When a P&C agency and a benefits agency–or even two such divisions of the same agency–think about exchanging referrals, several factors should be considered to increase the odds the arrangement will work. The success of such efforts is quite low, when measured by the additional business both parties write, so it's all the more important to give them attention. Let's look at eight factors that can have a bearing on how well things turn out.

Physical location: P&C and benefits divisions within a single agency should share the same floor space. That way, communication is enhanced, everyone gets to know one another, and the employees of one division don't feel like second-class citizens. I don't think I've ever seen a cross-selling program work where the divisions did not share the same floor space.

Cross-selling criteria: Establishing cross-selling criteria up front greatly enhances the chances for success. Morale and trust between the divisions grow, because the hit ratio should be higher. For various reasons, some qualified accounts should not be cross-sold. By spelling out the criteria up front, there is a better chance that everyone will accept such exceptions. On the other hand, the desire some producers may have to hold back certain accounts that are good cross-selling candidates will be minimized.