An agency partnership (or aggregator) in the purest form is an organization that combines agency premium for one or more carriers into a consolidated profit share plan with the goal of increasing, or providing more consistent, revenue. But, if you choose the right network, it can do so much more leading to an even greater return.
While an aggregator combines premiums, a like-minded network can help an agency grow organically by providing education, technology, strategic planning and peer exchange. This type of organic growth accelerator offers members an opportunity to become part of something bigger than themselves. As part of a professionally managed network, agents have access to a wider range of consultative services.
Increasing revenue as the end goal
While the core goal of joining such a network is to grow revenue, it is important to understand the value proposition of a network to make sure it fits your agency goals. With more revenue, agencies can increase marketing budgets, hire new talented team members, and cover additional expenses required to grow.
Here are ten reasons joining a network can help you grow revenue:
- Increased revenue equals increased value for your agency. At the end of the day, most agents will either sell or succeed within their agency. Either way, if you increase your revenue and improve your EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortization) margin, you can likely bring a greater valuation price for your agency.
- New business/growth incentives. An agency may be too small individually to be offered incentives with a carrier that encourages growth. Networks are offered incentives due to the large opportunity presented to the carrier with premium spread across multiple agencies and states.
- You are not on an island. Being part of a network allows you to connect with agencies across the country that have similar situations to yours. If you are in the right network, the group encourages and assists in connections with other members.
- Carrier access and requirements. Especially in today’s market, carriers are getting tougher to maintain, pulling back appointments or making it difficult to get an appointment in the first place. Adding to the pressure, they are quicker to take action when commitments are not made. Being part of a network builds a layer of protection because you are part of a much larger partnership for that carrier.
- Advanced industry education. Annual meetings with networking opportunities and training for producer development, succession planning, sales skills, and leadership development enhance the efficiency and productivity of your agency and producers.
- Strategic planning. Through business consultation, agents can get help creating and executing a strategic plan to increase agency growth. What’s your “WHY” and how will you maintain focus?
- Industry expertise and knowledge. A well-run network has a leadership team with a diverse background that can help you navigate large decisions in your agency.
- Technology support. There are so many new products coming to the marketplace that an individual agency cannot take the time to evaluate each one properly. A great network will do this for you and bring forward the ones that will help your agency the most and at a reduced cost.
- Data analytics. Well run agencies use data to influence their business decisions. With the right network, you can get financial comparisons to your peers, data on year-over-year premium and revenue growth, and production data by carrier.
- Cost savings. Using a network’s capabilities and expertise can save time and money. By utilizing shared resources agencies can improve efficiencies to decrease operating costs. By decreasing costs, profits can then be reinvested into the business.
Is FirstChoice, a MarshBerry Company, right for you?
As agencies within a network grow, so does the network. From front-line retail agencies to sophisticated firms, all can benefit from the advantages of the right network. No matter where an agency is in their life cycle growth can be fostered within a network.
If your agency is focused on organic growth, striving to optimize efficiencies, and motivated to grow at double digits, then joining FirstChoice should be your next move. As a member, you’ll be among the best and brightest like-minded agencies who leverage proven strategies, access resources to improve operations, and stay competitive in the market.
Is FirstChoice right for you? Learn more today and see if joining FirstChoice could be the opportunity you are looking for to advance your agency and grow your revenue.
If you have questions about Today’s ViewPoint, or would like to learn more about the opportunities available to your agency as part of a network, email or call Keith Captain, President, FirstChoice, at 704.831.8708.