Exam Info

Making Averages Work for You in This Business

I've received a couple of questons about my "$100,000" post. Here's a few thoughts to clarify what I was talking about.

The questions have mostly been 2: "How do I find companies that pay $50 per exam?" and "What do I do if I don't want to do the lower-paying orders?"

First, finding companies (I mean exam companies, not insurance companies) that pay $50 (on average) per exam is not difficult. As I say over and over, it means signing on with several companies that pay -- depending on the company -- from 75-87% of amount billed.

The second question is far more difficult. Basically, if you don't want to do the lower-paying orders, my system won't work. Here's why.

An agent calls you directly, saying she needs you to do an exam and urine for the XYZ Life Insurance Company, and the applicant is 22 miles away from you. Now, you happen to know that an exam and urine for XYZ will pay you $23.17. And with mileage you feel this isn't worth your while, and you tell the agent that, and suggest that she call someone else.

Now, the problem is that most agents -- often after even one such refusal -- will simply not call back. The reason is that you have become more trouble than you're worth. And insurance agents -- like anyone else -- seek to avoid hassles, and do things the easiest way. And if they can call your Local Big 4 Paramedical Company, and the Local Big 4 office will take all exams, they will start calling them.

Our job is to be of service. Repeat that to yourself. If you start to be seen as someone who doesn't have an interest in service, you will be out of business, and soon.

There are lots of agents I deal with who call me a lot. Let's say an agent calls me twice a week on average. If I make (again, on average) $50 per exam, that agent is worth $100 a week. $5,200 a year. And over $25,000 over the course of 5 years.

Some of the calls that agent makes will not pay enough to be really worth it. Some will. But an agent who works for a bunch of insurance companies will -- again, on average -- be worth. And how.

I am not in this business for charity. I make a living from it, and I don't tolerate mooches, pains-in-the-neck, or agents who only call me when their favored examiner won't do a pre-set for 3 a.m. But if you are seen as someone who is helpful and ready to be of service, business will come to you. Not automatically, but word gets around.

The crazy thing about averages is that if you try to beat them, you'll end up making less. In other words, if you say, "I'll only take exams if they pay at least $50, no less," you'll end up losing business. The agents who would bring you those high-paying orders just won't call at all. And while in theory you'll be making more per exam, in reality, in the long run, you probably won't even stay in business.

Take the orders. Even on ones that just don't look like they're worth your time. And in the long run, it will be very much worth your time.

posted by Jim Huffman @ 10:50 AM