As a benefits adviser, it's tempting to constantly look over your shoulder. Most of the time a client needs to fire their incumbent broker just to hire you. This leads to fierce competition in the marketplace, which is what encourages innovation and creativity. But I have also seen it send consultants to the "edge of the ledge" in the world of employer-sponsored benefits.
Starting out as an adviser, I thought I could only collaborate with advisers in other areas of the country. The funny thing is when I would attend a conference outside of my ZIP code and meet a fellow adviser from my area of the country, my competitive side would kick in, and I felt the need to keep strategies to myself. I would smile and quickly excuse myself. The belief that anyone who does business in your community is to be competed with, winner takes all, held back my growth as an adviser and limited my potential impact for the communities I served.
Advisers build unique selling propositions (USPs), but they rarely scale these keeping their secret sauce close to the vest. A USP is developed from a person's natural talents, original stories, values, beliefs and unique ways they solve problems for their clients. As their block of business grows over time, the need for processes develops and less time is allowed for innovation. Eventually, they get acquired by larger agencies or retire. By the time their USP is discovered by others, if it ever is, it is at least five to 10 years behind the times before someone can turn it into a process. This leaves many of the very best ideas that can move our industry forward to die in the graveyard of great solutions that never scaled or reached their full potential.
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In 2010, the greatest gift of the Affordable Care Act wasn't the elimination of pre-existing clauses in health insurance, it was the reorganization of Blues plans in my market, requiring high volume to maintain current commission levels. This requirement forced small independent agencies to work together to maintain their level of compensation. Locally advisers banded together, combining blocks of business to preserve the 60% of revenue that was being threatened by the insurance carrier.
We began meeting quarterly, and while born out of necessity to survive, it allowed several of us to explore other ways to work together. We became collaborators and brought our cumulative talents to our respective clients. We also found ways to prospect together with seminar roadshows. We began talking about our vendor experiences, shared how some of the promises were not delivered and which vendor partners did deliver. We also shared resources, allowing us to compete with the advantages of scale on technology solutions. Some even shared their secret sauce for winning clients, and that means all of us in the room benefited. Those strategies stayed alive and are still scaling today.
All of this led to amazing friendships with my competitors in the industry in my own backyard. It allowed us to learn from each other's mistakes so that we can be better advisers for our clients. When I stopped viewing competitors as enemies and started collaborating with them, my world changed. Collaboration removes fear and anxiety. Healthcare is regional, which means you need sounding boards in your local areas. These relationships are huge stress relievers from the fierce competition that exists in our world.
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Keep your hearts and minds open to collaboration opportunities. I met one collaboration partner on an airplane on the way home from a conference. She shared a desire to work only a few more years and asked if I would be willing to help transition her out of that role. We hatched our plan on a napkin that day! She became a mentor and coach, teaching me about partial self-funding strategies, and while I serviced my first couple of clients with her for about one-fourth my usual fee, what I learned was more than worth it. Fast forward more than 10 years and some of those clients are still with me today and our friendship is still strong. She shared her authentic USP with me on how to set stop-loss limits. It didn't go to the retirement graveyard.
How did I learn to sell referenced-based pricing plans? How did I learn to use IRS Code 105 to benefit my clients? How does a small independent agency compete with the resources of a large brokerage or advisory? The answer for me to all these questions is collaboration partners.
Today, collaboration with competitors and sharing my own USPs is a key strategy that propels my career, while advancing our industry and improving results for clients. It also removes anxiety and improves mental health. The world of collaborative opportunities is endless and it is a world of abundance for all who participate. Happy collaborating, fellow advisers!
