Jamie Biesiada
Oftentimes, travel advisors turn to independent contractors when they get too busy to handle their workload. Host agencies are typically accommodating of sub-ICs, and for many, it's a good solution.
But Julie Lanham, president of Vacations to Remember in Augusta, Ga., has another solution: instead of one or more ICs, hire an assistant.
Lanham has had both; at one point, she had about 25 ICs and no employees, but right before the pandemic, she shook things up. She shed a lot of ICs (though she still has a handful) and went to an employee model for her two full-time advisors and two part-time administrative assistants. She operates out of a storefront.
"We're running things 1985-style over here," she said jokingly.
Lanham was a guest on a recent episode of the "Trade Secrets" podcast, where she talked about how to effectively grow a travel agency.
Many advisors flying solo realize they need help when they hit around $1 million in annual sales, Lanham said.
"Things are starting to fall through the cracks," she said. "You're working 70 hours a week. It's just not pretty."
When she herself was at that point, she opted to bring on an assistant. Lanham estimated it took two years to trust someone, but taking the leap was worth it.
"Once you do it, you don't know how you ever did it before," she said. "How on earth did you ever do it?"
Things like payroll, taxes and social security can be intimidating for advisors who have never had employees, Lanham said. But she advised outsourcing those things to experts. For instance, her CPA does her taxes and payroll.
Having employees also has another inherent benefit: Unlike ICs, who operate independently, agency owners have more control over employees and can use that to offer more consistent customer service, for example.
"If you want your clients serviced the way you want them serviced, you need an employee, not an IC," Lanham said.
For more from Lanham about agency expansion, training and trusting new employees, check out the "Trade Secrets" podcast.