You might think that's not the case, but consider how often you're giving away free services to secure deals, absorbing the cost of those services, and never turning down a client. If that sounds like you, you're likely paying hidden costs and aren't realizing it. Let's take a closer look at why these three red flags are affecting your business, and what to do instead:

You rely on free services to win business

With so much competition in the industry, you might be worried about your ability to win business. Therefore, you underestimate the value you offer as a preferred consultant. But the truth is, if you're winning business without offering something for free, you're much better off.

Your value lies in your expertise and ability to deliver the best benefits solutions; that is worth paying for. You don't need to rely on "free" benefits technology like carriers do (although a client's enormous premium likely offsets that cost), or claim to be a one-stop-shop, as certain payroll vendors do. You stand out because you can offer technology solutions that truly solve your clients needs.

You absorb the cost of the services you're giving away

In order to become an asset to your clients, you may offer your services away for free, then absorb the cost of those services into your business. But over time, you begin to realize that you're working twice as hard for little in return. Not to mention the negative long-term impact on your bottom line.

A different and more effective strategy is to position your pricing. Whether you're a consultant from one of the top-ten firms, or a smaller firm, there are two options all brokers or consultants have:

You provide the technology as long as you're the broker of record

If this is disclosed upfront, it's not a bad deal and is common practice. Your client is aware that their technology access is conditional to your BOR status. This means the client is more inclined to work with you long-term, because losing you likely means they will lose the technology.

Work with a technology partner

Employee benefits and employee benefits technology are not the same, and shouldn’t be treated as such. This is why taking a strategic approach is helpful. Brokers who position themselves as strategic advisors not only advise clients on the benefits side of the business, they offer technology recommendations as well. The costs for each service are different, so this approach provides transparency for pricing and doesn't tie both services to each other.

A technology partner can help you with this by working closely with clients to identify the best solution for their needs. This enables you to offer best-fit solutions despite technology not being your area of expertise. Working with a technology partner can get you incredibly competitive rates — savings that you pass along to the client.

Taking this approach connects your clients to a fully serviced technology solution, and the client doesn't feel handcuffed to it.

You take on every opportunity

It might seem counterintuitive to turn away clients if you're trying to increase your revenue. But although taking on every client might work initially, it eventually becomes problematic. By taking on any client, you engage with companies that quickly become problem children and don't value you, your time, or your expertise. You will end up losing much of your valuable time and revenue in the process.

Instead, you should vet clients to see if there is mutual respect and shared values. A client whose only consideration is price tends to demand the most for the least. That may work for them since they have no skin in the game; but what about you? It will get you nowhere fast.

If a client doesn't see your value and is unwilling to invest in you, it's not worth taking them on. Do you really want a client who isn't willing to pay you what you're worth? By learning to say no, you can hold space for those who do see your value and want to invest in your services and expertise.

So brokers and consultants, remember that "free" services are never truly free. Think twice before you offer your expertise and services for free, because you will inevitably absorb that cost. Avoid the red flags we've covered to prevent unnecessary costs and ensure your value is recognized.