Salesforce: The Big Business Solution that May Not Fit Your Agency’s Needs – A Brutally Honest Assessment for Independent Insurance Agents

Nicholas Ayers
Nicholas Ayers

Co-Founder @ Better Agency

Are you an independent insurance agent considering using Salesforce? Hold on, are you sure about that? Before you dive in, let’s take a closer look at why Salesforce may not be the best fit for your agency.

It is no secret that insurance agents have been infatuated with Salesforce in recent years. With its multi-billion-dollar valuation, impressive list of customers, and sleek marketing automation, Salesforce seems to be the perfect fit for any business looking to streamline their processes. However, as an independent insurance agent, jumping on the Salesforce bandwagon may not be as beneficial as it seems.

Salesforce was not built for the little guy

FACT: Salesforce was built for the world’s largest companies, not for independent insurance agents with a smaller staff.

Salesforce’s capabilities are impressive and it’s no surprise that it’s the go-to platform for the world’s largest companies. However, its capabilities can make it unsuitable for the needs of a smaller business such as an independent insurance agency. Salesforce’s emphasis on large-scale operations means that much of what it offers is simply not necessary for smaller businesses.

The costs of implementing Salesforce

FACT: Salesforce implementations require a full-time staff member to be in charge of setup, configuration, and implementation, which can cost anywhere from $75,000 to $125,000 a year.

Even if Salesforce’s capabilities were necessary for smaller businesses, the costs associated with implementing Salesforce may make it an unwise choice. Hiring a full-time staff member to handle the setup, configuration, and implementation of Salesforce comes with a hefty price tag. It’s important to ask whether these costs will provide a sufficient ROI for the agency.

The costs of licensing Salesforce

FACT: The costs for licensing Salesforce can vary greatly and on average, an agency should be paying anywhere from a thousand to sometimes over a hundred thousand dollars a month.

But what about licensing costs? For a large company with a vast workforce, the cost may be worth it. For an independent insurance agency, the costs can easily outweigh the benefits. Licensing costs can range from a few thousand dollars a month to over a hundred thousand dollars a month. These costs add up quickly and must be taken into consideration before making the decision to use Salesforce.

The costs of marketing automation

FACT: Adding marketing automation within Salesforce can cost an extra $2,000 to $10,000 a month.

If that wasn’t enough, it’s important to also consider the cost of adding marketing automation within Salesforce. This can add an additional $2,000 to $10,000 a month to the already significant cost of licensing Salesforce. For smaller businesses, these costs are simply unaffordable.

The cost of a Salesforce certified expert

FACT: Hiring a Salesforce certified expert is necessary and is going to cost an extra $20,000 plus a year.

Using Salesforce requires a certain level of expertise. If your agency doesn’t have anyone on staff with the necessary skills and certifications, then you’ll need to hire someone with these qualifications. This can be an additional expense of $20,000 a year or more, not to mention the cost of training and other associated expenses.

The cost and hassle of custom integrations

FACT: Writing a custom integration or paying a large amount to ivans for policy downloads can cost well over seven figures.

If the costs and hassle of implementing Salesforce weren’t enough, integrating it into your existing agency management system can be a real headache. Writing a custom integration can cost well over seven figures and requires skilled developers who are familiar with building out the database on the backend and being compliant with all three entities. The alternative is to pay a large amount to ivans for policy downloads and hope that they even look in your direction.

Is Salesforce worth it for independent insurance agents?

FACT: Salesforce is a great platform that’s powerful for mid-sized companies or businesses doing $75 million plus in annual revenue.

Make no mistake, Salesforce is a powerful platform that has the potential to bring significant benefits to a business. However, its significant costs and complexity make it unsuitable for independent insurance agencies.

Back to basics

FACT: While technology can make processes easier, building relationships, prospecting, and selling policies are still the fundamentals of the insurance industry.

As an independent insurance agency, the focus should be on the fundamentals of the industry such as building relationships, prospecting, and selling policies. Technology can be beneficial, but it should not be a distraction from the basics.

At the end of the day, there is no perfect system. Finding a system that fits your agency’s needs and doing the work is crucial in selling insurance. So, before jumping on the Salesforce bandwagon, consider your agency’s needs and whether the costs associated with Salesforce are worth it.

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Better Agency team

Are you tired of spreadsheets and leads falling through the cracks? Are you looking for an efficient way to manage your customers and automate various tasks? Have you tried numerous CRM solutions only to find that they don’t quite fit with the insurance industry?

At Better Agency™, we understand your concerns and, as former insurance agents, we created a sales-driven AMS, powerful CRM, easy comparative rater, and fast proposals together in one system. Our insurance management software does it all! We understand what insurance agents need for success and have created a powerful tool that helps you better reach your business goals.

Schedule a discovery call with the team today and let us help you better manage your agency.

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