Many agencies fail because they don’t have enough customers to buy from them often. Either they don’t attract enough clients or let their existing clients go. This is the number one reason I have seen agencies go bankrupt. It’s hard to believe how many well-managed agencies have failed because they didn’t have enough customers.
Some agencies, however, are not well managed and have a lot of clients who buy from them and renew their policies year after year.
Two types of customers exist in the insurance industry: the people who purchase your products, your clients; and those who provide the products to you, your carriers.
Agents should first build good relationships with carriers, then work with clients. This is the advice of some agency consultants. This is because agents won’t be able to compete with their carriers for price and product sales.
Although I agree that it is important to build great relationships with your carriers and employees, I think it is even more important to focus your efforts on building great relationships with clients.
You may have seen this firsthand. Many carriers require that you have many clients before they will talk to you. You should first build great relationships with clients and then work with your carriers.
Your carrier(s) will have more bargaining power if you have a larger client base. You don’t have to ask your carriers to do business with customers who have many. Many will reach out to you and offer you business.
My case was that as my client base grew, more and more carriers approached my out of the blue to convince me to do business. The same thing happens to you as more customers.
Getting and keeping clients is the fastest way to grow your client base.
This is because I spent more than $10.2million to find effective ways to attract clients, provide exceptional service and keep them happy for the rest of my life. This is how I created one of the most successful agencies in the world.
What tool do you use to transport truckloads of customers and provide outstanding service to them? And to keep them there for the rest of their lives?
If you said “Marketing”, then you are correct.
Marketing is the engine driving your business (and all other businesses around the globe – no matter what products or services they sell). Your marketing system transforms prospects into customers, clients into clients, clients into advocates.
Your marketing system is key to the success of your practice or agency. You can make a lot of money if you have a great marketing system. You’ll be able to make a lot of money if you have an excellent agent. Otherwise, you will need to settle for a low income like many agents.
Every agency that succeeds has a strong marketing system. In the same way, every agency that fails has an ineffective marketing system or, in most cases, none at all.
It is simple…
Marketing is the process of acquiring and keeping clients in such a way that they will patronize your business over and over again… for many years… and refer everyone to you!
Do you find this familiar?
Marketing is the best tool to reach your goal of retaining clients and acquiring new clients for your agency.
Marketing is simply a way to keep clients. Marketing is everything that your clients or prospects see, touch, smell, taste and think about your business. Marketing is anything that makes people form an impression about you business.
Your marketing system will allow you to maximize four opportunities to grow your business. It will help you take your business from where is it now to where you want. It is the key to unlocking the immense wealth in your agency/practice.
Answer this question…
In What Business?
9 out 10 agents will give me the wrong answer if I ask them this question. Here are some examples of their responses:
“I’m in the insurance industry. “I am an agent in insurance.”
“I am an insurance professional.”
“I am in sales.”
“I sell insurance.”
These answers are all wrong
Agents are not involved in selling insurance policies. The real business they are actually engaged in is Marketing. So always keep in mind…
Insurance is not your business, but you’re in the marketing business!
Another way to put it, you are not in the insurance industry, but you are in a business that sells insurance products.
I can understand if it is difficult to believe that you are in marketing when you were told you were in the financial services business selling insurance policies.
To illustrate my point, I will give you two examples.
Microsoft is a company that you have probably heard of. You might have been one of its shareholders, or are currently.
Microsoft is the largest software company in the world. Their income was close to $10 billion and their revenue was over $32 billion for fiscal 2003. Their products are used by at least 70% of all personal computers worldwide.
Although it may seem like Microsoft sells software, if you look at it closely, you will see that it is a huge marketing machine. It is so skilled at marketing that it has virtually no competition, even though it produces some of the most innovative products in the world.
You may be aware that Microsoft spent more than $250 million in 1998 to market Windows 98, and about $1 billion in 2001 to market Windows XP. Their marketing campaigns were so successful that most people knew about their products even months before they became available. They sold millions of copies each of their programs the first day they were available for sale.
This is marketing at its finest!
McDonald’s Restaurants is another marketing powerhouse.
You thought McDonald’s was just another place that sold hamburgers?
You may have seen their latest marketing campaigns, which were created to encourage you to visit their stores and buy their products.
Did you ever feel like rushing to the nearest McDonald’s Restaurant after watching a McDonald’s ad?
They are able to make billions each year with their powerful marketing campaigns.
You know what else?
My marketing system created nearly half a million policyholders and made my agency one of the most successful insurance companies in the world.
You’ll be one of the most successful agents in America if you have a well-designed marketing system in place for your practice or agency. Since the goal of your agency or practice is to retain clients, and marketing is how you achieve that goal, then we can conclude you, and other financial advisors around the globe, are in the marketing business.
Even though it may seem hard to believe, this is the first step towards creating an insurance company or career that you love and earning the income you desire.
Many agents don’t realize they are in the marketing business. This is why many feel that the key to success within the insurance industry is to be more knowledgeable about closing sales and product knowledge.
All of these skills are vital to your business’s success, but they’re not the most crucial.
It doesn’t matter how much they know about insurance or how well they are able to close deals. But, agents will still struggle to motivate and reach their prospects.
Despite the fact that there are many “experts” who can teach you, and other agents, a limited number of sales techniques that work, few of them have the qualifications to teach you marketing systems.
Although it is important to have strong sales skills, having effective marketing skills and systems can make a bigger impact on your business. Because…
If you have a solid marketing system, prospects will be more likely to call you. Instead of you having to chase them!
An effective marketing system can eliminate cold calling and allow you to get as many prospects as you wish to call.
If you’re anything like most agents, one of your biggest frustrations isn’t having enough prospects to speak to.
You can easily demonstrate the benefits of your products and services to qualified prospects once you have them. Problem is, you don’t have enough qualified prospects who are willing, able, and ready to buy.
Have you ever thought to yourself “If only I could get in front enough prospects, I would be able make the kind of income that I want?”
What are the prospects? Why can’t they be found?
Today, you are facing greater competition than ever before. And it’s not just from other agents or insurance companies.
Your competition is often from outside the insurance industry, from organizations or companies that offer services or products that are completely unrelated to insurance.
Your prospects see more than 3000 commercial messages per day in magazines, newspapers, radio, and TV. These messages try to convince them to spend money on the product or service that they are promoting.
Because prospects are limited in their disposable income, they will have to choose the benefits that they desire most. If the decision is between a vacation or a boat, a new vehicle, a TV, or a nice meal and a movie, then you will likely lose.
You must make your product and service benefits and the advantages of doing business together more appealing than any other alternatives to increase your chances of winning their business. A strong prospecting system is essential to your overall marketing strategy.
Unfortunately, the insurance industry, which is the largest and oldest in the world, has some of most inefficient prospecting methods and systems.
Although times have changed significantly over the past 20-30 years, most agents still use the same prospecting methods. Agents are still being taught to use ineffective and outdated prospecting methods that annoy, alienate and even offend prospects. These systems are often high-pressure.
This is why most people get turned off, run away or change the subject quickly when an agent introduces themselves to them as insurance agents. It’s no surprise that the turnover rate for new agents in the insurance business who have been around for less than two year is staggeringly 83%
Agents have spent a lot of money and time to obtain various insurance designations such as CLU or CPCU, CIC, CIC, or ChFC to increase their earning potential.
Congratulations if you have one or more of these titles! It is very honorable and shows dedication to your profession, industry, and the service of clients.
These designations can help you better serve your clients, but they won’t help with your ability to market your products or services. Today, many insurance agents are highly educated but starving.
Please pay attention…
It doesn’t matter how many designations you have. How successful or rich you are in the insurance industry is not directly related to how much money you make. It all comes down to how well your products and services are promoted.
Don’t get me wrong. These professional designations are not a negative thing. As I said, if you are a holder of one or more of these professional designations, I commend you. They are something you have worked hard for. You should be proud of what you have accomplished.
My point is that no matter how high-profile these designations are, no matter how long they took to acquire, and no matter what knowledge you have, they will not make you a millionaire in your financial planning or insurance business.
My case was simple. I didn’t have any fancy titles. Because I have mastered effective marketing skills, I am able to get truckloads upon truckloads qualified prospects to contact me. While I was still managing my agency, I spent most of my time and effort on improving my marketing systems.
Let me now tell you a marketing fact that you should know…
Marketing is the Only Function in Your Business That Brings Customers In, Produces Sales And Generates Profits.
You may not be spending a lot of money on resale, but it is possible to save a significant amount.
You don’t need to buy office supplies, office equipment or other items that are essential for running your business. They won’t bring in customers or increase profits.
Marketing is an investment and not an expense, as many agents mistakenly believe. If you do it correctly…
Marketing is the Most Profitable Investment You Could Make!
Here’s why:
You could earn 5, 10, 15, 20 or more if your money is invested in stocks, bonds, mutual funds or real estate. If you have been investing in stocks or bonds in the stock market for the past few years, you could also have lost thousands, tens of thousands, or more.
Marketing can yield a return of 10, 20, 50, or more on your investment.
An ad that you place for $100 can generate $1,000.00, or even $5,000.00 in profit. These numbers are 1,000% (10x ROI) and 5,000% (50% ROI). This tells us…