The secret to getting a flood of qualified life insurance prospects to call you
By Lew Nason
Insurance Pro Shop
Would you like to learn a most remarkable concept that you can use to generate a consistent flow of hot life insurance prospects and get them to call you? The concept is called joint venture marketing. If you think you already know all about joint venture marketing, that you've tried it and it didn't work for you, then please read on. The reason it didn't work for you is because you went about it all wrong.
What is joint venture marketing?
Joint venture marketing is an extremely cost-effective and proven lead generation strategy that involves developing a relationship with another business or organization that already has a close relationship with a group of people that you want as clients. The idea is to have the business or organization with the established client relationship endorse you and your services to their clients.
Suppose a friend recommends a movie or a restaurant to you, and you have a good relationship with that person. Aren't you much more likely to see that movie, or go to that restaurant? If they were then to go one step further and give you a coupon for 20 percent off, wouldn't you be even more willing to take them up on their suggestion?
That's the idea behind joint venture marketing. You need to align yourself with other people's client list, and have them recommend you and your services to their friends and clients.
For example, if you make your living helping younger middle income families to plan for college or retirement using life insurance, then why not go to every business or organization in your area that has your ideal prospects as their clients or members (doctors, tax preparers, attorneys, churches, P&C agencies, etc.) and see if there are compelling ways to induce them to offer your services to their clients.
The cost of the sale for you, including advertising or promotion, could be as low as the cost of a postage stamp and a letter. Knowing this, you could also afford to "gift" to their clients something like a free book, a free consultation worth $150, a free information booklet, or my favorite, a free educational workshop. Notice how I used the word "gift" and not give. There is a big difference, and it's all psychological. The word "give" does not seem to communicate as much value as the word "gift". Every time you offer to do something nice for another person's clients, you'll want to make them feel like you are offering to give a special gift to all of their clients — because you are! Why would a business or organization agree to this?
You have to help businesses and organizations see that their clients will be happy to receive a special free gift from them. Yes, the gift is from them, and this is very important. Even though you are the one actually providing the gift, you want their clients to think that the gift is from the business or organization that they know and trust, and not from you. This won't cost the business or organization anything, yet they will look good in the eyes of their clients or members. That's just one good reason why they will be willing to do this.
You'll also want to provide your joint venture partner with a special gift certificate or invitation printed exclusively for their clients. Use your imagination, and offer something that does not cost you a lot of money, but has a high perceived value, like a free book, a free consultation worth $150, a free information booklet, or a free educational workshop.
Let your joint venture partner know that they've already spent the money to acquire their client or member, then show them how you can help them to make that investment pay off handsomely if they allow you to mail their clients (on their letterhead) with their endorsement, promoting a special offer or a gift certificate on your products or services. You agree to pay for all the postage and printing, so it won't cost the business or organization a thing.
How do they benefit?
1. They are getting free advertising to their clients, because you will pay for all the postage and printing. So, they are getting their names out to people that have bought from them before, and that might buy from them again if they allow you to remind their clients that they are still in the business. You would be surprised how many businesses sell thousands of dollars worth of services to someone and never contact them again. It's the most ridiculous thing in the world, but this is how many businesses operate. They are so busy chasing after new customers that they neglect the ones that have done business with them before. These people will do business with them again and again if they would just remind the people that they are still there to provide service 2. It allows your joint venture partner to do something nice for their customers or members. This is a big benefit of this strategy — it allows them to offer something of value to their clients and, even if their clients don't avail themselves of the gift or order, it still makes them look good in the eyes of their clients or members. They appear to have gone the extra mile by offering a product or service that their clients need anyway. They did the work for their clients by finding a professional like you. Think about it. Do you think their clients are going to really know that this entire promotion was created by you? No way. They perceive the promotion as something the business or organization has done because they are such good people and really care about their clients or members.
I will repeat it again, because I want you to use this sentence when you go to make these offers to your potential partner. You'll want to say, "Even if your clients don't avail themselves of your offer, you will still look good and they will remember this generous offer."
These are just a two of the many ways your joint venture partners will benefit by working with you.
Keys to forming great joint venture partnerships!
Not every business is the right choice for a partner. It has to be the right business, and you have to be the right business for their clients.
1. You must be a specialist. You must be able to offer their clients something unique — a unique benefit. Why should their clients want to meet with you?
2. You must be a professional, creditable, trustworthy and respected.
3. You must determine who the ideal prospects are for your products or services.
4. You must find joint venture partners who have your ideal prospects as their clients.
5. You must find joint venture partners who are professional, creditable, trustworthy and respected.
6. Your joint venture partners must see how their clients will benefit by your services.
7. Your joint venture partners must see how they will personally profit by partnering with you.
Unfortunately, many agents are too busy working in their business instead of on it. Most agents are working very hard just to make a living. They don't want to take the time, or feel they can't afford to take the time, to find the right joint venture partner. It's easier to keep on doing what they've always done. Or, they are not convinced it will work, maybe because they haven't had a lot of success with referrals in the past! Or, they've tried to set up referral system with someone who could have been a joint venture partner and it didn't work. So, they don't believe forming such a partnership will ever work.
Joint venture partnerships do work
I can tell you that these partnerships do work, if you approach them in the right way. When I first came into this business over 28 years ago, most of the top life insurance producers I met had built their businesses by forming joint ventures partnerships. I used them very effectively myself when I was in sales. I talk to agents almost every day who are currently using them. And, we're using them right now to grow our business.
We started the Insurance Pro Shop from scratch 10 years ago. Today, we're one of the most respected and trusted agent training and support organizations in the financial services industry.
Consider, 90 percent of the new agents coming into the insurance business do not make it fuve years. It's the same for anyone starting a new business — 90 percent of them fail!
We wouldn't be where we are if we hadn't formed joint venture partnerships. I'll go one step further and say we wouldn't have survived our first two years if it wasn't for our joint ventures partnerships. And today, 40 percent or more of our business comes from our joint venture partners.