on these things - you need an insane amount per week. And even if you got 100 a week you're still only netting $1,700 or so after expenses and with $800 a week in expenses most agents don't have the cash to pay for 100 leads a week for 4 to 6 weeks before steady commissions start coming in.
Heaven forbid you're going as-earned. 4 to 5 deals a week off shared leads? Ok, $800 a week in lead costs X 6 months = ....well you only need around 20K. And now we start to see why we have such an incredibally high failure rate on shared leads.
Most agents I know are lucky to get 20 a week. I don't know many getting 30 or 40 but even if you are that's still only 1 to 3 deals per week - after leads expenses = squat. That's also assuming a 100% placement - which most agents don't have.
Summary? They are not bad as a small supplement to other marketing activities. In fact, I have a 54 lead credit so as long as I keep selling and they keep giving me free leads then why sould I cancel the program. Just note that those 4 deals and 100 leads are spread out over a 5 week period of time. So unless I think I can live off 4 deals in 5 weeks I'd better have some other lead sources.
Tuesday, October 9, 2007
Ok, I screwed off today
I guess it's "do as I say not as I do." What I did today is the kiss of death to most people who try to work from home. My wife wanted me to come with her to get her watch - which was at the jewelry repair place at the mall. Then of course, we had to eat lunch. On the way home we might as well stop off at some food stores, blah blah blah.
Another shining example of how much more effective I'd be in a physical location with other agents around. Oh well, back hard at it tomorrow.
Another shining example of how much more effective I'd be in a physical location with other agents around. Oh well, back hard at it tomorrow.
Pick a system that suits your style
More and more emails and again, most with the same common theme; new agents trying to figure out what to do. What you're going to find is you simply need to choose a method of lead generation that fits your personality and something you'll actually do.
There is no wrong system. The wrong system is the system that doesn't make you money. The wrong system is a system you don't enjoy therefore don't do leaving you sitting in your house all day talking about how everything will change...."tomorrow." There is no tomorrow in this business - only today. This "I'll pick up the phone tomorrow" mentality is just a stall tactic.
Ways to get prospects:
*Buy share leads
*Pick up the phone and telemarket small biz owners
*Hire a telemarketer
*Go business to business
*Get local; network groups, chamber of commerce, ads, seminars, etc...
The bottom line is especially when you're new at least 70% of your day should be lead generation activities and you need at least 10 new contacts to call each day. If you're calling any lead, be it shared or telemarketed closing percentages are around 1 out of 20.
So if you're only working 20 leads a week you'll have between zero to 1 deal. If you're new there should not be a time during your day, unless you're on an appointment, when you're not employing one of those five things listed above to get leads.
When to pull the plug?
*Shared leads - you don't have any money - can't buy leads, or you already bought leads and they don't work for you
*Telemarket - You get nervous just thinking about telemarketing. Every time you tell yourself you'll do it, it never actually happens
*Hire a telemarketer - see above; no money or you simply don't want to deal with hiring and managing a telemarketer
*Going B to B - your area is too small or you would never just walk into a business cold
*Get local - no money for ads, really don't want to join social groups
*No passion - no desire to sell health insurance. If your brother-in-law offered you $800 a week base to sell alarm systems you'd start tomorrow. You'd sell health "part-time."
Ok, so you're basically not going to generate prospects yet somehow you'll get business through osmosis. This is when it's time to keep it real - the Sunday paper comes out in 5 days. Don't torture yourself or your family.
There is no wrong system. The wrong system is the system that doesn't make you money. The wrong system is a system you don't enjoy therefore don't do leaving you sitting in your house all day talking about how everything will change...."tomorrow." There is no tomorrow in this business - only today. This "I'll pick up the phone tomorrow" mentality is just a stall tactic.
Ways to get prospects:
*Buy share leads
*Pick up the phone and telemarket small biz owners
*Hire a telemarketer
*Go business to business
*Get local; network groups, chamber of commerce, ads, seminars, etc...
The bottom line is especially when you're new at least 70% of your day should be lead generation activities and you need at least 10 new contacts to call each day. If you're calling any lead, be it shared or telemarketed closing percentages are around 1 out of 20.
So if you're only working 20 leads a week you'll have between zero to 1 deal. If you're new there should not be a time during your day, unless you're on an appointment, when you're not employing one of those five things listed above to get leads.
When to pull the plug?
*Shared leads - you don't have any money - can't buy leads, or you already bought leads and they don't work for you
*Telemarket - You get nervous just thinking about telemarketing. Every time you tell yourself you'll do it, it never actually happens
*Hire a telemarketer - see above; no money or you simply don't want to deal with hiring and managing a telemarketer
*Going B to B - your area is too small or you would never just walk into a business cold
*Get local - no money for ads, really don't want to join social groups
*No passion - no desire to sell health insurance. If your brother-in-law offered you $800 a week base to sell alarm systems you'd start tomorrow. You'd sell health "part-time."
Ok, so you're basically not going to generate prospects yet somehow you'll get business through osmosis. This is when it's time to keep it real - the Sunday paper comes out in 5 days. Don't torture yourself or your family.
Monday, October 8, 2007
Chamber starts paying off
I got my 1st client today from the chamber of commerce. He owns a flooring and tile store about 15 minutes from me. This was not gonna be attempted on the phone since he has four other people there who were also interested. I had an 8:30am appointment with the owner then the employees at 9:30.
So I signed him up - he's pending since he's on meds. At 9:30 I spoke to his employees - one of which is his girlfriend so I signed her up and that went instant active. She was amazed when we printed off her insurance cards right in the store.
One other employee worked in the warehouse part-time but has a 6 year old - no coverage. He doesn't make enough to get himself covered but his daughter qualifies for free coverage through MCHIP since he makes less than 250% of FPL. I printed out the MCHIP app and obviously he was thrilled to find out his daughter can get free coverage.
Another employee is on her husband's plan, however $160 a week is taken out of his weekly check and it's killing them. That's $640 a month and he said her husband doesn't make much, but she has COPD and smokes. Turns out after she called her husband, he gets free coverage - it's adding the family the triggers the $640 a month rate.
She can get the state plan for $220, the daughter can get her own plan for around $80 and the husband is left primary on his group for no cost. That's a $340 a month savings! She was stunned and literally said "Where in the hell around you supposed to find out about this bullshit!" lol. She's a trip - had everyone laughing. Of course, no one finds out about stuff like this.
One small hurdle is when the husband can drop his wife and daughter from his plan. He's checking with his benefits department today. Referrals? Everyone wanted a ton of cards - the wife on group coverage said her brother's in the same boat - paying $600+ for family coverage so she gave me his number.
Of course, I could have just signed the husband up over the phone. Then erase this entire post after the owner's one app. Not to say I don't sign people up over the phone, but know when it's time to see people.
Saturday, October 6, 2007
Spam Part 2
Ok, I get an email shot to me instantly. Let's review it:
*It has my application ID. Application! What application? I only filled out a request for quotes. Now some people think they actually have an application processing.
*It says "thank you for choosing Netquote." Insteresting - I didn't see the name "Netquote" anywhere on the spam email.
*It has yet another link for me to click and suggests that the more agents I have competing for my business that better. Guess what happens if I click that link and fill out yet another form.
And now you all start to see what happens when people say 4, 5, 6 or even more agents have called. Also, the gig is up after prospects receive this instant email. They now see the list of agents who will be calling them so they know to simply not answer the phone.
Why do internet leads suck so much? Let's find out
Ok, I got spammed with this a few days ago. The 1st thing it touts in the title is "Get Coverage from $40 per Month!" But in the email message it actually touts $30 per month. Now we can stop right there. First of all, we all know no one can get a plan for $30 per month. Secondly, just what kind of prospect is this attracting? The stupid, the young or the broke - oh, and people actually clicking on email spam.
So I hit the site and am promised "instant quotes." Now, to me "instant quotes" means I'm gonna see some figures. Absolutely nothing states that I'm going to receive calls from agents - in which 95% of all prospects would simply leave the site.
So I type in my family info and only after I click to get my quotes does it tell me that several agents will contact me. This is when most people go "CRAP!" and the reason most don't pick up the phone - even though you're calling seconds after you receive the lead.
Now, there are indeed highly interested people - but those people automatically get routed to Ehealth. So let's sum up:
1) You're calling people who think they can get plans for $30 a month
2) You're calling people who have not agreed nor plan on you calling
3) They have already been routed to Ehealth
So now let's up the competition factor in the equation. Obviously I'll be getting calls today so let's say my family wants a plan with maternity and see what happens.
Friday, October 5, 2007
Just walk away
Walking away from a deal is hard and asking questions you don't want to hear the answer to can be harder. With time in this business warning flares will go up after talking to certain clients. This was a case where enough flares were going off to light up a 4th of July celebration.
Got contacted by a lead - 1st flare. She's been on Cobra for months - 2nd flare. She tells me she's perfectly healthy but is really pressing me to get a plan started immediately - 3rd flare. When I was a new agent I'd have simply asked the health questions and did the app.
We went through the entire online app and I went over the MIB and claims review process. After I did the app I walked her through the verification and as she was looking over the app she started asking me more about the claims review. At that point I'd had it and went over how claims works in detail.
Then she coughs it up - car accident a few months ago and her back's been hurting ever since. The Cobra she was on? It lapsed due to non-payment so she doesn't have any coverage. She was simply scared she's get denied if she talked about her back pain - and she's right. Off to the state plan which is where we would have gone in the 1st place if she'd have been upfront with me.
Obviously we all want get paid for our efforts but this is a case where I had to walk away from $600+ and take the $100 from the state.
Thursday, October 4, 2007
I really feel sorry for people looking for coverage
Almost at the end of my internet lead freebie program. I'm sorry I ever said yes - 100% total frustration. Any deal I did submit would have been effort better spent on other marketing activities. Just hearing about other agents and how they operate simply puts me in a bad mood. I really like to stay positive and just can't spend defending myself or what I recommend. I really give it to agents who live off of shared leads - more power to ya.
I love the "but internet leads work" agents. No...calling a lot of people works. If you went to a bus stop and pitched 20 people you'd sell a plan - that doesn't mean you should canvass bus stops for business.
This was a classic - got the lead, called and left a very nice message - shot out an email. That was three weeks ago. Well - she called me. It's a mom looking for coverage for her divorced daughter.
So what did she get roped into? A discount plan - Beechstreet PPO. Daughter (now living with her mother) went to get her meds filled - Wellbutrin and Ambien, and you can finish that story.
So another pesky agent bugging her three times a day finally got his claws in her. Of course, that's Golden Rule after the mother expressly told him she wanted all the meds and doctor visits covered REGARDLESS of the cost! The mom makes fantastic money, she's paying and she just wants the damned condition covered.
Obviously you can finish this story although Golden Rule actually declined her. Now she's out the money she spent on the discount plan, she's out one money for the Golden Rule premium until they can refund her and her daughter still doesn't have any coverage. GR would have been the last place I'd have put her.
So we just did an Assurant Max plan - showed copay vs no copay rates and the mom went with no copay. She'll be approved and issued tomorrow.
If anyone's out there on shared leads battling this endless sea of bullshit, go for it. The agent who lies the most wins. If you think you're getting a majority of the business by being ethical and taking your time with people you're in denial.
Kicked out another Aetna
I know I'm busy when I'm didn't even update this blog yesterday - literally all day on the phone, wrote an Aetna app which literally took half of my day. We went back and forth between Aetna and Blue Cross since she wanted maternity. Then my son had soccer practice at 6pm, get home at 7pm, dinner, etc...
Let me spend some time on the difference between people choosing coverage and you having to sell it. If you try to sell health insurance you will find yourself frustrated. Why aren't all those people getting back to you? Why aren't they answering their phone after that great converstion you had? The answer? Who knows.
Not a lot of people are natural buyers; meaning they're simply at the stage where they want to make a change. Most people, even serious ones, are in the research phase and are not in the right frame of mind to pull the trigger. Those are the people you'll call twice a day, day after day and get nowhere.
The bottom line is you need a lot of prospects. How do you know if you have enough? Here's a test: If you're gonna spend today calling all the people who haven't answered their phone before and haven't responded to your emails then you don't have enough prospects.
How many times do I call someone? Twice. The 1st time I leave a nice message, the second time I simply call at a different time of day. Then I'm done. Nothing spells "loser" more then a client seeing your caller ID on their machine 8 times over 3 days. Oh...you're blocking your caller ID? Go form an "L" with your thumb and index finger and put it up to your head. This is not how professionals conduct business.
Without a lot of prospects you're doomed to be a pest. You have to call people incessantly so you can squeeze those 2 or 3 clients out of the 20 prospects you got that week. That's also when you start second-guessing everything. The bottom line is you need to generate enough prospects so you naturally find those 3 to 5 clients per week who simply want what you're selling.
Let me spend some time on the difference between people choosing coverage and you having to sell it. If you try to sell health insurance you will find yourself frustrated. Why aren't all those people getting back to you? Why aren't they answering their phone after that great converstion you had? The answer? Who knows.
Not a lot of people are natural buyers; meaning they're simply at the stage where they want to make a change. Most people, even serious ones, are in the research phase and are not in the right frame of mind to pull the trigger. Those are the people you'll call twice a day, day after day and get nowhere.
The bottom line is you need a lot of prospects. How do you know if you have enough? Here's a test: If you're gonna spend today calling all the people who haven't answered their phone before and haven't responded to your emails then you don't have enough prospects.
How many times do I call someone? Twice. The 1st time I leave a nice message, the second time I simply call at a different time of day. Then I'm done. Nothing spells "loser" more then a client seeing your caller ID on their machine 8 times over 3 days. Oh...you're blocking your caller ID? Go form an "L" with your thumb and index finger and put it up to your head. This is not how professionals conduct business.
Without a lot of prospects you're doomed to be a pest. You have to call people incessantly so you can squeeze those 2 or 3 clients out of the 20 prospects you got that week. That's also when you start second-guessing everything. The bottom line is you need to generate enough prospects so you naturally find those 3 to 5 clients per week who simply want what you're selling.
Tuesday, October 2, 2007
MHIP - becoming more of a pleasure
I just did yet another MHIP app today and let me tell you, my attitude is really changing on doing these deals.
They are now becoming enjoyable and it's simply great to hear the client's enjoyment in finding affordable guaranteed issue coverage. MD is now the nation's richest state and MHIP shows that affordable comprehensive plans can exist.
As you can see, I can get a 50 year old a $1,000 deductible plan for $305 or the $2,600 for $163. If MD can pull this off, so can the nation. If I got "ANY" commission I'd still be in business as an agent.
MHIP plays me a flat $100. But remember there is nothing to it. Normally I go over the plans and rates with a client in about 10 minutes. They download and fill out the app on their own, I simply sign it and fill in my broker info and it's done.
If all of my carriers had GI plans with these rates and paid me $100 flat I'd be able to kick out 10 apps a week without breaking a sweat. That's $52 a year and I'd cross-sell life. Not a problem. If they paid me 5% commish 10 deals would be 30K in volume = $1,500 a week.
Monday, October 1, 2007
Agent vs Boiler room
I'm at the end of my "free lead" trial. Haven't talked to much about it - internet leads are simply terrible. I've been writing a lot of state plan though!
Just got a lead - shared of course. Actually got excited to call it - husband 56, wife 60 two kids. Not bad. Ok - let's do "agent versus boiler room!"
stats: Family on Carefirst at $1,800/mo - have had it forever. Husband - recent heart attack, high cholesterol, lots of meds. Wife, healthy and two kids - 18 and 20, healthy. They've in love with Carefirst, don't want to change - want lower rate.
And they're off!
Boiler room: "I'm sorry, you already have a plan and you don't qualify for anything. Thank you."
Agent: "You qualify for MHIP because of your condition - even if you already have a plan. It's $334 for a $1,000 deductible. Because you're primary and canceling your wife and kids can submit a new Carefirst application, go through underwriting again and get $1,000 deductible for $554.
However, if your wife got her own plan it would be $211. You kids should get their own plans because they'll be dropped at age 24 anyway, less employers are offering health, and you should lock them into a plan now. They'd pay $84 a piece so it's actually cheaper to go that way."
So hubby's doing the MHIP app as we speak and taking my suggestion for indie plans for the wife and kids.
Boiler room = Go screw off.
Agent = $1,800 on month on Carefirst - now $713 - still on Carefirst.
Just got a lead - shared of course. Actually got excited to call it - husband 56, wife 60 two kids. Not bad. Ok - let's do "agent versus boiler room!"
stats: Family on Carefirst at $1,800/mo - have had it forever. Husband - recent heart attack, high cholesterol, lots of meds. Wife, healthy and two kids - 18 and 20, healthy. They've in love with Carefirst, don't want to change - want lower rate.
And they're off!
Boiler room: "I'm sorry, you already have a plan and you don't qualify for anything. Thank you."
Agent: "You qualify for MHIP because of your condition - even if you already have a plan. It's $334 for a $1,000 deductible. Because you're primary and canceling your wife and kids can submit a new Carefirst application, go through underwriting again and get $1,000 deductible for $554.
However, if your wife got her own plan it would be $211. You kids should get their own plans because they'll be dropped at age 24 anyway, less employers are offering health, and you should lock them into a plan now. They'd pay $84 a piece so it's actually cheaper to go that way."
So hubby's doing the MHIP app as we speak and taking my suggestion for indie plans for the wife and kids.
Boiler room = Go screw off.
Agent = $1,800 on month on Carefirst - now $713 - still on Carefirst.
Great past week and taxes
I had a great past week - have a nice Assurant check coming, did a GR deal for $720, two Aetna's and two state plans. Although I didn't do any cold-calling I already addressed that my pay has not gone up significantly - I merely replaced what I used by make cold-calling by going local. This week needs to be a mix of local and cold-calling so I can have extra money to put into local growth.
Taxes. If you're a new agent the best advice I can give you is talk to a tax pro. If anyone's telling you that you don't have to pay quartly estimated taxes they're wrong: http://www.irs.gov/businesses/small/article/0,,id=110413,00.html Do NOT take any tax advice from anyone unless that person is a licensed tax pro!
Taxes. If you're a new agent the best advice I can give you is talk to a tax pro. If anyone's telling you that you don't have to pay quartly estimated taxes they're wrong: http://www.irs.gov/businesses/small/article/0,,id=110413,00.html Do NOT take any tax advice from anyone unless that person is a licensed tax pro!
I misfiled and it took the IRS over 6 years to shoot me a love letter. The penalities and interest were staggering. I made an installment arrangment but strugging to make the payments plus all my bills put my behind on quartly taxes which defaulted my installment agreement. I just had to give them a chunk to get current again.
If it were not for past tax mistakes I'd be in fantastic financial shape. I'd be able to rent a physical location this week. The IRS is 100% of the reason I'm behind the eight ball.
I've also, thankfully, been paying on my past-due state taxes all year (also from years ago.) And thank God! Why? Because they just sent me a letter stating that I cannot renew my insurance license on Oct 23rd unless I'm current. Thankfully I only have $1,100 more to go so that's not an issue.
Everyone talks about difficulties with this line of work. For me finding clients and making money have never been an issue. A huge psychological issue for me is getting a check for $2,000, knowing around $600 of it isn't mine (federal + states) and putting it aside.
Friday, September 28, 2007
Yet another extremely busy day
At the start of this my fear was simple; I'd get next to no business if I wasn't doing some form of cold-calling - B to B or telemarketing and trying to go local would result in the business being too sporatic.
Now I can say that if I keep this up over the next several months I'll be hiring agents to help me keep up with the business. Health insurance is simply incredibally sought-after and as I theorized, most savvy people simply don't make a move because they don't know where to start nor do they trust "telephone agents."
My phone was ringing today - which to me is insane since I really haven't done much. But I can't tell you how pleasurable it is to pick up the phone and hear "I'd like some help with health insurance." I was running quotes literally all day.
The bottom line is I'd never be able to handle the business my locality is capable of generating. Health insurance is such a huge problem for everyone and where would the normal person go? You might think "they'd hit the internet net." You'd be wrong. Most people simply suck it up. They pay that $700 a month rate and think "it is what it is." That is, until they know there's a local health insurance agent who's established in the community that they can trust.
Tomorrow is the art & crafts fair and more of my flyers go out. I'm in the next chamber of commerce publication and have 5 more chamber events over the next 4 weeks. I met an Allstate agent yesterday and we talked today for a while. He told me he has never solicited a client - ever. 100% of his business is calls from the community and referrals.
I'd say within 6 months I'll have a physical location, staff, and a few agents on salary+ and be literally the place to get health insurance in my area. At that point I might think of expanding state wide. I can't believe if you throw a rock you'd hit 4 P&C agencies but no one's applied this to health.
Now I can say that if I keep this up over the next several months I'll be hiring agents to help me keep up with the business. Health insurance is simply incredibally sought-after and as I theorized, most savvy people simply don't make a move because they don't know where to start nor do they trust "telephone agents."
My phone was ringing today - which to me is insane since I really haven't done much. But I can't tell you how pleasurable it is to pick up the phone and hear "I'd like some help with health insurance." I was running quotes literally all day.
The bottom line is I'd never be able to handle the business my locality is capable of generating. Health insurance is such a huge problem for everyone and where would the normal person go? You might think "they'd hit the internet net." You'd be wrong. Most people simply suck it up. They pay that $700 a month rate and think "it is what it is." That is, until they know there's a local health insurance agent who's established in the community that they can trust.
Tomorrow is the art & crafts fair and more of my flyers go out. I'm in the next chamber of commerce publication and have 5 more chamber events over the next 4 weeks. I met an Allstate agent yesterday and we talked today for a while. He told me he has never solicited a client - ever. 100% of his business is calls from the community and referrals.
I'd say within 6 months I'll have a physical location, staff, and a few agents on salary+ and be literally the place to get health insurance in my area. At that point I might think of expanding state wide. I can't believe if you throw a rock you'd hit 4 P&C agencies but no one's applied this to health.
Thursday, September 27, 2007
Another "error"
Gotta love all these mistakes companies make. I wonder if there's ever an error where a client owes $1,500 and the bill comes for $0. Doubtful.
My phone just rang and my not-at-all-happy client laid into me. She just got a lab bill stating there was insufficient information to process her claim, which means it didn't get the network discounts applied or count toward the deductible. Obviously stuff like this can rattle people because it appears they don't have insurance.
So I had her fax me the bill and call Assurant claims. Turns out the her social security number goes next to ID Number and her policy number goes next to group ID. Labcorp put "PPO" next to the group number and the claims person says Labcorp knows better.
So I called Labcorp and they admitted they are already aware of the mistake and how to fix it and now it's being submitted properly.
The last thing to note is don't pawn any of this off on your client. This is your job. Don't ever say "here's the number to claims - let me know how it goes." Your client shouldn't have to spend their time and energy on crap like this.
My phone just rang and my not-at-all-happy client laid into me. She just got a lab bill stating there was insufficient information to process her claim, which means it didn't get the network discounts applied or count toward the deductible. Obviously stuff like this can rattle people because it appears they don't have insurance.
So I had her fax me the bill and call Assurant claims. Turns out the her social security number goes next to ID Number and her policy number goes next to group ID. Labcorp put "PPO" next to the group number and the claims person says Labcorp knows better.
So I called Labcorp and they admitted they are already aware of the mistake and how to fix it and now it's being submitted properly.
The last thing to note is don't pawn any of this off on your client. This is your job. Don't ever say "here's the number to claims - let me know how it goes." Your client shouldn't have to spend their time and energy on crap like this.
Chamber breakfast - great success!
I had my breakfast meeting today for the chamber of commerce. I was overwhelmingly impressed! The people who run this really understand a lot about social events and it was very well structured.
Most times you attend social events you end up with little gaggles of people who know each other and you have to find a way to fit in. Also, if you're like me you're not the kind of person who's just gonna walk up to a group of people and start talking about what you do.
There were about 120 biz owners at the breakfast and we are all at tables of 8. Everyone got 60 seconds to pitch what they did and hand out cards to everyone - then we had to switch tables. So by the end every person there got my card and heard a short speil about what I do. I was also the only person at the event who sold health insurace.
So far today since I've been home I've received 8 calls from people who want health insurance or want to lower their rates. Phenominal - and I got a buffet breakfast. We're not supposed to directly solicit people after the event - no one wants 100 small biz owners calling them over the next few days, but emails are fine. So today I spent some time loading all their email addresses from their biz cards into Constant Contact.
Also, I had a client call me today who was supposed to fill out an Aetna app a few days ago. I assumed she flaked since I never got the verification link. She called me to today to get an update. I was like "what update?" She did the app three days ago using my link - shows me as the broker. Called Aetna and of course the entire broker support deparment was in a meeting until 3:30. That's top notch service!
Finally got ahold of someone around 4pm - she couldn't figure out why it wasn't assigned to me. Must be a "snag." Yep....great snag that gives them the business while cutting me out at the broker. Now I have to fax in the last page of the hand written app and they'll switch the deal back into my name. Thanks Aetna - I appreciate that!
Most times you attend social events you end up with little gaggles of people who know each other and you have to find a way to fit in. Also, if you're like me you're not the kind of person who's just gonna walk up to a group of people and start talking about what you do.
There were about 120 biz owners at the breakfast and we are all at tables of 8. Everyone got 60 seconds to pitch what they did and hand out cards to everyone - then we had to switch tables. So by the end every person there got my card and heard a short speil about what I do. I was also the only person at the event who sold health insurace.
So far today since I've been home I've received 8 calls from people who want health insurance or want to lower their rates. Phenominal - and I got a buffet breakfast. We're not supposed to directly solicit people after the event - no one wants 100 small biz owners calling them over the next few days, but emails are fine. So today I spent some time loading all their email addresses from their biz cards into Constant Contact.
Also, I had a client call me today who was supposed to fill out an Aetna app a few days ago. I assumed she flaked since I never got the verification link. She called me to today to get an update. I was like "what update?" She did the app three days ago using my link - shows me as the broker. Called Aetna and of course the entire broker support deparment was in a meeting until 3:30. That's top notch service!
Finally got ahold of someone around 4pm - she couldn't figure out why it wasn't assigned to me. Must be a "snag." Yep....great snag that gives them the business while cutting me out at the broker. Now I have to fax in the last page of the hand written app and they'll switch the deal back into my name. Thanks Aetna - I appreciate that!
Wednesday, September 26, 2007
Knocked out one today
Did a Golden Rule app today, a state plan and simply have a ton of stuff working. This is like a different life for me then a few months ago. I'm really starting to get busy - as in very busy.
I have the chamber of commerce breakfast tomorrow at 7:30am. I'm really looking forward to that! Then on Saturday I have the arts & crafts fair where I can promote my business.
I have to say the improvement in general quality of life is just fantastic. This has nothing to do with motivation like "Jeffrey Gitomer," "Zig Ziglar" stuff. This has to do with simply working an 8 hour day just like I would if I was on salary for some company. In fact, if I was making in salary what I'm currently making in commish I'd likely be working 50 to 60 hours a week with some company.
And I posted this before but it's also the "objects in motion..." rule where when I get going I simply stay going. The opposite is true when you're doing nothing and trying to psych yourself into some kind of action.
Tuesday, September 25, 2007
Three deals!
I would have been happy today with two, but got three with a referral signing up tomorrow. Got an Assurant, Aetna and Carefirst Blue Cross (can't screen shot Carefirst because we did a paper app.)
This is going to be one of my real 1st weeks. Not only am I simply working full days but I have very modest advertising out that's pulling a few leads a day, I have my chamber of commerce breakfast Thursday morning and I'm volunteering at my chamber's art & crafts fair on Saturday. Because of that I get to put a marketing piece into a grab bag everyone gets when they walk in.
This is simply what I should have been doing from the start. There was nothing at all wrong with buying leads when I started but I should have supplemented it with community marketing and community involvement.
I will stress that no single activity will generate enough business to make a living. I know agents who just joing groups like BNI and that's their sole marketing source aside from pestering friends and family. Won't work. The deals are too sporatic. It's local advertising, doing local events, (fairs/trade shows)chamber of commerce, and telemarketing.
This is going to be one of my real 1st weeks. Not only am I simply working full days but I have very modest advertising out that's pulling a few leads a day, I have my chamber of commerce breakfast Thursday morning and I'm volunteering at my chamber's art & crafts fair on Saturday. Because of that I get to put a marketing piece into a grab bag everyone gets when they walk in.
This is simply what I should have been doing from the start. There was nothing at all wrong with buying leads when I started but I should have supplemented it with community marketing and community involvement.
I will stress that no single activity will generate enough business to make a living. I know agents who just joing groups like BNI and that's their sole marketing source aside from pestering friends and family. Won't work. The deals are too sporatic. It's local advertising, doing local events, (fairs/trade shows)chamber of commerce, and telemarketing.
Monday, September 24, 2007
Fantastic full day
I'm committed to simply knocking out full days. Until I have enough cash for a lot of local marketing and doing local events it's simply all day contacting old leads, generating new ones, running appointments and phone sales. The days of 2 or 3 hours a gone. Things are simply habits or they're not. I have not been in the habit of a full 40 hour week.
The results are dramatic. I've spent the entire day on the phone and sent 8 solid quotes out today all with tomorrow follow-ups. All of them are qualified for health and money. If I just closed 2 of them what I'd show myself is a full day of work would be 2 deals a day. I won't even run the math on 10 deals a week - the commish is staggering.
The bottom line is there are all sorts of mental tricks we all use to fool ourselves into working when we're not. The interenet is obviously a dangerous thing to have around if you're into work-avoidance. It's like a fat man trying to lose weight while being locked in a room all day with 20 bags of potato chips. The will power needed is insane.
The irony is the internet was supposed to make your business "explode" with the ability to buy leads, generate leads and sell online. However, in reality the internet is directly responsible for most agents failing. Shared leads are simply horrid, it costs a fortune to generate enough leads through your website to make great money and most agents (98%) don't have either the experience and skills necessary to sell online. Without the net all agents would be on "old school" sales techniques and doing much better.
If you want to lose weight, don't buy the chips. Only have healthy snacks in the house. That's my trick. If I want a snack we have grapes and apples. If I wanted Oreos I'd have to drive to the store - so guess what I eat.
Same with the stupid internet - between email, message boards and the net in general it's just too easy to avoid putting in a full day at work. So today the browser was shut down and the only thing on my screen was prospects and quote software.
The results are dramatic. I've spent the entire day on the phone and sent 8 solid quotes out today all with tomorrow follow-ups. All of them are qualified for health and money. If I just closed 2 of them what I'd show myself is a full day of work would be 2 deals a day. I won't even run the math on 10 deals a week - the commish is staggering.
The bottom line is there are all sorts of mental tricks we all use to fool ourselves into working when we're not. The interenet is obviously a dangerous thing to have around if you're into work-avoidance. It's like a fat man trying to lose weight while being locked in a room all day with 20 bags of potato chips. The will power needed is insane.
The irony is the internet was supposed to make your business "explode" with the ability to buy leads, generate leads and sell online. However, in reality the internet is directly responsible for most agents failing. Shared leads are simply horrid, it costs a fortune to generate enough leads through your website to make great money and most agents (98%) don't have either the experience and skills necessary to sell online. Without the net all agents would be on "old school" sales techniques and doing much better.
If you want to lose weight, don't buy the chips. Only have healthy snacks in the house. That's my trick. If I want a snack we have grapes and apples. If I wanted Oreos I'd have to drive to the store - so guess what I eat.
Same with the stupid internet - between email, message boards and the net in general it's just too easy to avoid putting in a full day at work. So today the browser was shut down and the only thing on my screen was prospects and quote software.
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