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8 Ways Insurance Agencies Make Money: Insurance Agency Expense Management

Posted on October 5, 2021 by Alex Arellano

8 Ways Insurance Agencies Make Money: Insurance Agency Expense Management

When you run a business, there are a lot of things you need to keep an eye on. Really, there are so many things. But one we often see overlooked is insurance agency expense management. 

“You can’t operate your agency with emotion because that is how debt is born.”

We believe that every insurance agency on the planet needs to have a set budget, something that considers all of the agency’s expenses. And owners, you definitely can break that budget, but you should still have a plan for that money. Does that seem counter-intuitive? 

Let us explain.

If your agency is looking for ways to make more money, this is one of the easiest ways to do it. Your business has expenses, and if you don’t manage them, they can run amuck and waste a lot of money. For example, take a look at contingency checks.

We love, love getting those, but that is not what you run your agency with. If you simply had a budget, all of that money could be fun profit stuff that can go in whatever direction you want. It should not be what keeps the lights on. You do not have to do it like that.

Say you had a budget geared toward growing your agency, and you attend a conference where everyone is talking about this one product you have to have. Your budget will protect you from spending money on something that probably isn’t worth the time or money. You can’t operate your agency with emotion because that is how debt is born. 

 

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