Medicare Advantage Sales Earning Potential

January 24th, 2025

2 min read

4:47

Are you an insurance agent scrolling through endless forums and blog posts, looking for ways to level up your Medicare Advantage sales game? Good news—you’ve struck gold! This isn’t just another boring sales pitch; it’s a roadmap to making your commissions soar while keeping your clients happy.

Medicare Advantage Sales: The Golden Goose of Insurance

Imagine getting paid not just once but every single year your client stays on a plan. Medicare Advantage sales aren’t just about making a quick buck; they’re about building a financial safety net that grows with every policy you sell. Let’s break down why this opportunity is worth your time (and your hustle).

First-Year Commission: The "Wow, That’s Nice" Moment

CMS (Centers for Medicare & Medicaid Services) sets the standard commission rates, so you’re working with a reliable and regulated earning structure. For 2025, you’re looking at:

$626 per policy in most states
$723 per policy in high-cost states (California, we see you!)

Sell 75 policies? That’s $46,950 in year one. Not too shabby, right?

Renewal Commissions: The "Cha-Ching Every Year" Perk

Here’s where it gets better. Every policy you sell can keep paying you year after year. CMS-approved renewal rates are:

$313 per policy annually in most states
$362 per policy annually in high-cost states

As long as you keep your clients happy (which we’ll show you how to do), this becomes a reliable income stream that keeps giving—like that one friend who always brings extra snacks to the party.

The Big Picture: Earning Example (75 Policies Per Year)

Ready for some math magic? Let’s assume you sell 75 policies annually with an 80% client retention rate:

Year 1:

First-year commissions: 75 policies x $601 = $45,075

Year 2:

First-year commissions: $45,075
Renewal commissions (80% retention of Year 1 policies): $18,780
Total for Year 2: $65,850

Year 3:

First-year commissions: $45,075
Renewal commissions (Year 1 + Year 2 policies): $37,530
Total for Year 3: $84,750

Year 4:

First-year commissions: $45,075
Renewal commissions (Year 1 + Year 2 + Year 3 policies): $56,310
Total for Year 4: $103,650

Year 5:

Total income grows to over $121,020. Yep, that’s what compounding commissions look like!

How to Hit Those Goals: A Foolproof Plan

1. Master the Art of Lead Generation

Buy High-Quality Leads: No, not those shady internet ones. Partner with trusted vendors.
Go Digital: Facebook Ads, Google Ads, maybe even a cheeky TikTok if you’re feeling bold. Seniors are online now—go find them.
Referrals: Your current clients know other Medicare-eligible folks. Ask and ye shall receive!

2. Become the Neighborhood Expert

Host Local Seminars: People love free info. Use tools like PSM’s Medicare 101 presentation to wow them.
Community Connections: Senior centers, libraries, coffee shops—anywhere your target audience hangs out.
Direct Mail: Old-school but effective. A personalized mailer with a call to action works wonders.

3. Keep Clients for Life

Annual Reviews: Show them you care by ensuring they’re always on the best plan.
Cross-Sell: Dental, vision, hospital indemnity plans—your clients will thank you.
Regular Communication: Send newsletters, updates, or even birthday cards. (Who doesn’t love birthday mail?)

4. Embrace Your Inner Tech Guru

Build a Professional Website: Make it easy for clients to learn about you and contact you.
Social Media: A Facebook post a week goes a long way. Share success stories, Medicare tips, or even a meme or two.
Online Reviews: Happy clients? Ask them to spread the love with reviews.

5. Keep Improving

Set measurable goals.
Review what’s working (and what’s not).
Celebrate small wins—you’re building something incredible.

Why Medicare Advantage Sales?

Aside from the obvious earning potential, Medicare Advantage sales let you:

Build a recession-proof career.
Create a legacy with your book of business.
Sleep well at night knowing you’re helping people get the coverage they need.

PSM Brokerage: Your Partner in Success

At PSM Brokerage, we’re more than just a resource—we’re your teammate. From cutting-edge marketing tools to personalized support, we’ll help you crush your goals. Let’s build your Medicare Advantage empire together.

Contact us today and let’s make this year your most profitable yet!