Health insurance is the next real estate for entrepreneurs
Opinions expressed by Entrepreneur the contributors are theirs.
Entrepreneurship is simply inserting risk between you and your profit goals. Having a job is risky enough. I’ve heard Mark Cuban say that having a job is like being self-employed with one client. I loved it, but back to the risk. If the risk is between you and your goal of profit, then surely the purest form of individual entrepreneurship is to be a commission-only salesperson. Real estate has long been a highly sought-after commission-based sales opportunity, and it’s likely followed by “financial services.”
Damn, do I hate the term “financial services”. Everyone thinks best of financial advisor, banker and life insurance. Nobody thinks about health insurance and health insurance, while corporations have risen up overnight to distribute massive amounts of health insurance and create billion dollar empires.
Related: Is Health Insurance the Next Real Estate Investing?
Let’s take a look at the health insurance landscape so you can understand which target audience I’m referring to:
These are all salable health insurance products with great lifetime values. Now, unlike commissions on real estate, life insurance, and annuities, there is a commission tied to long-term customer happiness. This is not a lump sum, “goodbye, see you later”, type of agreement. We like this look. We even sell with.
“Ms. Jones, the products we sell are only profitable for us if we are able to keep you as a customer for a period of time, so it is in my interest to place you and keep you where you want to be. “
It’s beautiful and like all sales should be. This is also the reason why many who cannot see beyond their toes do not enter space. They want quick money, but long-term money is always more important than quick money. The opportunity is also much greater.
With 11,000 people turning 65 a day in the United States and many other variables driving the exodus from group plans to individual health, we’ve had some amazing years in this industry. The residual side has allowed us to build a huge, extremely creditworthy business.
So why is it considered the new real estate, though. Why is it perhaps more of an equalizer than real estate?
We have a nation that is a melting pot of cultures. Many of these cultures are not as advanced in passing down generational wealth. Certain demographic groups might have an easier time in real estate than others, as their circle may already have money to spend on lavish or larger real estate.
Health insurance is literally the opposite. People who are able to set a standard for taking care of the less wealthy people in our country are able to earn the most money. In both black and Latin markets, we have seen entrepreneurs enter this market and make huge gains by taking care of a market that can be warmer to them. They built huge companies. I’m in no way saying it couldn’t have been done in real estate, but that same market that they were able to tap into generally wouldn’t have bought expensive properties to earn big commissions.
Related: How Small Business Owners Can Win the Health Insurance Game
Technology, beginning with the telephone and ending more recently with fast-paced video transitioning social media, has opened up more opportunities for people who are not of wealth. I would say, however, that the level of opportunity for those taking the bull by the horns in health insurance and medicare is of a greater magnitude to them than even these massive technological advancements have had on their average benefactor.