Tag: profitability

Episode 163: True Profitability

Podcast: Play in new window | Download

Subscribe: RSS | More

 

How close attention do you pay to your numbers? You cannot understand your true profitability if you don’t know your numbers.

In this episode, I am going to take you through some of our most profitable years, looking specifically at marketing, technology, and payroll numbers. Through reviewing how we were profitable you will be able to learn the key areas to look for within your own agency’s finances.  I also take you through the KPIs that you must be aware of all the time.

Key Takeaways:

  • Ensure you are monitoring your profit-loss statements at least once a month and that your reconciliations are completed each month
  • 20 to 30% range of gross income should be your net profit
  • Depending on your needs and strategy, an average of 11.5% of gross revenue is a respectable amount.
  • Don’t spend an exorbitant amount on technology, around 3% of your gross revenue
  • Payroll will always be your highest expense and on average around 35-40% of revenue, not including the CEO or owner’s compensation.
  • Monitor your online bank accounts so that you can fix anything that is off immediately
  • Know your number of enforce policies, always know those KPIs or have quick access to them
  • Time Premium Retention is not a good gauge of true growth and profitability
  • Do you know the top five sources of new business getting written within your agency?
  • Determine your revenue per employee.
  • Know your breakdown of commercial versus personal versus life and health insurance.

 

Until next time, get out there and make a difference, be unstoppable, and leave no regrets!

 

Mike Stromsoe
The Unstoppable Profit Producer
Call 800-770-9984
Email [email protected]

Episode 152: Softballs of Money with Tracy Henry and Rachel McClurg

Podcast: Play in new window | Download

Subscribe: RSS | More

Join me today with two special guests, Tracy Henry and Rachel McClurg, from the Pacific Interstate Insurance Brokers.  Whether you are an established agency or just getting started PiiB can help you succeed. PiiB will help you leverage your positioning with the carriers in a way that I don’t think anybody else can.

 

Key Takeaways:

  • The two most important things that agencies consistently say that PiiB brings is carrier access and enhanced revenue
  • Affiliates are 100% independent and use them when they are needed.
  • The PiiB team all interview potential employees to ensure they all mesh and build that culture of success
  • There is value in agencies being able to try different carriers out and see if they are competitive if they do fit in their agency.
  • Success comes from those direct relationships with the carriers
  • PiiB provides opportunities for networking and building those relationships with each other and with carriers.
  • There is assistance available in the merger and acquisition space between affiliates as well

 

About our Guests:

Tracy Henry graduated from UH Hilo, holds a Bachelor’s Degree in Mathematics with a specialization in Education and is a Senior Sales Rep at PIIB.  She has spent the majority of her professional career at PIIB and has, over the last 10 years, helped established agencies increase their revenue and diversify & grow their book, and supported individuals in establishing their independent agencies and partnering with PIIB.

The agencies that Tracy has assisted in getting their operations up and running have been both captive/exclusive agents transitioning to independence and seasoned independent producers who go out on their own.  Tracy is passionate about encouraging any agents considering opening their own operation to not waste another minute as she believes that with a partner like PIIB, the opportunities for an independent insurance agency’s success are endless.

 

Rachel McClurg’s life in insurance began in 2004, when she was a Junior at Sacramento State University, majoring in Communications. Upon graduation in 2005, Rachel was promoted to a Sales and Marketing Role at Pacific Interstate Insurance Brokers. Here she gained an immense amount of knowledge from her boss and mentor, Larry Manning. In 2011, Rachel decided to spread her wings and accepted a Sales Manager position with Markel FirstComp. Markel provided new experiences and growth, but she found herself back home at PIIB when her husband was to be relocated to Southern California for a fantastic career opportunity. All together Rachel has spent over 18 years at PIIB and has helped it grow from 15 affiliate agencies to over 240 affiliate agencies and close to $900M in premium. She appreciates the relationships she’s developed with both affiliate and carrier partners, and looks forward to what the future holds and developing new relationships. The culture at PIIB truly is that of a family, and she feels lucky to be part of such a dynamic team.

 

https://www.piib.com/

Until next time, get out there and make a difference, be unstoppable, and leave no regrets!

 

Mike Stromsoe
The Unstoppable Profit Producer
Call 800-770-9984
Email [email protected]

Skip to toolbar