According to a recent study by Marsh, Berry & Co., there's a good chance that it is.

By the way, would you be surprised?

Think of it is this way: given the current soft market conditions, is it realistic that an agency - or any business for that matter - could thrive without a real business plan, a true sales culture, effective and efficient use of technology, AND a comprehensive plan to market the business?

The standard catchphrase "We are a referral-driven business" is starting to sound a little bit like "We're not sure how to market effectively. We're nervous about spending money in this environment. We're not particularly good at getting business from people we don't know."

Great news. If this applies to you, you're in the same boat as 90% of all independent agents.

Let's separate the FACTS from the FEELINGS.

Is your agency willing and able to drive profitable organic growth? According to Marsh, Berry & Co., the top 25% of independent agents achieved organic growth of 12%.

Quick question: What was your new business production during 2008 as a percentage of 2007 commissions? The top 25% averaged 23.2 of prior year income. The top 5% averaged 29.1%.

The point is, the top performing agencies have figured out a way to consistently drive organic growth. These agencies are not sitting back waiting for a return to a hard market and subsequent profitability.

How do you achieve organic growth?

1. Add a new product.
2. Increase price.
3. Sell more existing products/services.

The easiest choice and the hardest to execute is #3 - SELL MORE STUFF. PERIOD.

There's no dancing around the subject. Agencies that do not have a plan to drive growth WILL LOSE VALUE. According to the study, four years from now agencies that can not maintain a minimum organic growth rate of 8% will realize a decrease in the value of the agency on an after tax basis. The agency will be worth less. Which means your agency will be running on a treadmill for four years and end up in worse shape than when you got on.

THE INDEPENDENT AGENCY SYSTEM IS QUICKLY BECOMING A STORY OF THE HAVE'S AND THE HAVE NOT'S.

According to Marsh, Berry & Co., buyers of independent agencies are getting very picky about what they are looking for:

1. Executive level accountability and participation.
2. Understanding how sales metrics effect success.
3. Providing staff with the right technology and tools.
4. Quantifying organizational and individual goals.
5. Measuring, monitoring, and improving.
6. Pay for performance and negative consequences.
7. CONSISTENTLY FUNDING growth initiatives and aggressive growth budgeting of 2-5% of annual revenues for growth investments. If you were to rate your agency on a scale of 1-10 in each of these areas, would you score above or below 80%? Keep in mind, in school 80% was a LOW B.

In the July issue of Rough Notes magazine, Astonish Results was featured as the premier digital marketing, business consulting, and training company for the independent agent. The article, titled "An Unfair Advantage," highlights EXACTLY how Astonish is revolutionizing the way insurance is sold all across the country.

Discover how you can leverage this Unfair Advantage. Schedule a Virtual Presentation of the system that will dramatically change your agency at www.astonishresults.com.