I have a question, I am reading a new book called SPIN selling, and it talks about how selling large value accounts is different from selling small value accounts, different probing questions, different value building, different closing, and this guy backs it up with great research.
My question is:
1. Do any of you know a great Group Health/Life insurance trainer? or training books, seminars etc.?
I am learning that TIME is the most valuable commodity I have, and I am glad to be learning this lesson at a young age, so I figure, why not go after the big fish, more fun anyways, would you rather catch a marlin or a minnow?
Any input is very appreciated.
Have a nice day
------------------------------------
"First by deflation then by inflation, central bankers will deprive your children of all land and liberty"
"Central Bankers are more dangerous than standing armies"
I understand that, and I dont intend on jumping in straight to group health, I gotta do something in the meantime to keep myself occupied anyways..
So back to my original question, anybody know any good books, trainers etc???
Find a local IMO/GA that specializes in group. The smaller ones may walk you through the first few cases and even go on the sales call with you. They can get you started. I've found the larger ones (benefitmall,...) will not do this but the smaller regional ones will. Once you do a few small groups you'll be fine.
Plus if you market IFP to small business owners you'll run across small groups to work also.
I understand that, and I dont intend on jumping in straight to group health, I gotta do something in the meantime to keep myself occupied anyways..
So back to my original question, anybody know any good books, trainers etc???
I think you have asked at least one question for every line of insurance that there is. Are you really floundering that much. Do you not have your niche figured out yet? If you think somehow you're going to be the greatest ever in every line, you're fooling yourself. Find a niche, go to work, make money, then try to add on as you go. Right now you're spinning your wheels and not going anywhere.
I'm not trying to criticize (or criticise for some of you) you, I'm just trying to tell you, pick one and go with it. Make a mark in one area, get yourself settled in, learn it, then add to that. You're going to drive yourself nuts trying to figure it all out at once. You might be a smart feller, but you're not that smart! It takes years to actually become an expert in just one niche. Become an expert at one thing before you try to become master of the insurance universe.
------------------------------------
Todd R. King
800-590-7207
540-400-6275
888-748-3978 Fax
[COLOR=red]Do the right thing because it's simply the right thing to do.[/COLOR]
I read your original post a couple of times trying to figure out exactly what you are getting at. Are you wanting to go into group like small and medium or, like it sounds in your post, are you thinking about large group?
Large group, until you have the requisite experience and staff, forget it. It is a whole different animal from small and mid-market. There are a couple of people on here, Sam and Somarco at least, who work in the mid-market and large group markets. I am sure that they will tell you that you really need to be a group expert on small group before you try that one out. There are a lot of moving parts to a 15-person group, especially if it is wrapped with more than one carrier. Now mutiply that by 100 the number of moving parts on a 1000-person group. Add in self-funding arrangements with carrier ASO, 105, 125 and so on and it takes an agency with some back office staff to sell it and maintain it.
If you are talking about just getting into the group market, start small and learn. Use your carrier sales managers (or whatever they call them in your state) or a good GA like Benefitmall to learn it. Small group can be a fun market, however it is, like all group, somewhat predatory (did I say "somewhat"?). BOR (AOR) changes are not uncommon and the group you write today will be on another agent's radar sooner or later. I've had BOR on 1-person group before, yeah, a freaking 1-person group! Learn one carrier's product line at a time and find out who the most popular carriers are in your state.
The one main advantage of IFP market is that the plan is vested for the life of the contract. No BOR, at least not in my state. That being said, unless you are moving and grooving a lot of IFP, small group will be more profitable.
Thank you all for your input. Todd, theres nothing wrong with planning for the future, i dont intend to jump into it, i just know where my strengths lay and I want to POSITION myself for that, i plan on getting my feet wet, i plan on learning small group, individual before i graduate, its so sweet you guys worrying for me lol. But i do appreciate the input keep it coming
- - - - - - - - - - - - - - - - - -
Whats wrong with thinking about college when you are in elementary school?? If we did what you suggested, we would have some stunted growth going on (not like there already is)
P.s. did you know india has more honors students than we have TOTAL students??
Last edited by emptyeternity : 02-13-2009 at 05:59 AM.
Reason: Posts merged
Until you develop some expertise with the minnows, when you go for the marlins, you're the one that's gonna get eaten up.
That is good advice. However, there are several times in my life where I would have benefited from moving to the next level a little earlier.
I have a problem with taking unnecessary risks when trying to move to the next level. But, if you can test a new idea without losing the opportunity to go back to what you were doing, I say go for it.
Sometimes in business you can steal second base with one foot on first.
That is good advice. However, there are several times in my life where I would have benefited from moving to the next level a little earlier.
I have a problem with taking unnecessary risks when trying to move to the next level. But, if you can test a new idea without losing the opportunity to go back to what you were doing, I say go for it.
Sometimes in business you can steal second base with one foot on first.
NOW THAT IS SOME ENCOURAGEMENT ALSTON!! its too bad not many people here share your sense of it (margarita). Dont get me wrong, i do liked to be reminded i am new, i guess it helps the old guys here feel like they have a sense of accomplishment.
NOW THAT IS SOME ENCOURAGEMENT ALSTON!! its too bad not many people here share your sense of it (margarita). Dont get me wrong, i do liked to be reminded i am new, i guess it helps the old guys here feel like they have a sense of accomplishment.
Ok, I'll try to explain what I was trying to say just a little clearer. Are you making any money right now? From the position I see it from, no, you're not. Now, knowing that I could be fully wrong about this, I apologize if I am. I said it seems as though you're floundering, not knowing in which direction to head. All I'm trying to tell you is pick one, get good at it or find out that you don't want to do it. You're not going to sit back and read books and gain experience, which is what you need...to have some experiences. How are you going to know what you want to do or what you're good at if you don't do it? Reading a book on how to do something is not the same as doing it. Sure, read, but do too. I haven't heard you say one thing about what you're actually doing except that you're preparing to do something or thinking about doing something.
You keep making remarks about us "old timers". If you think you have it all figured out, then why do you ask questions? Believe it or not, I'm trying to make things easier for you, I want to see you make it. Otherwise I wouldn't waste my time on here with you.
Does that clarify my position a little better?
Todd when I talk about old timers, I didnt mean to put you in that group, and I didnt take your post as an attack, you ARE right, i cant do it all, but i want to try it all so that I can find out what I like best. I do make money selling insurance, just not life or health insurance, surety bond insurance, but that money is sucked away with previous matters, leaving me with some time and a little bit of a bank for individual health. I love to read, and I am taking Rob's training which I think is outstanding. I do appreciate your input, and for you going to great lengths for the clarification. Its funny how when you post for something like group health training or knowledge you get all of these other opinions and shoulds, which is fine, as long as it pertains to the original inquiry.
My point was that if you are going to try large group, which seems to be what you indicated in your original post, there is no book or reading material much that will help you. It is such a different animal from all other health insurance and most other types of insurance. No one has written the book on how to write 3,000 life group health insurance. The brokers who do that just do it, they don't usually share much information. If you want to get into that market, you need to get a job with one of them and learn how it works.
Also, you have to bear in mind that the larger the group, the lower the commission per head. Example:
Group 2-50 --7-10% commission to a break point level then reduce
Group 51-250--3% commission to break point level then reduce
Group 251-1,000 .05% commission to break point level then reduce
Group 1,001+--.0025% commission to break point level then reduce
So, the more lives you add, the more your commission percentage goes down. In addition, groups 3 and 4 will certainly require you to have a few back office employees on payroll to do the administration on those.
Now, break point then reduce simply means that group health contracts have a threshold of premium before the commission begins to reduce. Once the employer has paid the threshold premium, the amount you earn begins to be cut for the remainder of the plan year. You may start out at 7% on the group, but by month 6 it has been reduced to 3% because the premium threshold has been exceeded. Example:
Dave that was very informative, and it wet the appetite. I will look for books, the ones that I feel that will help me indirectly are THE WEDGE, cause chances are most employers have a group plan with another agent. And the other book is SPIN SELLING, because you are right, its a different animal, there needs to be a more indepth and directed level of questioning taking place during the appointment that builds value with explicit need questioning, which uncovers needs that are directly benefited by the product you have. Is this theoretical, yes, very much so. I guess I have a knack for doing presentations and going after the big fish, its exciting. As far as finding a mentor, I will keep my look out, and see what OH has to offer me. I appreciate your input, if you have anything more to add, I would be grateful.
Selling Group Health
Linear Mode
