DAC Agent Update 4/18/25
David Rutz from DAC emphasized the importance of using the back office for support tickets to avoid security verification delays. He highlighted tax benefits for DAC agents, such as writing off business expenses, which can significantly reduce taxable income. Rutz discussed the value of a business, noting that it's multiplied by revenue and income, and encouraged agents to aim for higher revenue to increase their business's worth. He also mentioned the need for agents to obtain a tax ID number to avoid tax withholding. Additionally, Rutz stressed the importance of engaging leads, maintaining a strong team, and using simple marketing strategies to grow the business.
Watch Video: DAC Agent Update 4/18/25
Transcript: https://otter.ai/u/SEcvd7-0gIoFGZ0ifpKxlemLFTE
Action Items
Agents should get an Employer Identification Number (EIN) from the IRS if they don't already have one.
Agents should focus on the warm market, local market, and niche market strategies to grow their businesses.
Agents should review the checklists for new agent onboarding and client outreach, and choose their preferred method of outreach (e.g., text, email, phone, social media).
Rutz will coordinate with a CPA to provide a training session for agents on tax write-offs and other tax-related topics in the next couple of weeks.
Outline
Agent Support and Trouble Ticket Submission
David Rutz emphasizes the importance of using the back office to submit trouble tickets for support, as it avoids the need for security credentials.
He advises agents to log into their back office to submit support tickets, which is faster and more secure than emailing support.
David mentions that emailing support without logging in can slow down feedback times due to the need for security verification.
He suggests adding the agent ID to emails to expedite the verification process.
Tax Benefits for DAC Agents
David Rutz discusses the tax benefits of being a DAC agent, highlighting the ability to write off expenses like cell phone bills, mileage, and home office space.
He explains that employees cannot write off these expenses, but DAC agents can, which can significantly reduce their taxable income.
David uses an example to illustrate how tax write-offs can make a significant difference in an agent's tax liability.
He advises agents to consult with a CPA or accountant to ensure they are taking advantage of all available tax deductions.
Incentives and Tax Write-Offs
David Rutz explains that the tax code is incentive-based, encouraging investments in businesses to stimulate economic growth.
He provides examples of how business owners can benefit from tax write-offs, such as interest on loans being a business expense.
David emphasizes that business owners often reinvest their profits back into their businesses, which can reduce their taxable income.
He highlights the importance of pursuing a profit to qualify for tax write-offs, using examples like maintaining an active social media presence to prove business activity.
Tax Day and Business Ownership
David Rutz discusses the significance of Tax Day, noting that it can be a time to reflect on the benefits of being a business owner.
He explains that business owners often pay more in taxes than employees, which is a sign of a successful business.
David encourages agents to set a goal of paying more in taxes each year as a measure of their business's success.
He provides examples of how business expenses can significantly reduce an agent's taxable income, making it easier to achieve higher tax bills.
Value of a Business and Tax ID Numbers
David Rutz explains that the value of a business is determined by its revenue and income after expenses.
He advises agents to aim for higher revenue to increase the multiple of their income, which can significantly increase the value of their business.
David mentions that the IRS is moving towards requiring tax ID numbers for independent agents to facilitate tax withholding.
He encourages agents to obtain a tax ID number to avoid having taxes withheld from their commissions.
Building a Sellable Business
David Rutz discusses the importance of building a sellable business, emphasizing that a business's value is determined by its revenue and income.
He provides examples of how a business's value can increase with higher revenue and income, making it more attractive to potential buyers.
David advises agents to focus on building a team that can duplicate their success, which can significantly increase the value of their business.
He highlights the importance of engaging leads, converting them to customers, and maintaining a high lifetime value for those customers.
Marketing Strategies for Business Funding
David Rutz outlines the marketing strategies for business funding, emphasizing the importance of engaging leads through warm market, local market, and like market approaches.
He advises agents to focus on building relationships with business owners and educating them about the benefits of business funding.
David provides examples of how to approach different types of businesses, such as roofing companies and dance studios, to find potential clients.
He emphasizes the importance of using simple systems and maintaining a consistent approach to marketing.
Overcoming Embarrassment and Building Confidence
David Rutz shares a personal story about overcoming embarrassment while roller skating to illustrate the importance of persistence and confidence.
He encourages agents to hold on to the edge if they need to, but not to let embarrassment stop them from taking action.
David emphasizes that with practice and persistence, agents will gain confidence and improve their skills.
He advises agents to focus on their goals and not to be discouraged by initial setbacks.
The Role of Experience and Team Building
David Rutz discusses the importance of experience in building a successful business, but also emphasizes the need for team building.
He advises agents to recruit other experienced agents to build a strong team that can support each other.
David highlights the benefits of having a team that can generate consistent income, even if individual agents are not always active.
He encourages agents to focus on building a business that is sellable, which can provide significant financial benefits in the long run.
Spiritual Reflections and Personal Experiences
David Rutz shares his personal spiritual reflections, discussing the significance of Easter and the importance of faith.
He encourages agents who are seeking spiritual guidance to reach out to him for a conversation.
David emphasizes the importance of having a personal relationship with Jesus and the impact it can have on one's life.
He provides examples of how his own faith has influenced his business practices and personal life.