Create a differentiator in the market by negotiating your compensation based on performance. Most advisers still get paid based on a commission percentage. As the health plan rates increase, so does the broker compensation. Most employers are beginning to ask themselves, ‘What’s wrong with this equation?’
What if you proposed a different arrangement, one based on achieving certain defined metrics for success? For example, negotiate to maintain a flat fee-based compensation. In addition to that, if you save your client, say, $200,000 from the prior year, you agree to a 70/30 split, which would provide a $60,000 bonus to your compensation. You could define performance standards to achieve in other areas as well and develop adviser incentives for realizing them.
