In the age of direct marketing, the collapse of channelconflict, the reduction of commissions and the growth ofalternative distribution channels, it has become imperative thatlocal independent agents identify and focus on the correct channelstheir business model supports and operate within.

Without a $6 billion budget to attract buyer attention, theindustry requires a targeted effort on revenue per account and theselling of every possible line of coverage per account. The otherfactor that has significantly impacted the industry is the factthat regional and national brokers are raising the bar on the sizeof accounts that they view as important. Overhead has made thesmall business sector an “untouchable.” Local independent agentsliving in communities and daily interacting with local friends andfamily have a significant opportunity to grow their smallcommercial lines books.

Carriers are rewarding agencies with higher commissions,bonuses, and educational assistance when they commit to focusing ontheir local small-business opportunities.

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