Cross-selling benefits clients and your bottom line

How many clients do you have in your current book of business? What if I told you that you could earn an additional $150 per year in commissions from each of those clients with very little effort?

Let’s do the math on this: If you currently serve 100 clients in your book, that’s an extra $15,000 in revenue each year. If you have 1,000 clients, that’s an additional $150,000 per year.

And the key to realizing that additional income is simple: cross-selling.

While stepping outside your comfort zone and selling new products may feel uncomfortable and scary – no one wants to lead a client astray with bad advice – agents and advisors who don’t offer a portfolio of solutions leave money on the table. A lot of money. Even worse, they leave their customers hungry and vulnerable to other agents who do offer a range of products that change and grow with industry trends and evolving demographics.

Cross-selling protects your clients

If you’re an independent insurance agent or a financial advisor who is seeking long-term success and stability, a diversified portfolio is crucial. For example, if you sell life insurance, chances are your clients could also benefit from long-term care insurance, short- or long-term disability coverage or supplemental options such as hospital indemnity or critical illness coverage.

Because health and financial wellness are so closely connected, your clients should also understand how financial products like annuities can provide security during retirement, while allowing them to plan for and leave a legacy for their loved ones.

The same is true if you’re a financial advisor. Integrating insurance products such as individual health, Medicare, disability and long-term care into the broader financial plan for clients can deliver long-term wealth, security and protection, while mitigating risk and delivering important tax advantages.

If selling Medicare converge is your bread and butter, congratulations! But don’t stop there or you may leave clients with serious gaps that can impact their financial future. Remember that your clients are looking to you for life-changing help and advice, so don’t hesitate to introduce them to insurance and financial options that increase their protection, all while cementing your relationship with them.

Don’t go it alone

I understand why cross-selling is a challenge: lack of time (you must be responsive to existing clients, first and foremost), lack of experience in new product areas, lack of resources (financial and bandwidth) and lack of access to or knowledge of marketing. But there’s good news: You don’t have to go it alone.

If you don’t currently work with an independent marketing organization, consider how the support and resources an IMO offers might benefit your business. If you do work with an IMO and they aren’t encouraging you to cross-sell or if they don’t have the expertise and tools to help you grow your business through cross-selling, then it may be time to find a new partner.

It’s also helpful to turn to your professional network and ask other agents and advisors about the resources they use to drive business growth through cross-selling. Maybe you’re affiliated with strategic partners, a larger agency or practice, or an IMO where other resources are available. If so, look for a way to represent the product with another agent, or make a referral to an advisor or agent who can write the business on your behalf. The advantage is that your customer receives uninterrupted service and the business stays within your circle of influence. Plus, it’s likely you can also arrange a shared commission or referral bonus, so everybody wins.

Cross-selling gives you the power to weather market changes

If your goal is to grow a stable, high-performing agency or practice, product diversity is critical. Diversification will also allow you to weather market changes that are completely out of control. For example, when carriers make changes to commissions or pull products from the market, it causes upheaval for everyone. However, by not putting all your eggs in one basket, you can keep your sales pipeline and commissions flowing until the industry rights itself again–as it ultimately will.

Cross-selling delivers advantages such as increased customer retention, opportunities for growth, improved risk management, greater earning potential, a higher business valuation and a stronger marketing position. It also nourishes your customer relationships by giving them options that adapt as they move through life, allowing them to maximize their investments and safeguard their lifestyles and legacies.

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Todd Villeneuve is managing partner of IFC National Marketing. Contact him at [email protected].