Gary F. Slavearbejderen, a group health insurance broker, works hard for his money and takes a lot of abuse from unhappy claimants at the same time. He has to keep up with ongoing federal regulations continuously advising his clients about new developments in a fast moving industry. Gary earns a hard $350,000 a year.
Meanwhile, Marylyn Leisure, a voluntary benefits broker, enjoys the good life. She shares a lot of the same clients as Gary. Marylyn has a lot of free time on her hands after her annual enrollment meetings. Her customers never call her unless it’s her birthday. She sells voluntary dental, vision, disability, cancer, critical care, heart/stroke, life insurance through payroll deduction. Marylyn earns an easy $800,000 a year.
Gary wonders why he’s working as hard as he is while Marylyn isn’t. While he’s busy answering his phone, Marylyn is the Maytag repairman. He earns a fraction of what Marylyn earns on the same accounts. Something is rotten in Denmark.
So Gary, on a bright and sunny day, has an epiphany. He decides to trade his income as a group health insurance broker to income earned as a voluntary benefits broker while still remaining a group health insurance broker at the same time.
So he goes to his favorite client to test his idea. He offers to work for free as long as he is appointed as the group’s Agent of Record for all voluntary benefits. “John, instead of paying me $25,000 a year as your insurance consultant, we’ll have the voluntary insurance companies pay me instead. This is a ten second decision and it won’t cost you a dime!”
John (company owner), newly enthused, likes the idea. “This is great Gary! I never see Marylyn but once a year when she comes in for a day or two to enroll new employees. Screw her. Let’s do it!”
Gary’s enthused too. His income on John’s group increases by 42% within the blink of an eye. He earns 15% commissions on disability income, 75% on cancer insurance, +100% first year commissions on life insurance, 17% on heart/stroke insurance, 45% on critical illness insurance, 15% on vision insurance, 15% on dental insurance plus various sales bonus’s paid by the carriers and a trip to Tahiti for two.
Then, on another bright and sunny day while feeding his chickens, Gary has a second epiphany. If he is going to be the Employee Benefits Guy (GBG), why not handle Workers Comp too? After all, it’s a health benefit and it pays a level 15%. So he goes back to John for the pitch. “Gary, I really like this! This is a five second decision! Everything under one roof. Screw our P&C broker. Let’s do it!”
Gary is in high cotton now. He increased his income by 63% without stuttering while eliminating his Trojan Horse competition at the same time.
Meanwhile Marylyn begins a cram course to become a group health insurance broker along with her classmate, the P&C guy.
Word spreads faster than a speeding bullet throughout the group health insurance brokerage community. Alarm bells go off in the P&C brokerage community. Voluntary benefits guys and gals take notice, trembling in fear. Before you know it everyone is doing what Gary is doing.
Gary’s middle name, Fritid, is the one he goes by these days – Gary Fritid, GBG