Page 5 - Insurance Agents BUILDING YOUR BOOK OF BUSINESS BY ADDING TAX PREPARATION

5 REASONS WHY EVERY INSURANCE PROFESSIONAL SHOULD ADD TAX PREP

1. It’s a way to leverage your existing business and make more money without adding expenses or infrastructure.

Improve your trusted relationships. Two components to the insurance business: existing customers and new
customers/prospects. Tax prep in your insurance business is the same brilliant business move as McDonald’s adding
breakfast to their menu. You have an existing infrastructure: customers, office facilities, employees, communications,

computers, etc. Why not get more use out of them? The incremental profit is high because most of what you will use is
already being paid for by your existing business.

2. Take advantage of the “McDonald’s Effect.” McDonald’s restaurants made one of the most significant moves in the
business world that is still a case study at many business schools today. Back in the day, fast food restaurants like Burger

King, Wendy’s, and of course, McDonalds did not serve breakfast. That segment belonged to Howard Johnson, IHOP, and
Denny’s. Well, the fast food restaurants struck. Somebody at McDonald’s said: Eureka! We have existing customers,
buildings, parking lots, customer seating, supplies, and all the rest, why not serve another set of meals. And, fast-food

breakfast was born. Other companies stormed the walls and now it is the norm. Then, after the fact, it was considered a
brilliant business move that shocked the restaurant industry.

3. It is the greatest way to get leads/prospects! It is a no-brainer way to increase business and profitability. I would
venture to say all insurance agents want one thing more than any other: more prospects. The tax preparation business is a

way to see people who actually want to see you and who are willing to pay you for that privilege.

4. Persistency. For those heavily in the property/casualty business, one of your most important factors is persistency or

customer retention. And, we all know that one of the keys to this is the number of lines you have with a client. The more
lines with a client the better. Very few clients leave for the competition when they have 3 or more products with you. Tax
preparation gives you another product line which you can use to cement your relationship with clients. All your competitors
have the products you do: auto, home, life, business, etc. But, unlike you (if you act promptly) very few, if any, will offer tax
preparation services.

5. Increase new customer traffic thru your doors. Every new tax prep customer is a financial services prospect, for
property/casualty, life insurance, annuities, securities or several of these.