What is the second huge mistake advisors are making today?Article added by Lew Nason on August 13, 2013
Joined: October 13, 2006
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The second huge mistake advisors are making today is relying on someone else for their sales leads. If you really want to succeed, then isn't it up to you to learn how to consistently attract people to you?
Recently, I wrote an article about the number one mistake advisors are making, and I am back with mistake number two. My philosophy is based upon the assumption that you want a net income, after expenses, in excess of $200,000 annually, that you want to be working 40 hours or less per week, that you want to be home most nights with your family, and that you want to be having a lot more fun!
If you are content making under $100,000 (after expenses), working 50 hours or more per week and working most nights, then you can skip this article. It doesn't apply to you.
The second huge mistake advisors are making today is relying on someone else for their sales leads.
Today, the vast majority of advisors are resorting to what they believe is the easiest option. They are buying Internet leads, buying a lead generation program, buying a list and using a phone dialer, or taking a cut in commissions to get leads from their company, FMO or agency.
The first problem with this critical mistake is that those leads are very, very expensive. Whether you are paying for leads, taking a cut in commissions to get leads, using a phone dialer or using a lead generation program, the average decent lead is going to cost you about $20. If you are lucky enough, or skilled enough, to be setting appointments with one-third of those leads, then isn't it really costing you $60 for an appointment? If you need and want 10 appointments per week, then it's costing you $600 per week, which is $30,000 per year.
The second issue is that many of those leads are being generated by using deceptive marketing techniques. Here's an example: People are being given an incentive fill out an online form. Accordingly, the people who respond to these deceptive marketing techniques don't realize their personal financial information may be used as leads for insurance agents, telemarketers or others who may later try to persuade them to buy annuities and other insurance products. So, when you contact them they are unhappy, don't remember requesting anything, etc. These techniques lead to dissatisfied prospects, bad publicity, a lack of trust and lost business.
Thirdly, most of the leads are being given to multiple agents. Most lead companies will sell their leads from 5 to 10 times. So, you are in direct competition with all the other insurance agents, P&C agencies, banks, attorneys, accountants and tax preparers — along with the Internet and others who are buying those same leads.
Finally, and most importantly, these lead generation tactics do nothing to enhance your personal credibility in your local community and attract people to you. So, most agents are forced into relying on those leads their entire career.
There is a much better way
What if there were a way for leads to find you, rather than your chasing them, and then in time have them contact you and ask for your help?
This is exactly what most of the top earners are doing, and you can do it, too. It’s called attraction marketing, because you attract the leads to you, rather than chasing after them.
The first thing you will need to do is stop promoting your company and products. It’s said that only 2 percent of the population likes to be sold, so why make yourself unattractive and your life so difficult?
To be attractive, you must become a trusted advisor, someone who can help others solve their problems and someone whom they will seek out to do this. As they develop a relationship with you and gain trust, they will approach you to find out more about your services. In short, this industry is really all about building relationships, not about your products or sales ideas.
When you become a trusted advisor, you become a coach or mentor; the way to do this is to simply decide to become one. All you need to do is recognize the value you already have to offer and claim the role. All you need to do is find out what problems people are having and present yourself and your expertise, in such a way that others can find you. In addition, you must become a life-long student, so that you are always learning and increasing your value to others all the time.
Consider that people prefer to work with others whom they know and trust, or with others their friends and acquaintances refer them to. You must become known and respected by the people in your local community for the work you do, to make it easier and more cost-effective to consistently attract those people to you.
Most agents and advisors have been led to believe (and want to believe) that if they buy enough of the right leads, then they will have enough of the right people begging to be sold. And maybe if you were the only one in your local area buying leads, that could work and would be cost-effective. However, you aren't the only agent or advisor in your local area.
So how do you become known and respected by the people in your local community for the work you do? How do you make it easier and more cost-effective for you to consistently attract the right people to you?
The answer is deceptively simple, and in many cases it will cost you little or nothing to implement: You get your name and the unique services you offer in front as many people as you possibly can everyday.
You get your name in the local news section by sponsoring a public service or charity event, being a guest speaker at a local association meeting, offering a free educational workshop to the general public, teaching an adult education class, or being a guest on a local radio or TV program. (And send local news publications a press release about it.) You form a joint venture with a local business and get them to introduce you to their clients by offering their clients your free report or an invitation to your free educational workshop.
You write articles for your local newspaper and church and association newsletters, with your byline, offering your free report. You become an active member in associations, clubs, youth groups and religious organizations, and you help them get their organization's accomplishments in the local news, with your name in the article. You send everyone you know a monthly newsletter (hard copy or email). You invite all of them to your free educational workshop and/or offer them a free report. You become a member of a lead group or set up your own lead group (or mastermind group). You set up a system to start asking for and receiving referrals from everyone you know.
And, in 60-90 days, you will have as many prospects as you can possible handle, without having to spend a fortune on leads. All it takes
is for you to learn and practice the basics of cost-effective prospecting/marketing. It's as simple as working to become well-known and respected by the people in your local community for the work you do. And that's something no one else can do for you.
So, if you really want to succeed, then isn't it up to you to learn how to consistently attract people to you?
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