Published: July 2026

 

By Todd Carlson, Executive Vice President and Chief Sales Officer

 

Most funeral home owners I talk to know that their preneed program is important for their funeral home’s success. They see the contracts coming in and the growth in funding. They know it’s a must-have for a modern funeral home.

 

But I’ve noticed a pattern: the conversation usually stalls right when we start talking about products, rates, or paperwork. We dive into the tools of preneed before we’ve answered the bigger and more important question:

 

What are you actually trying to build?

 

In my years of working with funeral directors, I’ve realized that preneed is often treated like a sidecar to the business. Something that just happens in the background. But preneed is much more than a product conversation. It’s a vital part of your funeral home’s overall business strategy. Your preneed program touches your market share, your future case volume, and the ultimate value of your legacy.

 

If you want a stronger program, you have to start with clarity. You have to set goals that match your vision, not just your file cabinet.

 

 

What is the “Iceberg Effect” in funeral home market share?

 

When I sit down with a funeral home owner, I often ask how their market share is doing. They usually point to their at-need numbers. But those numbers only tell you about the families who walked through your door today.

 

The real competition is happening below the surface. We call this the “Iceberg Effect.”

 

Think about an iceberg. The small portion you see above the water represents the at-need families you’re currently serving. But the massive, heavy portion below the water represents the "file cabinets" of every funeral home in your town.

 

The danger for a funeral home owner is that you usually don’t know you’ve lost a family to a competitor until you see their obituary on that competitor’s website. By then, the “iceberg” has already shifted. The family was secured years ago in a preneed appointment you weren't a part of.

 

This is why it’s not enough for your funeral home to just have a preneed program. If your program is passive or sitting still, your market share will melt away.

 

To secure your future, you have to move your preneed program from passive to active.

 

 

Why the preneed product is not the preneed program

 

I’ll be blunt: Our profession is far too product-focused. 

 

It’s easy for a preneed provider to walk into your office and talk about growth rates or commission percentages. But a product doesn't knock on doors. A product doesn't host community seminars. A product doesn't follow up with a lead who is on the fence about preplanning.

 

At FDL, we’ve always said that the program is not the product, and the product is not the program.

 

If you are discussing product details before you have clearly answered what job your preneed program needs to do for your funeral home, you are starting too small. You don’t buy a hammer and then decide what kind of house to build. You design the house first, then pick the tools to help you finish it.

 

At the end of the day, your preneed product is just a tool in a box. But your preneed strategy (especially if it’s an active strategy) is the blueprint that ensures your legacy is built well.

 

 

What are the best goals for a funeral home preneed program?

 

Before you can build an active preneed program, you have to define what success looks like for your funeral home. While every owner has a different vision, most are trying to solve one of 3 major strategic challenges.

 

1. Protecting and growing market share

 

If you are in a highly competitive market, your goal is protection. You want to make sure that when a family thinks about the future, they think of you first. This means you need a preneed program that is visible in the community that uses impactful digital marketing and educational seminar events.

 

Remember, you are looking to secure the iceberg before it drifts toward your competition down the street.

 

A passive preneed program cannot protect you from an active competitor.

 

2. Increasing long-term business value

 

Are you thinking about the next 5-10 years? A robust file cabinet of secured and funded preneed plans is one of the clearest ways to add visible value to your firm. It provides a level of predictability and stable cash flow that at-need business simply cannot offer.

 

When a buyer or lender looks at a firm, they’re looking at how your funeral home has performed over the last 3 years and what you’ve secured for the next decade. By generating consistent commission revenue, you can reinvest in your business today while building the equity you’ll need when it’s time to transition.

 

An active preneed program is the only way to reliably fill that cabinet.

 

3. Serving and educating families earlier

 

We all know that families make better decisions when they aren't in the middle of a loss. Preneed allows families to think about the funerals they want rather than the ones they can afford in the middle of grief.

 

This leads to higher family satisfaction and, often, a healthier average contract size because the family had the time to see the value in the services you provide.

 

A passive preneed program waits for the need. An active preneed program meets the family first.

 

 

Why great preneed programs start with great at-need

 

Here is a truth I believe strongly: Preneed is built on trust.

 

If families don’t trust your funeral home’s at-need care and service, then no preneed product, campaign strategy, or sales process is going to fix that. The strongest preneed programs grow out of funeral homes that already serve families well and have a solid reputation in the community.

 

Your preneed program should feel like an extension of your care. If your at-need experience is strong, an active preneed program gives you a chance to extend that same care earlier.

 

 

Where does preneed product selection actually fit?

 

Once your goals are clear, your preneed product selection should support your funeral home’s strategy. Not define it.

 

Think about whether a preneed product’s blend of growth, commissions, and premiums aligns with what you are trying to accomplish. For some owners, taking a small shortfall on the at-need side is a fair trade-off for upfront commissions that can be reinvested into their preneed sales and marketing to help grow market share.

 

In other words, there can be more total profit in the long run even if there is a small shortfall on the individual contract, provided that the contract was part of an active preneed program that increased your overall case volume.

 

 

How do you move from a passive to an active preneed program?

 

Building an active program can feel like one more job that, honestly, you don’t really have time for. That’s why we focus heavily on field support and sales management, so you have time to think about your funeral home’s short- and long-term goals.

 

If you want a practical next step, I encourage you to do 3 things:

  • Choose Your Primary Motivation: Is it market share, business value, or family education?

  • Identify the Bottleneck: Be honest about what is holding you back from having an active preneed program. Is it a lack of leads? Inconsistent follow-up? Dwindling staff time?

  • Choose One Move for the Next 30 Days: Schedule one educational seminar or review the preplanning path on your website. Momentum starts with one clear action.

 

 

Clarity for your goals comes before preneed growth

 

The best preneed program isn't the one that focuses on products. It’s the one that fits the vision and future you want for your funeral home, your staff, and the families you serve.

 

At FDL, we want to help you build an active preneed program that secures your legacy. Because when you know what you want to accomplish, you can build a preneed program that actually helps you get there.

 

 

Stop guessing what’s below the water

 

Your market share is too important to leave to chance. If you’re ready to secure the “iceberg” of future cases before they drift away, let’s move past the product talk and start building an active preneed program that protects your legacy.

 

 

About the author

Todd Carlson serves as the Executive Vice President of Sales and Chief Sales Officer for Funeral Directors Life and for Passare, Inc. With more than 30 years of experience in the funeral profession, Todd has dedicated his career to helping funeral home owners grow their businesses, implement innovative marketing solutions, and become increasingly more relevant as they serve today’s changing funeral consumer. Todd joined Funeral Directors Life in 2006 and helped redefine the company’s sales experience. Todd earned his bachelor’s degree in Mortuary Science from the University of Minnesota.