When to Get AOR Signed

[yorkriver1]

My friend is consulting for a company with a 25 person health insurance group plan. I have been recommended by my friend to look at their plan to help save them money.
If they keep their present plan, I would need to get an agent of record letter, as I represent the carrier they have now.
I think I should present me and my FMO's capabilities, and ask for the letter before proceeding further.
Your thoughts?

 

[stuy119]

If you can get it now, do it.

 

[ABC]

Ask now, worst thing they can do is say no.

 

[stuy119]

Here's the issue:

If you wait, you're selling on price. Right now, you can talk about service, product options (voluntary and ER-paid), plan documents (or lack thereof), funding strategies, etc. You can show them what they are missing or not getting with their current broker.

Once you talk pricing, you're competing on price.

 

[yorkriver1]

Thanks for the reminders on selling price. Fortunately, my GA/FMO can provide some very good support solutions, such as web based employee enrollment and account maintenance, COBRA admin, etc. My prospect also uses a large national payroll company for payroll and probably POP plan admin. Will need to watch for that company asking for the group benefits, too.

 

[stuy119]

Actually, you need to establish a relationship NOW! with a good payroll vendor (same with a good P&C guy for work comp). If you do that, you can turn around their PEO service model and take advantage, taking over the entire account - instead of them having that opportunity.

Typically, I find that I can put in my payroll vendor, work comp guy, and take over their benefits it's a savings of 20-30% over the PEO rates.

 

[yorkriver1]

Thanks, I will look into that. The prospect's business is in the state capital, plenty of vendors.