There’s a dangerous trap that too many insurance agency owners fall into—and it’s called the “premium trap.” You’ve heard the bragging rights: “I’ve got a $3 million book!” But here’s the hard truth: bigger premium numbers don’t always mean bigger profits. And if your business isn’t profitable, what’s the point?

It’s time to shift from vanity metrics to a real growth strategy, and that starts with focusing on revenue per client.

This article is written by Alex Branning, based on the training Kody delivered to the Agent CRM audience on March 28, 2025. Get more resources from Kody at http://www.therealresources.com

What is Revenue Per Client—and Why It Matters

Revenue per client is exactly what it sounds like: how much money your agency earns per client each year. According to industry benchmarks, most agencies are bringing in just $250 per client. On paper, that might seem fine—until you start breaking down your costs.

Let’s say you pay your producer 60% commission. That’s $150 gone. Subtract taxes, service time, renewal calls, and admin costs, and suddenly you’re looking at a razor-thin—or even negative—profit margin. At the end of the year, you’ve made maybe $50 per client.

Compare that to $4,000 revenue per client, like agency owner Kody Houk is generating. With smart service systems and efficient workflows, he can support that client with a fraction of the work—and take home real profits.

“I fire 10% of my clients every year and replace them with higher-performing clients,” Kody shared. “It’s not about being mean—it’s about running a business that’s profitable and sustainable.”

The Financial Reality of Low-Value Clients

Let’s walk through a real-world example.

You have a client generating $250 in revenue.

  • 💸 Producer commission (60%): $150

  • 💸 Taxes: $20

  • 💸 Three service calls (1.5 hrs @ $20/hr CSR): $30

  • 💸 Renewal conversation and remarketing: $30

Net profit: $20—or less.

Now imagine you’re servicing hundreds of these accounts. You’re putting in hours of work, managing chaos, and walking away with barely any profit to reinvest in marketing or your team.

“You’re taking no money home at the end of the day,” Kody warned. “You wonder why you can’t hire or grow—it’s because you’re spending all your time on clients who aren’t profitable.”

How Kody Transformed His Agency: From $30K to $500K

Kody Houk didn’t always run a high-profit agency. Just a few years ago, his agency was stuck at $30,000 in annual revenue—and he was ready to quit.

But instead of folding, he doubled down on a better strategy: focusing on high-revenue clients in a niche he loved (blue-collar contractors), and building systems to support them efficiently.

He defined an ideal client profile, committed to consistent outreach and content, and set a minimum client revenue threshold of $2,500.

Now, Kody has:

  • Over $500,000 in revenue

  • Just 120 clients

  • A lean team with manageable service work

  • More time to focus on growth, not grunt work

How to Build a Revenue Per Client Strategy in Your Agency

Here’s how you can implement this same transformation.

1. Define Your Ideal Client Avatar

Ask yourself:

  • What type of client do you want to work with?

  • What revenue level makes sense for your agency?

  • What industries or niches are underserved in your area?

Use tools like InsuranceXDate.com to identify and target prospects with the right revenue markers.

2. Restructure Your Book

Audit your client list. Who’s costing you time and money?

  • Replace low-revenue, high-maintenance clients with high-value ones

  • Fire the bottom 10% annually and upgrade your portfolio

3. Adjust Your Pricing & Services

Offer bundled packages or premium service tiers for high-value clients. Don’t be afraid to raise minimums or require multi-line policies to maintain your book’s profitability.

4. Leverage Automation Tools

Use Agent CRM’s Branning Bundles and automation systems to streamline your communication, onboarding, and renewal processes—so you spend less time servicing and more time selling.

Need help setting that up? Our team is here for you:
👉 Start your free trial now

Final Thoughts: Start Thinking Like a Business Owner

If you’re still measuring success by how big your premium book is, you’re missing the mark. You’re not just an agency owner—you’re a business owner. And business owners track profit, not vanity metrics.

Shifting to a revenue per client model won’t just increase your income—it’ll transform your time, energy, and business sustainability.

So here’s your challenge:
✅ Set a revenue per client goal
✅ Define your ideal client
✅ Commit to upgrading your book—one client at a time

You’ll be amazed at the growth and freedom that follows.

Start building a more profitable, sustainable agency today.
👉 Get your free trial of Agent CRM now


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