njbenefits
New Member
- 1
Hi guys,
I just found this site and so glad I did. I found tons of useful info already!
I am looking for advice on my business. Currently, I am an independent health insurance broker here in NJ. I sell health insurance primarily to small businesses and do pretty. In the past, I always worked for the larger brokerages but about 3 years ago I decided to go out on my own. My book of business is growing and I make good money but not anything close to when I worked for the big houses. Most of that is do to the fact that I do all my own servicing and also because I get 100% of the commissions.
Recently, I was offered an opportunity to sell through a very large broker as a 1099 and they provide all the co-branded marketing material, quoting, customer service etc.. all I do is sell and renew. They basically become my back room. The main reason I would do this is that I have an instant service team and could just focus on selling. Also, because of their size, I could go after much larger accounts with no concerns about quoting and/or servicing them. In fact, the brokerage does more than I ever would in terms of service, including online systems, cobra etc... And their proposals look awesome.
It all comes at a cost of 50% of the commissions. I mean that's huge! But, I would be selling much larger accounts so 50% of 100 lives is more than 100% of 20... and I don't have to service them throughout the year.
Here is my main concern...
I'm a 1099 and I can move my clients any time I want but would they let me without a fight? (they say No.. my business is my business and I can move it anytime I want) (nothing in writing saying they can't go after my business if I leave)
Here are my positives...
1. I can focus on selling which I miss! My book isn't big enough to hire a FT asst and even if it was, I don't know that I want the hassle of managing people and dealing with all that comes with that... extra payroll, taxes etc..
2. I can go after large groups and compete instantly because all the marketing material is done for me and I have an instant service team.
3. I have people to answer any question I have and they have teams that do each line of coverage so I always have experts there waiting to help.
When I was at those large companies, I only sold large accounts and did very well but I hated building my business for someone else. Plus my share was down to 20% and that sucked! To generate 100k, I had to write 500k. That was my book before I went on my own and where it is now but I feel like this opportunity can allow me to continue to build my book, still earn 50% and remove myself from the daily admin tasks that I hate doing today!
I would love some thoughts and feedback if anyone has any. Do you see any complications or things I haven't thought of? Any advice?
Thanks so much!
I just found this site and so glad I did. I found tons of useful info already!
I am looking for advice on my business. Currently, I am an independent health insurance broker here in NJ. I sell health insurance primarily to small businesses and do pretty. In the past, I always worked for the larger brokerages but about 3 years ago I decided to go out on my own. My book of business is growing and I make good money but not anything close to when I worked for the big houses. Most of that is do to the fact that I do all my own servicing and also because I get 100% of the commissions.
Recently, I was offered an opportunity to sell through a very large broker as a 1099 and they provide all the co-branded marketing material, quoting, customer service etc.. all I do is sell and renew. They basically become my back room. The main reason I would do this is that I have an instant service team and could just focus on selling. Also, because of their size, I could go after much larger accounts with no concerns about quoting and/or servicing them. In fact, the brokerage does more than I ever would in terms of service, including online systems, cobra etc... And their proposals look awesome.
It all comes at a cost of 50% of the commissions. I mean that's huge! But, I would be selling much larger accounts so 50% of 100 lives is more than 100% of 20... and I don't have to service them throughout the year.
Here is my main concern...
I'm a 1099 and I can move my clients any time I want but would they let me without a fight? (they say No.. my business is my business and I can move it anytime I want) (nothing in writing saying they can't go after my business if I leave)
Here are my positives...
1. I can focus on selling which I miss! My book isn't big enough to hire a FT asst and even if it was, I don't know that I want the hassle of managing people and dealing with all that comes with that... extra payroll, taxes etc..
2. I can go after large groups and compete instantly because all the marketing material is done for me and I have an instant service team.
3. I have people to answer any question I have and they have teams that do each line of coverage so I always have experts there waiting to help.
When I was at those large companies, I only sold large accounts and did very well but I hated building my business for someone else. Plus my share was down to 20% and that sucked! To generate 100k, I had to write 500k. That was my book before I went on my own and where it is now but I feel like this opportunity can allow me to continue to build my book, still earn 50% and remove myself from the daily admin tasks that I hate doing today!
I would love some thoughts and feedback if anyone has any. Do you see any complications or things I haven't thought of? Any advice?
Thanks so much!
