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Guide to Scaling Your Medicare Business
Posted by www.psmbrokerage.com Admin on Wed, Apr 17, 2024 @ 10:13 AM
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Tags: Medicare Advantage, Medicare Supplement, Insurance Marketing, Digital Marketing, Agency Building
How to Scale Your Medicare BusinessWhat does every agent have in common? They all want to write more business. Anyone who has been in the industry for any amount of time can tell you that increasing your production isn’t something that just happens. You have to plan and work to make it happen. There are numerous paths you can take to grow your business, and what’s right for you depends on your personal preferences and goals. Today I don’t want to talk to you about how to grow your business, I want to talk to you about some key principles you will need to consider when coming up with your business plan. I’m going to share with you what factors the largest call centers and agencies in the country focus on to make sure they are running a successful business. To start with we need to quickly go over the three most important factors in an agencies business. Cash flow, CPA, and LTV.
It’s imperative that you're be able to calculate your total CPA because you need to make sure it is lower than the third key factor, lifetime value or LTV.
Too often I talk to agents who are hesitant to invest in their business because they are only looking at first year profit margin. You are running a business and just like any other business you are going to have to invest in it to see it grow. Download the guide in PDF here.
Now that we know how to calculate how much business it will take to reach your goals we need to talk about your budget. Your budget is how much you have to spend on your business.
Once you’ve got your budget squared away it’s time to consider the management side of starting an agency. The hardest part of running an agency is managing agents and managing leads.
You also want to have procedures in place to make sure that you are getting the most out of your leads. When I say this most peoples minds immediately go to selling techniques and how to close more sales. Often it’s more effective to focus on solidifying the sales you are already making to reduce attrition. If you can reduce the percentage of clients who leave you yearly from 15% down to 5% then you will most likely see more profit from that than you would by increasing your closing percentage. Here at PSM we focus on Medicare advantage so I’m going to use that as an example but this will apply to any product line.
By doing all of this you will drastically increase your placement and persistency rates. Placement and persistency are vital to your success. You spent the money to acquire these clients so you need to make sure you keep them. So far we’ve covered the key factors you need to consider when planning to scale your business. How to maximize commissions, managing your leads to workforce ratio and how to calculate the profitability of your business using LTV and CPA. The last thing I want to leave you with is how to calculate the value of your business using a ratio. This simple method will give you a snapshot of the overall health of your business model.
If I told you I’d give you $300 tomorrow for every hundred dollars you give me today you would take that deal, right? Of course you would. That’s all I have for you today. I hope that you are able to take some of this information and apply it to your own personal situation. And more importantly I hope you do take the chance, invest in your business and realize your goals. If you have any questions or want to talk about how to best scale your business please give us a call at 800-998-7715 and ask to speak with one of our marketing directors. We’ll be happy to take the time to go over any of this in more detail and can even run a personalized calculation for you on what kind of ROI you can expect. Thanks for your time and have a great day. Download the guide in PDF here.
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Tags: Agency Building
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0 Comments Click here to read/write comments
Tags: Agency Building