Cleanfax Survey: How Many Businesses Participate in a TPA Program?
NORTHBROOK, Ill.—June 28, 2022—Third-Party Administrator (TPA) programs account for a large percentage of business for restoration companies. These programs offer a more definitive and structured way for companies to grow but also require diligence and strong service breakdowns to manage. While some companies focus on their standard work acquisition, other companies use a TPA program to balance their workload. According to the results of the 2022 Restoration Benchmarking Survey Report, 40% of restoration companies participate in a TPA program, and over a quarter of company owners say that 25% of their business comes from TPAs.
Additionally, 13% of companies stated that TPAs made up 25-50% of their business while the majority (56%) claimed that their company was not applicable for this survey. Only 2% of companies received over 76% of their profits from TPA programs meaning it is far more likely that companies balance between these programs and their standard work acquisition methods.
One interesting statistic to note is that 94% of those interviewed for these statistics were the restoration company’s leaders.
As you continue to grow throughout 2022 and determine whether TPA programs are viable for your restoration brand or not, check out our full 2022 Restoration Benchmarking Survey results, sponsored by Legend Brands.