One engine, three channels. Below is the model — KPIs, revenue on both sides, and a worked pilot. It is built to be trusted, not to dazzle: every operating rate is an assumption shown as a range (conservative / base / aggressive) until the discovery call confirms your five numbers.
Other tracked KPIs: the reactivation funnel (records → contactable → assessment-start → appointment → issued), monetization events per household (~1.4 base, ceiling 3.0), producer 12-month retention (target 45–65% vs ~15–30% industry) and revenue-per-producer, seat gross-margin (~85%+), and predictive life-event triggers.
| Funnel stage | Conservative | Base | Aggressive |
|---|---|---|---|
| Records (segment) | 10,000 | 10,000 | 10,000 |
| × Contactable & compliant | 4,000 | 5,500 | 7,000 |
| × Assessment-start | 600 | 1,375 | 2,450 |
| × Booked appointment | 180 | 550 | 1,225 |
| Reactivated households | 45 | 193 | 551 |
| Summit first-year commission (FYC) | ~$53k | ~$411k | ~$1.77M |
| Annuity deposits (one-time, memo) | $0.38M | $4.04M | $19.8M |
Renewals and trails (~1.8× multiplier) extend the book’s tail well beyond Year 1 — upside, not shown. The fulcrum is annuity attach: it swings Summit FYC from ~$53k to ~$1.77M — the one input to pin in discovery.
| Line | Type | Recurring? |
|---|---|---|
| Life FYC (IUL / whole / term) | First-year commission (~90%) | One-time + renewals yrs 2–10 |
| Annuity FYC | Comp on deposit (~5–6%) | One-time + trail 0.25–1%/yr |
| Medigap / Medicare Supp. | Commission (~20% yr1) | Recurring renewals |
| Medicare Advantage / ancillary | Per-enrollment (CMS-set) | Recurring annual |
| Final expense (small-face WL) | FYC (~90–100%) | One-time + small renewals |
| Voluntary / worksite (payroll-deducted) | Commission (15–40%) | Recurring — persistency is the asset |
| Producer override / hierarchy | Override on downline (2–8%) | Recurring — the BGA compounding layer |
| Cross-sell / second-book | New FYC per event | Expands LTV |
An enrolled worksite employee is worth ~$500–$1,500 in benefits commission LTV over the life of the coverage (voluntary-only ~$300–700; + group medical ~$1,500–2,500) — and payroll retains that employee 6–12 years at 82–99% annually. A 100,000-employee payroll book ≈ ~$50M embedded benefits value. Paychex already runs ~$1.3B/yr (25% of its revenue) on exactly this attach.
| Payroll company | ARPU / client | Retention | Client lifetime |
|---|---|---|---|
| Paychex | ~$7,100/yr | ~82–83% | ~6 yrs |
| Paylocity | ~$33,000/yr | ~92% | ~12 yrs |
| Rippling (PEO) | high | 99.5% | very long |
| Gusto | ~$2,000/yr (SMB) | ~80% (est.) | ~5 yrs |
Commission %, retention, and medical premium are sourced (Paychex/Paylocity filings, KFF, Nava/Actuary Mag); per-employee premium & persistency are labeled estimates (LIMRA/Eastbridge paywalled). ARPU is blended (payroll+HR+PEO+insurance).
Insurance / wealth / health domain fused with conversion science: the 2012 book is re-read as a Peak-65 income + Medicare + final-expense pipeline (~1.4 monetization events/household), not a dead list — with the coverage-gap logic, right-product-right-life-event sequencing, and the assessment-to-appointment psychology that turns a cold re-contact into a booked, compliant, broker-of-record conversation.
The engine: engaging assessment → auto coverage-gap report → booking → producer cockpit → owner admin, CRM and auto-reporting underneath. One engine feeds all three channels at ~$0.15–0.50 marginal cost per assessment — it scales to the whole book at near-zero incremental cost, every touch logged, compliant, and measurable.
The spend map: reactivate before you buy cold (~5× cheaper CAC, ~15:1 vs ~3:1 LTV:CAC) — fund channel 1 first, self-finance channels 2–3 from its cash. Sequence by ROI (contactable Peak-65 with annuity attach first); deploy the Academy to hold producers (retention is worth more than recruiting in a 6:1 shortage); kill any channel that can’t clear its floor.
Live dashboards on the one number that matters — FYC reactivated per 1,000 records — sliced by segment, product, producer, and channel. Producer scorecards, channel P&L, and predictive life-event triggers (age-in to 65 → Medigap; rollover windows → annuity; anniversaries → second-book) that fire the next monetization event before a competitor does. Distribution-first thinking, instrumented.
Open the pilot on one 10,000-record segment. Base case returns Summit ~$411k in first-year commission (plus ~$4M in annuity deposits and a recurring renewal tail), payback inside a few months — and it proves the funnel rates live, so the full-book rollout is a swap, not a leap. Land the segment, prove the north-star, then expand to D2C + payroll and license the engine.