$24,000 to the Bottom Line Easy as Pie!

Last time I suggested that you could make $20,000 more for yourself just by selling your customers a $1 million dollar umbrella policy.  You had a silent argument with me, didn’t you?  You said you don’t have 1,000 customers and you don’t have a close rate of 100%.  

To which I reply – then get busy!  But also remember that many people need more than $1 million and the second million costs $100, so if you offer it you really will get your $20,000.

Now, for the next $24,000 I want you to simply raise your customer’s auto limits.  Our agents are supposed to sell a minimum liability limit of $50,000/$100,000 but you know that’s not enough right?

So, simply raise all your customers to $100,000/$300,000.  You can sleep at night, they’ll have better coverage (they still need an umbrella) and guess what? You’ll make more money.  Here’s how:

The premium difference between these limits averages $40.  The policy is for 6 months.  The average family has 2 cars.  So, $40 times 2 is $80.  $80 times 2 is $160.  $160 times 1,000 is $160,000.  $1600,000 times 15% is $24,000.

Easy as pie.  Now, some of your customers will be cheapskates and not increase their limits.  I get that.  But others need to raise theirs to $250,000/$500,000.  They will make up for the cheapskates.  I promise.

So, now we’ve found $44,000 in extra PROFITS for your agency!  Are you interested yet?

Well, consider that that bottom line has equity implications.  The average agency today is selling for 7 times profit.  So, just requiring these two small changes of your staff have increased your net worth $308,000!!

That’s a $352,000 in your net financial position (income + assets) in just a few months with almost no work.  Interested?

Next time another idea!