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How to prosper during this worsening economy
By Lew Nason
America's finances are in turmoil. The personal economies of many individuals and their families are on the precipice of a disastrous failure. Few families have a personal plan to help them meet these financial challenges, and they need your help. Opportunities abound for insurance agents, financial advisors and planners who understand these problems and hold the solutions in their minds and hearts. You can draw people back from the brink of financial failure, but how are you going to attract them to you?
Don't believe all the doom and gloom
Twenty-six years ago, when I first got started in this business, the United States was in the midst of a severe economic recession, much worse than that of today. In December of 1982, the U.S. unemployment rate had reached 10.8 percent, higher than at any time in the post-war era. Job cutbacks were particularly severe in the housing, steel and automobile industries. Twelve million people were unemployed -- an increase of 4.2 million people -- since July 1981.
By mid-1982, the number of bank failures was rising steadily. Bank failures reached a post-depression high of 42 as the recession and high interest rates took their toll. In 1983, another 49 banks failed -- easily beating the Great Depression's record of 43 failures set in 1940 -- and the FDIC listed another 540 banks as "problem banks" on the verge of failure. In 1984, the Continental Illinois National Bank and Trust Company, the nation's seventh-largest bank with $45 billion in assets, failed.
Between 1980 and 1983, 118 savings and loan institutions with $43 billion in assets failed. Subsequently, the Federal Savings and Loans Insurance Corporation (FSLIC), the federal agency that insured the deposits of S&Ls, spent $3.5 billion to make depositors whole again. The FSLIC pushed mergers as a way to avoid insolvency. From 1980 to 1982, the agency oversaw 493 voluntary mergers and 259 forced mergers of savings and loans. Despite these failures and mergers, there were still 415 S&Ls at the end of 1982 that were insolvent.
During the 1982 recession, unemployment reached 12 million, the highest rate since the Depression; 17,000 businesses failed, the second highest number since 1933; farmers lost their land; and many sick, elderly and poor became homeless.
Economic recessions in the U.S., and throughout the world, aren't anything new. They are a fact of life. We've experienced many recessions through the years in the U.S., the last being in 1990. As a country, we've survived each time, and we'll survive this one. So the question isn't whether you'll survive; it's whether or not you'll prosper in your business.
The secret to prosperity in today's economy
Despite the depression, I was still able to lead my office in sales in 1982, even though I was brand new to the insurance business. What I learned back then that made me successful in personal sales, and has kept me prosperous throughout the years, is that most people (average middle-American families) are struggling financially, and they need and want our help. When times are especially tough, these people need and want our help more than ever. I learned that to succeed in this business, during both the good and bad times, it's not about products, investment returns or a revolutionary sales idea: It's about helping average people to become more financially secure.
Understanding what's missing in the new sales systems
Many of the supposed revolutionary new ideas behind LEAP, Missed Fortune, Infinite Banking, Circle of Wealth, Equity Management and College Funding programs are not revolutionary or even new. They are actually the proven, sound financial principles that the best producers have been using for decades to help people properly position and use their money -- with safety and guarantees -- to achieve financial security.
Unfortunately, agents and marketing organizations have bastardized many of these new sales systems and are focusing primarily on selling products and investment returns. These sales systems have been promoted, seen and used by many agents as a way to make quick, large sales. Unfortunately, oftentimes the sale is made even when it's not in the prospect's best interest. The majority of people using these systems have lost their focus on how actually to help people to identify, understand and solve their financial problems. What's more, the extremely unfortunate part for agents is that some of these systems were developed when the economy was good, so there is very little -- if any -- sound marketing involved with these them. They offer a minimal amount of real marketing to help you get your message out to people. They may be great sales ideas or systems, but they have no real marketing component to help you attract the right people to you during the tough economic times.
When times are good financially, there will be some people who are ready, willing and able to take chances with their money. These people have the "get-rich-quick" or "live-for-today" mentality. It's easy to attract and set appointments with them if you have something new and exciting to offer.
However, during the tougher economic times, much of the marketing in these systems just stops working because there are very few people who are ready, willing and able to take chances.
You can survive and prosper during this worsening recession, but only if you learn how to consistently attract the right people. It comes down to learning how to actually help people identify, understand and solve their financial problems, instead of just trying to make a quick, large sale with the latest revolutionary product or idea.
*To discover more about what Lew Nason has learned in his 30 years' experience and his "Found Money Management" program, please use the forum below and include FMM in the subject line.
*For further information, or to contact this author, please leave a comment and your e-mail address in the forum below.
Don't believe all the doom and gloom
Twenty-six years ago, when I first got started in this business, the United States was in the midst of a severe economic recession, much worse than that of today. In December of 1982, the U.S. unemployment rate had reached 10.8 percent, higher than at any time in the post-war era. Job cutbacks were particularly severe in the housing, steel and automobile industries. Twelve million people were unemployed -- an increase of 4.2 million people -- since July 1981.
By mid-1982, the number of bank failures was rising steadily. Bank failures reached a post-depression high of 42 as the recession and high interest rates took their toll. In 1983, another 49 banks failed -- easily beating the Great Depression's record of 43 failures set in 1940 -- and the FDIC listed another 540 banks as "problem banks" on the verge of failure. In 1984, the Continental Illinois National Bank and Trust Company, the nation's seventh-largest bank with $45 billion in assets, failed.
Between 1980 and 1983, 118 savings and loan institutions with $43 billion in assets failed. Subsequently, the Federal Savings and Loans Insurance Corporation (FSLIC), the federal agency that insured the deposits of S&Ls, spent $3.5 billion to make depositors whole again. The FSLIC pushed mergers as a way to avoid insolvency. From 1980 to 1982, the agency oversaw 493 voluntary mergers and 259 forced mergers of savings and loans. Despite these failures and mergers, there were still 415 S&Ls at the end of 1982 that were insolvent.
During the 1982 recession, unemployment reached 12 million, the highest rate since the Depression; 17,000 businesses failed, the second highest number since 1933; farmers lost their land; and many sick, elderly and poor became homeless.
Economic recessions in the U.S., and throughout the world, aren't anything new. They are a fact of life. We've experienced many recessions through the years in the U.S., the last being in 1990. As a country, we've survived each time, and we'll survive this one. So the question isn't whether you'll survive; it's whether or not you'll prosper in your business.
The secret to prosperity in today's economy
Despite the depression, I was still able to lead my office in sales in 1982, even though I was brand new to the insurance business. What I learned back then that made me successful in personal sales, and has kept me prosperous throughout the years, is that most people (average middle-American families) are struggling financially, and they need and want our help. When times are especially tough, these people need and want our help more than ever. I learned that to succeed in this business, during both the good and bad times, it's not about products, investment returns or a revolutionary sales idea: It's about helping average people to become more financially secure.
Understanding what's missing in the new sales systems
Many of the supposed revolutionary new ideas behind LEAP, Missed Fortune, Infinite Banking, Circle of Wealth, Equity Management and College Funding programs are not revolutionary or even new. They are actually the proven, sound financial principles that the best producers have been using for decades to help people properly position and use their money -- with safety and guarantees -- to achieve financial security.
Unfortunately, agents and marketing organizations have bastardized many of these new sales systems and are focusing primarily on selling products and investment returns. These sales systems have been promoted, seen and used by many agents as a way to make quick, large sales. Unfortunately, oftentimes the sale is made even when it's not in the prospect's best interest. The majority of people using these systems have lost their focus on how actually to help people to identify, understand and solve their financial problems. What's more, the extremely unfortunate part for agents is that some of these systems were developed when the economy was good, so there is very little -- if any -- sound marketing involved with these them. They offer a minimal amount of real marketing to help you get your message out to people. They may be great sales ideas or systems, but they have no real marketing component to help you attract the right people to you during the tough economic times.
When times are good financially, there will be some people who are ready, willing and able to take chances with their money. These people have the "get-rich-quick" or "live-for-today" mentality. It's easy to attract and set appointments with them if you have something new and exciting to offer.
However, during the tougher economic times, much of the marketing in these systems just stops working because there are very few people who are ready, willing and able to take chances.
You can survive and prosper during this worsening recession, but only if you learn how to consistently attract the right people. It comes down to learning how to actually help people identify, understand and solve their financial problems, instead of just trying to make a quick, large sale with the latest revolutionary product or idea.
*To discover more about what Lew Nason has learned in his 30 years' experience and his "Found Money Management" program, please use the forum below and include FMM in the subject line.
*For further information, or to contact this author, please leave a comment and your e-mail address in the forum below.
