HBW: Yesterday, Today, and Tomorrow

After eight years with my first company, A.L. Williams, I made a business decision that has had a long-term, positive impact on my business career. That decision was to leave. However, it is important to note that I did not make this decision out of anger or frustration. On the contrary, I was doing well and had an organization that was really taking off.

I left because I was seeking an even bigger opportunity. In my view, that company had peaked and the really great building opportunities were now behind it. I might add that this view was shared by some other very successful people at that company who would not state those views publicly. They did not want to disrupt the status quo of their organizations. Privately though, they were very clear on their feelings.

I firmly believed in the concept of "Buy Term and Invest the Difference" (BT&ITD) and felt that the market was easily able to sustain more than one great “term” company. I also felt that my eight years of experience in all aspects of our business (recruiting, selling, managing, administrating an office and business, motivating a team and so forth), placed me in a terrific position to seize a potential ground floor opportunity and make the most of it. It is also important to point out that the challenges with working at A.L. Williams were such that, in most cases, we were vastly more prepared to succeed than if we had worked for practically any other firm in the industry. It was clear that the “Williams” approach was more demanding than any other company in the industry, which was a huge confidence builder for me.

Also, in considering leaving, I recognized that the founder of the company and much of its leadership team had worked for two other firms before starting “Williams” and that many, if not most, successful people find their ultimate success after multiple experiences. So, I wasn’t going to allow myself the thoughts that limit success or the fears that prevent change. The ultimate clincher was that the company had sold out to a large corporation. It was obvious to anyone willing to look that once the product provider controlled the sales force, the great building opportunity was in dire jeopardy. You will have a very difficult time finding a successful, corporately owned MLM operation.

I have an opinion about business and life that the single most important factor for success is who you are associated with. No matter how great the “deal” appears, the wrong people will find a way to wreck it. But, in my exuberance for seeking this ground floor opportunity, I forgot (more likely ignored) this most important requirement. I failed to do my due diligence because I felt that, no matter what, I could make a living in this profession that I had grown to love. Also, the thought of being the first person in the state of California with a brand new "BT&ITD" company, with all the experience I had, was too good an opportunity to pass.

So, in June of 1989, off I went to join this new firm. Interestingly, at that time I was leaving behind a strong and growing organization, with a 125% base contract and 22% on the first generational overrides, to go on to an 85% base contract with 5% on the first generational overrides. Contract was not the issue. Opportunity was the issue. I was pleased, but not surprised, at how many people were not only willing, but also excited to join us in this new venture. The company had been started by a couple of former “Williams” reps, but was ill prepared for the growth that came their way. When a friend in Kansas recruited me to that company, we were definitely not aware of the problems and also not aware that this one-year-old company was destined to fail.

Nevertheless, within a year, we were able to build the largest hierarchy in the company and I became, by far, the top paid person. After about a year and a half, we began to see the problems, especially a prevalent disregard for the sales force. A group of leaders went to management to offer some suggestions that we felt would provide long-term sustainable growth and we were politely told where to go.

Within six months, I happily accommodated them. It was the middle of 1991 and I was, once again, walking away from an organization of over 1,500 reps and a six figure override income.

At this point, Dan Ward and I started HBW, joined shortly thereafter by Raymond Berry. We started from scratch and set out to build a great company. We did not start our own company because of ego. We simply could not find an organization with responsible, trustworthy leadership, interested in selling primarily term insurance, which really put the consumer first, followed closely by the sales force. In essence, we were forced to start our own company.

From scratch, our first full year, 1992, we recruited 214 people. Our second year, we recruited about 350 and by our fourth year we were recruiting over 1,000 licensed professionals a year. We were selling great products from outstanding carriers and running our business from all the invaluable experiences we had of what to do and, just as important, what not to do. That is why, I believe, fifteen years later, HBW is on the verge of creating one of the truly dominant companies in financial services.

So much of our success comes from a willingness to accept change and deal with it. It also comes from recognizing that companies have a right to do business any way they choose. And so do we. That is why we have multiple carriers and companies. No one company can fill the needs of all consumers or, frankly, wants to.

Recognizing change is also important because it helps identify markets. For example, when A.L. Williams was established in 1977, the baby boomers were right in that peak demographic of twenty-five to forty-five. This huge block of population was ideally suited for “BT&ITD”! Today that group has matured with many rapidly approaching retirement. Their issues have graduated to wealth transfer, retirement planning, etc. This calls for other, different products and strategies. HBW, with its mix of diverse carriers, products and training, is ideally suited and positioned to tap these markets while still maintaining our core values.

Because we have been careful, thoughtful, disciplined, and meticulous, we are poised to do unprecedented things in our industry. Let’s speak to this positioning. As a result of our commitment to retaining long-term positive relationships with our affiliated carriers, HBW still does our predominant block of business with the first carrier we affiliated with upon inception, AIG Life Brokerage Group, formerly known as Old Line Life. Factually, the reason we were entrusted with the exclusive MLM system at their company was a result of several years of high volume, high quality, and persistent business. Business that has been carefully managed and has grown. AIG/American General’s President and I have a personal relationship that has been built upon trust, commitment, and hard work. As a matter of fact, he himself gave us our special arrangement while, at the same time, encouraging us to work with other carriers to fill niches they do not provide.

As you consider us and are doing due diligence, one place to start is our carrier and company affiliations. Our primary carrier AIG is part of the largest insurance organization in the world. Because of our volume and value proposition, we play an integral role in their domestic growth! The fact that we also have long-term relationships with dozens of other top flight, well known carriers is another important factor. Our seventeen plus years in business with the same name, intact leadership, and the unprecedented success of so many people who have joined us, as well as extremely high retention of these same folks are other important factors to consider. Also consider the quality of our training which is extensive and inclusive of our associates, regardless of their level of expertise.

Consider also, that we have so much confidence in our system, we remain non-captive. As our relationships exist with our carriers, that same relationship exists with our affiliated associates. They are free to come and go as they please.

In 1991, we started HBW Insurance & Financial Services, Inc., because of our inability to find a company that had all of the components that we felt were important for lasting success. We wanted a company that put the needs of the consumer first, closely followed by the needs of the agent. A company that had access to top rated carriers and offered ultra competitive products for the client. We have built a company whose business philosophies are based on honesty, integrity, and hard work.

We have been very thoughtful and deliberate in building our company and we have built it around a nucleus of professionals. We wanted to create an environment where individuals could succeed both through personal production and as an agency builder. The opportunity to build an organization is remarkable! The compensation you are able to earn on both personal production and overrides is exceptional. And, just as important, we focus on delivering the best possible service to our agents. Our goal is to develop the largest and most professional marketing organization in the financial services industry. We know that by you concentrating on the needs of both your clients and agents, and by us concentrating on your needs, we can all build a corporate work of art. It is not a question of whether or not you can achieve your goals at Helping Build Wealth. It is a question of whether or not you will. And, that is your decision. We are looking forward to helping you design a life instead of just earning a living.

Barney Hellenbrand
CEO, HBW Insurance & Financial Services, Inc.