Is This a Good Split for Selling Group Health?

GoingIndy · 12-19-2008, 01:36 AM

I am a former P&C guy with over 6 years of experience ranging from working in a State Farm agency, to owning my own Allstate agency, to working in management for Encompass. I am in the process of moving back east and a friend of the family runs his own health insurance agency and made me an offer that I wanted to run by those that have experience in the business to find out if you think it's a good or a bad deal.

It will be selling group health insurance where we do a 50-50 split on the business to get me started being that I won't have any income to start. He will pay for all of the telemarketing and provide the leads while I will be responsible for preparing the presentations. He will also accompany me on the calls to help make the presentations and close the sale. Once I'm up and running and have a steady flow of income, I can then split off and do my own thing.

Because I'm new to Health Insurance and need to build a foundation, I figured this sounded pretty good.

What do you think? Thanks in advance.

somarco · 12-19-2008, 02:25 PM

Depends on a lot of things.

Most group health takes a while to materialize. Figure 90 days before you see your first check at a minimum.

Smaller groups can move quicker. Large groups can take years.

I would not do a split on groups under 25 lives. Not worth it to me but that is my view. Others may feel differently.

If you are talking about true group rather than PRD of individual health policies, these comments apply. If you are doing list bill my answer might be different.

Who owns the joint business?

GoingIndy · 12-20-2008, 02:13 AM

A friend of my sister-in-law owns the business.

We didn't discuss the size of the groups however I just need to get things rolling quickly with little investment monetarily speaking. I am aware that it does take time for the cases to materialize. He told me that himself as well.

Delta76 · 12-20-2008, 11:13 AM

Sounds like a great deal to me. I started 50/50 and I had to find all the leads myself. If you have someone paying to generate the leads for you and he's willing to go on the appts with you, go for it, you don't have anything to lose. When you get the feel for it, start running on your own like you suggested. Somarco is right, there is a long gestation period between a lead being generated and your first commission check. Three months for me is opptomistic. Good luck and go get'em!

somarco · 12-20-2008, 11:22 AM

If you want to move things quicker, look at pitching dental & STD as a fall back. This is a way to get your foot in the door and get something for your time. Some agents sell almost nothing but dental and (eventually) make a good living.

I don't sell much dental but wrote one in August that took maybe 15 minutes. I earn $18 per month like clock work.

Another way to pick up business is by agent of record. Lots of times you will find someone who is happy with their plan but just wants a responsible agent to answer their questions. If they have a group plan but not an agent (or haven't seen or heard from their agent in years, ask for an agent of record. That is the quickest way of all to get commissions rolling.

GoingIndy · 12-21-2008, 02:22 AM

Thanks Delta and Somarco! I really appreciate the advice. Been really stressed out with moving and trying to find work worth pursuing since I'm leaving a great job making $65,000 a year with a company car, gas card, corporate card, cell phone and laptop. Plus my bonus usually averages $10,000 on top of that each year. You must thing I'm nuts but I don't have a choice. Hopefully I can come back onto the forum in a year and tell you things are going well. HAPPY HOLIDAY'S!