First Week with Colonial

al3 · 05-17-2009, 12:34 PM

In my area many Colonial agents focus almost entirely on brokers. They call the client, find out who their broker is for their group health plan, and then call that broker and offer the broker a split if the broker will "make the call" and "open the door" so to speak for the Colonial agent to introduce worksite benefits.

The problem is that most brokers (myself included) are VERY PROTECTIVE of their groups and are fearful that giving access is tantamount to giving away the client. Many are scared to death that you will steal the business.

Thus, you have to spend a fair amount of time (and lunches) wooing brokers. But this is not hard because not too many people outside of carrier reps every ask a broker to lunch. Once you talk on the phone with them a bit and offer to meet them for coffee for the first visit and if that goes well, take them to lunch on the next visit, you can establish the kind of rapport necessary before they will open their groups to you. And if you do, they will CALL YOU with business... since to them Colonial will be "found money."

Don't ever even joke about stealing their business. If you get that reputation it will spread like the name of a good dope dealer through the community and you will be "black listed."

What does it cost you? A lot! Figure that you will give up about half YOUR "opener" commission (which usually averages about 23%). But if it is a big group (say 50 to 100 EEs,) you will be happy to do it because half of something is better than all of nothing... and you would never have a shot at the group without the broker's blessing.

I think you have found out what most Colonial/Aflac guys have found out... that worksite is not "profitable" when you factor in the time and effort.

You CAN make money with Colonial, but it has to be in an area where Aflac is very weak (good luck finding one) and where the business community does not offer a lot of employer-paid fringes (like in many Southern states.)

Al
Preserve your memories

VaDwayne · 05-17-2009, 04:06 PM

Originally Posted by ABC

I have been doing a lot of product comparison with Colonial and Aflac. Colonial is not cheaper as the sales people preach.

They do have richer benefits but in these kind of economic conditions for voluntary product you want to sell the best plan for the best price.

I have not been able to switch any clients from Aflac to Colonial.

Instead of trying to switch, go in with the "offering a choice" attitude. I am doing my first AFLAC takeover next week and that is only because the AFLAC rep is a lazy, unprofessional indvidual, and the business owner doesn't like him.
If you tell them their AFLAC is not good, it means they are stupid and made an unwise decision with AFLAC.

I know it sounds silly but my car business approach seems to work. I ask the decision maker what they drive, whatever they say I will say, aren't you glad your only choice wasn't a (competitor). Then say choices are good. You obviously care about your employees because you have AFLAC here. If they could get better coverage, wouldn't it be good for them to know about it. I am not here to replace your AFLAC, I am asking you to give your employees a choice.

stuy119 · 05-18-2009, 12:28 AM

Originally Posted by VaDwayne

This is what I will say about Colonial. It is a great company with a great reputation.I enrolled 4 new businesses in my first couple of months,and all of them were a pain in the butt.Every one took several days of running back and forth for very little money, well,adequate money but the pay per hour worked stunk.I also found that there are better ways to spend my day rather than spending 8 hours a day in my car.I have made more money prospecting at home,selling my own products.
Will I continue with Colonial? Probably, but it won't be my main focus and I will spend my time more wisely,and more efficiently.I am going to prospect other ways, do decison maker meetings,open the account which takes very little time,let somebody else do the enrolling and chasing down employees, I will take my 25%, and while the enroller is enrolling for 15%, I will be selling Final Expense at 110%.I am working on some prospecting ideas now to see if they will work.I have found out that calling a business, asking the receptionist who the decision maker is, and then calling them the next day,is just as effective as riding around collecting business cards.

Al hit it on the head - Colonial is great, but only if you're working with brokers, or if you're a broker yourself.

Groups will want the benefits, ER's will want to offer the benefits, but enrolling is a sucker's game. Most openers don't do a good enough job of setting up parameters to keep you from running around and chasing EE's all day.

VA Man · 05-20-2009, 11:03 AM

Where in VA are you VaDwayne?

VaDwayne · 05-21-2009, 08:17 AM

Originally Posted by VA Man

Where in VA are you VaDwayne?

I am in Waynesboro,where are you located.

johncm · 05-23-2009, 10:11 AM

While it is true, Colonial does a LOT of business with brokers, it is not the only focus. But the brokers like Colonial. Must be doing something right. Brokers voted Colonial # 1 in all categories in Benefit Selling magazine. Even Received honorable mention for an enrollment company. Colonial is not as "Enrollment company" in that sense, but are quite good at it. Check out the enrollment platform, Harmony.

Al3 is mistaken in that this area is mostly after brokers. Can you imagine a newbie going after the broker market. wouldn't work. there is one DGA I know that refuses to work with brokers and does very well for himself. I Live and work the same area as al3 and more than half our business is broker driven. That means about half is direct. Some of our largest cases this year are direct.

You definitely CAN make an excellent income with colonial. But like anything else, you only get what you put into it.

al3 · 05-23-2009, 10:33 AM

Originally Posted by johncm

Al3 is mistaken in that this area is mostly after brokers. .... I Live and work the same area as al3 and more than half our business is broker driven.

And you say I am mistaken? Last time I looked, "more than half" means "most," but I've not kept up with the new math.

Al
Preserve your memories

johncm · 05-23-2009, 11:35 AM

Originally Posted by al3

And you say I am mistaken? Last time I looked, "more than half" means "most," but I've not kept up with the new math.

Al
Preserve your memories

No, the math is not "new". It is taken from known knowledge. statewide we are about 70% broker. But that really goes to show the value we bring to the broker market.
Besides, what matter is it if we are broker or direct. I know from your post that it was not your cup of tea, but even you say the company is solid.

The point is this person is seeing this as an opportunity, and by the the sounds of him, he will succeed. Everyone has a different motivator. My guess is he would succeed in what ever he puts his mind to.

Encouragement goes a long way. Especially someone new to the insurance world.