How do you run a profitable Insurance Agency?

Become profitable in the age of rising costs and reduced commissions

To run a successful business, you must operate in a profitable manner. Your staff and their families depend on you to be successful for their livelihood and happiness. Additionally, your clients depend on you to continually serve them with high quality carriers with great coverage.

The question now becomes, how do you run a profitable insurance agency when your revenue stream is limited by lower commission rates and no guaranteed profit sharing?  You must start looking for additional revenue streams, agency efficiencies, and resources for education and training to attract the clients you want.

Valley Insurance Agency Alliance is your all-in-one resource and support system.  You will have the opportunity to earn up to 5 paychecks for each policy you write.  We vet all applicable technology and negotiate affordable costs to maximize your agency efficiency.  Additionally, we recognize that in order to have a profitable agency, you need the proper education, training and resources. Learn how we help you capitalize on your profitability.

 

5 Ways to Gain Additional Revenue

  • Enhanced Base Commission
  • Local New Business Incentives
  • National Growth Incentives
  • Local Profit Sharing
  • National Profit Sharing

For most independent agencies, commission levels paid on a book of business are not enough to run your business. You need to be able to properly compensate your staff members and reinvest in your business.  Profit sharing paid on those books can help guarantee you keep your invaluable staff, while staying profitable.

As a member of Valley Insurance Agency Alliance (VIAA), you will earn five streams of revenue from one book of business.  You will begin earning profit share from the first dollar of your book of business.  Agencies that are not part of our organization, usually have a book volume minimum to reach with each carrier before they can qualify for profit sharing.  Unfortunately, not many agencies make it. With VIAA you don’t have to meet this requirement.

Remember, we are an “Alliance of Agencies” that work together. Due to the size and amount of premium our alliance places with our partner companies, we have already met the book volume requirements.

Furthermore, we negotiate on your behalf for guaranteed profit share with the opportunity for larger levels of profit share.  Guaranteed profit share is a strategic advantage when it comes to operating a profitable agency.  We understand capital is needed to reinvest back into the agency to continue growing. An agency owner or manager can make critical decisions in planning and budgeting if they know there is guaranteed money on the table.

Here are examples of a few existing agencies that joined our network and saw an immediate impact to their bottom line.

  • Jim joined VIAA with an existing $645 thousand total written premium book of business. Most of his carriers aligned with VIAA’s partner carriers and Jim saw an immediate lift of just over $31,000 to his bottom line the first year.
  • Teri joined VIAA with an existing book of business of $1.3 million total written premium and saw an increase of $21,000 the first year.
  • Then there is Frank. Frank joined with a $5 million book of business and saw an increase of over $120 thousand to his bottom line.

These numbers are real, and they make an impact.  Because of the strategic advantage they received, they could reinvest back into their agencies to continue to support their growth.

3 Ways to Make Your Office More Efficient

  • Technology
  • Automation
  • Communication

With the internet, consumers today are looking for insurance in new ways.  They want to purchase insurance on their own terms.  It is vital that agencies adapt to these changing times.  Independent agencies are at odds with carriers looking to constantly commoditize the insurance product, making price the sole deciding factor for consumers.

With the cost of doing business on the rise, and a lot of carriers looking to cut commissions, independent agencies must look for ways to become more efficient and communicate on their client’s terms.  If the COVID-19 situation has taught us anything, it’s that agencies who were prepared and set up to work remotely didn’t see as much impact when communicating with clients.

But how do choose which vendor to go with?  There are a lot of technology vendors to sort through, all claiming to be the best at whatever service they provide.

This is where Valley Insurance Agency Alliance helps.  We are constantly searching for the best vendors. When we find a vendor, whose technology can truly benefit our member agencies, we begin the vetting process.  If we believe the technology is something that can be used to further develop and grow VIAA network agencies, we negotiate an affordable price point for our member agencies.  Again, being an “Alliance of Agencies” is always better for negotiating price—there is power in numbers.

 

Access to Education and Training Resources

  • Digital Agency Transformation
  • Continuing Education
  • Process and Procedures
  • Producer Training

Education and training are critical to growing a profitable agency.  It’s important for you and your staff to stay on top of industry trends. Not only does it help new producers and staff learn a complex industry, it also helps seasoned veterans understand what changes are coming.  In addition to keeping you aware of the changing landscape of insurance marketing and selling, training and education can help with staff confidence and morale.

VIAA is always hosting constructive and engaging workshops for up-to-date training for our network agencies. Past workshops include:

  • Digital Dominance – understand how to be relevant in the digital and online space
  • Facebook Marketing – learn how to be engaged and build a brand
  • Niche Marketing – know why focusing on industries and clientele makes you the expert, whereby growing faster than the “jack of all trades”
  • SEO (Search Engine Optimization) & Website Structuring – be found first when consumers are looking for your products and services.

Finding talent to help you run and grow your agency is a challenge few have mastered.  VIAA is here to help. We have developed a set of hiring processes and procedures to help you find employees that fit your culture.

Many agencies have followed our well laid out Process and Procedures to find quality employees.  They then took advantage of the many training tools available to bring those employees up to speed, allowing the employees to excel in their roles.  Training can include carrier-sponsored training at discounted pricing, online class work, a well laid out New Commercial Lines Producer work outline, and one-on-one personal coaching. All these resources are offered to member agencies at discounts.

 

Summary

Running an agency today without the support of a great network is very difficult.  Figuring out how to generate more revenue, become more efficient, and to grow an agency is tough to figure out on your own.  But relying on the expertise and experience of others will help you propel your agency into the future. You will be positioned to surpass your competition and be seen as an expert in the eyes of your clients and prospects.

Valley Insurance Agency Alliance is the answer to all the problems Independent Agents face today.  We are here to perpetuate the Independent Agency channel. You can rely on us to help you figure out the ever-changing landscape you face today and into the future. Give us a call 314-725-1414 or email info@viaa4u.com.