Earning more while working less is smart business………………..
Every year you should cull your client base. Weed out the demanding, high maintenance ones while retaining those clients with commonly held shared values, philosophies, expectations and goals.
Here is one sure fire way to cull your book of business and make more money at the same time.
Once each year, 60 days in advance of your contract renewal date, advise all clients of a pending fee increase. Don’t be shy either. A 20% fee increase is entirely justified especially in this time and age when insurance consultants are tangling with new and complicated federal health care mandates, ever increasing E&O premiums, politically fueled inflation, increasing taxation, etc.
Let’s say you have 20 clients each of which are paying you $45,000 per year. That equals $900,000 per year.
With a 20% increase you will earn $1,080,000 per year, or another $180,000. Uncle Sam will be very, very happy.
Let’s assume 10% of your clients don’t accept the increase (Ah Ha, these are the ones that don’t value your services). Your net income under the new fee arrangement with your remaining clients is $72,000 more per year than what you were earning before the increase. Uncle Sam will be disappointed but will remain very, very happy.
You are now getting paid more for less work and you have freed up capacity to acquire new customers.
