Revenue Is Not a Health Metric#

I know an agency owner who grew revenue by 30% in a single year. He added staff, expanded his marketing, wrote more premium than he’d ever written. From the outside, everything looked great. His carrier loved him. His team was growing. The numbers were going up and to the right.

He almost went broke.

Revenue grew by 30%. Expenses grew by 45%. He hired two producers who hadn’t ramped yet, added a CSR he didn’t quite need, and increased his marketing spend without tracking which channels were actually producing. His top line looked phenomenal. His bank account told a different story.