Page 203 - The UnCaptive Agent

176 THE UNCAPTIVE AGENT

the bottom twenty percent of the revenue in my book
of business (and eighty percent of my clients). I gave
it to someone else in the agency to manage so I could
continue to grow not only my book of business but the
agency’s. I highly recommend this approach.
The other thing we did that resulted in tremendous
growth in our agency was to set a minimum commission
threshold. We didn’t say, as some agencies do, that we
would pay no producer commissions below that num-
ber. We simply said we wouldn’t take them as clients.
What this did was cause us to focus on the number of
policies that we sold each client. We were very clear
with clients that we could do a far better job for them
if we had all of their insurance business. We were able
to increase the revenue per client in this manner dra-
matically, and it led to us being recognized for many
years as a Best Practices Agency and one of the most
profitable agencies in the country. The tipping point
for clients is the 80/20 rule, the number of policies per
client, and revenue per account. If you focus on these
three things, your agency will grow faster and become
much more profitable.