“How Sweet It Is……………….”
Making $1,000,000 has never been easier……………………..
I’ve been an insurance broker for a long time. Building a substantial book of business, I have considerable control over compensation with my partner vendors. Just so you know, my book does not rely on the BUCAs, in fact I don’t do any business with them. Why? They control my compensation and can cut that off any time, for any reason, with 30 day notice (yes, read your BUCA contracts knucklehead!).
So one day I was thinking. How can I make a million dollars this year without even trying too hard. After all, I’m getting lazy these days and I can do only so much golfing, fishing, and traveling without feeling guilty about not working (i.e, earning money). It’s a work ethic thing I’ve had since childhood.
So, I began thinking, how many employee lives do I manage? Now lets see, that’s about 20,000. Ok, if I can earn an additional $4 per insured per month, that would bring in about $1.0 million in new revenue.
So I picked up the phone and called my PBM of choice. “Say Sam, listen, I need you to put in $3.50 per script for me starting next month as a claim cost. And, if it’s OK with you, I want to put the rest of my book of business with you in the next several months but you are gonna have to put in the $3.50 ok?”
“Sure, that’s great. We can get that done!” says Sam. “Are you sure you don’t want more. Some brokers earn $5 – $10 per script.”
“Naw, I’m not greedy Sam” I replied.
I hang up and grab my calculator. “Let’s see here. If scripts average 1.2 X # employees and I get $3.50 per script times 20,000 insureds, that’s about $1,000,000.” And my clients will never know. How sweet it is!
So the next day I send out a major announcement: GREAT NEWS! ABC BROKERAGE CUTS DEAL WITH XYZ PBM. SPECIAL PRICING. ALL ABC CLIENTS WILL AUTOMATICALLY MOVE TO XYZ PBM EFFECTIVE NOVEMBER. WE ARE ALWAYS LOOKING AFTER ONE’S BEST INTERESTS.
I love prospecting over the phone. The pay is good.