Mel Schlesinger (336) 777-3938 $200,000 in Residual Income Selling Dental Insurance Creating an Immediate Cash Flow
Jun 28, 2015
Mel Schlesinger
(336) 777-3938
$200,000 in Residual Income Selling Dental
Insurance
Creating an Immediate Cash Flow
But Mel, There’s No Money in
Dental
There are 3 Types of IncomeLump-Sum: This is the income generated from
life insurance. You get a great first year commission but very little in renewal income.
Renewable: This is group health insurance. Each and every year you have to work as hard to keep to the business as you did to get it. You must re-shop the medical and occasionally move the business and re-enroll. That is work.
Residual: Sell it once and get paid for years with little or no work. This is a function of plan design.
First Some Definitions
Step 1- Have a Great Dental PlanWork with a carrier that offers both group
and individual dentalFor the group market find a plan with a
unique designThe unique design allows you to sell the value
of the plan. Plus it makes it difficult for an employer to shop.
Choose a rate stable plan design to avoid having to shop each year.
Voluntary LifeCancerCritical IllnessShort Term Disability IncomeAccident
Step 2 – Line Up Voluntary Products
Having these other products allows for cross-selling opportunities and increased per-enrollment revenue
Prospect for dental insurance explicitlyDo not try to be all things to all peopleDo not get distracted by quoting on the
medical.You can go after the medical next yearMedical is a low probability sale. Dental is
high probability Call on every one – small groups, large
groups, self-employed
Step 3 – Make the Calls
EVERY SALES COUNTS AND ADDS
UP
There Are Only Three Possible Outcomes For Every Call
Call BackInterest in
Dental
Not Interested in Dental
Interest In Dental
Fact Find – Do they currently offer:Group Medical – If so what % of employee
premium does the employer pay?Do they offer any voluntary benefits
Do you currently offer any voluntary benefits such as cancer of accident insurance?
Do they currently offer any ancillary benefits such as disability income, Group Term or VGL
Is the employer interested in paying for all or part of the dental premium?
Managing the Sales Appointment
And nothing else!!
Sell the Dental Plan
Dealing With Employer Contributions
Identify the employer’s budget. Do not settle for “I will pay 50% of the employee rate - get a specific dollar amount.
Ask: So if I found a plan that was (2X) you would be willing to pay $X for each employee?
Ask: “Can you share with me the reason for your willingness to pay $X? What are you trying to accomplish?
Whatever the reason ask: “Which do you think would better help you achieve your goal: a limited plan that paid 100% for cleanings and exams only but that you paid 100% for or a more robust plan that you only paid 50% towards?
Would you be open to that idea if I can find it for you and then allow employees to buy-up to a more robust plan if they want it?
•Instead of partial employer contribution use 100% employer paid minimal plan design
•100% for 2 cleanings 2 times per year with $25 annual deductible•100% for x-ray annually•Sample Duluth GA rate – $10.25 per employee per month
•Voluntary Robust Plan Buy-Up - $22.42
The Solution
Schedule the Enrollment
Secure Approval for the Dental
Oh, by the way ……….
If the employer currently offers voluntary benefits:You had mentioned that you currently offer
some voluntary benefits. I have been very successful with other clients in providing comparable benefits at significantly lower premiums. If I can help your employees get equal or better benefits at a lower premium would you have a problem with my replacing the current plans?
Oh, by the way ……….
If the employer does not currently offer any voluntary benefits:While I am enrolling your employees in the
dental and vision benefits I would also like to make a voluntary term life insurance benefit available. If the employees want to pay for the additional term life would you have any problem?
Oh, by the way ……….
Voluntary Dental / Vision – 12 enrollees$54 Monthly Commission
Cancer, Accident Replacement: $4000 in Annual Premium$184 in Monthly Commission @ 55% first year
commission
The Numbers on a 20 Life Group
Total Monthly Income: $238Total Annual Income: $2856
No Interest in Dental Insurance
IntroducingThe Pivot
Do you currently offer any voluntary benefits such as cancer
or accident insurance?
YesNo
May I ask one quick question?
Do you currently offer any voluntary benefits such as cancer
or accident insurance?
YesNo
Would you be interested in ……….
Do you currently offer any voluntary benefits such as cancer
or accident insurance?
YesNo
Would you be interested in ……….
Mr. Employer, because of the recent recession many employees have gone years without any pay raise while also having more of the cost of the medical insurance shifted to them. With that in mind many employers are looking at these voluntary benefits in the same way that they look at their medical and dental benefits. That is to say that they want to insure that their employees are getting the best benefits at the lowest possible cost.
If there voluntary benefits in placeStep 1
I have been very successful in providing benefits that are equal to and sometimes even better than the competition at significantly lower premiums. Would you be open to meeting with me to see if I can help increase employee’s take-home pay by saving them money on these voluntary benefits?
If there voluntary benefits in placeStep 2
Average Per Enrollee Commission: $4 monthly
10 Enrollees Per Week $40 monthly
48 Weeks per Year 1 $1920 MonthlyResidual Income Year 5 $9600 /
$115,200 year
Dental by the numbersThis is a combination of Group and Individual Sales
$115,200 in annual residual income and that assumes no other products were ever sold!
Sell 5 vision plans per week and add an additional $360 in monthly income year 1. By year 5 that equals and additional $1800 monthly / $21.600 annually
TOTAL YEAR 5+ INCOME = $136,800 TOTAL YEAR 6 INCOME = $164,160Just Selling Dental and Vision!
THE PERFECT DENTAL PLAN FOR
THE $200,000 RESIDUAL INCOME
STRATEGY
Mel Schlesinger(336) 525-
6357
www.thedentalinsuranceagent.com
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