Tuesday, December 28, 2010
Tuesday, December 21, 2010
Thursday, December 16, 2010
5 Secrets of Self-Made Millionaires
By Kristyn Kusek Lewis
They’re just like you. But with lots of money.
When you think “millionaire,” what image comes to mind? For many of us, it’s a flashy Wall Street banker type who flies a private jet, collects cars and lives the kind of decadent lifestyle that would make Donald Trump proud.
But many modern millionaires live in middle-class neighborhoods, work full-time and shop in discount stores like the rest of us. What motivates them isn’t material possessions but the choices that money can bring: “For the rich, it’s not about getting more stuff. It’s about having the freedom to make almost any decision you want,” says T. Harv Eker, author of Secrets of the Millionaire Mind. Wealth means you can send your child to any school or quit a job you don’t like.
According to the Spectrem Wealth Study, an annual survey of America’s wealthy, there are more people living the good life than ever before—the number of millionaires nearly doubled in the last decade. And the rich are getting richer. To make it onto the Forbes 400 list of the richest Americans, a mere billionaire no longer makes the cut. This year you needed a net worth of at least $1.3 billion.
If more people are getting richer than ever, why shouldn’t you be one of them? Here, five people who have at least a million dollars in liquid assets share the secrets that helped them get there.
1. Set your sights on where you’re going
Twenty years ago, Jeff Harris hardly seemed on the road to wealth. He was a college dropout who struggled to support his wife, DeAnn, and three kids, working as a grocery store clerk and at a junkyard where he melted scrap metal alongside convicts. “At times we were so broke that we washed our clothes in the bathtub because we couldn’t afford the Laundromat.” Now he’s a 49-year-old investment advisor and multimillionaire in York, South Carolina.
There was one big reason Jeff pulled ahead of the pack: He always knew he’d be rich. The reality is that 80 percent of Americans worth at least $5 million grew up in middle-class or lesser households, just like Jeff.
Wanting to be wealthy is a crucial first step. Says Eker, “The biggest obstacle to wealth is fear. People are afraid to think big, but if you think small, you’ll only achieve small things.”
It all started for Jeff when he met a stockbroker at a Christmas party. “Talking to him, it felt like discovering fire,” he says. “I started reading books about investing during my breaks at the grocery store, and I began putting $25 a month in a mutual fund.” Next he taught a class at a local community college on investing. His students became his first clients, which led to his investment practice. “There were lots of struggles,” says Jeff, “but what got me through it was believing with all my heart that I would succeed.”
2. Educate yourself
When Steve Maxwell graduated from college, he had an engineering degree and a high-tech job—but he couldn’t balance his checkbook. “I took one finance class in college but dropped it to go on a ski trip,” says the 45-year-old father of three, who lives in Windsor, Colorado. “I actually had to go to my bank and ask them to teach me how to read my statement.”
One of the biggest obstacles to making money is not understanding it: Thousands of us avoid investing because we just don’t get it. But to make money, you must be financially literate. “It bothered me that I didn’t understand this stuff,” says Steve, “so I read books and magazines about money management and investing, and I asked every financial whiz I knew to explain things to me.”
He and his wife started applying the lessons: They made a point to live below their means. They never bought on impulse, always negotiated better deals (on their cars, cable bills, furniture) and stayed in their home long after they could afford a more expensive one. They also put 20 percent of their annual salary into investments.
Within ten years, they were millionaires, and people were coming to Steve for advice. “Someone would say, ‘I need to refinance my house—what should I do?’ A lot of times, I wouldn’t know the answer, but I’d go find it and learn something in the process,” he says.
In 2003, Steve quit his job to become part owner of a company that holds personal finance seminars for employees of corporations like Wal-Mart. He also started going to real estate investment seminars, and it’s paid off: He now owns $30 million worth of investment properties, including apartment complexes, a shopping mall and a quarry.
“I was an engineer who never thought this life was possible, but all it truly takes is a little self-education,” says Steve. “You can do anything once you understand the basics.”
3. Passion pays off
In 1995, Jill Blashack Strahan and her husband were barely making ends meet. Like so many of us, Jill was eager to discover her purpose, so she splurged on a session with a life coach. “When I told her my goal was to make $30,000 a year, she said I was setting the bar too low. I needed to focus on my passion, not on the paycheck.”
Jill, who lives with her son in Alexandria, Minnesota, owned a gift basket company and earned just $15,000 a year. She noticed when she let potential buyers taste the food items, the baskets sold like crazy. Jill thought, Why not sell the food directly to customers in a fun setting?
With $6,000 in savings, a bank loan and a friend’s investment, Jill started packaging gourmet foods in a backyard shed and selling them at taste-testing parties. It wasn’t easy. “I remember sitting outside one day, thinking we were three months behind on our house payment, I had two employees I couldn’t pay, and I ought to get a real job. But then I thought, No, this is your dream. Recommit and get to work.”
She stuck with it, even after her husband died three years later. “I live by the law of abundance, meaning that even when there are challenges in life, I look for the win-win,” she says.
The positive attitude worked: Jill’s backyard company, Tastefully Simple, is now a direct-sales business, with $120 million in sales last year. And Jill was named one of the top 25 female business owners in North America by Fast Company magazine.
According to research by Thomas J. Stanley, author of The Millionaire Mind, over 80 percent of millionaires say they never would have been successful if their vocation wasn’t something they cared about.
4. Grow your money
Most of us know the never-ending cycle of living paycheck to paycheck. “The fastest way to get out of that pattern is to make extra money for the specific purpose of reinvesting in yourself,” says Loral Langemeier, author of The Millionaire Maker. In other words, earmark some money for the sole purpose of investing it in a place where it will grow dramatically—like a business or real estate.
There are endless ways to make extra money for investing—you just have to be willing to do the work. “Everyone has a marketable skill,” says Langemeier. “When I started out, I had a tutoring business, seeing clients in the morning before work and on my lunch break.”
A little moonlighting cash really can grow into a million. Twenty-five years ago, Rick Sikorski dreamed of owning a personal training business. “I rented a tiny studio where I charged $15 an hour,” he says. When money started trickling in, he squirreled it away instead of spending it, putting it all back into the business. Rick’s 400-square-foot studio is now Fitness Together, a franchise based in Highlands Ranch, Colorado, with more than 360 locations worldwide. And he’s worth over $40 million.
When extra money rolls in, it’s easy to think, Now I can buy that new TV. But if you want to get rich, you need to pay yourself first, by putting money where it will work hard for you—whether that’s in your retirement fund, a side business or investments like real estate.
5. No guts, no glory
Last summer, Dave Lindahl footed the bill for 18 relatives at a fancy mansion in the Adirondacks. One night, his dad looked out at the scenery and joked, “I can’t believe we used to call you the black sheep!”
At 29, Dave was broke, living in a small apartment near Boston and wondering what to do after ten years in a local rock band. “I looked around and thought, If I don’t do something, I’ll be stuck here forever.”
He started a landscape company, buying his equipment on credit. When business literally froze over that winter, a banker friend asked if he’d like to renovate a foreclosed home. “I’m a terrible carpenter, but I needed the money, so I went to some free seminars at Home Depot and figured it out as I went,” he says.
After a few more renovations, it occurred to him: Why not buy the homes and sell them for profit? He took a risk and bought his first property. Using the proceeds, he bought another, and another. Twelve years later, he owns apartment buildings, worth $143 million, in eight states.
The Biggest Secret? Stop spending.
Every millionaire we spoke to has one thing in common: Not a single one spends needlessly. Real estate investor Dave Lindahl drives a Ford Explorer and says his middle-class neighbors would be shocked to learn how much he’s worth. Fitness mogul Rick Sikorski can’t fathom why anyone would buy bottled water. Steve Maxwell, the finance teacher, looked at a $1.5 million home but decided to buy one for half the price because “a house with double the cost wouldn’t give me double the enjoyment.”
They’re just like you. But with lots of money.
When you think “millionaire,” what image comes to mind? For many of us, it’s a flashy Wall Street banker type who flies a private jet, collects cars and lives the kind of decadent lifestyle that would make Donald Trump proud.
But many modern millionaires live in middle-class neighborhoods, work full-time and shop in discount stores like the rest of us. What motivates them isn’t material possessions but the choices that money can bring: “For the rich, it’s not about getting more stuff. It’s about having the freedom to make almost any decision you want,” says T. Harv Eker, author of Secrets of the Millionaire Mind. Wealth means you can send your child to any school or quit a job you don’t like.
According to the Spectrem Wealth Study, an annual survey of America’s wealthy, there are more people living the good life than ever before—the number of millionaires nearly doubled in the last decade. And the rich are getting richer. To make it onto the Forbes 400 list of the richest Americans, a mere billionaire no longer makes the cut. This year you needed a net worth of at least $1.3 billion.
istockphoto.com
1. Set your sights on where you’re going
Twenty years ago, Jeff Harris hardly seemed on the road to wealth. He was a college dropout who struggled to support his wife, DeAnn, and three kids, working as a grocery store clerk and at a junkyard where he melted scrap metal alongside convicts. “At times we were so broke that we washed our clothes in the bathtub because we couldn’t afford the Laundromat.” Now he’s a 49-year-old investment advisor and multimillionaire in York, South Carolina.
There was one big reason Jeff pulled ahead of the pack: He always knew he’d be rich. The reality is that 80 percent of Americans worth at least $5 million grew up in middle-class or lesser households, just like Jeff.
Wanting to be wealthy is a crucial first step. Says Eker, “The biggest obstacle to wealth is fear. People are afraid to think big, but if you think small, you’ll only achieve small things.”
It all started for Jeff when he met a stockbroker at a Christmas party. “Talking to him, it felt like discovering fire,” he says. “I started reading books about investing during my breaks at the grocery store, and I began putting $25 a month in a mutual fund.” Next he taught a class at a local community college on investing. His students became his first clients, which led to his investment practice. “There were lots of struggles,” says Jeff, “but what got me through it was believing with all my heart that I would succeed.”
2. Educate yourself
When Steve Maxwell graduated from college, he had an engineering degree and a high-tech job—but he couldn’t balance his checkbook. “I took one finance class in college but dropped it to go on a ski trip,” says the 45-year-old father of three, who lives in Windsor, Colorado. “I actually had to go to my bank and ask them to teach me how to read my statement.”
One of the biggest obstacles to making money is not understanding it: Thousands of us avoid investing because we just don’t get it. But to make money, you must be financially literate. “It bothered me that I didn’t understand this stuff,” says Steve, “so I read books and magazines about money management and investing, and I asked every financial whiz I knew to explain things to me.”
He and his wife started applying the lessons: They made a point to live below their means. They never bought on impulse, always negotiated better deals (on their cars, cable bills, furniture) and stayed in their home long after they could afford a more expensive one. They also put 20 percent of their annual salary into investments.
Within ten years, they were millionaires, and people were coming to Steve for advice. “Someone would say, ‘I need to refinance my house—what should I do?’ A lot of times, I wouldn’t know the answer, but I’d go find it and learn something in the process,” he says.
In 2003, Steve quit his job to become part owner of a company that holds personal finance seminars for employees of corporations like Wal-Mart. He also started going to real estate investment seminars, and it’s paid off: He now owns $30 million worth of investment properties, including apartment complexes, a shopping mall and a quarry.
“I was an engineer who never thought this life was possible, but all it truly takes is a little self-education,” says Steve. “You can do anything once you understand the basics.”
3. Passion pays off
In 1995, Jill Blashack Strahan and her husband were barely making ends meet. Like so many of us, Jill was eager to discover her purpose, so she splurged on a session with a life coach. “When I told her my goal was to make $30,000 a year, she said I was setting the bar too low. I needed to focus on my passion, not on the paycheck.”
Jill, who lives with her son in Alexandria, Minnesota, owned a gift basket company and earned just $15,000 a year. She noticed when she let potential buyers taste the food items, the baskets sold like crazy. Jill thought, Why not sell the food directly to customers in a fun setting?
With $6,000 in savings, a bank loan and a friend’s investment, Jill started packaging gourmet foods in a backyard shed and selling them at taste-testing parties. It wasn’t easy. “I remember sitting outside one day, thinking we were three months behind on our house payment, I had two employees I couldn’t pay, and I ought to get a real job. But then I thought, No, this is your dream. Recommit and get to work.”
She stuck with it, even after her husband died three years later. “I live by the law of abundance, meaning that even when there are challenges in life, I look for the win-win,” she says.
The positive attitude worked: Jill’s backyard company, Tastefully Simple, is now a direct-sales business, with $120 million in sales last year. And Jill was named one of the top 25 female business owners in North America by Fast Company magazine.
According to research by Thomas J. Stanley, author of The Millionaire Mind, over 80 percent of millionaires say they never would have been successful if their vocation wasn’t something they cared about.
4. Grow your money
Most of us know the never-ending cycle of living paycheck to paycheck. “The fastest way to get out of that pattern is to make extra money for the specific purpose of reinvesting in yourself,” says Loral Langemeier, author of The Millionaire Maker. In other words, earmark some money for the sole purpose of investing it in a place where it will grow dramatically—like a business or real estate.
There are endless ways to make extra money for investing—you just have to be willing to do the work. “Everyone has a marketable skill,” says Langemeier. “When I started out, I had a tutoring business, seeing clients in the morning before work and on my lunch break.”
A little moonlighting cash really can grow into a million. Twenty-five years ago, Rick Sikorski dreamed of owning a personal training business. “I rented a tiny studio where I charged $15 an hour,” he says. When money started trickling in, he squirreled it away instead of spending it, putting it all back into the business. Rick’s 400-square-foot studio is now Fitness Together, a franchise based in Highlands Ranch, Colorado, with more than 360 locations worldwide. And he’s worth over $40 million.
When extra money rolls in, it’s easy to think, Now I can buy that new TV. But if you want to get rich, you need to pay yourself first, by putting money where it will work hard for you—whether that’s in your retirement fund, a side business or investments like real estate.
5. No guts, no glory
Last summer, Dave Lindahl footed the bill for 18 relatives at a fancy mansion in the Adirondacks. One night, his dad looked out at the scenery and joked, “I can’t believe we used to call you the black sheep!”
At 29, Dave was broke, living in a small apartment near Boston and wondering what to do after ten years in a local rock band. “I looked around and thought, If I don’t do something, I’ll be stuck here forever.”
He started a landscape company, buying his equipment on credit. When business literally froze over that winter, a banker friend asked if he’d like to renovate a foreclosed home. “I’m a terrible carpenter, but I needed the money, so I went to some free seminars at Home Depot and figured it out as I went,” he says.
After a few more renovations, it occurred to him: Why not buy the homes and sell them for profit? He took a risk and bought his first property. Using the proceeds, he bought another, and another. Twelve years later, he owns apartment buildings, worth $143 million, in eight states.
The Biggest Secret? Stop spending.
Every millionaire we spoke to has one thing in common: Not a single one spends needlessly. Real estate investor Dave Lindahl drives a Ford Explorer and says his middle-class neighbors would be shocked to learn how much he’s worth. Fitness mogul Rick Sikorski can’t fathom why anyone would buy bottled water. Steve Maxwell, the finance teacher, looked at a $1.5 million home but decided to buy one for half the price because “a house with double the cost wouldn’t give me double the enjoyment.”
Tuesday, December 14, 2010
Tuesday, December 7, 2010
What Agents Can Do To Reduce E&O Exposure
Number 1: Document
By far, the most common claim is simply an allegation of failure to place coverage. The most reliable way to prevent these is written documentation that says, "This is what I offered you, my customer, and this is what you accepted."
Number 2: Use Coverage Checklists
They can range from fairly short and simple to a very detailed one that walks through certain types of coverage that could be appropriate for a certain type of operation.
Number 3: Stay Educated
Every state association offers E&O classes. Those are great and are offered all the time. Another great resource is the IJ Academy.
Number 4: Read, Read, Read
Identify the sources of info you really truly need and focus your time on these.
Number 5: Have an Agency E&O Audit
It is done by an outside auditor and agents may be able to obtain a discount on their E&O premiums.
Prospecting Tips
Turn warm leads into hot appointments with these suggestions.
By Randy S. SchusterI have been in this business a little over 10 years, and I still phone prospects every week. Actually, it is an appointment on my calendar that is noncancelable. My assistants know they are not allowed to remove this mandatory appointment from my calendar or move it to another part of the week without checking with me first.
My calendar is completely booked for the next 12 months with prospect phone time. I begin the calls every Wednesday at 9 a.m. It only takes about an hour, and I like to get it done early so I can move on to other things.
I would like to emphasize that in addition to these calls, I make sure to see new prospects every week. I also still maintain a calendar of 12 to 15 client appointments per week. I also make sure that my calendar is
MY CALENDAR IS COMPLETELY BOOKED FOR THE NEXT 12 MONTHS WITH PROSPECT PHONE TIME. |
at least half full two weeks out. This means that seven to eight appointments are already scheduled, and that three weeks out I have at least three to four appointments scheduled.
Even after 10 years, I still hate making these prospecting calls, but I have learned a number of techniques to make the process easier and more efficient.
When I receive a referral from a client, I routinely ask him to contact the prospect for me to tell him a little bit about me and to expect my call. I always start out with: “Mr. Prospect, (Referrer) said you are a (great guy, good tennis player, very good friend, etc.) and that we should get together.” Let me give you some examples of what I mean.
A very, very cold call
A few years ago, I was having lunch with a client the day after the Super Bowl and he said to me, “Randy, at 11:30 last night, after the game, I went out snowmobiling.” To put this in perspective, it was 20 degrees, and it had snowed about five or six inches. So I said to my client, “What, are you nuts?” Then he added that he had gone with someone who was on my target prospect list. I took the opportunity to ask my client if he would refer this friend to me and, of course, he said he would be glad to.
A few years ago, I was having lunch with a client the day after the Super Bowl and he said to me, “Randy, at 11:30 last night, after the game, I went out snowmobiling.” To put this in perspective, it was 20 degrees, and it had snowed about five or six inches. So I said to my client, “What, are you nuts?” Then he added that he had gone with someone who was on my target prospect list. I took the opportunity to ask my client if he would refer this friend to me and, of course, he said he would be glad to.
When I called the prospect, the conversation went something like this: “Hi Jeff. I was having lunch with Steve the other day, and he told me you guys went snowmobiling after the Super Bowl. As I recall, there was about five inches of snow on the ground and it was about 20 degrees. Are you guys nuts?” This evoked a laugh and I continued, “Steve also said that we should meet.” Jeff immediately said yes, and only at that point did I say, “My name is Randy Schuster, and when can we meet?” This phone call later turned into business.
A six-year delay
Dan had been on my target list for six years. In fact, he didn’t realize it, but I had called him three times before: once as a cold call and the other times from referrals that didn’t end up going anywhere. This time I waited for the right referral—from a very close friend of his—before I called. I made sure I followed through with my client about the referral. I called him on his cell phone, and he happened to be at the beach in South Carolina. He said he would call Dan immediately and tell him to expect my call. A few minutes later when I called the prospect I said, “Dan, isn’t it great that our mutual friend took the time to contact you while he was on the beach during his vacation?” This also evoked a laugh; then I asked for the appointment, and Dan is now a client.
Dan had been on my target list for six years. In fact, he didn’t realize it, but I had called him three times before: once as a cold call and the other times from referrals that didn’t end up going anywhere. This time I waited for the right referral—from a very close friend of his—before I called. I made sure I followed through with my client about the referral. I called him on his cell phone, and he happened to be at the beach in South Carolina. He said he would call Dan immediately and tell him to expect my call. A few minutes later when I called the prospect I said, “Dan, isn’t it great that our mutual friend took the time to contact you while he was on the beach during his vacation?” This also evoked a laugh; then I asked for the appointment, and Dan is now a client.
Water-cooler connection
A client related to me that he had been at his office sharing with his peers the fact that he had just returned from his attorney’s office to execute a new will with his financial advisor. One of his colleagues overheard him and said, “I’ve got to meet that guy.”
A client related to me that he had been at his office sharing with his peers the fact that he had just returned from his attorney’s office to execute a new will with his financial advisor. One of his colleagues overheard him and said, “I’ve got to meet that guy.”
When I called my client’s colleague, I introduced myself as the guy who took his friend to the attorney’s office. He immediately knew who I was, and made an appointment with me. Now he’s a client as well.
The point of these examples is get to know something about the prospect and his relationship with the referrer—let them bond. When I speak with a prospect, I always say something about him and the referrer before introducing myself. That way he is thinking good thoughts about his friend and is less likely to be on the defensive when dealing with me. This has greatly improved my ratio of converting referred prospects into appointments.
Monday, December 6, 2010
How to Cold Call a Big Customer
Terrified by the thought of making a cold call? Does the thought of ringing a Fortune 500 firm and asking a high-profile executive for some face time give you goose bumps? There's good cause to be anxious about cold calling. Large corporations are cautious, hierarchical, and difficult to penetrate, says Wendy Weiss, a New York City-based sales coach and the author of Cold Calling for Women: Opening Doors and Closing Sales.
"You don't want to wing it when you're trying to introduce yourself to an executive at a Fortune 500 company," she says. "You're bound to hit a dead end, often in the form of a hang-up or a 'Don't call us again.'"
On the other hand, such firms have extensive resources, and, if you sell them effectively, can become some of your most lucrative customers. So, how do you ask sales prospects — in this case highly visible companies — to pony up? Here are some tips on how to pitch to the big guys, and how to turn those cold calls into sales.
How to Cold Call a Big Customer: Narrow Your Search
"All prospects are not created equal," says Weiss. "I see a lot of business owners really spinning their wheels and chasing after inappropriate customers. It's easier to talk to somebody who actually uses the type of thing you're selling."
Narrow your search by figuring out who would make an ideal customer. Weiss recommends selecting prospects whose traits match those of your current clients. You can even examine your competitors and their customers to get an idea of who you should be calling.
Use social networks such as LinkedIn to generate leads and to search for contacts at companies, adds Weiss. She also recommends Jigsaw, a free web directory of business cards that maintains a database of more than 20 million company and contact records.
The advantage of targeting a large firm is that there is a wealth of information available to help you hone in on its needs. "There's a lot more data out there on big companies," says Stephanie Hackney, chief brander at Branding Masters in Austin. "You can find statistics, news stories, SEC filings, 10K forms — it's just much easier to research this type of customer."
Impress a prospect with your knowledge of the company and, more importantly, its concerns and problems, and they'll be more receptive to speaking with you.
How to Cold Call a Big Customer: Practice, Practice, Practice
Ringing a manager at a large firm is probably the most daunting cold call you'll ever make. The only way to overcome fear is to craft a script, and to practice it until you feel confident about approaching a prospect.
"How are you going to introduce yourself? How are you going to ask for what you want? How are you going to respond if they say, 'I'm too busy,' or 'I have a vendor, or 'Call me next week,' says Weiss. "Those are all things to think about when you're writing a script."
Still, Weiss cautions against sounding too artificial or rehearsed. Keep the jargon to a minimum and stick to a fluid, friendly, and conversational style. Write your script in the way that you speak, she says, and leave room for improvisation. Try talking into a tape recorder and playing it back to see how you sound and what you need to improve.
"Prospects at large organizations are similar to prospects at small organizations in that they're human beings," says Weiss. "You're looking to make a human connection."
How to Cold Call a Big Customer: How to Handle Gatekeepers
Large companies are also more hierarchical, and you could face many "gatekeepers," — executive assistants, associates or secretaries — who screen calls made to the decision maker.
Don't treat them as less valuable contacts, and don't shy away from telling them who you are and what you're trying to accomplish, says Hackney. "It's very important that you express to them what it is you're offering and why it's important to their boss, because many times they're making a decision about whether or not your message gets passed through to their boss."
Weiss, however, recommends a different approach. Though you should always be polite, "you want to act like the peer of the person you're calling, not being the peer of the gatekeeper," she says.
"There's this myth about spending a lot of time courting gatekeepers, but I like to think about how Donald Trump would do it. He would probably say to the gatekeeper, 'This is Donald Trump, is she there?' It's really that simple — it exudes confidence and authority, and it often saves a lot of time."
How to Cold Call a Big Customer: It's Not About You
"It's not about what you do, it's about how you help your customers," says Weiss, adding that entrepreneurs often spend too much time talking about themselves while pitching a customer.
Instead, keep your introduction short and switch gears quickly to explain what you can do for the company. Sweeten the pitch by offering testimonials from existing clients. Tell a brief, compelling story of how you solved a problem for another company. "I call it a mini-case study," says Weiss. "It's something that tells the prospect that you are credible."
How to Cold Call a Big Customer: Deflecting Excuses to Get You Off the Phone
Decision makers at large corporations are busy and often have limited patience for unsolicited sales calls.
"They're doing something else, the phone rings and they've been interrupted, they pick up the phone and you say hello," says Weiss. "What you're prospect is thinking is 'Who are you and what do you want?'"
Here are some common excuses prospects use to cut a phone call short, and how you can navigate past them:
• "Not now. I'm too busy." Be respectful of a prospect's time. Politely ask them when you can call back, or even suggest a few dates and times. "Most of the time they'll tell you," says Weiss.
• "We already have a vendor." That doesn't mean you should give up on the prospect, but you shouldn't aggressively try to unseat the competition either. "If you start telling them how bad that vendor is, essentially what you're doing is telling the prospect they made a mistake," says Weiss. "That doesn't usually blow over well." Instead, prepare to differentiate yourself by researching competing firms and finding out what their weaknesses are. "Let's say you have fabulous customer service and your competition is known for not answering their phone," adds Weiss. "Tell the prospect that they will always get a live person on the phone when they call. You're explaining how you're different without having to say, 'The competition is terrible.'"
Finally, be persistent. The goal of the initial call is not to close the deal, says Weiss, but rather to establish a relationship that could lead to a sale down the road.
"You don't want to wing it when you're trying to introduce yourself to an executive at a Fortune 500 company," she says. "You're bound to hit a dead end, often in the form of a hang-up or a 'Don't call us again.'"
On the other hand, such firms have extensive resources, and, if you sell them effectively, can become some of your most lucrative customers. So, how do you ask sales prospects — in this case highly visible companies — to pony up? Here are some tips on how to pitch to the big guys, and how to turn those cold calls into sales.
How to Cold Call a Big Customer: Narrow Your Search
"All prospects are not created equal," says Weiss. "I see a lot of business owners really spinning their wheels and chasing after inappropriate customers. It's easier to talk to somebody who actually uses the type of thing you're selling."
Narrow your search by figuring out who would make an ideal customer. Weiss recommends selecting prospects whose traits match those of your current clients. You can even examine your competitors and their customers to get an idea of who you should be calling.
Use social networks such as LinkedIn to generate leads and to search for contacts at companies, adds Weiss. She also recommends Jigsaw, a free web directory of business cards that maintains a database of more than 20 million company and contact records.
The advantage of targeting a large firm is that there is a wealth of information available to help you hone in on its needs. "There's a lot more data out there on big companies," says Stephanie Hackney, chief brander at Branding Masters in Austin. "You can find statistics, news stories, SEC filings, 10K forms — it's just much easier to research this type of customer."
Impress a prospect with your knowledge of the company and, more importantly, its concerns and problems, and they'll be more receptive to speaking with you.
How to Cold Call a Big Customer: Practice, Practice, Practice
Ringing a manager at a large firm is probably the most daunting cold call you'll ever make. The only way to overcome fear is to craft a script, and to practice it until you feel confident about approaching a prospect.
"How are you going to introduce yourself? How are you going to ask for what you want? How are you going to respond if they say, 'I'm too busy,' or 'I have a vendor, or 'Call me next week,' says Weiss. "Those are all things to think about when you're writing a script."
Still, Weiss cautions against sounding too artificial or rehearsed. Keep the jargon to a minimum and stick to a fluid, friendly, and conversational style. Write your script in the way that you speak, she says, and leave room for improvisation. Try talking into a tape recorder and playing it back to see how you sound and what you need to improve.
"Prospects at large organizations are similar to prospects at small organizations in that they're human beings," says Weiss. "You're looking to make a human connection."
How to Cold Call a Big Customer: How to Handle Gatekeepers
Large companies are also more hierarchical, and you could face many "gatekeepers," — executive assistants, associates or secretaries — who screen calls made to the decision maker.
Don't treat them as less valuable contacts, and don't shy away from telling them who you are and what you're trying to accomplish, says Hackney. "It's very important that you express to them what it is you're offering and why it's important to their boss, because many times they're making a decision about whether or not your message gets passed through to their boss."
Weiss, however, recommends a different approach. Though you should always be polite, "you want to act like the peer of the person you're calling, not being the peer of the gatekeeper," she says.
"There's this myth about spending a lot of time courting gatekeepers, but I like to think about how Donald Trump would do it. He would probably say to the gatekeeper, 'This is Donald Trump, is she there?' It's really that simple — it exudes confidence and authority, and it often saves a lot of time."
How to Cold Call a Big Customer: It's Not About You
"It's not about what you do, it's about how you help your customers," says Weiss, adding that entrepreneurs often spend too much time talking about themselves while pitching a customer.
Instead, keep your introduction short and switch gears quickly to explain what you can do for the company. Sweeten the pitch by offering testimonials from existing clients. Tell a brief, compelling story of how you solved a problem for another company. "I call it a mini-case study," says Weiss. "It's something that tells the prospect that you are credible."
How to Cold Call a Big Customer: Deflecting Excuses to Get You Off the Phone
Decision makers at large corporations are busy and often have limited patience for unsolicited sales calls.
"They're doing something else, the phone rings and they've been interrupted, they pick up the phone and you say hello," says Weiss. "What you're prospect is thinking is 'Who are you and what do you want?'"
Here are some common excuses prospects use to cut a phone call short, and how you can navigate past them:
• "Not now. I'm too busy." Be respectful of a prospect's time. Politely ask them when you can call back, or even suggest a few dates and times. "Most of the time they'll tell you," says Weiss.
• "We already have a vendor." That doesn't mean you should give up on the prospect, but you shouldn't aggressively try to unseat the competition either. "If you start telling them how bad that vendor is, essentially what you're doing is telling the prospect they made a mistake," says Weiss. "That doesn't usually blow over well." Instead, prepare to differentiate yourself by researching competing firms and finding out what their weaknesses are. "Let's say you have fabulous customer service and your competition is known for not answering their phone," adds Weiss. "Tell the prospect that they will always get a live person on the phone when they call. You're explaining how you're different without having to say, 'The competition is terrible.'"
Finally, be persistent. The goal of the initial call is not to close the deal, says Weiss, but rather to establish a relationship that could lead to a sale down the road.
Wednesday, December 1, 2010
Happy Holidays from the Fayetteville Office of Ai insurance
Personalize funny videos and birthday eCards at JibJab!
Tuesday, November 30, 2010
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Monday, November 8, 2010
November 6, 2010 Life/Health Seminar Review (Please Read All)
I would like to thank all who were able to attend our Life/Health Seminar on Nov. 6 in Fayetteville, NC. There are a lot of exciting opportunities that are coming our way.
First of all, Sam Corey III introduced some education on Medicare Supplement Plans that really informative for those who needed a refresher. Remember you have a six month window around a prospect’s birthday, 3 months before and 3 months after. MedAdvantage users can only change plans during the open enrollment period, which is Nov. 15 thru Dec. 31. Plans F and N are the most popular plan, with N having absolutely no underwriting till possibly the middle of 2011. One month’s premium must be collected at the time of the application. There is also an online application process available to speed your appointments. You can mail or fax your application in to MOO and you can opt in to have the policy sent directly to your client.
Next, Aaron and Greg with AFG presented some interested statistics on life insurance and concluded that “the more you ask, the more you will close.” It’s simple math. They introduced their top three companies for each product. Protective and West Coast being the most popular for term insurance. Lincoln National being the most popular for universal life insurance. Aviva having the most popular index universal life insurance product. Genworth has the most popular long term care product. One America has the best asset-based long term care product. Finally, ING has the most popular equity index annuity. Don’t be fooled by their statistics, though. Please present your cases to Tammie and let her help you place your client to the best situation.
Greg also introduced us to a MetLife life insurance product for military that has no war restrictions or exclusion clauses. THIS IS HUGE FOR THE MILITARY AND THEIR FAMILIES. There is some restrictions on certain small military groups, like Special Forces, Delta Force, Army Rangers, Navy SEAL’s and so on… He also let us know about an opportunity to mail 2000 postcards every 2 weeks regarding this product for FREE.
Finally, Kirk Klaas spoke about Humana’s specialty group products, such as vision, dental, disability, and life. Kirk focused on how spectacular Humana’s vision product is versus the competition. He advised that he would start out a group presentation on selling the vision first, and then, following up with the other products.
There are several bonuses available to win. Humana individual just extended their bonus and raised the payouts. It was extended to Feb. 1, 2011 and you could earn an anywhere from an extra $1000 for 11 to 15 members sold to and extra $10000 for 41+ members sold. United HealthCare individual came out with a similar bonus. Through January 31, 2011, you can earn an extra $500 for 5 applications to an extra $10000 for 30 applications. Also, AFG is letting Agents, Inc pool their points toward winning a vacation. One Inner Circle point is equal to one dollar of written premium. One hundred thousand points wins one free trip and 250,000 wins an elite trip for two. There is a buy-in at discounted rates to go on the trip if you didn’t make the points.
Finally, don’t forget about the December 4th meeting. It will be very important for all agents to be there. If you didn’t do your video on Nov. 6, we will film yours on Dec. 4, if I don’t film yours before then. Also, don’t forget to go to
I will be scheduling webinars in the next week or so to cover United HealthCare’s individual and group products, WellPath’s individual products, and possibly Humana’s individual products (if he can’t come to our Dec. 4 meeting). So, keep your eyes open for emails on those. If you have any questions, please give me a call.
Thanks,
Eric Frazee
(910) 223-3066https://pdb.nipr.com/ACR/SignIn to update your address and email information for the NCDOI. They will only be emailing updates now.
First of all, Sam Corey III introduced some education on Medicare Supplement Plans that really informative for those who needed a refresher. Remember you have a six month window around a prospect’s birthday, 3 months before and 3 months after. MedAdvantage users can only change plans during the open enrollment period, which is Nov. 15 thru Dec. 31. Plans F and N are the most popular plan, with N having absolutely no underwriting till possibly the middle of 2011. One month’s premium must be collected at the time of the application. There is also an online application process available to speed your appointments. You can mail or fax your application in to MOO and you can opt in to have the policy sent directly to your client.
Next, Aaron and Greg with AFG presented some interested statistics on life insurance and concluded that “the more you ask, the more you will close.” It’s simple math. They introduced their top three companies for each product. Protective and West Coast being the most popular for term insurance. Lincoln National being the most popular for universal life insurance. Aviva having the most popular index universal life insurance product. Genworth has the most popular long term care product. One America has the best asset-based long term care product. Finally, ING has the most popular equity index annuity. Don’t be fooled by their statistics, though. Please present your cases to Tammie and let her help you place your client to the best situation.
Greg also introduced us to a MetLife life insurance product for military that has no war restrictions or exclusion clauses. THIS IS HUGE FOR THE MILITARY AND THEIR FAMILIES. There is some restrictions on certain small military groups, like Special Forces, Delta Force, Army Rangers, Navy SEAL’s and so on… He also let us know about an opportunity to mail 2000 postcards every 2 weeks regarding this product for FREE.
Finally, Kirk Klaas spoke about Humana’s specialty group products, such as vision, dental, disability, and life. Kirk focused on how spectacular Humana’s vision product is versus the competition. He advised that he would start out a group presentation on selling the vision first, and then, following up with the other products.
There are several bonuses available to win. Humana individual just extended their bonus and raised the payouts. It was extended to Feb. 1, 2011 and you could earn an anywhere from an extra $1000 for 11 to 15 members sold to and extra $10000 for 41+ members sold. United HealthCare individual came out with a similar bonus. Through January 31, 2011, you can earn an extra $500 for 5 applications to an extra $10000 for 30 applications. Also, AFG is letting Agents, Inc pool their points toward winning a vacation. One Inner Circle point is equal to one dollar of written premium. One hundred thousand points wins one free trip and 250,000 wins an elite trip for two. There is a buy-in at discounted rates to go on the trip if you didn’t make the points.
Finally, don’t forget about the December 4th meeting. It will be very important for all agents to be there. If you didn’t do your video on Nov. 6, we will film yours on Dec. 4, if I don’t film yours before then. Also, don’t forget to go to
I will be scheduling webinars in the next week or so to cover United HealthCare’s individual and group products, WellPath’s individual products, and possibly Humana’s individual products (if he can’t come to our Dec. 4 meeting). So, keep your eyes open for emails on those. If you have any questions, please give me a call.
Thanks,
Eric Frazee
(910) 223-3066https://pdb.nipr.com/ACR/SignIn to update your address and email information for the NCDOI. They will only be emailing updates now.
Monday, November 1, 2010
Tuesday, October 26, 2010
Tuesday, October 19, 2010
Tuesday, October 12, 2010
Friday, October 8, 2010
Lessons from the Ryder Cup
Tie compensation to the success of the team—not just the individual.
The American team almost climbed out of a giant hole that they had put themselves during last Saturday’s Ryder Cup matches. Their rally fell short on Monday but the camaraderie among the American team was evident as they tried to mount their comeback. The Ryder Cup is different than a typical golf tournament—and it starts with the energy generated by the spectators and competitors.
Players on both sides did not exhibit the traditionally reserved demeanor when playing as individuals. During most golf matches, players acting as individuals in an extremely competitive setting. However, the Ryder Cup has a unique format that enables golfers to play as a team—something that most of them have not experienced since high school or college. Clearly they enjoy the opportunity to compete as a team against a formidable opponent. So, what is the lesson for your agency?
This individual/team dynamic can be compared to producers in an independent insurance agency. Each producer recognizes that their tenure, compensation and success in the firm will be affected by their individual productivity. However, agencies need to guard against a solely centrist view by each producer. Producers who focus only on their own production, rather than the overall success of the agency, can create unintended consequences. Just like CEOs who focus on the company’s near term stock price, their actions can be divisive and deter from the synergy that all organizations need to compete effectively. For example, a producer who speaks negatively of the competition, over promises during the bidding process or fails to share information that could benefit the agency can hurt overall results and create ill will in a small community.
Another typical problem is a producer who has a strong relationship with a commercial client and is unwilling or gives short shrift to introducing other services that the agency can offer in cross-selling opportunities. How can an agency help to instill a culture of collegial cooperation? The answer: aligning interests. And, one of the best ways is to have the compensation structure provide both direct compensation for individual productivity and an element of compensation that is tied to the overall results of the agency. For example, if a producer receives a commission of 35% of premiums, adjust it so that the commission is 30% and the remaining 5% (which is about 15% of the producer’s total compensation) is tied to the overall results of the agency. Now the producer is incentivized to help the agency’s bottom line, not just their own.
Agencies typically list producer sales volumes, which is certainly a necessary metric. Competition and recognition is indeed good and necessary. However, an agency that only targets individual production neglects an opportunity to acknowledge and reward behavior that demonstrates situations where producers or CSRs help a colleague with an account or a crisis that crops up. Providing public recognition and a gift card in those instances will help ensure that assistance is also lauded by everyone in the agency.
The United States has two years to get ready for the next Ryder Cup. Your agency does not have to wait that long to instill a norm of teamwork and cooperation.
The American team almost climbed out of a giant hole that they had put themselves during last Saturday’s Ryder Cup matches. Their rally fell short on Monday but the camaraderie among the American team was evident as they tried to mount their comeback. The Ryder Cup is different than a typical golf tournament—and it starts with the energy generated by the spectators and competitors.
Players on both sides did not exhibit the traditionally reserved demeanor when playing as individuals. During most golf matches, players acting as individuals in an extremely competitive setting. However, the Ryder Cup has a unique format that enables golfers to play as a team—something that most of them have not experienced since high school or college. Clearly they enjoy the opportunity to compete as a team against a formidable opponent. So, what is the lesson for your agency?
This individual/team dynamic can be compared to producers in an independent insurance agency. Each producer recognizes that their tenure, compensation and success in the firm will be affected by their individual productivity. However, agencies need to guard against a solely centrist view by each producer. Producers who focus only on their own production, rather than the overall success of the agency, can create unintended consequences. Just like CEOs who focus on the company’s near term stock price, their actions can be divisive and deter from the synergy that all organizations need to compete effectively. For example, a producer who speaks negatively of the competition, over promises during the bidding process or fails to share information that could benefit the agency can hurt overall results and create ill will in a small community.
Another typical problem is a producer who has a strong relationship with a commercial client and is unwilling or gives short shrift to introducing other services that the agency can offer in cross-selling opportunities. How can an agency help to instill a culture of collegial cooperation? The answer: aligning interests. And, one of the best ways is to have the compensation structure provide both direct compensation for individual productivity and an element of compensation that is tied to the overall results of the agency. For example, if a producer receives a commission of 35% of premiums, adjust it so that the commission is 30% and the remaining 5% (which is about 15% of the producer’s total compensation) is tied to the overall results of the agency. Now the producer is incentivized to help the agency’s bottom line, not just their own.
Agencies typically list producer sales volumes, which is certainly a necessary metric. Competition and recognition is indeed good and necessary. However, an agency that only targets individual production neglects an opportunity to acknowledge and reward behavior that demonstrates situations where producers or CSRs help a colleague with an account or a crisis that crops up. Providing public recognition and a gift card in those instances will help ensure that assistance is also lauded by everyone in the agency.
The United States has two years to get ready for the next Ryder Cup. Your agency does not have to wait that long to instill a norm of teamwork and cooperation.
by Dave Evans
Wednesday, October 6, 2010
How to Consistently Outperform your Sales Competiton
By Dr. Jack Singer
Susan is in life insurance sales. She understands how to make cold calls, how to follow up on leads and referrals and how to offer excellent customer service. Yet, she’s amazed at how much more successful her colleague, Michael, is, when she puts much more time and sweat into her work than Michael seems to do. She wonders what is missing in her approach.
The key difference between their approaches is the fact that Michael has trained himself to be an “active listener.” He uses the Sales T.R.I.U.M.P.H.S. active listening model to not only help him maximize his sales deals, but as a powerful technique that helps him communicate effectively with his wife and teenagers as well.
Here are the components of your sales T.R.I.U.M.P.H.S:
T: Treat your client with respect and value — Developing rapport with the client is a crucial first step. Smile, position yourself at the same level (sitting or standing, depending on what the client is doing), and slightly lean toward the client while maintaining eye contact. Make sure your cell phone is on silent and you can give your undivided attention to the client.
Listen to what the prospective client is saying — don’t shuffle papers or start thinking about your response. Just listen to her. Regardless of what the person asks, don’t fall into the trap of thinking you need to answer immediately. It’s OK to say, “That’s a great question. Give me a day or so to research our products to find the one that precisely addresses your question.” Clients can be long-winded, nervously asking a lot of questions. Cutting off a speaker may lose you the rapport you need to develop. Always give the speaker the courtesy of finishing a point before you interject your own. Again, take notes so you won’t forget what you wanted to say.
Click Here to Read More....
Susan is in life insurance sales. She understands how to make cold calls, how to follow up on leads and referrals and how to offer excellent customer service. Yet, she’s amazed at how much more successful her colleague, Michael, is, when she puts much more time and sweat into her work than Michael seems to do. She wonders what is missing in her approach.
The key difference between their approaches is the fact that Michael has trained himself to be an “active listener.” He uses the Sales T.R.I.U.M.P.H.S. active listening model to not only help him maximize his sales deals, but as a powerful technique that helps him communicate effectively with his wife and teenagers as well.
Here are the components of your sales T.R.I.U.M.P.H.S:
T: Treat your client with respect and value — Developing rapport with the client is a crucial first step. Smile, position yourself at the same level (sitting or standing, depending on what the client is doing), and slightly lean toward the client while maintaining eye contact. Make sure your cell phone is on silent and you can give your undivided attention to the client.
Listen to what the prospective client is saying — don’t shuffle papers or start thinking about your response. Just listen to her. Regardless of what the person asks, don’t fall into the trap of thinking you need to answer immediately. It’s OK to say, “That’s a great question. Give me a day or so to research our products to find the one that precisely addresses your question.” Clients can be long-winded, nervously asking a lot of questions. Cutting off a speaker may lose you the rapport you need to develop. Always give the speaker the courtesy of finishing a point before you interject your own. Again, take notes so you won’t forget what you wanted to say.
Click Here to Read More....
Tuesday, October 5, 2010
Tuesday, September 28, 2010
How to Easily and Quickly Attract More Ideal Clients
By Anne Bachrach
“Tea, Earl Grey, hot,” commands Jean-Luc Picard on Star Trek: The Next Generation. And he gets a perfect cup of piping hot English brew exactly the way he likes it. Three factors are at work: 1) Picard knows what he wants, 2) he articulates it clearly, and 3) he has a system — the starship’s “replicator” — for producing his desired outcome every time.
Too bad you can’t just step up and order perfect clients like Picard and his hot tea. But in the real world, you can use a process called “slots and replication” to achieve a similar goal. When you clearly articulate the attributes and character of your ideal clients, you can put in place a system for replicating them. This system — asking for and getting quality referrals — is the lifeblood of many successful businesses.
Too bad you can’t just step up and order perfect clients like Picard and his hot tea. But in the real world, you can use a process called “slots and replication” to achieve a similar goal. When you clearly articulate the attributes and character of your ideal clients, you can put in place a system for replicating them. This system — asking for and getting quality referrals — is the lifeblood of many successful businesses.
You decide what to think, and how to react.
Monday, September 27, 2010
Three Keys to Endless Referrals
By Robert Sofia
Some people will tell you that asking for referrals is the key to getting more of them. This is not entirely true. In fact, if the proper foundation has not been laid in advance, asking for referrals can be an exercise in futility. So what is the key to creating a steady referral stream?
1) Create an experience
Have you ever had such an outstanding dining experience that you simply had to tell your friends and family about it? If so, then you understand the power of creating an experience. From the moment a client pulls into your parking lot, they should clearly see that you run an impeccable organization. Every detail of your office, every interaction they share with your staff, every service issue you help them resolve must be flawless. This is not something that happens by accident. The only way to create a consistent, high-quality experience is to have the right procedures in place.
2) Communicate constantly
Once your clients are impressed with the level of service you provide, your next responsibility is to ensure they don’t forget about you. The old adage "out of sight, out of mind" is certainly true when it comes to getting referrals. Equally, if you make it a point to stay in front of your clients constantly, they will always have you in mind. This way, when their neighbor is complaining that he never hears from his advisor, your client will be quick to say, “You should talk to my advisor, I hear from him all the time.”
Here is a brief look at part of the communication strategy we use to stay in touch with our client base:
3) Host effective client events
Once you have happy clients who hear from you all the time, your referral tree will be loaded with low-hanging fruit. To reap the fruits of your labor, you must host effective client events. Effective client events share four basic elements:
1) Create an experience
Have you ever had such an outstanding dining experience that you simply had to tell your friends and family about it? If so, then you understand the power of creating an experience. From the moment a client pulls into your parking lot, they should clearly see that you run an impeccable organization. Every detail of your office, every interaction they share with your staff, every service issue you help them resolve must be flawless. This is not something that happens by accident. The only way to create a consistent, high-quality experience is to have the right procedures in place.
2) Communicate constantly
Once your clients are impressed with the level of service you provide, your next responsibility is to ensure they don’t forget about you. The old adage "out of sight, out of mind" is certainly true when it comes to getting referrals. Equally, if you make it a point to stay in front of your clients constantly, they will always have you in mind. This way, when their neighbor is complaining that he never hears from his advisor, your client will be quick to say, “You should talk to my advisor, I hear from him all the time.”
Here is a brief look at part of the communication strategy we use to stay in touch with our client base:
- Weekly market update by e-mail (52)
- Monthly wine tastings (12)
- Annual state of the markets workshop (1)
- Mid-year market update workshop (1)
- Quarterly letter (4)
- Account reviews (2)
- Touch-base calls from you and your staff (4) Total Contacts - 76 annually
3) Host effective client events
Once you have happy clients who hear from you all the time, your referral tree will be loaded with low-hanging fruit. To reap the fruits of your labor, you must host effective client events. Effective client events share four basic elements:
- They are either entertaining or educational in nature, so everyone who attends will benefit in some way.
- They are advertised well in advance using attractive marketing materials.
- Attendees are strongly encouraged to bring guests, and are reminded of this more than once.
- At the event, there is an organized way to capture information from guests who attend, and for them to request an appointment so their interest doesn’t have time to cool off.
Life insurance as an asset protected cash alternative?
by Ike Devji (producersweb.com)
“What is an alternative to my current cash position that will protect my money from litigation?”
In our current economic environment, all clients want their money to be both safe and liquid.
When most people consider the terms “safe” and “liquid,” they immediately think of their bank. However, what most people do not know is that their checking or savings account is unprotected from a very real threat: The exposure to an increasingly hostile and predatory litigation system.
Consider this: There are tens of thousands of lawsuits filed each day in this country. The average legal cost of defending a frivolous lawsuit is $91,000, plus the settlement amount itself. The number of lawsuits increases in tough economic times, as people look to your wealth as an additional source of income.
Our team often takes commonly used tools and redesigns them to provide protection of client assets, while allowing clients to retain control and liquidity. This is where the sciences of financial planning and asset protection meet. The situations below demonstrate the benefits of a strategy we are using in which we take a universal life insurance policy and design it to provide 98 percent to 102 percent cash surrender value in the first year.
Current situation
Cash in the bank: A healthy 45-year-old male client has a bank checking account with a balance of $1 million. He rarely uses this account, but he keeps his money there because he likes to have a certain amount of funds liquid in case he needs to access it quickly.
Here is how a regular, personally held bank account works:
Creditor-protected cash alternative: The strategy our team has designed allows the same client to place the $1 million into a specially designed universal life insurance policy by paying a premium amount of $500,000 in each of the first two years.
The policy will provide the following benefits:
In our current economic environment, all clients want their money to be both safe and liquid.
When most people consider the terms “safe” and “liquid,” they immediately think of their bank. However, what most people do not know is that their checking or savings account is unprotected from a very real threat: The exposure to an increasingly hostile and predatory litigation system.
Consider this: There are tens of thousands of lawsuits filed each day in this country. The average legal cost of defending a frivolous lawsuit is $91,000, plus the settlement amount itself. The number of lawsuits increases in tough economic times, as people look to your wealth as an additional source of income.
Our team often takes commonly used tools and redesigns them to provide protection of client assets, while allowing clients to retain control and liquidity. This is where the sciences of financial planning and asset protection meet. The situations below demonstrate the benefits of a strategy we are using in which we take a universal life insurance policy and design it to provide 98 percent to 102 percent cash surrender value in the first year.
Current situation
Cash in the bank: A healthy 45-year-old male client has a bank checking account with a balance of $1 million. He rarely uses this account, but he keeps his money there because he likes to have a certain amount of funds liquid in case he needs to access it quickly.
Here is how a regular, personally held bank account works:
- The account earns about 1 percent interest per year, with income taxable as ordinary income.
- If the client is sued for any reason and loses, the judge can require the transfer of the assets from the client’s checking account into the plaintiff’s pockets.
- If the client dies, the named beneficiaries will receive the $1 million, minus the taxes due.
- If the client needs to use the money, he is able to take the amount needed.
Creditor-protected cash alternative: The strategy our team has designed allows the same client to place the $1 million into a specially designed universal life insurance policy by paying a premium amount of $500,000 in each of the first two years.
The policy will provide the following benefits:
- The account will earn a net interest of about 1 percent annually invested in the policy’s fixed account, and the gains are allowed to grow tax-deferred. If the client is sued for any reason and loses, the money in this account is 100 percent creditor-protected from day one.
- If the client dies, the named beneficiaries will receive a death benefit of $10,624,682, the face amount associated with this specific example, free of any estate taxes.
- If the client needs to withdraw all or part of the money in the account, he is able to do so at anytime with no fees or surrender charges, and he will have access to the money within a week.
- Creditor protection
- Wealth multiplier effect of 10 times (in this illustration)
- Liquidity and borrowing options with no penalty
- Death benefit of $10 million plus that passes outside the estate and free of estate tax.
Wednesday, September 22, 2010
5 Bad Habits and Reducing Current E&O Exposures
5 Bad Habits That Keep You From Selling More
By Larry Prevost, Dale Carnegie Training Instructor
A few weeks ago, I attended an in-house sales training session for one of the big Cleveland sports franchises conducted by Lance Tyson. Most of what this team handles are corporate ticket sales for suites, but I'm sure they handle a variety of other types of sales as well. They contact business owners, have contests, do call reviews... They do the same types of things that every other type of sales organizations does.
And all of their prospecting and sales activity is done over the phone.
On this day, Lance spoke on the topic of why some sales people have such a difficult time breaking into new accounts. See if you recognize any of these in your daily routine.
Habit 1: Sticking to People You Know
In our communication programs, one of the first activities that we do is to get people on their feet and participating immediately. We conduct a handshaking exercise where participants get to introduce themselves to other participants in the class. The main challenge at this point in the program is that everyone in the room is a stranger.
There are always a few people that turn the exercise into a contest and try to introduce themselves to everyone in the program. The majority of participants, however, start the exercise with some amount of trepidation. They look over at the person standing next to them and introduce themselves the way we've all been trained to do since we were kids. Then they will stick with that one person for the entire 60 seconds of the exercise.
At the end of the exercise, we take the pulse of the class to see who picked up the most introductions. Some people who stayed with one other person will justify their meeting activity by saying that they wanted to find out more about that one person or they wanted to have a real conversation. I can appreciate that.
However, no one ever says that they stayed with one person because finding a new partner is an uncomfortable experience. But that is a factor as well. It's a change in your environment. Once you get comfortable with a situation, an environment, and even people, any change will cause a certain amount of anxiety in your mind.
It's far easier to continue talking with a person that you are familiar with rather than going through the exercise of finding and introducing yourself to an unfamiliar person.
Listening to the experts, you'll hear pretty much the same piece of advice: People buy from people they know. You should always return to past customers for cross-selling or up-selling opportunities.
But if you are sticking to people that you know because they are familiar to you and you are in a comfortable place, then it's time to rethink your prospecting strategy.
Click here to read more on Bad Habits
Reducing Current E&O Exposures:
What Agents Need to Know
by Amy O'Connor
Experts agree that there are several important steps agents can take to reduce their general E&O exposure, and they carry over to all aspects of the insurance business:
1. Documentation"By far, the most common claim is simply an allegation of failure to place coverage," says Sally. "The most reliable way to prevent these is written documentation that says 'this is what I offered you, my customer and this is what you accepted."
2. Keep a Coverage Checklist when Writing Policies"We recommend agencies use coverage checklists," says Sally. "They can range from fairly short and simple to a very detailed one that walks through certain types of coverage that could be appropriate for a certain type of operation."
3. Stay Educated Through Trade Organizations, Associations
"Every state association offers E&O classes. Those are great and are offered all the time," says Burand. "Another great resource is the IJ Academy. It offers great courses and will be offering additional courses this year. Attend the webinars."
4. Read, Read, Read"It is tough being an agent because you are bombarded with newsletters and e-mails and publications and it's tough to look at everything," says Wilson. "But for myself, I identify the publications that give me the greatest value and get rid of all the rest. Identify the sources of info you really truly need and focus your time on these."
5. Conduct an Agency E&O Audit"Another tool that agents should use is to have an E&O audit of their agencies completed," says Burand. "It is done by an outside auditor and agents may be able to obtain a discount on their E&O premiums."
Click here to read more on Reducing E&O Exposures
By Larry Prevost, Dale Carnegie Training Instructor
A few weeks ago, I attended an in-house sales training session for one of the big Cleveland sports franchises conducted by Lance Tyson. Most of what this team handles are corporate ticket sales for suites, but I'm sure they handle a variety of other types of sales as well. They contact business owners, have contests, do call reviews... They do the same types of things that every other type of sales organizations does.
And all of their prospecting and sales activity is done over the phone.
On this day, Lance spoke on the topic of why some sales people have such a difficult time breaking into new accounts. See if you recognize any of these in your daily routine.
Habit 1: Sticking to People You Know
In our communication programs, one of the first activities that we do is to get people on their feet and participating immediately. We conduct a handshaking exercise where participants get to introduce themselves to other participants in the class. The main challenge at this point in the program is that everyone in the room is a stranger.
There are always a few people that turn the exercise into a contest and try to introduce themselves to everyone in the program. The majority of participants, however, start the exercise with some amount of trepidation. They look over at the person standing next to them and introduce themselves the way we've all been trained to do since we were kids. Then they will stick with that one person for the entire 60 seconds of the exercise.
At the end of the exercise, we take the pulse of the class to see who picked up the most introductions. Some people who stayed with one other person will justify their meeting activity by saying that they wanted to find out more about that one person or they wanted to have a real conversation. I can appreciate that.
However, no one ever says that they stayed with one person because finding a new partner is an uncomfortable experience. But that is a factor as well. It's a change in your environment. Once you get comfortable with a situation, an environment, and even people, any change will cause a certain amount of anxiety in your mind.
It's far easier to continue talking with a person that you are familiar with rather than going through the exercise of finding and introducing yourself to an unfamiliar person.
Listening to the experts, you'll hear pretty much the same piece of advice: People buy from people they know. You should always return to past customers for cross-selling or up-selling opportunities.
But if you are sticking to people that you know because they are familiar to you and you are in a comfortable place, then it's time to rethink your prospecting strategy.
Click here to read more on Bad Habits
Reducing Current E&O Exposures:
What Agents Need to Know
by Amy O'Connor
Experts agree that there are several important steps agents can take to reduce their general E&O exposure, and they carry over to all aspects of the insurance business:
1. Documentation"By far, the most common claim is simply an allegation of failure to place coverage," says Sally. "The most reliable way to prevent these is written documentation that says 'this is what I offered you, my customer and this is what you accepted."
2. Keep a Coverage Checklist when Writing Policies"We recommend agencies use coverage checklists," says Sally. "They can range from fairly short and simple to a very detailed one that walks through certain types of coverage that could be appropriate for a certain type of operation."
3. Stay Educated Through Trade Organizations, Associations
"Every state association offers E&O classes. Those are great and are offered all the time," says Burand. "Another great resource is the IJ Academy. It offers great courses and will be offering additional courses this year. Attend the webinars."
4. Read, Read, Read"It is tough being an agent because you are bombarded with newsletters and e-mails and publications and it's tough to look at everything," says Wilson. "But for myself, I identify the publications that give me the greatest value and get rid of all the rest. Identify the sources of info you really truly need and focus your time on these."
5. Conduct an Agency E&O Audit"Another tool that agents should use is to have an E&O audit of their agencies completed," says Burand. "It is done by an outside auditor and agents may be able to obtain a discount on their E&O premiums."
Click here to read more on Reducing E&O Exposures
Tuesday, September 21, 2010
The All New "IQ" Newsletter
Welcome to the new and improved "IQ" Newsletter. We are going to continue to use a blog format because it is easier to include videos and links to important information. This blog format also makes it easier to customize and improve. If you have trouble viewing this format, please let me know asap.
Here is some great information to review:
I'm not in a Slump, the Economy is!!!
Change your Prospect to Sell More!!!
I hope you enjoy the new format. Check your email often for new editions.
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