So business is good? You’re doing well? Sales are up? You’ve added staff and some of the pressure is off of you? This is great news!
At OAA, we’ve started well over 100 insurance agencies from scratch and we have been successful almost all of the time. In our experience, about three years in and these benchmarks of success begin to tell us that we’re going to survive the new business startup phase and we can breathe a little.
Does this sound familiar?
So, here you are with a good and growing business. I’d like to give you three ideas to make sure you keep growing and maybe even speed you up.
This increases retention and is easy to do. Consider that if you cross-sell only four policies a month at $100 in revenue per policy you’ll add nearly $5,000 in income and increase retention. (By the way, that $5,000 in income is worth $40,000 in agency value).
Consider that only six referrals a year at $200 per client results in $14,400 in revenue. Also, think about this: That $143,400 in revenue builds to over a half a million dollars over 10 years at 88% retention. BIG money, small effort.
If you move your retention up 3% you would increase income over 10 years by almost $500,000 on a $500,000 revenue agency. Do your own math – but focusing on keeping customers is where the big money is in a small agency.
Three little tweaks that hardly take any time at all. And yet the cumulative return for tweaking is potentially huge.