Agents are always happy to gain new business from leads, but can quickly become disappointed when they do not have product to offer that client. Having leads is good…being able to make a sale is great! Instead of blaming the lead source maybe agents should look at their on their portfolio.
Cost of Investment:
Let’s take a look at the numbers from a typical Medicare Supplement lead drop. An agent orders 1,000 leads for about $450 dollars. From the lead drop the agent receives a 3% return, or 30 leads. In regards to the investment the cost is $15 per lead. We all know 30 leads does not mean 30 Medicare Supplement sales. To ensure that the agent is not wasting time or losing money, a completed portfolio is needed to offer a solution to any client’s problem. It’s imperative that the agent have a full portfolio, so regardless of the scenario they are not leaving the appointment empty handed.
Let’s take a closer look at this problem by analyzing the scenario below:
The Scenario:
John is the agent who spent $450 on the 1,000 leads, mentioned above, with the intent to sell Medicare Supplements. One of his returned leads is Annie, a 67 year old not yet enrolled in a Medicare Supplement plan. She is currently on her husband’s health insurance through his workplace and doesn’t have interest at this time to sign up for a Medicare Supplement plan. On the other hand, Annie would still like to know her options.
Outcome 1:
John’s intent is to write Medicare Supplements and Annie is not interested in enrolling in a Medicare Supplement plan. John then decides his time is needed elsewhere and does not follow up with this potential client. Not only did John ignore a warm lead, he basically threw away $15.
Outcome 2:
John meets with Annie to discuss any questions she has about Medicare and through their conversation Annie mentions that she recently lost her mother because of a heart attack. John hears the opportunity and redirects the conversation to Heart Attack & Stroke coverage. He offers a plan that gives a lump sum benefit of $25,000, has a reoccurrence benefit, and an additional return of premium rider. Annie has an affordable premium of $73 a month and John made $398 in 1st year commissions. That covers almost 75% of the lead drop cost!
In Outcome 2, John’s lead is now a client thanks to his extensive portfolio and willingness to have a conversation with a potential client. In addition, Annie will likely return to her agent with her husband to enroll in a Medicare Supplement plan during their Guaranteed Issue period. This will even further increase John’s return on his original investment.
Make Sure You Have a Complete Portfolio:
In the above scenario, Annie wasn’t interested in purchasing a Medicare Supplement plan, but other situations could have prevented a sale as well:
What if…
- Annie was on a Medicare Advantage Plan?
- Annie needed Life insurance for her and her husband?
- Annie wanted to compare her current health plan price with that of a Medicare Supplement?
Make sure you have product solutions for any of these typical scenarios!
Instead of waiting to find the perfect lead for your portfolio, make sure you have a complete portfolio for every potential client.