Selling Colorado Affordable Health


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I have sold my one-man health insurance company, Colorado Affordable Health, which I started in September of 2002. I have enjoyed having this business. It has stretched my abilities, introduced me to hundreds, even thousands of people in my community and has provided me with a good income and financial security for the future. Additionally, it has been very satisfying to help clients through the sometimes arduous process of sifting through options and filling out applications for individual health insurance. Many people have been grateful and it has been common to hear a client say, when we are wrapping up the process, “that was a lot easier than I thought it would be”.

Of course it was not easy for me  at the beginning, and I did not make much money the first year, while paying out some significant start up costs. I was fortunate to have money saved to carry me through and lots of experience in sales. Little by little, always willing to try new ideas and invest funds where I felt it appropriate, sales improved and my commissions increased. As the competitiveness of insurance companies varied from year to year, at different times I have been one of the top Colorado producers for Empire, World, Imerica, United Healthcare and Anthem. Among other awards, I have won trips to Hawaii, NYC, Washington DC, Stowe, Vt and St Thomas, VI.

For the vast majority of the time I have been in the insurance business I have met personally with my clients in my downtown Boulder home/office. We would actually sit down at my kitchen table to work. I used to say “I have to do a good job for you because now you know where I live”. Most brokers never meet with their clients, it is all done over the telephone and internet. The reason I met with clients is that I have/had weak computer and typing skills. But it worked well for me in that I was able to establish good personal rapport and over time these relationships resulted in new referrals from established clients’ friends and family.

An important and rewarding aspect of building my business was the networking and referral groups I joined. Membership to the Boulder Chamber of Commerce gave me insight into the workings of small businesses in the city. Participation in Boulder Links, and later, BNI (Business Networking International) provided me with many referrals to clients and, just as importantly, many new treasured acquaintances and friends.

Since I moved from downtown 7 months ago, I have been doing more and more business over the telephone and internet. An example of how the business has stretched me.

Eric Smith is a young, at least to me, health insurance broker whom I meet several years ago at an Anthem function. He and I struck up a friendship that I believe has been beneficial to both of us though shared ideas. From the first time we met, Eric has talked about the possibility of his buying my business one day. This has always interested me because I have not planned to do this work forever and there has been no one close to me who has had an interest in taking over the company.

We have known for a long time that the Patient Protection and Affordable Care Act was going to start up at the end of 2013 and that almost everyone would be required to switch over to an ACA compliant plan before 2104 is over. Colorado decided to be one of the few states to develop their own online marketplace called ConnectforHealthCO.com for these new health insurance policies. Training was set up for “Guides” and “Brokers” in September for an October 1st start date. This training however did not go well, as the practice program we were suppose to work with did not function. All we received was a lot of theory during 10 hours of online work and 8 hours of in person training. Without any hands-on experience, I quickly forgot everything I had learned.

At the beginning of October, when we were finally able to get on to the website and see what they had put together, my heart sank. The first thing that disappointed me was the unnecessarily elaborate and long application that needs to be filled out if someone is looking to see if they qualify for a subsidy, a major selling point for low income clients. Secondly, they have laid out the offered plans in such a way that even me, with all this time in the business, could not readily understand what they covered. I just could not imagine going through this site with all my present 600 or so clients. After stewing over this for a week or so, I was in a conversation with Eric when he brought up again his interest in buying my business. I said let’s meet and talk about it.

Eric came over, we went over my books together and he made me a offer. I told him that it was exactly the same number I was thinking of and we shook hands on a deal. Of course there needed to be a good deal of unraveling of the business on my part, to include assigning all future commissions due me over to Eric. And, Eric needed to arrange for the payment. As I write this almost all the things I needed to do to move the business have been accomplished. Just a few tasks, that can only be done in time, remain. I have also received the bulk of the money and no longer have any involvement in the company. Everything has gone very smoothly with much goodwill on both sides.

It was important to turn my clients over to someone who would take care of them as I had. I believe Eric is such an individual.

So, except for a little mopping up, I’m done.

Now what? When people ask “are you retiring,” I counter, “no I’m going to take a little time off and then wait for the next thing to reveal it’s self.

I’m curious to see what that might be.

Dancing with the Boulder Stars


Dancing With the Boulder Stars 001On October 17, 2013 the Boulder YWCA presented their annual dance competition, Dancing with the Boulder Stars, at Boulder’s venerable auditorium, the Boulder Theatre.

Cindy Schlager, representing Wright Kingdom Real Estate as their Relocation Director won the competition doing the Lindy Hop to “Hit the Road Jack”.

See here for her performance. 

My Resume


Charles C. Mallon

3095 Ouray Street

Boulder, Colorado 80301

720-235-7483

charleymallon@comcast.net

Personal

Born Los Angeles, California, December 26, 1945

6’0, 175 lbs

Education

California State University at Los Angeles

B.A. Latin American Studies 1970

Work Experience

Colorado Affordable Health

September 2002 to Present (September 2013)

Helping individuals, the self-employed and their families find quality, affordable health insurance.

Owner                                            Boulder, Colorado

Major Medical, Accident, Dental, Short-Term, Term Life and International/Travel Insurance.

Fort Howard, later Fort James Corporation

April 1983 to August 1999

Sales of industrial, janitorial and food service paper products through distribution to the “away from home market.”

Western Division Manager                    April 1991 to August 1999

Seattle District Manager                        April 1985 to April 1991

Los Angeles District Manager               April 1983 to April 1985

Responsibilities as a Division Manager included: 35 sales people covering the western third of the country; hiring, training, developing new distribution while maintaining rapport with established clients; setting and following division budgets, increasing end-user sales and devising distributor promotions while facilitating corporate initiated plans and programs.

Management Recruiters of Seattle/Southcenter

October 1981 to April 1983

Owner                                                    Seattle, Washington

Franchised Search and Recruiting firm specializing in the placement of Engineers and Industrial Salespeople.

Scott Paper Company

September 1971 to October 1981

Sales of sanitary paper and wiper products through distributors to the “away from home market.”

Seattle District Manager                          April 1979 to October 1981

Boston District Manager                          April 1977 to April 1979

Omaha Area Manager                              August 1974 to April 1977

Portland, Oregon Sr. Sales Rep.              April 1973 to August 1974

Los Angeles Sales Rep.                           September 1971 to April 1973

Peace Corps

March 1966 to June 1968

Volunteer                                                  Puerto Ordaz, Venezuela 

Conducted recreation programs, coached sports and taught English in a small but rapidly growing community.

Languages

Speak and read Spanish

Recreation

Running, reading, Euchre and traveling the world, often to attend Rugby events.

Wellington, New Zealand Rugby 7’s


Map of New Zealand

The document below was written by David Cunningham chronicling our trip to New Zealand earlier this year.

Jan 27th – Feb 3rd, 2013

Sunday Jan 27th – Charley Mallon and I arrived in Auckland about 7:15 am and went out and got our rent car. Drove to our hotel in downtown Auckland and got there about 9 am (too early to get a room). Did some email, and then walked to the tower and went up and looked at the views. We had a nice mussel lunch at the Occidental Bar on Vulcan St and went back and got checked into our room. Took a short nap and went on a pub crawl around Auckland. After several beers we found a Mediterranean restaurant, had a crusty bread appetizer (beet dip and hummus) and had a lamb dinner, managed to stay up until about 10 pm.

Monday Jan 28th – left before 9 am (didn’t want to pay another $25 to park) and headed to the Coramandel Peninsula (north east). We stopped for breakfast on the way and drove around the peninsula (narrow and curvy). Had pies for lunch and found a hotel in Rotura (a Quality Inn) that had Wi-Fi (after a fashion).

Tuesday Jan 29th – drove to the Waitomo Glow Worm Caves, very cool walk/boat tour (hand pulled), and then drove down to Taupo and stayed at the Adelphia Hotel, and did some email. Settled in for a big Indian combo dinner, was way too much.

Wednesday Jan 30th – drove around Lake Taupo and then took a cow path to Wanganui (20 – 30 one-lane bridges, unpaved part of the way, 1 one-lane tunnel). Stayed at the Grand Hotel downtown (did some email), ate dinner at the pub in the hotel, and had beers at two or three places within walking distance.

Thursday Jan 31st – drove into Wellington, stopping at Paraparaumu to check out the train station, schedule a cab while we were there (to take us to the airport). We checked out our hotel in Wellington (and did some email) and picked up our tickets to the 7’s matches. We drove around the bay (went by the stadium), and then drove back north looking for a hotel. We wandered around quite a bit and finally ended up in Porirua.

Friday Feb 1st – drove back into Wellington, dropped off our luggage at the hotel (did some email), returned the rental car, and then got some breakfast. Headed to the stadium and got there about noon and stayed until the last game was over about 10:30, managed to get some beers, pies, corn dogs, burgers, etc. The weather was nice warm in the sun and cool in the shade, we had enough warm gear though as we learned the first year in San Diego. The US lost to Spain (what’s up with that?), were ahead but tied England (the eventually tourney winner), and lost to NZ. It was a cross between Halloween and Mardis Gras in the stadium, with most folks in costume partying and not paying much attention to the games. After the last game we headed back to the hotel as my cold was getting me down, got there about midnight.

Saturday Feb 2nd – got up, had breakfast, did email and wandered around a bit (shopping). Walked to the stadium and took it a little easier, but still managed to have brats and pies. The US lost to Fiji (and played bad), Kenya beat NZ in OT to make the finals, but then lost to England. We left about 9:30 and walked downtown, lots of folks out and about so ended up getting Whoppers and beers at the Welsh Dragon.

Sunday Feb 3rd – got up and did email (our free 20 minutes), went and got breakfast, ended up in pub where they had the Ireland/Wales game on (Ireland won) to kill some time. Went and checked out at 11 am, and went back to the pub to watch the end of the game. Walked to the train station, luggage and all, bought our tickets and found a pub that had the Scotland/England game on (England won big). Got on our train, left at 1:14 pm to Paraparamumu, 40 minute ride, and our taxi was waiting to take us to the airport, just like clock-work. Our return flight to SFO was early so we managed to get on the earlier flight back to DEN, very nice even though we had to give up our first class seats. Got home in time to watch the second half of the Super Bowl (I can’t believe the Ravens won!) Great trip, sorry I had to come back early as I would have liked to have spent some time seeing the south island – next time I guess.

My Career With Scott Paper Company


I worked for Scott Paper Company 10 years and it was one of the most rewarding and growth promoting experiences of my life. It was a first class company, with quality products and some good and very smart people. I was hired in September of 1971 and left them in October 1981. During that time I lived in many different parts of the country and met a lot of quality individuals. I also learned a lot about my self and how to sell and engage with people in business situations. I worked hard and had good success. During much of my time with the company I was considered a “climber” and was promoted often. I was always proud to hand someone my business card.

I had been out of college for about a year, with a degree in Latin American Studies, when I was hired by Scott as a Sales Representative in their Los Angeles District. I had spent the previous 12 months working for a decal company on their sales desk. The decal company manager did not feel I had a future there, so he suggested I look for a job elsewhere. So, working with a recruiter, I was given the opportunity to interview for a series of sales positions with paper manufacturing companies, which was his speciality. I really did not want to work in sales, but that was the only type of work available to someone like me with no experience.

Bob Baldocci was Scott’s L. A. District Manager at the time and I did well in the initial interview . After a day on a “ride along” with one of the salesmen, Dan Kissel, who later became a good friend, I was offered a position.

My starting salary was $9,500/yr and the job included benefits and a company car. I was in the “away from home” division of the company. We were responsible for working with paper distributors, who purchased our products from our mills in railroad carload quantities. They then sold our line of paper hand towels, toilet tissue and disposable wipers to end-users, such as office building, manufacturing facilities and school districts. I was assigned a couple of low-volume distributors to work with at the start. I spent my days calling on large businesses myself, or occasionally with a distributor salesman, in an attempt to switch the end-user/client away from a competitor’s product over to ours. Distributors would often carry multiple lines of our types of products. We were trying to build our business with them for the additional volume, but also so that their management would focus more new sales effort on Scott Products.

In the early 1970’s paper manufacturers were in a dominate position with their distributors. There were a series of paper “shortages” because demand for sanitary paper products was growing faster than production capacity. Late night show host Johnny Carson once made a comment on his program about there being limited supplies available of toilet tissue and the next day grocery store shelves were cleaned out of this product. Due to constrained supplies, paper companies such as  Scott were able to pick and choose the best distributors to work with and were also able to raise prices often. It was a good environment for us salesmen, as we were important to our distributor/clients and were treated with some deference . This all changed in the next decade, led mostly by my future employer, Fort Howard Corporation, as paper manufacturers got into a paper machine building war that created an over abundance of product and shifted the power from the manufacturer who controlled supplies, to the distributors, who controlled the end-users.

Scott offered good training and I also studied other people’s approach to selling. Slowly I developed my own “style” and the confidence I could be successful. I did well and grew to enjoy the work.

In January of 1972 I attended my first National Sales Meeting with Scott in New Jersey. I enjoyed the experience and the thing that impressed my the most was the awards ceremony. I swore I would not attend anther of these meeting without winning an award. A self-promise I kept.

After a year and a half of working in Los Angeles I was promoted to Portland, Oregon as a Senior Sales Representative in April of 1973.

So my wife Karen, our new son Timothy and I moved to the Great Northwest, where I covered the states of Oregon, Idaho and southern Washington. It was there that I bought my first home and fell in love with that lush, green part of our country. Also for the first time I was responsible for a couple of large distributors; Blake, Moffit & Towne and Western Paper, where my efforts could make a significant contribution to the business volume growth for our company. I also began to travel overnight for business to Idaho and southern Oregon.

Also, at 27, I spent my first winter in “snow country” and learned about “black ice.”

One thing that made this move, and all subsequent transfers, easier to deal with is that I played Rugby. The first thing I would do

Scott Paper training class circa 1975. That's me, back row on the left.

Scott Paper training class circa 1975. That’s me, back row on the left.

in a new location was to find the local club, show up for practice, and instantly have 30-40 friends in my new home. In Oregon it was the Portland Pigs RFC.

In August of 1974, after a year and a half in Oregon, I was promoted to Omaha, Nebraska as an Area Manager. I covered the states of Nebraska, South Dakota and the western 2/3’s of Iowa. I spent a lot of time in the car driving to Des Moines, Sioux City, Lincoln, Grand Island and beyond. It was a cultural introduction to agricultural America. I remember when I first got there, there were a lot of reports on the news about possible crop failures due to poor weather. When I brought this up to one of the managers of a distributor I was working with, he said “farmers here lose their crops several times a year before they finally bring it in.” And, so it was, as we always had good harvests in my 2 1/2 years there.

The most important event during these years was that my daughter Kerry was born.

And, yes there was snow. One storm trapped us in the house for three days. The advise given to me was to always keep your liquor cabinet well stocked. I also learned how important the University of Nebraska football team was to the state. This was early in the tenure of Tom Osborne (later revered by Nebraskans) and the team was not doing well. Calls for his firing filled the sports pages.

In April of 1977 I was promoted to the Boston District Manager. My first position managing people, something I had always wanted to do. In the many years that followed as a manager, I would give myself a rating of so so. I was not bad, but I seemed to have spent most of my time making sure salespeople were doing what they were supposed to be doing, rather than providing leadership to those reporting to me.  My experience was the same as most other managers, you spend too much time with marginal performers, who never get any better, to the neglect of the top people who would improve faster with more guidance. I found as a manager that having people report to me was often the source of my greatest satisfaction and my greatest misery.

I loved New England and my new Rugby team, Mystic River RFC. Boston is half way between the Los Angeles area, where I grew up, and Europe in more ways than just distance. I enjoyed the rich history and traditions, as well as the East Coast attitude and vibrance of the area. My daughter Kerry and her family now live north of Boston and I still enjoy experiencing that ambience again and again on my semi-annual trips back to visit.

We lived in Ashland and my office was in Wellesley Hills along Route 16, the course of the Boston Marathon, which we’d stand out on the road in front of our building to see each year.

Once again I did well and, after two years, was offered more responsibilities as the Chicago District Manager, but I turned it down and shared with my supervisors that my desire was to return to the Northwest to be closer to my west coast roots as well as my brother, Tim, who lived there. The Chicago position was then offered to the Seattle Manager and, as a curtsy to me, Scott moved me in April of 1979 to Seattle to replace him as the District Manager to fulfill my wish.

So, I was back in the Northwest with high hopes of finally being able to permanently settle down in that wonderful area. The flaw in my planning was that my marriage to Karen was on the rocks and we were soon separated and on our way to an ugly divorce. Starting up a new position and dealing with all the difficulties in my personal life was difficult and, while I did an acceptable job for Scott, my performance was not up to the standard I had set for myself in previous positions.

Shortly after our divorce was completed, about 18 months after we arrived in Seattle, Karen, completely without my knowledge or consent, picked up an moved with my children and a girlfriend back to the Boston area. This crushed me and, although I tried, there was nothing I could do to get the kids back. This was the worst part of my life.

Scott was sympathetic. There was an opening for a District Manager in the Carolinas and they offered it to me. My great mistake was that I accepted it, thinking I would be closer to my children. When I got there I realized I was still a significant airplane ride away from them and that I was really alone there, without the type of personal support I had developed back in Seattle. So, I got on a plane a flew back.

The problem was that Scott had already promoted someone else to the Seattle District Manager position, so I was without an assignment. Throughout this whole situation I was treated well and fairly by Scott, but they had nothing for me to do, committed to the Seattle area as I was. So, they made something up.

Scott was planning on expanding into foodservice items, i.e. napkins, placemats, tablecovers, etc. They asked me to survey the opportunities with foodsevice distributors in my part of the country, like Sysco and Kraft, with whom we did not at that time have a relationship. I didn’t know what I was doing and my heart wasn’t into it, so I just muddled around lost for a couple of months until I could line up something else to do, outside the company.

That something turned out to be buying a Management Recruiters franchise in Seattle with a friend of mine, Don Urie. I knew Don from my first days at Scott in the Los Angeles office. He had left the company a number of years earlier and opened up one of these franchises in the Bay Area and had had a lot of success.

With great regret I resigned from Scott and started this new venture which did not turn out well, but that is a story for another day.

Several years later I ended up working 16 years for a Scott competitor, Fort Howard Corporation, where I advanced to Division Manager level responsible for, at different times, all the states west of the Missouri River as well as much of the South. It was at Scott however, that I developed all the skills I would use later in my work experiences. When I think back on those years, the things I remember most are the friends I made, some of which I have already mentioned. Others that were important to me are Bill Yarnall, Craig Calloway, Pete Diamond and Dwight Jackson.

Scott Paper no longer exists, they are now part of Kimberley Clark. For that matter, neither does Fort Howard, which was integrated into Georgia Pacific Corporation. I too have moved on and have my own company selling health insurance to individuals. I treasure my time a Scott, probably most of all because it opened up a world for me that I didn’t know existed and provided me with an opportunity to succeed beyond my expectations.