The Ins and Outs of Profit Sharing

When you work in the insurance field, profit sharing is an excellent incentive offered by carriers to drive sales. When your book of business is large enough, the profit-sharing checks come back to you from each carrier, increasing your income. However, you may not know how to reach those goals and increase your revenue. Your book might not be large enough—what are you to do?

At Secured Advantage, we have a few tips that will help you get the best results, grow your business, and earn more income.

Work Smarter, Not Harder

You want to look at your book of business as a “big picture” item. This means that you’re trying to grow the parts of your book that are lagging behind. We tend to want to serve the more robust parts of the book, but you may need some help reaching your profit-sharing goals in other areas.

At the end of the day, some agencies will never reach the goals set by carriers. Therefore, working with a network of brokers like Secured Advantage helps you contribute to the whole instead of assuming that a few extra hours spent in the office will push you over the edge. 

Creative solutions can often bring you closer to your goals, especially if you join a network like Secured Advantage and work on growing your business at the same time. Many times, smaller agencies could benefit from bringing on new agents who specialize in otherwise untouched areas of the business. 

For example, an agency that writes 99% of personal lines of business may want to bring on someone who sells life insurance. You could even branch out and bring on a commercial insurance expert so that the business is expanding—but not so fast that you cannot keep up. Allow these experts to grow their areas of the business, while also relying on Secured Advantage to help you by joining a much larger network.

Improve Your Bottom Line

As you work to reach your profit-sharing goals, your bottom line is improving. The business is growing. This is an important part of managing your agency. You don’t want to lose sight of your book of business by only focusing on just one thing—therefore you want to spread your efforts across several lines of business. 

By doing so, more money is coming in. This is also a good way to help new brokers or producers learn the ropes and grow in the business. They are everything—not just one thing. Plus, this idea ties in with expanding to other lines of business in a thoughtful and measured way. 

Reduce Top Line Expenses 

Remember, you can close insurance deals with a business card and charisma. Yes, you want to market your business, but you don’t want to go overboard assuming you will see that money again. Working with Secured Advantage helps you cut back on certain top-line expenses so that you can focus on the core of the business.  

Because insurance is a commissioned line of work, focusing on the task of selling insurance often outperforms mass marketing with no intended audience. If you wish to, however, market your business, do so effectively.

Reach out to our team at Secured Advantage to learn more about profit sharing and/or to increase your profit-sharing potential. Our network of agencies works together to help everyone increase profit-sharing revenue, decrease E&O costs, and network to ensure that everyone succeeds and grows their business.