How Much Income Off Your Agency Is Enough?

[insurance1822]

When would you stop worrying about growing your operation any further? What guaranteed renewal income below would be enough that you could just work 20 hour weeks & take modest pay increases every year...and just say screw it..

1.) $100,000

2.) $200,000

3.) $300,000

4.) $500,000

5.) $750,000

6.) Go eff yourself

I'm 30...and I'm starting to question the point of growing my agency any further. Anybody who's AGI is between #2 & #3 must start thinking the same thing...and that's "why even bother growing anymore?"

Hire a CSR...write whatever comes in...focus on nice commercial accounts and open a damn dunkin doughnuts. For all you old agency owners...what's your deal? How do you stick w/ this & continue grinding away? Anybody who's owned an agency & produces a lot must start to ask these same questions?

 

[Herkster]

When would you stop worrying about growing your operation any further? What guaranteed renewal income below would be enough that you could just work 20 hour weeks & take modest pay increases every year...and just say screw it..

1.) $100,000

2.) $200,000

3.) $300,000

4.) $500,000

5.) $750,000

6.) Go eff yourself

I'm 30...and I'm starting to question the point of growing my agency any further. Anybody who's AGI is between #2 & #3 must start thinking the same thing...and that's "why even bother growing anymore?"

Hire a CSR...write whatever comes in...focus on nice commercial accounts and open a damn dunkin doughnuts. For all you old agency owners...what's your deal? How do you stick w/ this & continue grinding away? Anybody who's owned an agency & produces a lot must start to ask these same questions?

If you are talking YOUR guaranteed renewal income, not total income that has overhead to come off of it, I'd be happy at $200k. Play golf, fish, go out to my bigger accounts to keep them happy, and have a CSR and producer that can handle any of the small to moderate sized new accounts and book upkeep.

 

[nyc2phi]

Maybe I'm too new but I don't see why I would ever stop because my income reached a certain level.

More income is a motivation factor and the more I get the more motivated I've become. Maybe I'm just not at that level so I don't see what you see.

I also enjoy doing this work (most days) so coming to office and grinding isn't the problem.

Maybe once you reach that "comfortable" level you are looking for, find more ways to take a back seat. Hire producers, CSR, and other personnel that can make your agency run like clockwork, even when you are not around.

 

[VolAgent]

Maybe I'm too new but I don't see why I would ever stop because my income reached a certain level.

More income is a motivation factor and the more I get the more motivated I've become. Maybe I'm just not at that level so I don't see what you see.

I also enjoy doing this work (most days) so coming to office and grinding isn't the problem.

Maybe once you reach that "comfortable" level you are looking for, find more ways to take a back seat. Hire producers, CSR, and other personnel that can make your agency run like clockwork, even when you are not around.

I highlighted the important part.

Everyone I've ever met, particularly P&C agents, eventually reach a level they are content at and stop driving for big growth. The smart ones continue to grow slightly, but they really aren't pushing for much.

The important thing to remember, either you are growing or you are dying. It can be slow growth or slow death, but it is one or the other.

 

[indienoise]

I highlighted the important part.

Everyone I've ever met, particularly P&C agents, eventually reach a level they are content at and stop driving for big growth. The smart ones continue to grow slightly, but they really aren't pushing for much.

The important thing to remember, either you are growing or you are dying. It can be slow growth or slow death, but it is one or the other.

This is the sort of answer I expected to see more of. People switch, move, pass away, etc. Unless you have pretty strong referral relationships, attrition will surely outpace your slow growth eventually. As long as you have at least a producer or two in your office, though, I can't imagine that will really become a problem.

 

[shawnmwalker]

Ins1822,

It seems this is a reoccurring theme for you. You must be getting tiered.

What does your staff situation look like?

 

[todd02]

The struggle is real!