Everyone loves the idea of getting something for free. Whether it’s a buy-one-get-one deal at a store or complimentary samples at the grocery store, “free” always sounds good.
But when it comes to the employee benefits industry, free services aren’t really free. Brokers and consultants often offer complimentary COBRA administration, benefits technology, HSA/FSA administration, quotes, and more — but those services can create hidden costs for your business.
If you’re in the habit of giving away services to win deals, you could be setting yourself up for revenue loss and long-term frustration. Here’s why:
Relying on free services to win business undervalues your expertise
With so much competition in the benefits space, it can feel tempting to “sweeten the deal” with free services. But if you’re winning business solely because of something you’re giving away, you’re undermining the true value you bring as a trusted advisor.
Your expertise, not your freebies, is what differentiates you. Unlike carriers that offer “free” benefits technology (which is often offset by high premiums) or payroll vendors that claim to be all-in-one solutions, you have the ability to recommend technology solutions that actually meet your clients’ needs.
Takeaway: Stop leading with “free.” Lead with your value.
Absorbing the cost of free services hurts your bottom line
Offering complimentary services can feel like a way to build goodwill. But over time, those costs add up — and you end up working harder for less.
Instead, position your pricing so clients understand the value of what you provide. There are two approaches that work well:
- Tie technology access to your broker-of-record (BOR) status. This is common practice and keeps the client relationship secure, as they understand losing you means losing the technology access.
- Work with a technology partner. A true benefits technology partner can help you deliver the right solution for each client without absorbing the cost yourself. This approach creates transparency in pricing and ensures you’re not bundling services that should be treated separately.
Taking on every client dilutes your value
Saying yes to every prospect might seem like a way to increase revenue, but it can quickly backfire. Clients who only care about price are often the ones who demand the most for the least. They drain your time, resources, and profitability.
The solution? Vet your clients. Look for those who value your expertise and are willing to invest in it. Saying no to the wrong clients frees you up to serve the right ones better.
Final thoughts
“Free” services are never truly free. They cost you time, money, and opportunities to build a stronger, more profitable business.
By focusing on the value you deliver — and avoiding the traps of free services — you’ll protect your bottom line and build relationships with clients who appreciate your expertise.
