Referring or No?

[LeahA3425]

I have been working with my father in law who has sold primarily annuities and life insurance for the majority of his business. We have traditionally just sent a request for health insurance to a friend, but I am beginning to wonder if it's worth keeping this business in-house.

Do you also sell your clients' health insurance, or do you refer this business out?

 

[DHurd]

I'm also new, but my question is do they refer life and annuities easy sales back to you, as you do for them with health? If not, I dont see how it could be hard to find some cluster or what not that can appoint you guys with a few health carriers

 

[LeahA3425]

That's what I am not sure on. There is a group who was interested in paying us a referral fee for each person we sent there way. A friend of mine owns a health operation and asked if he could do a direct mail drop to all of my clients?

 

[Life Hawk]

I have been working with my father in law who has sold primarily annuities and life insurance for the majority of his business. We have traditionally just sent a request for health insurance to a friend, but I am beginning to wonder if it's worth keeping this business in-house.

Do you also sell your clients' health insurance, or do you refer this business out?

I think Medicare clients are worth the hassle, which for the most part can be few, especially if it is a traditional med sup. If you are working with pre-Medicare coverages, I know from speaking with others that part time in that arena can be more costly time wise than not.

Be very care to whom you out source this type of business to. When the PDP - med-advantage product came to life, it was seen more of as a lead to other business in the home as opposed to the only business in the home. Done improperly (weather Medicare or non-Medicare health) I can see business being stolen if passed along to wrong person.

IMHO

 

[DHurd]

So he basically wants you to send him an address book of all your clients? Does he want you to suggest you buy from him as well? Personally I'd tell him no thanks seems kinda suspect

 

[LeahA3425]

I think Medicare clients are worth the hassle, which for the most part can be few, especially if it is a traditional med sup. If you are working with pre-Medicare coverages, I know from speaking with others that part time in that arena can be more costly time wise than not.

Be very care to whom you out source this type of business to. When the PDP - med-advantage product came to life, it was seen more of as a lead to other business in the home as opposed to the only business in the home. Done improperly (weather Medicare or non-Medicare health) I can see business being stolen if passed along to wrong person.

IMHO

Definitely one of my primary concerns as well. Could a service level agreement be enough to prevent poached clients?

 

[LeahA3425]

So he basically wants you to send him an address book of all your clients? Does he want you to suggest you buy from him as well? Personally I'd tell him no thanks seems kinda suspect

He would pay me a referral fee and always send referrals my way, as they do not write annuities.

 

[DHurd]

He would pay me a referral fee and always send referrals my way, as they do not write annuities.

Maybe test it out with no more than 3 referrals and wait to get back something idk

 

[Life Hawk]

Maybe test it out with no more than 3 referrals and wait to get back something idk

That's a dry run, but the real question might be how much money is to be lost on shipping business out, based on what it cost to keep it in house. Might be worth the time spent to nail that number down. Their headaches in this business, mine have been so bad as to create massive hair loss. Sorta kidding... but to be good at what you do will cause you to work harder than anyone else wants to.

Also keep in mind the relational value to in housing as much business as you can for one person. "1 policy makes someone a buyer, 2 policies makes someone a client, and 3 or more makes someone a client for life." Not sure were I heard that, but I can pretty much attest that it is fairly accurate.

Very excellent question though...

 

[DHK]

Just because I have a license to sell a lot of products... doesn't mean I want to.

Health insurance, medicare supplements, and lots of other stuff that I don't want to deal with. I know what I'm good at... and what I'm not good at.

And I don't care about reciprocity about it either. Just take good care of the person I send you and don't try to poach what I'm doing with them.

Greater focus can multiply your business results.