Kevin Trokey has an excellent article here: Don’t Let Zenefits Drink Your Milkshake
In this article, Trokey explains that Zenefits founder, Parker Conrad, has admitted that the company focus has always been Technology, and that Insurance Broker services are only a way to pay the bills. They would give away the hub (technology) and make money off of the spokes (insurance products and benefit options.
He illustrates the Zenefits business model as follows. Note that Technology is the dominant element, and insurance and service needs come secondary.
In contrast, Trokey illustrates the model that successful Brokers and Consultants use for long term success. Note how the client is in the middle of the diagram, with all activities rotating around the client. This is the model that I have operated under in my 13 years with Accelerated Benefits. Clients love it!
Trokey finally identifies the market that Zenefits will pursue. That is, Brokers who follow the OLD model of service where they sell insurance products first, and helping the client is secondary. This model is on its way out.
Dave Petno is an Employee Benefits Consultant / Broker from Ohio.