People find themselves in this business from all walks of life - right out of high school or college, the military and from a variety of other careers.
Joseph Alfonsi's a great example. Because it's not every day you run into a former bouncer and beat cop whose "claim to fame" is being part of the squad that arrested infamous multimillionaire murderer John DuPont.
"I actually cuffed him," Alfonsi recalls fondly.
People find themselves in this business from all walks of life - right out of high school or college, the military and from a variety of other careers.
Joseph Alfonsi's a great example. Because it's not every day you run into a former bouncer and beat cop whose "claim to fame" is being part of the squad that arrested infamous multimillionaire murder John DuPont.
"I actually cuffed him," Alfonsi recalls fondly.
He spent 10 years on the force in Springfield, Penn., as part of a 40-man department. Alfonsi also worked as both a DARE officer and field training officer. But he knew he wasn't a lifer, (so to speak).
"The police life was a great job when you are young and single but when you are married with children, that life becomes anything but normal," he explains.
One day, while training for a power lifting competition in a "hard-core" Havertown, Penn., gymnasium, Alfonsi ran into a group of Unum reps who also worked out there. Over time, they got to know one another and he happened to mention he wanted to change careers. Naturally, as those things go, they told him Unum needed a voluntary benefits sales rep. He didn't waste any time. He picked up his phone right there in the locker room, called a senior group rep and pinned down the first of many interviews the very next morning. He had the job a few days later.
"I was called an 'experienced life' hire," he says. "Being 32 years old, I was not the stereotypical college recruit."
His first year - back in 2001 - he found himself staring at a sales goal of $490,000 (of annualized premium). Only thing was, the year before, the entire office wrote less than $300,000.
"With a wife and two small children, I figured I better start digging in to support them, so I dove into a five-inch high product manual and flew down to Chattanooga, Tenn., for a three-day training seminar. Having memorized the product manual and knowing more than the trainers, I flew home the next day to start my new career," he recalls.
"Hired in April of 2001, I hit the streets and attempted to figure out how to sell almost half a million dollars of [voluntary benefits] premium in about a half a year. The business has to be paid in the calendar year, in order for the rep to be paid," he says. "So it's safe to say, I had until October to sell, enroll and get the first bill paid in order for me to feed my family and make a successful go at this business."
Naturally, Alfonsi hedged his bet. To help pad his income while training, he did time (so to speak), as a bouncer at a Villanova college bar. Oh, and he worked weekends as a grocery store manager in Philadelphia.
"I did whatever it took to support my family," he says. "From a business-sense perspective, I had to rely heavily on my networking and interviewing skills which I learned as a cop."
It's worth mentioning here that Alfonsi points out, "At one point, there was a bet in the office of when I would quit. The over/under was six months. You won if you took the over."
His big break came in the form of a local broker (and September 2005 cover guy) named Russ Carlson.
"He opened up his block of medical cases to me and I was off and running. I started off enrolling small 10 life cases, which quickly led to larger ones. I started expanding my broker base and led with my ice-breaking cop stories. The brokers loved the cop background and asked me everything about my experience as a police officer," he recalls.
The question he heard most often, of course, was "Did you ever shoot anyone?" That was when it hit him.
"I knew then that the trick to the insurance business was to build relationships anyway possible," he says.
By the end of the year, he wrote about $500,000 of premium over about 20 cases.
"I was on the map as [voluntary] sales rep at Unum," he says.
Today, his annual goal hovers around $6 million in voluntary premium. He's also responsible for selling Unum's group portfolio, too. And the last two years? He took home Unum's sales rep of the year awards each time.
Benefits Selling: So, in a nutshell, what's the secret to your success?
Joseph Alphonsi: I've created an interviewing (or qualifying) technique that I found was unique in the carrier rep marketplace. In every meeting I went into, I would ask about how my competition presented their products and services and the overwhelming common theme was that they would walk into a meeting, introduce themselves and then begin to spew information and fan out brochures on the table. How can you spew information, if you don't know what to talk about?
Resorting back to my police days, I knew if you wanted to find out information, you had to ask questions and plenty of them. If you can get someone to start talking, they will tell you everything you want to know and most times they don't even know they are giving you the answer key.
It is so much easier to sell something if you know what someone needs.
My interviewing sheet has been circulated around the country. From reps to brokers, it has become a winning tool or answer key for writing hundreds of voluntary benefits cases. I have conducted repeated training on how to use this interviewing technique around the country.
One thing I definitely learned as a cop and apply to my job today is to be an auditory learner. My sergeant in the police department was an interrogator in the Army and he taught me many valuable lessons in life. One thing he taught me, which I totally agree with, is that information is only good if you retain and use it. We would have competitions in the police department, as to who could remember a person's name, address, phone number, prior arrests, etc., quicker. This kept our minds sharp. I have applied this in my business today. I can remember mostly everyone I have met in this job and it has definitely secured me some additional business. People appreciate being remembered and being acknowledged. It is safe to say, if I meet you once, you are locked in my mind.
BS: And what challenges do you expect to face in the next few years?
JA: The biggest challenge I see is the increased competition within the voluntary benefits arena. Traditional group and medical carriers are building VB portfolios and looking to compete for employee dollars, as health care costs continue to rise and employers continue to pass along benefit premiums to their employees. In the last eight years, I've seen carriers come and go quickly as they tried to stake their claim as a primary VB player in the marketplace. There is a big misconception in the voluntary benefits world - that it is easy. I mean what is so hard about it, they are payroll deducted benefits, in which the employees pay the premiums themselves? Thinking like this will get you an early exit out of the VB arena. You'll be the "Tommy TuTone" of the voluntary benefits world.
BS: What challenges do you anticipate for the industry as a whole?
JA: The biggest challenge for the voluntary benefits business is that the employee's dollar can only stretch so far. The myriad of products out there can be quite confusing and expensive. I think there's going to be an increased need for benefits consulting. Employees will need to speak with a benefits counselor and sift through all of the products, features, value adds, services, etc., and make sure their products work specifically for them and their families' needs. Benefits communication is going to be arguably more important than the products themselves.
BS: And what would you say to someone who's just starting out in the business?
JA: Always put yourself in your audience's shoes. Anticipate the questions before they're asked and you'll rarely get caught off guard. Always "interview your prospect" before you present any sales ideas. It's much easier selling someone something they do not have, but need, rather than selling someone something they already have or don't need.
Also, a key ingredient to being successful is networking with as many people as possible. Never underestimate anyone. You never know who they know or who they will become.
Oh yeah, and go out and join a hardcore gym, it worked for me and changed my life.
Sidebar: Qualifying questions for a new prospect
The Client
* Who is in attendance? CEO, HR Director, Supervisor, etc.?
* Exact Name of Client?
* Industry? Background? History (year business started)?
* Locations by state?
* Number of employees? Eligibles? Eligibles by location? Sales people?
* Union vs. non-union? Relationship with Union?
* Average salary? Hourly & salary? Overtime? (ask for census to simplify)
* Average age? Male vs. Female?
* Bilingual employees? Other languages?
* Shift work?
* Tone of the group? Layoffs? Hiring? Merger? Acquisitions?
* Turnover?
* Eligibility for employees? (How long do they have to wait to become benefit eligible?)
Inforce Benefits
Medical plans? Renewal month?
* HSA, HRA, MERP, Traditional?
* Cost sharing? (Employer vs. employee) Single? Family? Recent employee contribution increases?
* Hospitalization Deductible?
* Emergency Room Deductible?
* Physician's Deductible?
* Dependent information? Updated & Audited?
Plan participation
* Dental plan; Vision plan; FSA; 401(k) or other investment/retirement option? Employee Assistance Program? Cost?
* Sick, vacation, or PTO plan/policies? Allowed to accrue?
* Self-funded maternity leave?
* STD? Self-insured, fully insured, voluntary, state plan, none? Carrier? Plan design? Claims?
* LTD? Self-insured, fully insured, voluntary, none? Carrier? Plan design? Claims?
* Life? Fully insured, voluntary, none? Carrier? Plan design? Claims?
* Executive Benefit Plans? Deferred Comp plans? Bonuses or commissions included? Any benefits classed out?
* Existing Voluntary Benefits inforce?
* Carriers? Direct or brokered?
* Payroll deducted or direct billed?
* Products?
* Participation?
* Are the employees asking for any additional benefits?
* Bill available?
* Pre-tax vs. post-tax? Plan year?
* How did they conduct their enrollment?
* Are you happy with the inforce carrier?
* What are their strengths? Weaknesses?
* How often do they re-enroll?
Existing Open Enrollment:
* When? Effective dates vs. actual starting time?
* How? Paper, electronic, web, etc.?
* Who conducts it?
* Are spouses invited?
* How do you follow up with stragglers?
* Expenses of print materials, fulfillment?
Systems and processes:
* Benefit Statements provided? Total Compensation statements provided?
* HRIS system? Broker provided administration platform (outsourcing)?
* Centralized billing? Payroll vender?
* Payroll frequency? Weekly, bi-weekly, etc?
* Direct deposit available? Participation?
* How do the workers receive their paychecks?
* If outside payroll vender, do the paychecks come sealed?
* Do employees have cell phones? Access to e-mail?
Next steps?
* Schedule a follow up meeting at this meeting.
