Why Tier Three Agencies Should Reconsider Small Group ROI

When it comes to agency growth strategies, Tier Three agencies—those with fewer producers and smaller books of business—often face difficult decisions about where to invest limited time and resources. 

One common belief? Small-group health insurance just isn't worth it. But that assumption may be costing your agency more than you think.

Here's why it's time to take a second look at the ROI of small group clients and how new platforms and automation can make small groups not just viable but profitable.

The Traditional View: Small Group = Small Margin

Historically, many Tier Three agencies have deprioritized small-group benefits. The logic was simple: small groups (typically under 50 employees) require just as much service as large ones, yet offer significantly lower commissions. For time-strapped producers and account managers, it can feel like an uphill climb with minimal reward.

But the game has changed.

Three Reasons to Reevaluate Small Group ROI

1. Automation Is a Game-Changer

Technology is finally catching up with the inefficiencies that plagued small group servicing. With platforms like MyHealthily, agencies can automate quoting, enrollment, renewals, compliance, and benefits administration. This dramatically reduces the hands-on work required, freeing up producers and account managers to focus on growth—not paperwork. In short, what used to be a time sink can now be a streamlined revenue engine.

2. Volume Adds Up—Especially When You Own the Process

One small group may not seem worth the effort, but a portfolio of 20–30 small groups can drive recurring revenue, cross-sell opportunities, and client referrals. With the right tools, your agency can scale small group business without scaling headaches. Also, small groups tend to stay loyal when they receive personalized service and value. That loyalty translates to long-term client retention and year-over-year revenue.

3. New Market Pressures = New Opportunities

Many small businesses are struggling to navigate the rising costs of healthcare, compliance changes, and evolving workforce expectations. They're looking for a partner—not just a plan.

Tier Three agencies are uniquely positioned to be that trusted partner. You're nimble, relationship-driven, and often closer to your local business community than national firms. With the right technology and process in place, you can compete effectively—and win.

 The Real ROI Is in the Relationship

Small groups may not bring in the biggest checks—but they often deliver a big impact. They open doors to new industries, generate referrals, and create anchor clients in communities that large brokerages traditionally underserve.

In a crowded market, relationship-driven growth matters. And small group business is one of the most powerful ways to grow from the ground up.

How MyHealthily Helps

At MyHealthily, we've built a platform that flips the old small-group math on its head. By combining automation, carrier flexibility, compliance support, and white-labeled branding, we empower Tier Three agencies to:

• Quote and enroll small groups in minutes
• Offer competitive, ACA-compliant plans through a streamlined system
• Eliminate non-value-added paperwork which yields a 70% time savings
• Scale small group business with confidence and control

No more choosing between growth and efficiency. With MyHealthily, you get both.

 Final Thought: Don't Leave Revenue on the Table

If you've written off small group business in the past, it's time for a second look. With modern tools and smarter workflows, small groups can deliver a strong return—not just financially, but strategically.

In today's market, the agencies that thrive are the ones that adapt. Small groups represent not just an opportunity, but a competitive advantage.

Let us show you how. Book a demo with MyHealthily today and discover what small group ROI can really look like: https://www.myhealthily.com/book-your-demo

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