During the past 20 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 servicing Middle America. They are now focusing the majority of their marketing efforts and training, on attracting and servicing 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!

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% -10% 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 in 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.

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 and advisors 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.

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 beyond 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.

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, April 2005

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 2005 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, May 2005

A message from Bob Kerzner, President and CEO of LIMRA International, 5/8/06.

“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."

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 major difference in your livelihood?

There is a reason why over 30 of the most trusted and respected names in this industry, the IARFC and hundreds of successful advisors highly recommend our Found Money Management™ 'Advanced' Life Insurance Sales Success Tool Kit and training. 

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