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Agent to Agent: Book Optimization—the Million-Dollar Producer Process

Pareto was right...
November 6, 2013

Pareto was right. If you apply the 80/20 rule to your book you’ll probably discover that the top 20% of your clients generate 80% of your revenue. Now what do we do with this information? When you reach the point where growth is challenging because of service constraints, it’s time to shed smaller accounts to allow continued growth and profitability.

Total up the revenue generated by the smallest 20% of clients in your book and remove them. That’s right. Take them out of your book. Give them up. Move them into a select accounts department, gift them to a young producer, sell them to a competitor or move them to a carrier service pool.

Now look at the top 20% in your book. I’ll wager that the revenue generated by any single one of your best clients equals the revenue generated by all of your bottom 20% combined. In my book, I was so thrilled to discover this, that I traded down my bottom 33% (with some exceptions) and replaced the lost revenue in less than one year with 1 larger account. My book now generated more revenue with 53 fewer accounts. More importantly, I had much more time to over-service my best accounts, who responded by giving me introductions into similar accounts and I doubled my book in less than 3 years.

Take a close look at your book of business and trade down the bottom 20-33% every year. You'll double your income every 3 years with many fewer clients.

Read the rest of this article by David Connolly of iQ Consulting here:
Book Optimization—the Million-Dollar Producer Process

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