John Jacob Aster, one of the richest man in the world in his time, said…
“Serve the classes, live with the masses.
Serve the masses, live with the classes.”
During the past 30 years, most of the major insurance companies, independent marketing organizations (IMOs), insurance agencies, sales trainers, sales system providers, industry support organizations and it seems that practically everyone in the financial services industry has shifted their focus away from serving Middle America. They are now focusing the majority of their marketing efforts and training, on attracting and serving prospects in the more affluent markets. They’ll tell you that they believe that’s where agents and advisors can make the most money, quickly and with the least amount of effort and expense. Everyone seems to want to believe that, because these people have more money and they have more discretionary dollars, they are an easier sale. If only it were true and that easy!
The Reality Of Their Decision…
To begin with, is there any question that there are a lot less prospects in the more affluent market segments? When we talk to most advisors they believe that we are talking about the top 5% to10% of the U.S. population, which if it were true, would give them an abundance of prospects to see.
However, the reality of the situation is that, only 1 in 125 Americans have more than $1 million in financial assets such as stocks, bonds, bank accounts, real estate and businesses they own. That’s based on a study published by Capgemini and Merrill Lynch & Co 2005. Only about 2.5 million Americans, or less than 1 percent of the population over age 15 are millionaires. The report did not factor in the value of people’s primary residences, which obviously would increase the number of millionaires. And, because many of these millionaires have their assets tied up in their businesses and real estate, there are even less of these people who have liquid assets to invest in or purchase your products.
Think about it…
With all the insurance agents and financial advisors moving into the more affluent markets and chasing the top 0.5% – 1% of the population, is it any wonder that most of these agents, advisors and planners are struggling to make a decent living? It has gotten extremely competitive in the affluent markets. You just need to take a look in your local newspaper, on a Sunday, to get an idea of how many financial services professionals are currently offering annuity and investment seminars every month to the affluent markets! And, then to compound the problem, isn’t it where you will find the most competition from banks, attorneys, accountants, investment brokers and all the get rich quick scam artists?
When Tom Stanley and William Danko, the authors of The Millionaire Next Door, decided to investigate how people get wealthy, they found something extremely odd. They found that many of the people who live in the upscale neighborhoods and drive luxurious cars do not have extreme wealth. They are not millionaires. Most of them are living well above their means. They are spending more money than they are making in order to maintain the appearance of being wealthy. The truth is that, like most people today, these people are struggling every month just to make ends meet.
The Capgemini/Merrill Lynch report also broke out how these very rich people allocated their assets. These millionaires put 34 percent in equities; 27 percent in fixed-income investments; 13 percent in real estate investments; 14 percent in alternative investments like hedge funds, foreign currency and commodities; and kept 12 percent in cash or deposits.
The Spectrum Group survey found that more than 35 percent of the affluent are retired and 36 percent are business owners. The overwhelming majority, 86 percent are married, and the mean age is just under 56.
According to a report from the Economic Policy Institute, The State of Working America… “64 percent of American households have stock holdings worth $5,000 or less, or own no stock at all.”
So, Where Can You Find and Make The Most Money?
If you want to find and make more money, you’ll want to serve Middle America. We are talking about the top 50% or more of the US population, that is 50 to 100 times the amount of prospects available in the affluent markets. Obviously, that means there are a lot more prospects for you to see. And, there is a lot less competition from the other financial services professionals.
The only problem with servicing Middle America is that in order to find the money it requires you do a lot more work with the prospect. Many, if not most of these people are living above their means and they are drowning in consumer debt.
At first glance it would appear, that the majority of these people do not have any discretionary money. But, in most of the cases appearances are deceiving. They do have discretionary money! You just have to learn how to help them find it! It’s about helping Middle America to understand the problems they face today and then helping them to prioritize where they spend their money.
In most cases, you can help them to find the money ($3,000 to $12,000 per year) if you know where to look. And, you can do it all without taking additional money out of their pockets or changing their current life style. It’s simply a matter of helping them to re-allocate where they are spending their money unnecessarily.
Middle America Needs Your Help
Studies on the problems facing Middle America…
US Savings Lag – 64% of full-time U.S. workers are either behind in their retirement savings, or haven’t yet started. Widows in particular are likely to be behind – 70% are living “paycheck to paycheck.” MetLife Employee Benefits Trend Study
Americans Gripped By Fear – 95% of Americans have some financial-related concerns when it comes to retirement. 42% expressed fears related to retirement income: either that they will run out of money prematurely, or that they will have to downgrade their lifestyle in retirement.
NAVA Financial Retirement Fears Study
Americans Have Wrong priorities – 70% of Americans are most concerned with short and midterm financial spending, while placing retirement savings at a distant third priority.
Prudential Financial “Roadblocks to Retirement” Study
LIMRA Study and Comments
LIMRA 2013 Study… Life Insurance Ownership Remains Low – Less than half of middle market consumers ages 25 to 64 have individual life insurance coverage. Forty-four percent of those without life coverage say they need it, and 3 in 10 think they might buy in the next year. Generation Y consumers are the most likely to purchase life insurance.
A message from Bob Kerzner, President and CEO of LIMRA International.
“Retirement is more than simply income planning. People must also prepare for the potentially ‘dangerous highway ahead’ that may include outliving one’s assets, health risks and long-term care needs, inflation and other pitfalls. Most Americans have not saved enough to retire as comfortably as they would like to.”
“We need to respond to their failure to save. To point out, especially to younger consumers, that the way to a great retirement is through systematic savings, not hot investments that boom today and bust tomorrow. Companies should do more to educate consumers about retirement. They need to know the risks they face or they will not be able to create that retirement paycheck, plan for long life, or rely on their personal savings for retirement.”
“ I believe those companies that start looking more at the totality of retirement are the ones that will do better. People want a lifestyle, a great retirement, not a specific product. They will buy a product only if they see how it will get them the retirement they envision.”
“Serve the classes, live with the masses.
Serve the masses, live with the classes.”
John Jacob Astor
The more you learn, the more you’ll earn!
Do you remember your Mom and Dad telling you; “Study hard and you will earn more!” It’s one of those irrefutable facts of life!
Is it possible that a few simple changes in your marketing could make a big difference in your livelihood?
Special Message to Financial Advisors…
If I were forced to start over from scratch, no matter what product I was offering, whether it was investments, health insurance, P&C insurance, LTCI, DI, annuities or life insurance, I would do some research and determine how I could best help the people in my local community. What’s the biggest problem I could solve for them? Then, I would do everything I could do to position myself as the expert in that area.
Here Are The Top 5 Ways I Would Use To Generate High Quality Leads…
I would start by asking my friends and family for their help. Would they allow me to practice on them and give me an honest opinion/feedback of the service I am offering?
I would invite everyone I know to a Free Seminar or Educational Workshop. People feel better about coming to seminars than meeting with a salesperson face to face.
I would establish a Joint Venture with a local business that caters to my ideal prospects and get them to endorse my services to their best clients.
I would ask everyone I know and meet for referrals.
I would send a monthly newsletter to everyone I know and meet. People buy when they are ready to buy, not when you’re ready to sell! So, if you want to sell them, you must be in front of them when they are ready to buy!
Do these lead generation strategies work?
The answer is yes! During the past decade, have helped more than a thousand insurance agents and financial advisors each year to double and triple their incomes …even in this recession?
In fact, the top producers, we work are earning over $1,000,000 and many others who were earning $40,000-$60,000 per year, now earn $150,000-$350,000 per year. And with our life insurance marketing, branding, leads, appointment setting and sales systems, you can do the same.
And we’ll be by your side every step of the way.
Marketing and Sales Coach
Important Message… While most insurance companies, IMOs, agencies and brokerage firms do have the products, tools and training you need to make some quick insurance sales, once you’re in front of a qualified life insurance or annuity prospect, what they don’t have are proven, transferable life insurance marketing and lead systems. Plus, they don’t offer marketing, branding and lead generation programs to help you attract a steady stream of the right, high quality insurance prospects, who want and can afford what you are offering right now!
Instead, they want you to give them a list of 100 or more of your closest friends, relatives and acquaintances. And, when you’re done meeting with them and the few referrals you may get, then it’s ‘Dialing For Dollars’ time. Or, you’re forced into purchasing high cost, low quality insurance and annuity leads and using expensive, inconsistent direct mail campaigns.
So, if you really want to succeed today, then isn’t it up to you to get the life insurance marketing, prospecting, appointment setting and sales systems, tools, tips and training, with personal coaching you need to consistently attract a steady stream of your ‘IDEAL’ prospects to you?