Wayne711
New Member
I'm currently with a PEO Brokerage which has over 30 years experience in the business of marketing and outside sales for multiple PEO's, nationwide. We specialize in hard to place industries like Roofing, Trucking, Construction, etc., and about 95% of our business has come from relationships we have with Independent Insurance Agents, who refer business to us.
I've been with the company for almost 3 years now, and I haven't had much luck cultivating relationships with Independent Insurance Agents, for some reason. Could be bad luck, or the fact that at my age (28 now), I still have a bit of the baby-face. Which kills my credibility on sight, when I've only had meetings with older (50yrs.+) Agents, usually the owner of the Agency. I still cold-call business owners (10-99 employees), and I've had some success there, but I feel like building a network of Agents is the best way to excel in this business. Agents usually have an earned trust and an influence in their communities, and a lot of times that speaks louder than lower rates. Also, most business owners I meet with do their payroll in-house, and would be less reluctant to outsource it if it's recommended by their Insurance Agent.
Now I'm not necessarily posting here to try to find Agents to partner with, although that would be ideal. If nothing else, I'd like to get an idea of the general consensus on PEO's, from and Insurance Agent perspective.
We offer Agents another option for their Clients and Prospects who may be facing challenges in the Worker's Comp. market. By pooling their employees with the thousands already on the PEO's payroll, they can take advantage of the economies of scale to lower their Work. Comp. premiums. We also offer Pay-Go WC, eliminating big down payments, and because the PEO administers the payroll, there are no year-end audits. Add to to that the administration of all Employee-related, non-revenue producing, back-office tasks and paperwork, and it really makes sense for small businesses.
We are paid commissions directly from the PEO, which we split with our Agents. These are usually higher than what Agents can get in the voluntary market, because we're paid a percentage of payroll, not premium. The commissions are residual, and paid monthly. It's really a win/win situation, when you can offer your Clients lower WC premiums, preserved cash-flow with Pay-Go WC, and a full service payroll / HR / Risk Management provider, while making better commissions for your Agency for as long as they are a Client. Not to mention it helps Agents retain their Clients when said Clients are also doing all internal administration through the PEO, so it keeps your competition at bay. (when all they can offer is lower rates, at best.)
We're a small broker, not a big PEO. We like to build personal relationships with all of our customers, and we like to meet all Insurance Agent-referrals in person whenever possible. We cultivate that relationship, eliminating this "PEO means no customer service!" mentality.
So my question is, what gives? Why is it so hard to find Agents that want to work with me?
(sorry for the wall of text)
I've been with the company for almost 3 years now, and I haven't had much luck cultivating relationships with Independent Insurance Agents, for some reason. Could be bad luck, or the fact that at my age (28 now), I still have a bit of the baby-face. Which kills my credibility on sight, when I've only had meetings with older (50yrs.+) Agents, usually the owner of the Agency. I still cold-call business owners (10-99 employees), and I've had some success there, but I feel like building a network of Agents is the best way to excel in this business. Agents usually have an earned trust and an influence in their communities, and a lot of times that speaks louder than lower rates. Also, most business owners I meet with do their payroll in-house, and would be less reluctant to outsource it if it's recommended by their Insurance Agent.
Now I'm not necessarily posting here to try to find Agents to partner with, although that would be ideal. If nothing else, I'd like to get an idea of the general consensus on PEO's, from and Insurance Agent perspective.
We offer Agents another option for their Clients and Prospects who may be facing challenges in the Worker's Comp. market. By pooling their employees with the thousands already on the PEO's payroll, they can take advantage of the economies of scale to lower their Work. Comp. premiums. We also offer Pay-Go WC, eliminating big down payments, and because the PEO administers the payroll, there are no year-end audits. Add to to that the administration of all Employee-related, non-revenue producing, back-office tasks and paperwork, and it really makes sense for small businesses.
We are paid commissions directly from the PEO, which we split with our Agents. These are usually higher than what Agents can get in the voluntary market, because we're paid a percentage of payroll, not premium. The commissions are residual, and paid monthly. It's really a win/win situation, when you can offer your Clients lower WC premiums, preserved cash-flow with Pay-Go WC, and a full service payroll / HR / Risk Management provider, while making better commissions for your Agency for as long as they are a Client. Not to mention it helps Agents retain their Clients when said Clients are also doing all internal administration through the PEO, so it keeps your competition at bay. (when all they can offer is lower rates, at best.)
We're a small broker, not a big PEO. We like to build personal relationships with all of our customers, and we like to meet all Insurance Agent-referrals in person whenever possible. We cultivate that relationship, eliminating this "PEO means no customer service!" mentality.
So my question is, what gives? Why is it so hard to find Agents that want to work with me?
(sorry for the wall of text)
