ORIGINALLY PUBLISHED: October 2023

LAST UPDATED: May 2026

 

 By Todd Carlson, Executive Vice President and Chief Sales Officer  

 

If you’re like most funeral professionals I meet, you want to do right by your families and your business. 

But when it comes to choosing a preneed product, the options can feel overwhelming. 

Maybe you’re wondering:

  • Am I using the best plan for my market?
  • How do I balance commissions and growth?
  • What’s working for other funeral homes like mine?

You’re not alone in these questions. Over the years, I’ve seen how the right preneed strategy can transform a funeral home’s future.

 

 

What is a preneed product for funeral homes?

 

Think of a preneed product as a roadmap for families and your business. It’s a plan, funded by insurance or trust, that lets families prearrange and prepay for services.

 

This brings peace of mind to families and stability to your business.

 

But not all preneed products are created equal. The right fit depends on your goals, your market, and how you want to serve.

 

 

How do I know which preneed product is right for me?

 

When I sit down with funeral home owners, I always ask: What matters most to you? Immediate revenue? Long-term growth? A balance of both?

 

When evaluating preneed products, two key factors usually come into play:

  • Growth: This refers to how much the value of a preneed plan increases over time. Plans with higher growth potential can help you build lasting value and financial stability for your business
  • Commissions: This is the amount your funeral home earns upfront when a preneed plan is sold. Higher commissions can provide immediate cash flow and reward your team for their efforts

Some preneed products are designed to maximize growth, while others prioritize higher commissions. And of course, there are options that aim to strike a balance between the two.

Let’s look at 3 common strategies I’ve seen work for funeral homes nationwide.

 

 

Strategy #1: Active preneed sales program

 

If you have a full-time, licensed preneed sales professional on your team, you’re running an active preneed program. This approach is all about proactively reaching families in your community before they’ve even started thinking about preplanning.

 

Here’s what I typically see in funeral homes with active programs:

  • The average age of your preneed clients tends to be lower, meaning these plans may stay on your books for 10 years or more.

  • Most families choose payment plans to spread out their investment over time.

  • Your sales volume is consistently high, thanks to ongoing outreach and marketing.

 

The best preneed product for this strategy

 

In this scenario, it makes sense to choose a product with higher commission rates, even if the growth rate is slightly lower. Why? Those commissions help fund your sales team’s efforts and support your ongoing marketing activities.

 

 

What I’ve seen work

  • Consistent marketing and community events are key. The more visible you are, the more families you’ll reach.

  • Building a strong preneed book increases your funeral home’s value and creates a steady pipeline of future at-need calls.

  • Active engagement with your community helps you stay top-of-mind with families.

 

A word of caution

 

This approach isn’t for everyone. Smaller funeral homes may not have the resources to support a full-time sales professional. If that’s your situation, don’t worry. There are other strategies that can work just as well.

 

 

Strategy #2: Passive preneed sales program

 

Maybe you don’t have a dedicated sales professional. Instead, you rely on families coming to you through walk-ins, call-ins, or referrals. 

This is what we call a passive preneed program, and it’s especially common in rural or smaller funeral homes.

Here’s what this typically looks like:

  • The average age of your preneed clients is higher, so the plans on your books are on the books for less time (often under 10 years).

  • Most families opt for single-pay or dollar-for-dollar plans, paying in full up front.

  • Monthly sales volume is lower, but you’re not investing heavily in marketing or sales staff.

 

The best preneed product for this strategy

 

Look for a product with higher growth rates and lower commissions. Since you’re not paying a sales team, you don’t need high commissions. But you do want your plans to grow in value over time to keep up with inflation and rising costs.

 

What I’ve seen work

  • Families benefit from a higher death benefit when the time comes, thanks to the plan’s growth.

  • You avoid the costs and complexities of hiring, training, or managing a sales team.

 

A word of caution

 

Passive programs often see declining market share over time, especially as more families choose direct cremation or as competitors ramp up their outreach. If you’re curious about these risks, I encourage you to read more here.

 

 

Strategy #3: Moderate preneed sales program

 

Many funeral homes find themselves somewhere in between. They’re not fully active or completely passive. Maybe you have a part-time sales professional, or you partner with an agency for occasional marketing events. 

This moderate approach can offer the best of both worlds.

Here’s what you might experience:

  • The average age of your preneed clients is about 10 years on the books.

  • You see a healthy mix of single-pay and payment plan clients.

  • Your monthly sales volume is moderate to high, but you’re not carrying the full cost of a dedicated sales team.

 

The best preneed product for this strategy

 

A balanced product with moderate growth and commission rates is usually the best fit. This allows you to maintain or even grow your market share without overextending your resources.

 

What I’ve seen work

  • Partnering with an agency for marketing events and follow-up can help you reach more families without hiring full-time staff.

  • Some funeral homes share an FDL-employed sales professional with other non-competing firms in their area, spreading out the cost and maximizing results.

 

 

Ready to find the best preneed product for your funeral home?

 

If you’re questioning whether your current preneed approach is truly supporting your long-term goals, you’re in good company. Many funeral homes revisit these decisions as markets and family needs evolve.

 

The good news? You don’t have to navigate this alone. The right preneed strategy can bring clarity and confidence for both your business and the families you serve.

 

Let’s talk about what’s possible for your funeral home and your community. We’ll explore your options and make a choice you can feel great about.

 

And whether or not you choose to work with FDL, you’ll walk away with valuable insights to help you serve families and secure your future.

 

Fill out the form below to get started!

 

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