Fall 2007 / No. 73
The pros and cons of using specialized voluntary reps
Clients, often those just getting started in the voluntary market, frequently ask us if they should create a separate sales structure for their voluntary products or if they should use existing reps. It’s a logical question but, unfortunately, not one with an easy answer. The most accurate answer is “it depends,” but that’s not very helpful to those struggling to put together a sales process.
There are several factors to consider:
- What type of brokers are you targeting?
- Do your existing sales reps already have relationships with the targeted brokers?
- Can your reps handle more products?
- What are your cost restrictions?
The following table looks at the pros and cons of using specialized reps.
| Pros |
Cons |
| Usually produce a higher volume of voluntary sales |
Creates another relationship for the broker |
| Usually more comfortable with a broad portfolio of voluntary products |
Can create internal “competition” for the broker relationship |
| Allows for capacity expansion (no issues on whether the reps can handle more) |
Usually costs more since it needs more personnel |
| If focused on worksite brokers, probably already has a relationship |
If not focused on worksite brokers, may not have existing relationships with the targeted brokers |
For many companies, a blended approach is the right answer. When the targeted brokers are the same as the existing brokers, a blended approach allows the existing reps to remain the relationship manager but have access to a specialist with extensive voluntary knowledge. Just be sure to align rep compensation appropriately, so you incent the right behaviors of both the sales rep and the specialists!
For more information on designing the best sales structure for your voluntary products, give us a call at (860) 676-9633 or email us. |
