Getting a potential client to switch their broker is a lot like trying to get them to skydive: they've been meaning to do it for years, they'll feel much better for having done it; they just need a little push.
My goal here is to introduce you to one particular push that will hopefully result in more sales for you and fewer bloodcurdling screams than you'd get shoving your prospects out of an airplane.
As you're probably aware, the Form 5500 provides geographic information on the plan sponsor. You can look up Microsoft's 401(k) or health plan and see that they are located in Redmond, Wash. What you might now know is that you can also look up the location of the plan brokers: Microsoft's broker (Axa) is located in Chicago. Suite 1100 on 122 S. Michigan Ave., to be precise.
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If the plan decision maker (usually the head of HR) is located in Washington, then why are they using a broker located half a continent away?
This is a chance for you to flex your sales muscles and pitch to your prospect on an emotional level. Sure it's a business, not a consumer, but ultimately the decision to go with you as the broker of record is made by a living, breathing human being. If you can find someone local who's using a faraway broker, that puts you in a position talk about how you grew up in the area, how you can make house calls, and how those deep dish pizza-loving Windy Citizens don't know the first thing about the health care situation in Redmond.
It's a huge opportunity. According to the most recently available Form 5500 Schedule As, 37.2 percent of plan sponsors who use a broker are using one that's not local. Those plans represent $247 billion in fees and commissions that you could put in your pocket if you just play the locavore card!
I'm not saying that this sort of old-fashioned salesmanship is going to beat solid numbers in making your case, but it does provide you with a thought-provoking and effective way to get your foot in the door.
Good hunting!
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