As more and more seniors see value in Medigap and Medicare supplement insurance, more companies are offering their services as lead generation experts. These lead generation companies take the strain off the insurance agents, allowing agents the ability to maximize their time investment and spend as much time speaking to new prospective clients.
As agents are very well aware, Medicare supplement insurance or Medigap coverage is a very time sensitive purchase. Potential customers usually require some time to evaluate their financial plan for their retired years, but as part of Medigap rules, prospects benefit most by applying early. Early application means that seniors can avoid a medical evaluation before acceptance.
The variables that go into the purchasing process for Medicare insurance results in a lead generation market that looks very different than lead generation businesses that service other insurance agents. We'll break down each type of lead below, the pros and cons, and methods for maximizing your potential with each.
Turning 65 Medicare Leads
The “turning 65” lead type is perhaps the most broad of the entire Medicare lead offering. These leads are made up of people who, just like the name implies, will soon be turning 65. Turning 65, as mentioned above, is a very important milestone as these leads have only a matter of months to make a Medicare insurance decision without having to submit to a physical evaluation.
This point can be used to effectively create urgency with the prospect and jumpstart the purchasing process. Should he or she be in good health, and find that an evaluation isn't worth trying to beat, the prospective client can also be churned through a slow informational sales process where you, as the agent, seek to become the authority source of information about Medicare insurance.
Agents prefer these leads because they can speak to someone at the start of a sales process and begin a long professional relationship with the client. And, while disallowed in the initial consultation, many agents find that they can later cross-sell these customers into new retirement plans or other financial products. Agents should be careful, however, as a cross-sell early in the sales process is not just frowned upon, but also highly illegal.
There is a downside to turning 65 leads, however. In today's digital world, the age of virtually everyone is known by most marketers. As a result, there isn't anything particularly special about finding 65 year olds, and a single 65 year old may hear from many different sales representatives over the course of a few weeks. Expect to pay anywhere from pennies to whole dollars per lead depending on quality, exclusivity, and the freshness of the lead data.
Medicare List Leads
Medicare list leads are a highly targeted, highly defined data lead that meats criteria an agent has hand selected. The agent chooses different qualities he or she finds the easiest to sell. These qualities include everything from age to gender, race, or income level.
Among the highest quality of these particular leads are Part A and Part B pre-qualified leads. This pre-qualification means that either by phone, mail or other medium, each person on the lead list has identified that they fit the requirements for both Part A and/or Part B. These lead lists usually start at $.25 and rise quickly to $1 or more per lead. However, the targeting and pre-qualification means every person on the lead list is not only capable of buying your product, but is far more likely to actually buy your product.
Making Sales and Making Money
With first year commissions on each sale often in excess of a few hundred dollars, and renewals offering a residual income stream, the price an agent pays for a quality lead list or appointment setting service can be returned over a period of weeks or months with good conversions.
Agents should aim for getting their lead costs back in the first two years (at maximum) and generating positive residual income in the years that follow. Much like any other insurance product, Medicare insurance is confusing, complicated, and generally requires that an agency spend a great deal of time warming up the lead, closing the sale, and then later following up and checking on the client.
In due time, as the relationship between client and representative grows stronger, the opportunity for cross-selling and personal referrals grows, and so does the income an agent can earn with just one sales conversion.