If you haven't seen the following video - please watch it as it really sets the stage for what you're going to be building.  This is just part of the structure, but gives you a good picture of the outline. You can change any part of the way I do it, after all, it's YOUR business. But this layout is what I suggest you design, once your leads start coming in (and they will...).  Remember that time is the most precious resource, and you should do EVERYTHING in your power to automate as much of your business as possible.

The Medicare Mindset

Let me start by asking you a very unique question:

How quickly would you give me $147 if I gave you $444 back in 90 days?

There's nothing worse than hearing a broker say that you can't make any money at selling Medicare and that finding clients is hard.  I don't want to ever hear that from any of our students.  You see, it's not a "lack of customers" problem (there's plenty out there), it's a traffic problem.  How do you get traffic to your offer so all the seniors know about you?  You must know where to look, where to advertise, what to say and what tools to use.

This creates a whole different problem.  Ad spend.

The Medicare Mindset is not about what to do (step by step), but rather being able to understand and calculate what each client is worth to you, and changing your perspective from a cost acquisition basis.  If you don't spend enough, you'll struggle to eat.  If you spend too much, you might think this opportunity simply isn't worth it.  Typically, those that are lazy or are looking for a shortcut spend boat loads on leads - I don't suggest you do that...not yet at least...there's really no need to if you're willing to learn and implement some simple low-cost strategies.

There are ways to obtain clients for zero dollars, and that's sharing quality content online. You'll need to make this content, know where to post it, and what to do with it (it's part of your lead funnel) in order for it to be effective.  The more free content you put out, the more people are going to it. They'll determine that you are the local expert, and they are going to contact you because they feel like they already know and trust you because of your content.  However, this process of determining the value of a client must come first to understand leverage, and the power of getting a client for next to nothing (by sharing quality content).  We must understand the whole picture, before we study small microcosms of its parts.

Before we start, let's establish some nomenclature:

Cold Lead - a set of data of a potential prospect

Warm Lead - a set of data of a potential client with at least 1 other connection (referral, met briefly before)

Prospect - a potential client that you have interacted with (interacted on messenger / email / phone etc)

Client - someone that has purchased from you in the past

  This process is a simple, 2-step calculation.

STEP 1 - Establish a Client's Lifetime Value

With any business, whether it's service related or an exchange of goods, you must determine how much each customer is worth to you (Client Lifetime Value = CLV).  Once you understand your CLV, you'll be able to determine how much money you may be willing to spend to acquire a new client.

Many abstract "potential" value's cannot be determined (like a client sending you a referral because not everyone will).  But for the most part, we can look at historical numbers and a bit of clever estimating to hone in on a general number to assign a CLV over the lifetime of your relationship with them.

Retail vs Service vs Consulting

In a normal retail business (like Home Depot), a whole host of variables exist to determine CLV, which we don't need to worry about.  In a typical Service business (like a salon or gardener) the client typically visits at a pre-set arranged interval, like once every 2 weeks and pays each time they visit or receives the service. This is not us.

I consider our profession more along the lines of consulting.  Why?  Because we often advise our clients 1x per year and sell them a product once per year (changing plans / adding additional coverage etc). They can call us throughout the year, and although we don't bill them for our time, it strengthens the bond we have with them that keeps them on our books.  We are typically paid monthly or annually as a "consultant" to help them as they need, so there is a similar on-going billing/payment relationship between us and our clients (although they don't pay us directly).

With a Consulting client relationship, it's fairly easy to determine the CLV.  We are paid a fee each month / year for servicing our client.  That's it. Pretty cut and dry.  The only variables that are hard to determine are:

  • How long the client will live

  • How long the client will stay with us (and not sign with another broker or drop coverage)

  • How much the Government will change our commissions on Part C and Part D plans

  • How much the commission structure of Supplement plans will change

  • The variables of pay scales between Supplement companies from year to year (1st year commissions v 2nd year commissions)

Even with all these unknown variables, we can still get a strong idea of our CLV.

I personally use 6 years as the life of the client and/or how long they will stay with me.  You may want to adjust this up or down based on your own experience.  I typically don't lose clients because they found a better deal elsewhere or they just don't like me, I lose clients because they move, they pass away or they are Medi-Medi and are swayed by some slick agent that breaks every rule in the book to sign them.

The value I place on each client per year is $250. I typically earn more than this per client (mainly because most of my book is in California), but I want to be conservative.

$250 / 12 = $20.80 per month per client
$250 x 6 years is $1,500 CLV.
Now, I know what you're thinking..."I make $500 just for signing them up on a MAPD for the first time."  I get that, but you have to be conservative in your figures to make up for

  • the potential over-exaggeration of how long your clients may stay on the books

  • those clients you spend money to get that only purchase a PDP plan from you

  • those clients that you connect with that never buy anything from you

  • the future potential of reduced commissions on the products you sell

  • $1,500 is POST tax dollars, that is the value after you've paid income taxes on the earnings.  This $1,500 is actually about $2,200 gross revenue before a 30% tax liability.

For my business, I have set my CLV at $1,500.

STEP 2 - Set A Spending Limit of Cost To Aquire (CTA)

Now that we have determined our CLV ($1,500 in our example), we must now decide how much of that CLV we want to spend on acquiring a new client (Cost To Aquire - CTA).  While everyone will have their own tolerance for risk, there are some things to consider.

Let's look at the cost of money, and the returns on certain investment vehicles:


  • If you invested money in the stock market, what annualized return rate would you expect after 6 years?

  • If you invested money in a CD, what annualized return would you expect in 6 years?

Cost Of Money
  • If you purchased $1,000 worth of leads on a high interest credit card (say 24.95%), and paid it off over 12 months, how much did borrowing that $1,000 actually cost you?
  • If you took a title loan on your car, what % would you actually pay?

I'm sure you can see above that your popular investment will only return approximately 1% to 6% (...if you're lucky). Don't even get me started about inflation!

The cost of money to borrow will end up costing you nearly 25%.

Neither of these are "the best" ways of leveraging your money, yet they are the most popular ways people invest or obtain money quickly.  My point is, people will rush out to invest or borrow money at these rates, but they'll rarely invest in themselves - even though investing in themselves will produce far greater returns!

If you are going to be in this business, you are going to need to invest in yourself. Invest in learning (like this course and our Mastermind Elite Group), invest in attending networking events, invest in building sales funnels, invest time into learning new marketing skills.  Your return on your investment in yourself is far greater than a return from the stock market or low interest CD.  Jim Rohn says it best:  "Profits are better than wages."

With this in mind, I have set my CTA at $300.  Yes, that's $300 that I will spend to acquire a new client. Why?  I have a large book of business and I don't mind waiting 15 months before breaking even.

For someone just starting, you may want to set that CTA lower, say $20 or $50 because you are just starting to "ramp things up".  Others will say "We'll, for now, I only want to spend $10 to get a new client."  And that's fine, you'll see results, just not as fast as someone spending $100 to get a new client - unless you know the "magic trick" to accelerating your lead gen (free content).

Now, I'm not justifying running out and blowing $2000 on leads expecting to get 10 new clients. This is NOT "spend $200 get a new client - get paid $250."  It doesn't work that way.  I would never ask you to do this without a proven system, an automated proven sales funnel in place in order to do all the heavy lifting for you, and to virtually guarantee you a positive Return on Investment (ROI).  Please don't run out and spend money on leads before you work your way through this entire course!

Your spending is going to be all inclusive automated system that you'll set up to get the prospects rolling in, essentially, what you spend to build your funnel, maintain your funnel and feed your funnel will all be added into your CTA.  You see, I'd rather spend $50 on supporting my funnel, than spend $50 on a one-time lead. Once that lead is used, it's gone, whether I sold them or not.  But the $50 spent on the funnel will continue to exist, and will continue to pull prospects into my lead magnets and down through my system where it will eventually spit out a qualified lead.

Some of the monthly costs associated with calculating your CTA are:

  • Pay per click

  • Pay per call

  • Website design & hosting

  • Monthly subscriptions like email drip software

  • Phone expenses

  • Call center (Like Jill's Office)

  • Virtual Assistants

  • Printing

  • Facebook ad costs

  • Referral payouts

There are others but the above is a good starting point in combining all your monthly expenses associated with obtaining clients in order to calculate CTA.

Let's say all the above in one month costs me $885 dollars and I generated 6 new clients as follows:

  • 2 x new MAPD's (In CA that's $1,134 in commissions / $910 in most other states)

  • 2 x MAPD 2nd year (In CA that's $568 / $456 in most other states)

  • 2 x Supplement 65 year olds ($672 = 20% of first year premium of $1,680)

  • 2 x Part D ($146 = $73 x 2) - part of the 2 Supplement clients as they need PDP plans w/their supps

  • 2 x Part D ($146 =$73 x 2) - 2 clients just needed Part D plans, nothing more.

My total income for 6 new clients will be $2,666 in CA or $2,330 in most other states.

In CA that's $444 per new client in first year commissions.  All other states it's $388 per new client.

My CTA each client was only $147.50 in this example.

In CA my ROI on my investment of $885 is over 200%.  In all other states it's 163%.  This is assuming that you spent this money in January, sold to 6 new clients in February, and received payment in March.

If I asked you if you wanted to invest $1,000 in a 12-Month CD at 2% or invest $1,000 in your business for a 200% return in only 90 days which would you choose?

How quickly would you give me $147.50 if I gave you $444 back in 90 days?   Um...very quickly...

How often would you give me $147.50 if I gave you $444 back in 90 days?  Um...as many times as I could...

Now you understand why I'll spend $300 to get a new client, because I KNOW, even before I spend it, what my return will be. It costs $300 to run my all inclusive automated system. I'm never scared to spend money anymore, why?  I have a system in place that allows me to spend "X" amount and get "XXXX" back in just a few short months. I have almost everything automated, so it may cost me more to acquire, but I do less work and my time is more valuable to me than to have a lower CTA. Automation is a luxury. I'm willing to spend a premium on automation to free up my time.

If you can't afford a high CTA, remove some of the automation like an answering service, reduce ad spend for a bit, don't pay any referral bonuses (for now), just find any method you can that will not slow down your ability to fill up your pipeline and place leads into the top of your funnel. One of the easiest ways is to develop your own content (videos, eBooks etc...more on this later).

Once you complete this course, you'll be comfortable knowing that you will start getting better results than before. And once you do, you'll quickly see that the more you spend to fill the top of the funnel, the more commissions you'll end up getting at the bottom of the funnel. I like calling it my "funnel multiplier" - spend $1 dollar get $2 back - the MATH is in the MARKETING. It's all at a fixed, pre-calculated ROI - that you KNOW will end in a positive outcome.  Once your system is up and running, has been tested and is in place, you simply turn up the spending because you can safely estimate what the end (profitable) results will be!

...and that's when the fun begins!