A penny saved can be worth a lot more in business. When an insurance agency saves a penny through better carrier compensation, it can be worth a dime or even more. Now think of it this way: If an agency has a 10 percent profit excluding contingencies, then on $1 million in commissions the agency makes $100,000. If through better carrier management, the agency can increase its compensation from carriers by $100,000, then the agency has just made the equivalent of $1 million in sales.

In these tough economic times and the softest insurance market in many decades, many agencies are searching for ways to save pennies. Using the example above, an agency can make $1 million in sales to make a $100,000 profit. Another opportunity is to become better managers and negotiators to improve the bottom line profit without having to increase the top line nearly as much. After all, how easy is it to increase sales by $1 million?

Part of the answer may be based on the person's particular skill set. Some people are good salespeople and poor managers. These people will focus on sales as the solution, and a lucky few generate $1 million of additional commissions on their own. For the rest, or for anyone who can benefit from smarter management and negotiation, here are six ways to make a penny earn even more:

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