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Messages from the Masters... |
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EXPLAIN
LIFE AS A SINKING FUND |
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Today more than ever, marketing financial services means
discussing and dealing with personal insurance, especially life insurance. Sometimes
people will raise the issue and other times you do this. You have several ways to
accomplish your task, e.g., in your marketing messages in letters, bulletins, and
workshops, as well as in your discussions. Sometimes you do it in personal interviews
with clients, prospects, centers and noninsurance professional advisors.
Think of the buyer. You can count on two things:
1) you know more about life insurance than your buyer, and
2) their life insurance 'habits' have been formed around the last twenty years not
talking about it, talking against it as a rip-off, or it's comparatively low return
on investment compared to other investments.
In a competitive situation-whether your competition is another advisor or your client's
own close-to-the-vest ignorance-the advisor who best educates the buyer to make an
informed decision will generally prevail. Make your client comfortable with some
easy to understand truths about life insurance. Illustrate your important points.
For example: you want to show a buyer that the proposal with the lowest premium is
not necessarily the best buy or the most suitable policy in this case. The buyer
is unlikely to follow a lot of technical talk, so you want to keep it simple and
quite accurate. Why not demonstrate life insurance as a sinking fund and make your
point? It could unfold like this...
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A Sinking Fund
Premiums
- plus -
Investment Earnings
- minus -
Expenses and Profit
- equals -
Face Amount At Mortality
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Toby, the biggest impact on
illustrated premiums is the cost of mortality-the company's estimation when you might
die, all things considered. A minor improvement in mortality creates a major lowering
of premiums, so if a company compounds a lowered mortality into the future, its sales
illustration can show a much lower premium. If you think of life insurance as a sinking
fund, you can see this.
Premiums plus investment earnings, minus expenses and
profits, compounded by the number of years of the contract to mortality, equals face
amount at maturity. This way, you can easily see that this assumption of compounded
mortality improvement significantly and often dramatically lowers the premium required.
The sales illustration looks remarkable; sometimes too good to be true. The sales
illustration with the lowest premium may not be the best choice.
By using a very simple chart to present and discuss this elementary but important
topic, you can solidify in the buyer's mind that you know what you are talking about,
that you can educate them by disclosing risks they may wish NOT to take, and that
you can help them make more fully informed decisions. In other words, let them know
that by working with you, they know how you will analyze what is best for them, implying
that others may be picking products on less reliable criteria. This is still the
primary difference between a broker in life insurance and an agent. How many other
topics do you work with that are generally confusing to clients and that you could
simplify?
Change that 'could' to 'should.'
from
John Melchinger
www.melchinger.com
john@melchinger.com
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REFERRALS
THAT DON'T WORK OUT ! |
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"How do you go back and approach
a nominator if his previous referral did not work out. You highly value your client,
but were disappointed with the end result of the referral. Do you communicate your
disappointment to the nominator and ask for better referrals, or do you ignore the
issue entirely?"
First, call your referral source (nominator) and let him (or her) know that things
with the referral didn't work out. You don't have to go into detail. Step #8 of our
Unlimited Referrals Marketing System(r) says, "Call your referral prospects
right away and keep the referral source updated with your progress." Always
keep your nominators in the loop.
Whenever your contact with their referral is less then perfect, let them know. If
the prospect gets irritated with your call (which can happen on occasion, if the
client didn't contact them first), then it's better the source hears it from you
first. When they talk to their friend, they'll know what to expect.
I wouldn't communicate this to your nominator in the form of "disappointment."
We don't want them to think they did anything wrong. We also don't want to come from
a place of "neediness." Some referrals work out, and some don't. It's as
simple as that.
Second, the next time you meet with this referral source is a great opportunity to
educate them about "who I serve the best." Notice I didn't say "who
I'm looking for." In our system we keep it "client-centered" - who
we serve the best. Share with them your profile of an ideal client - not from a place
of arrogance, but "these are the types of people with whom I do my best work."
It's important for us to not accept clients who don't fit our businesses. It's relevant
for our clients to know who is a good fit, and who isn't. It's good business and
it's also best for our clients. Serving someone who isn't a good match is not good
for them or for us.
One of the reasons salespeople get disappointed in poor referrals, is because they
don't have enough prospects in their pipeline. When you don't have enough prospects
in your pipeline, every new prospect takes on too much importance. When you work
our referral system on a regular basis, you have so much new activity, that not any
one prospect takes on too much importance.
TEACHING POINT: Honesty is always the best policy - with referrals, or any other
aspect of our business. You must not be afraid to communicate less than perfect results
with our clients. They will appreciate your honesty. This will build trust, and make
you more referable.
from Bill Gates
http://www.referralcoach.com
BillCates@ReferralCoach.com
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SPEAK
TO US OF FRIENDSHIP |
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Your friend is your needs answered.
He is your field which you sow with love and reap with thanksgiving.
And he is your board and your fireside.
For you come to him with your hunger, and you seek him for peace.
When your friend speaks his mind you fear not the "nay" in your own mind,
nor do you withhold the "ay."
And when he is silent your heart ceases not to listen to his heart;
For without words, in friendship, all thoughts, all desires, all expectations are
born and shared, with joy that is unacclaimed.
When you part from your friend, you grieve not;
For that which you love most in him may be clearer in his absence, as the mountain
to the climber is clearer from the plain.
And let there be no purpose in friendship save the deepening of the spirit.
For love that seeks aught but the disclosure of its own mystery is not love but a
net cast forth: and only the unprofitable is caught.
And let your best be for your friend.
If he must know the ebb of your tide, let him know its flood also.
For what is your friend that you should seek him with hours to kill?
Seek him always with hours to live.
For it is his to fill your need, but not your emptiness.
And in the sweetness of friendship let there be laughter, and sharing of pleasures.
For in the dew of little things the heart finds its morning and is refreshed.
- Kahlil Gibran
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LEGAL NOTICE
Please read these important legal notices concerning
this publication |
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4
REASONS THAT PEOPLE FAIL |
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Taking Action Without Planning
When it comes to your goals and future, impulsiveness
is the mother of regret. Considerable thought must be given to the ends as well as
the means of your strategy.
Planning Without Taking Action
Endless preparation is worse than action without planning.
Accept that things will never be perfect. Questions will forever exist. Plan well
and launch!
Unrealistic Time frames and Expectations
Life is a process not an event. Nothing great was ever
built easily. Exercise wisdom and learn to be patient. Unfortunately most things
in life take longer and cost more than the best-laid plans anticipate
Denial of Reality
It's far easier to deny reality than it is too accept
it. And far too many people take the easy way Success is information dependent, when
we deny reality for whatever reason, we
devalue the integrity of our information, thus ensuring failure.
from THE GOAL GUYS
info@goalsguy.com
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THE
7 DEADLY SINS OF MARKETING |
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Ostrich - The ability to bury your head in the sand and not see what's going
on around you. Advisors who avoid the ostrich sin keep the vision they need to see
opportunities.
Reinventing the Wheel - This is basically doing what others have already done
so you can waste your time, energy and money doing it over again. Advisors who excel
at marketing see what is working, then model it and improve it. They do not reinvent
it!
Peanut Butter and Jelly - This sin is very common in the financial services
industry. People don't make the most of the great relationships they have. Peanut
butter and jelly work well together. They compliment each other. Advisors can avoid
this costly sin by making the most of the relationships they have.
Pasta Principle - The throw it against the wall and see what sticks sin. For
some unknown reason, advisors who convince their clients to develop a plan and consistently
follow it don't do the same for their own marketing. Lack of consistency is a major
marketing sin that creates great waste.
Laziness - In old-world morality, this would be called sloth. It would be
associated with avoiding physical or spiritual work. From a marketing perspective,
laziness is having great opportunities and not making the most of them. Some people
are just not doing all they can to improve their business.
Ignorance - Some people say that ignorance is bliss. In today's economy, ignorance
is very expensive. Many advisors have had little or no formal training in marketing,
so it's easy not to know simple secrets that can make marketing more effective.
Squander - In new-world marketing, advisors have more resources available
than ever before. The challenge is to use these resources to their fullest. The sin
of squander is one that all advisors must avoid.
from Martin R. Baird
www.advisormarketing.com
mbaird@advisormarketing.com
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SPEAKING
BEFORE LOCAL CLUBS - A GREAT WAY TO MEET EAGER PROSPECTS |
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Looking to reach many of your prospects all at once? Instead of arranging seminars
from scratch, look for existing opportunities. Local groups like the Rotary, Lions,
senior citizens groups, clubs for retired military, business groups and investment
clubs often look for speakers on personal finance and investments. The organization
arranges the meeting, books the space, promotes the meeting to its members and provides
refreshments.
How else can you get before 20 or more prospects at once so easily?
To uncover these speaking opportunities, ask your customers if they belong to any
groups that ever need speakers. Or send a letter alerting your clients that you're
available to speak. Find out who books guest speakers for the association.
Tip: Offer a door prize when you speak. Have everyone who attends fill out
a card and drop it in the bowl with his or her name and phone number for the prize
drawing. Then you can easily follow up. You'll often find that after your talk many
people will approach you and ask you for help. That sure beats cold-calling!
fromWilma Anderson,
The LTC Coach
www.TheLTCcoach.com
wilma@TheLTCcoach.com.
720-344-0312
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UNDER
YOUR PROTECTION |
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The new times before us serve as a reminder of old wisdom,
and an encouragement to think some new ways. Remember that clients do not purchase
policies, products, funds, or market performance as much as they buy you. You are
the difference in people's lives. The old truth that people want to know you care
more than what you know is more evident than ever. Peoples fears are not calmed by
facts on paper. They feel better by having a person who will listen to their
feelings. Those are old but powerful truths.
A new and relevant insight was suggested by marketing guru Jay Abraham. He says a
customer is one who buys products and services, but a client is one who is under
the protection of another. Think about that. A client is under your protection.
Take time today to figure out how you are called to protect your clients and care
for their interests. Then do it. Those who do will do well in these difficult times.
from Stan Hustad
PTM Group
ptmark@aol.com
612 729
0420
www.ptmgroup.com
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AVOID
MONOTONE MUMBLE |
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What went wrong?! Why was the audience inattentive? Walking out? Sleeping? The speech
was well written and pertinent to the audience. It had a clear purpose and a perfect
blend of wisdom and humor. The visuals were on target, too. They were colorful, concise,
and supportive of the presentation. Maybe the presenter is suffering from Monotone
Mumble.
I went to a seminar recently, and listened to three presenters speak on a truly interesting
subject. 30 seconds into Speaker #2, my mind started wandering and I totally lost
interest. When Speaker #3 took the podium, I was back on target, attentive and involved
in the message. What was different? I couldn't hear Speaker #2! His voice was soft,
causing me to strain to hear him. He mumbled his words so his message was lost. Other
times he spoke so fast that his words bumped into each other, making them unintelligible.
He had Monotone Mumble! These 4 easy tips can help you avoid Monotone Mumble:
- Open your mouth. Keep your jaw and lips loose.
- Vary your rate and volume
- Make an audio tape and listen objectively
- Have a buddy stand in different places in the room
where you will be delivering your presentation and listen to you speak.
Remember, your presentation is worthless if your message cannot be heard.
from Beverly Cohen,
Communications Specialist of The Presentation Team
www.thepresentationteam.com/
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FINANCIAL
SERVICES ONLINE |
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Financial Services Online (FSO) is the
first and largest financial services publisher and portal on the Internet. Our publications
include Financial E-News, Financial Services Journal Online and Messages From The
Masters, which are available at no cost on our Portal (http://www.fsonline.com).
Daily free inspirational publications include Chicken Soup for the Soul: Home Delivery,
Bits and Pieces: Home Delivery, Proverbs Plus, The Recipe File and Bible Verses.
These are available at http://www.dailyinbox.com.
Contact: Carolyn Hersman
chersman@home.com
Copyright © 2001 Financial Services Online. Reprints and/or permission
to reproduce Messages From the Masters must be obtained in writing from the
publisher, Financial Services Online. |
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