Many of us were recruited into the insurance industry with the same line:
“Work really hard for five years and you can live off your renewals and referrals for the rest of your career.”
Unfortunately, that was the old way of doing business and it will no longer work in the current marketplace. You must operate your agency like a business and if it is not growing, then it is dying.
Many agents hit a roadblock once they have sold somewhere between 1,800 to 2,200 policies. At this point, most agency owners start drastically reducing the amount of capital they are investing into their agency’s growth.
Instead, this should be a time when they are putting more money into growing their business than they ever were before. For most agencies, when the percentage of annual revenue spent on marketing declines, the rate of new business commissions and annual growth slows or stops.
Most agencies will also slow down on hiring additional staff. They believe that they do not have enough revenue to support adding more employees to the organization. However, there isn’t risk in adding another staff member; there will always be enough new business in the households you serve to take on another employee.
In fact, your customer database is pure gold, and you just need to learn how to extract the revenue from it.
In order for your agency to get past this obstacle, you will want to evaluate your business. You need to take a holistic view of the company and examine where your money is being spent and what products are generating the most income.
Once you evaluate this part of your business, you will be amazed at how quickly you will be able to spot the areas that need adjustment.
If you are interested in learning how to evaluate your agency, take a look at my digital book, Profit from Change. It includes Agency Evaluation Worksheets and forms. This will help you determine the health of your business and outline a plan for growth.
I also recommend you watch my complimentary video The DNA of Successful Multi-line Agencies. You can access it here.