The Free Consultation Strategy

I refer to this marketing strategy as the “let me see if I can help you” offer. You may meet people downtown on the street, at a restaurant, at a party, etc., and they may ask you how to take advantage of your services or your expertise. They may question whether or not they need or should utilize you/your services/products. What is the best way to handle this?

I find that most insurance agents immediately start “selling” these people on their services/products and try to convince them to come into their office right away. There is a better, more strategic way to handle this. Instead of jumping right into a sales pitch, try incorporating this “let me see if I can even help you” offer into your dialogue. Let me explain.

For example, if someone approaches you about your services, your first instinct may be to start trying to sell them on how and why you can help them. Don’t do that. Instead, offer them an opportunity to come into your office to talk to you so that you can determine (after closer evaluation) whether or not you are able to even help them with their particular problem. It’s a free initial consultation, free evaluation. (As always, make sure you’re legal and compliant)

Don’t try too hard to sell them on why they should use you. Instead, offer them your advice, and encourage them to come in for one reason – to see if you can help them. Here’s the dialogue:

“Mary, I understand that you’ve had insurance for several years. I don’t even know if I can help you, so I’d like to invite you into my office so I can evaluate your insurance policy coverages, learn a little bit more about your risk tolerance and then I can determine whether I can help you. There’s no charge for this, but if I can help you, I’ll tell you what I can do, and if I can’t, I’ll tell you what you should do.”

They will most likely take advantage of this opportunity because there is no obligation and it costs them nothing. Then you have a chance to really show them your expertise, share your knowledge and experience and explain what you can or cannot do for them. This also stimulates fantastic word of mouth.

Utilize this “let me see if I can help you” offer and watch how much easier it is to get people to walk in your door.

To Your Success,

 

 

Capital Needed to Replace Earning Power

Of all the assets we own, our earning power -- our ability to earn an income -- is the most valuable!

How much capital would it take to replace your annual earning power?

This is the amount of capital required to provide that monthly income, assuming your capital earns an annual interest rate of:

For each year that you need this much monthly income:	4%	6%	8%	10%
$2,000	$600,000	$400,000	$300,000	$240,000
$4,000	1,200,000	800,000	600,000	480,000
$6,000	1,800,000	1,200,000	900,000	720,000
$8,000	2,400,000	1,600,000	1,200,000	960,000
$10,000	3,000,000	2,000,000	1,500,000	1,200,000

For example, $1.2 million of capital earning 6% annually will produce $72,000 of income, or enough to replace the income of someone earning $6,000 per month.

This example is based on the capital retention method, which uses interest return only to provide income. Principal is not liquidated and remains available.

This is a hypothetical illustration only and is not indicative of any particular investment or investment performance. It does not reflect the fees and expenses associated with any particular investment, which would reduce the performance shown in this hypothetical illustration if they were included. In addition, rates of return will vary over time, particularly for long-term investments.

Will you have sufficient capital available to replace your earning power in the event of death, disability or retirement?

Looking for a NO-COST Social Security Analyzer?

Many of you have asked for “such an animal” There are a number out there. Here are two that are free. One from AARP and one is from the Official Social Security Website.

You can use these links; we will continue to research and give additional options... both ones that cost and ones that are free.

The Official Social Security Website's Analyzer:
Click here for their calculator

AARP's Analyzer:
Click here for their calculator

Think F.A.S.T. during National Stroke Awareness Month

F.A.S.T. is an easy way to remember the sudden signs of stroke. When you spot the signs, call 9-1-1 for help right away.

To help you remember and be ready, download the easy-to-use F.A.S.T. app from the American Heart Association today.

4 Lessons to School Millennials on Renters' Insurance

Every year, more millennials become first-time renters after graduating from college or moving out on their own. Unfortunately, the vast majority of them also join the ranks of the nearly 70 percent of U.S. renters that don’t have renter’s insurance.

Young people often don’t know that they’re not covered, and don’t understand that they could lose everything they own in the case of a fire or burglary. What’s more, a shocking 52 percent of renters surveyed by InsuranceQuotes.com said they thought they couldn’t afford renter’s insurance, with  more than a fifth estimating that it would cost them more than $1,000 a year.

The good news is that insurance agents and brokers are perfectly positioned to help correct the misconceptions of many millennial renters. The next time you’re meeting with a young first-time renter, here are some things to keep in mind:

1.      A Landlord’s Policy Doesn’t Cover The Tenant’s Possessions

Everyone in the insurance industry knows this, but a surprising number of millennials don’t. Know your audience and remember that most young renters have never had to think about insuring their valuables before. Many young renters assume that their landlord’s insurance policy covers their personal property inside the apartment, and they don’t need insurance like homeowners do. Be sure to clear that up.

2.      It’s not as Expensive as They Think

The fact that so many renters overestimate the cost of renter’s insurance is a big problem, but it’s also easily solved. Explain to millennials that most renters’ insurance policies cost significantly less than they think: the National Assn. of Insurance Commissioners (NAIC) estimates that a policy costs $185 per year on average. And given that the typical burglary causes about $2,100 in losses, renter’s insurance is actually quite a good deal.

3.       “I Don’t Own Enough Stuff” is No Reason to Go Bare

Many first-time renters underestimate the value of the property in their apartment, but their possessions are usually more valuable than they think. Millennials will often bring furniture with them from their parents’ homes, and don’t realize how high the replacement value of these items can be. Household items like couches and mattresses cost several hundreds of dollars each to replace; make sure that the millennials you work with understand that, too.

In addition, many renters’ insurance policies either include or have the option to include identity theft coverage. Since most millennials own either a laptop, smartphone or both, make it clear that their renter’s policy can cover not only the loss of their device but also any misuse of the financial data that’s stored on it. Financial fraud from identity theft can do serious damage to a young person’s finances – let them know that renter’s insurance can protect them.

4.      It Covers More Than Your Property

Beyond covering personal property, most renters’ insurance policies also cover liability and additional living expenses (ALE). Explain to your young customers that if someone gets hurt while visiting their apartment, their renter’s insurance policy can help cover any liability costs. Additionally, if their apartment should be destroyed or become temporarily uninhabitable, most renters’ insurance policies will cover the costs of hotel rooms and other living expenses. These issues are not typically the first thing on the mind of 20-somethings getting their first apartment, but they’re very important.

Make it Easy for Them
Just like everyone else, millennials are more likely to do something if you make it easy for them. Try to take advantage of any bundled policies that the carriers you work with are offering. If the young people you work with can simply bundle renter’s insurance to an existing auto policy, they’ll be more likely to do so.

Because all drivers are required to have automobile insurance, agents are given a regular opportunity to explain the importance of renter’s insurance, and many policyholders decide to expand their coverage.

Young people have a lot of misconceptions about renter’s insurance, but it’s not hard to explain its importance if you know what to say. Most first-time renters don’t understand just how risky it is to go without coverage (and how inexpensive it is to get it), and insurance agents with the right information and policies can do a lot to increase the number of millennial policyholders.

Stop Talking and Start Listening!

This marketing strategy may not seem like a marketing strategy to you, but I can assure you, if you do what I’m going to suggest you do, the positive word-of-mouth will spread like wildfire about you as an insurance agent.

My advice is to do 3 things:
1. Listen
2. Listen
3. Listen

I know, you probably think I’ve lost my mind. Did you know that when clients are surveyed about their insurance agent, the number one complaint they list about their agents is that they don’t listen?

I’m willing to bet that whatever you do, you’re anxious to provide the solution to a question, your client asks, before they finish asking. In fact, you are likely too anxious to answer their question that you don’t let them finish before you are in their face with the solution.

I’m going to ask you to purposefully listen! Give yourself the instruction to listen! Because, if your client or customer knows that you listen to them, do you know what they’re going to tell all of their friends, family members, co-workers, and neighbors about you? They’ll say, “He/she really listens to me.” And, that means you care! That has so much inherent value; it’s impossible to put a price on it.

The amount of new business and client/customer retention you gain as a result of you listening to them is impossible to measure.

So do yourself a favor, and put this initiative in place and do whatever you can to make sure that your clients or customers know you’re paying attention to them and that you’re listening to what they have to say.

To Your Success,