Have you ever considered the magic of recurring fees? Like compound interest where you earn interest not only on your original investment but the interest you earned on that investment, recurring fee income programs allow you to earn revenue not only on your current marketing programs, but on all the marketing programs you’ve ever supported!
Here’s a notable example of how one of IMAC’s clients was able to benefit from recurring fee income:
IMAC has been marketing a Thank You Accidental Death & Dismemberment (AD&D) campaign to a regional bank for many years. The AD&D program provides a one-year $3,000 AD&D to customers who enroll and offers customers a chance to enroll for up to $300,000 of additional AD&D coverage at group rates. The cost of the $3,000 benefit is netted out of the bank’s monthly compensation.
The first campaign generated over $100,000 of new premium. The program was marketed annually over consecutive years, each time generating close to $100,000 of new premium while almost quadrupling the bank’s monthly fee income.
The current marketing plan includes a campaign to target recent bank acquisitions. And we anticipate cross channel success driven by access to bank level data and expansion into digital marketing. Through these channels we anticipate reaching half a million dollars of inforce AD&D premium by the end of the year.
This bank went from recurring income of $0 to an anticipated $125,000 in just a few years! Add to that some life insurance marketing and the addition of a few more products marketed each year, and the renewal income becomes quite impressive!
Magic? Of course, along with a commitment to consistent marketing and focus on growing the business.