New Broker at an Independent Agency

[Madden9]

Hello all,
I have been working at an independent agency for about 6 months. I started at the agency right after graduating college. The agency's business is 90% group health, with the remainder being individual life, health and Medicare. There are 6 employees working at the agency, with one other broker besides myself. For a majority of the past 6 months I have been getting mentored and trained by the broker/owner of the agency. He has been very helpful with gearing me towards producing for his agency in regards to employee benefits growth. I have sat in with him on several renewals, proposals, etc. For the past month I have been driving around local cities dropping off brochures, getting the decison-maker's card, and following up with them. Is there anything else that I should be doing to generate business? I have a very fortunate situation and I want to make sure I make the most out of it. Any advice or thoughts would be greatly appreciated!

 

[ABC]

Being very new in the business you should cold call and look at some networking groups.

I started in the business 13 years ago in a very similar situation as you. Here is the reality on the group side. Most seasoned business owners are not going to buy from you because of your age. You will need to get very creative on why they should buy from you. Being young you might want to look at the technology angle.

While you are prospecting you need to look at selling individual health. There is no money in this market anymore but closing something is better than nothing.

Good luck

 

[workablesolutns]

Hi Madden, congrats on your new career!! I think ABC is on to something with the technology angle. Your freshness is a differentiator and you should use it to your advantage. We're hearing from the majority of our clients that they're looking for brokers who can be their educators and guides. Two large pieces of the education pie are healthcare reform and benefits technology. Employers simply don't have time to stay up to date on those topics and are looking for brokers who can be their resource and advocate.

Maybe you could adopt a speciality (or specialities) like benefits technology and really learn what's out there in the market regarding that speciality so that you can present that in addition to the standard information. Things like the easiest carrier portals, smartphone apps, and how carriers use social media are all very important to Joe Schmoe participant.

Another idea is to expand your portfolio beyond the normal offerings. Things like consumer driven (FSA, HSA, HRA, DCAP), benefits outsourcing, incentive wellness programs are all great "cake topper" type products in addition to medical. The trick is being able to educate the employers into understanding WHY they save employers AND employees so much money and make better coverage within reach. Using real life examples with real figures is also helpful. That communication/education skill is something that can set apart a decent broker from an excellent one. Here's a video that we offer our brokers for demonstrating the cost savings of consumer driven: WorkableSolutions.com/CDHP

I'd like to invite you to our marketing blog (totally NON-promotional, just informational!) TheNewBroker.com which I write on a regular basis and gives marketing advice and ideas. I think it would be really helpful to you and might even spark some more of your own ideas.

Best of luck!!! Let me know via private message if there's anything we can do to help :-)

 

[mikerichman]

You should search the internet and get professional advice from people who spend all their time on forums and have no life.

Whatever you do, don't seek a real life mentor who already is successful doing what you want to do and follow their footsteps and guidance.

In all his glory.

 

[Madden9]

Thank you ABC and workable for the repsonses! ABC- the main role I ultimately serve right now is cold calling and generating appointments. If I were to go on the appointments alone, then my age would most certainly be an obstacle, especially with large groups. Currently the broker I work for is introducing me as more of a technology expert, as we have a lot of neat tools technology wise. This seems to be working. As I get more experience, I will go to appointments on my own. My main goal right now is gaining experience in the business. I would be interested to hear any other advice or thoughts you have on the first couple years of business.Workable- thanks for directing me to the new broker site, very helpful! The video was also interesting

 

[Ann H]

The advice above is good. Often big sales programs tell you to sell to your "warm market" and by that they mean rope all your family and friends into something they don't want. I don't recommend that! But your "warm market" can mean something different. Sell to those you would socialize with, those you feel comfortable with, those in walks of life that are similar to yours. If you are young, energetic and motivated to build a business, sell to young, energetic, highly motivated entrepreneurs. You will be talking a language they understand. Some of us older folks (I've been in the business more than 30 years) will be "old school" to the young folks, but we have many seasoned business owners in our book of clientele. If the older, seasoned business owner won't listen to you, don't try to force yourself in - you won't make it. Do business where it comes natural. Good luck!

 

[CABenefits]

That's all good advice...I did cold calls but it wasn't as effective as introducing myself to business owners by knocking on doors. If you knock on 30 doors a day Tue/Wed/Thur you should come away with quoting at least 5 groups a week/ BOR's are for the taking right now with agents not servicing but you really have to have the confidence to ask. I would partner up with at least 5 P&C agents to get referrals from and offer to give Starbucks cards in return. Set-up a business facebook page and start educating and getting fans. Use linked in to find CPA's, bookkeepers, divorce lawyers and market to them that you can help their clients. Get a website and use an online quoting engine. Get free folders from Anthem BC or any carrier and leave exit packets with sample quotes, short term, and your card and leave them with businesses you don't have. You can help them move more ex employee's from Cobra. Eventually you'll get to quote it. Voluntary dental can get you in the door. If you implemented this and stick with it you could increase commissions by $400/month easily.

 

[Madden9]

Thanks for all of the good advice guys, I appreciate it. I have another question, this one regarding commission splits. I get paid hourly, $12 an hour. I use their office, and everything that goes along with it for prospecting resources. I have been setting appointments, but haven't been the main person closing the groups (I contribute about 10% to the actual presentation). My question is, what's a fair split for me in the event I set the appointment, do follow-up, but don't singlehandedly close the sale? Also, what would a fair split be in the event that I set the appointment and close the deal on my own? Thanks in advance for your input.

 

[ABC]

I think you might have to decide if you want to be a commissioned producer.

Once you make that decision sit down with your current agency and talk.

 

[Madden9]

ABC,
I do want to become a commissioned producer. I have been doing some research and the norm right now for young producers seems to be a salary+small commission. It remains that way for about 24 months. At that time, the salary is removed or decreased greatly . What is a reasonable salary, with a 15-20% cut in mind for new business?