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!