I recently had an incredible conversation with an insurance agent who is searching for a practice regenerator. He has been selling for several years and hit some speed bumps recently. In fact, he’s hit a series of tough speed bumps.
He is confused. Marketing organizations keep offering different solutions to his problem. All of them sound great, but he doesn’t know what will actually work. I believe that when you are in a tight spot like this, you should go directly to tried-and-proven methods to create cash flow and leave the stress behind.
Boomers are retiring in huge numbers. Their investable assets are available to enterprising and energetic producers. What will you do to capture this market?
Here’s a simple idea for you to consider: Medicare supplements and Medicare Advantage are simple products to introduce and to sell. They pay well in significant quantities, but only if you sell several policies per week. The turning-65-market supplies more than 10,000 new prospects per day, so there are plenty of potential clients.
Medicare supplement general agencies can get you the product. The prospect will come from direct mail efforts. Since you need to write at least five applications per week, you’ll need to see approximately eight prospects just to close five. Twenty sales per month will create about $8,000 in gross profit. After you subtract direct mail costs, you’ll profit about $6,000. That’s a good start, but definitely only the beginning.
Even though you will lose some clients from year to year, we’ll assume you won’t for this illustration. Each annual renewal usually pays the same commissions (or close to it), so in year two your income will double.
Each production year will increase your income until renewals end. You can see how substantial your income will be in time. In the meantime, with proper positioning, you will be able to sell other products.