Last week I encouraged you to build and organize your Medicare book of business. This week I want to show you how a well-organized book of business is the best way to maximize your return on that investment of time and energy.
Let’s be honest — gathering up all of your clients’ information and entering it into an Excel spreadsheet or CRM is tedious and time consuming. For the DIY crowd, I suggest breaking your Medicare book of business down into small pieces by entering 10 clients a day until you’ve included everyone. For agents with an expansive clientele, think about paying a college student or your industrious child a fair hourly rate to do the data entry.
No matter how you do it, your Medicare book of business needs to be organized in order to have the most value to your senior insurance business. The investment of of time, energy and even money you make to get it that way will be returned many times over.
Let me prove it to you:
Did you know that Medicare Advantage carriers can pay you up to a $100 referral fee if you allow them to market to your clients? You don’t have to certify or actually sell the product — just compliantly give them access to your Medicare book of business, and they will do the rest. If you have 300 clients and they sell 100, that’s $10,000 for you. Not bad for no more than a day’s worth of work, right?
What if you leveraged your own Medicare book of business and your “Existing Business Relationship” — defined as such by CMS because you have sold them a legitimate product like final expense or life insurance? If you did compliant outreach to these clients and sold the same 100, your first-year commission could be $30,000 (a combination of initial payments and like-plan changes). That’s three times what you would get for the referral fee!
Want to make it even better? Those 100 people would now be worth about $20,000 a year via annual servicing renewals. Most carriers now pay lifetime renewals, but over the first six-year cycle, your clients would now be worth an additional $120,000 for a total of $150,000 in seven years!
Yes, you still have to complete AHIP (RB Insurance is offering an incredible discount program) if you decide to add Medicare Advantage to your portfolio of products. And yes, you have to complete carrier certifications and learn which products best fit your clients’ needs. That’s all part of running a successful business. It takes time and energy, but you already have the most important element: Clients!
Leverage the hard work you’ve put into securing your clients. Organize your book of business and look for ways to maximize your revenue.
Call RB Insurance at (800) 997 3107 to learn more about quick contracting opportunities for Medicare Advantage, Medicare Supplements, Hospital Indemnity and Final Expense. For a limited time, agents can receive 100 percent reimbursement on their 2016 AHIP certification when they make five sales with any Medicare Advantage product this AEP. Learn more here.