Don’t Let a $3,000 Incentive Cost You $50,000

Carrier incentives can be great. The problem starts when short-term money changes a long-term strategy.

It is incentive season.

After several difficult years, carriers are pushing hard to restart growth. That means agents are seeing bonus opportunities, extra dollars per application, and other incentives designed to get their attention.

There is nothing wrong with taking the money.

The question is:

What is that incentive encouraging you to do?

Think Beyond the Next Check

Shane gives a simple example in this IA Fast Forward.

Maybe writing 30 applications earns an extra $3,000 today.

Sounds great.

But if chasing that incentive causes you to move profitable business away from an established carrier, you could weaken retention or reduce future profit-sharing opportunities.

That $3,000 win today could potentially cost far more when profit sharing is calculated across the entire book.

That is why agency owners have to look at incentives differently than salespeople sometimes do.

The salesperson sees the goal in front of them.

The owner has to see the whole book.

Take the Money When It Fits the Strategy

The message is not to avoid carrier incentives.

Use them.

Take advantage of them.

Especially if the opportunity already aligns with where your agency is trying to grow.

Just do not change a good long-term strategy solely because someone put short-term money in front of you.

As Tonya puts it:

Take the money when it aligns with your strategy. Don’t change your strategy just to get the money.

Watch IA Fast Forward