Independent insurance agencies are in a tough spot. Never has it been more difficult to run a successful, profitable agency. Clients are more demanding, 4th quarter is a nightmare, additional investments have to be made, and, on top of all that, bonuses/commissions are getting cut.
There is an old saying that “revenue cures all problems”. It’s easy to appreciate the spirit of that adage, but way too often the “wrong revenue” makes the problems even worse. It’s the toxic relationship independent insurance agencies have with revenue/compensation that is the biggest contributor.
If there’s one goal all businesses have in common, it’s profitable growth. But, while we all work towards that goal every day, we all know it doesn’t just happen.
While the goal is elusive and challenging in its pursuit, it is a simple formula that drives the results.
(X)(Y) + Z = Profitable growth
As you read this, we are gathered with some of our favorite people in New Orleans for Q4Live, our networking/learning/growing conference.
We are all well aware of the huge shift of power in the "sales process." Gone are the days when the salesperson was in control. Now the buyer reigns supreme. Sure, there are many factors that have influenced the shift, but there is definitely one primary factor: Access to information.
Imagine taking three days off work to go see Hamilton in New York. The roundtrip airfare will likely set you back at least $600; two night’s hotel room at least that much; the ticket probably half again that much; and then add in meals and miscellaneous expenses and you are easily spending $2500 for the trip. And this is not even addressing the challenge of being out of the office. Now, what if you arrived only to find out the cast had decided that, instead of following a script and practicing, they were just going to “wing it”?
I already know this post is NOT going to be well received by many of you, but it is written as a wake-up call to turn our collective focus in a healthier, more productive, more realistic direction.
Full Disclosure – Ours posts are 99.9% purely educational. However, this is one half of the .1% exception. While it primarily focuses on explaining why marketing is important to your growth, it also introduces our new division for insurance agency marketing and lead generation – Sales Enablement Services.
I received a call from a client (a benefits broker we'll call Joe) asking for some advice. He wanted to talk about a prospect he was looking to close, but who had just called him with a question that left him shaking his head.
The pace of mergers and acquisitions among insurance agencies has reached a fevered pitch. While the motivation behind any single transaction is personal to the organizations involved, we see some consistent outcomes on the back side and, most of the time, it ain’t all that pretty.