Small Business Leadership and Sales Blog

Recently, I attended a meeting with Glen Harris, a world class leader, one of my mentors and an overall excellent human being. He started his presentation with a quote: “A recent Harvard study has concluded that 100 percent of all humans will definitely die.”

Obviously his study was mythical and his point was humorous. But it posed an important question for advisors: How is it that our prospects and clients understand the need to buy car insurance and home insurance, but so often don’t seem to understand the need to buy life insurance? As life insurance salespeople, you would think the deck would be stacked in our favor. Both car and home insurance policies may never have a claim. With life insurance, we know beyond a shadow of a doubt that we're going to have a claim at some point in time.

There is a clear disconnect here between need and action. It is something that we as agents can rectify.

May I ask you to please work through this quick four-step exercise with me? (It will lead you to MORE sales.)

Step 1: Write down the names of three clients that you have successfully implemented a life insurance program for in the last year. Take your time.

Step 2: Now, think specifically about the conversation that you had with these three people. What did you say exactly that piqued their interest? Think hard, then write that down.

Step 3: Ask yourself what motivated these three prospects to buy. This motivation, along with what you said to gain their interest, is what's going to be needed to motivate the next family or business client to implement a program with you.

I find that you can actually place more life insurance by not talking about life insurance. Talk instead about the benefits that a quality life plan will provide. Always answer the question: “What's in it for them?”

Step 4: Now be honest with yourself. Did you thoughtfully ask these three happy clients to be introduced to their friends, neighbors, co-workers and relatives? If I were with you now, could you show me these referred leads?

This simple four-step system solves your two biggest challenges: always needing an inventory of good referrals to contact and always needing to cover the right information that leads a prospective buyer to buy.

In closing, here are a few thoughts and questions to seriously consider:

• Why do you own life insurance? 
• Do you currently own the proper life insurance program? For starters, do you own 10 times your annual income?
• If you don't own an adequate life insurance program, is it any wonder or surprise that you may lack the strong conviction to provide that coverage to others? 
• When was the last time you sat down with yourself and another practitioner to figure out if you actually had the right amount of coverage?

It is my intention to share with you tips, strategies and tools that will aid you or any of your associates to sell more, work less and have fun in the world’s most important industry.

Until next time, stay committed to being significant in the lives of those you serve.

Peace, Love and Gumbo! 

Marvin LeBlanc LUTCF, CNP 

(DIRT)+C = Growth for your Agency © ™

A Five Part Series on how to Effectively Manage Your Advertising and Marketing Budget

Part One: D = Direct Mail

It’s a common phrase I used with the agents I worked with on marketing their agencies in the Rochester, New York area, “You know half of your advertising works and the other half doesn’t, now to figure what half that is.” Usually the line would get a polite chuckle in a group meeting or in a one-on-one a nod as if to acknowledge the frustration most insurance agents feel towards advertising and marketing. In the last ten years we have seen drastic changes in what advertising and marketing looks like in the past, pre-internet (if you can remember that far back) you had well paid professionals who were your account executives who helped you with cable, newspaper, the local coupon mailer, and so on. However in the last decade as the Internet has exploded there are a ton of “free” resources for you to use as an agency owner online, but they come at the cost of your time and really who has enough spare time to figure out the Internet when you have an agency to run? 

Looking at successful agencies that had been in business for more than five years and then applying our learning to new agencies just getting started; it became apparent that the agents who “worked the DIRT” were the agents who were having the most success in growing their agencies. DIRT is an acronym for D = Direct Mail, I = Internet, R = Referrals, and T = Telemarketing and then later with the advent of social media I added “C” referring to community involvement. So let’s dive into direct mail.

I know response rates are down with direct mail with the advent of the Internet, but if didn’t work why do you still get mail from the crazy lizard insurance company? Because it works! Now as a local insurance agent or small business owner you cannot match any large national carrier piece for piece, but you can own is your neighborhood. First understand the demographics of your neighborhood and understand who within a five mile radius is most likely to buy insurance from your company either based on price or if you are in a more affluent area then it’s a combination of price and service that will drive people to your door.

Once you know this information start mailing, and keep mailing. My feeling on direct mail is “Go Big or Go Home”, meaning you can’t just do one mail drop and say, “That didn’t work, time to stop mailing.” Direct mail is long-term strategy that will take months or years to reap a return from. However what it does is let the neighborhood around your agency know you are there month-in and month-out. With current response rates below 2% with direct mail most people will throw it out, but what you are hoping for is that when your neighbor has an issue with their current carrier such as a rate increase or bad claims experience your piece of mail ends up in their inbox, and they make the call because they got your piece of mail.

Direct mail isn’t complicated but it’s not a onetime event, and for most agency owners that’s what makes direct mail so frustrating. Key points, focus on the area right around your agency, be consistent mailing monthly or at least every other month, and keep it doing it. Because the people who respond to a mailer are not the people who are going to jump online for a quote, and you want to be “there” when they need you.

The Author: Brad Heutmaker, MBA, is the President & CMO of Chairman’s Management, LLC. He personally works with some of the largest insurance carriers and agencies in the country. You can follow Brad on Twitter @bradheutmaker or “Like” his Facebook Page – Chairman’s Management, LLC

Hello Marvelous Peeps!

Today please consider this sobering question:

"IF YOUR LAST PAYCHECK WAS YOUR "LAST" PAYCHECK, HOW LONG COULD YOU & YOUR LOVED ONES SURVIVE ON THE MONEY YOU HAVE?" Marvin Feldman, today's guest contributor offers you valuable content & insights that need to be carefully considered.

Should you have additional questions, please contact us & we'll help you in
any way we can.

Marvin LeBlanc

It's time to help Americans protect their paychecks!

Eighty-two percent of Americans strongly agree that if you own a car, you need car insurance. Eighty percent feel that if you own a home, you need homeowner's insurance. But did you know that fewer than half of all Americans (48 percent) strongly agree that it's necessary to protect an asset that is many times more valuable than cars or homes - their paycheck - with disability insurance? This is what a 2010 LIFE Foundation survey recently discovered.

That's where we, the agents and advisors, come in. Few people stop to think about what would happen if an accident or injury left them unable to work or earn a paycheck. Those who do think about it may erroneously assume that they will be able to rely on worker's compensation or Social Security to see them through their disability.

This is why, each May, the LIFE Foundation focuses the industry's attention on this critical issue during Disability Insurance Awareness Month. The theme for this year's campaign is Protect Your Paycheck - something that should resonate with everyone who works and earns a paycheck. This May and beyond, it's our job to educate the public about the importance of protecting their paycheck with disability insurance, and to make sure they obtain the coverage that they need. I know it isn't easy.

Take a typical 20-something: They think they are invincible. What can happen to them, right? A disabling illness or injury? That's for other people, older people. This widespread mentality is one of the things that makes the realLIFEstory of Bill Reid so amazing. He was just 26 years old and working as a banquet manager when he bought an individual disability insurance policy. He also increased his coverage as his earnings rose. When he was 32, his life changed in an instant.

On New Year's Eve, as he headed to his sister's house to celebrate with his family, he was hit by another motorist. It took 13 surgeries and seven months of hospital stays and rehab appointments to begin to heal his injuries. While Bill has recovered admirably, chronic, short-term memory loss makes it impossible for him to return to work. His disability insurance, however, saw him through recovery and will provide him with an income until he turns 65.

Bill wasn't so different than any other 26-year-old. He didn't go out and buy that disability policy on his own, armed with the knowledge that it could protect his current and future paychecks. Instead, it was Bill's brother-in-law, his insurance
agent, who had that tough conversation with him about the importance of disability insurance. This is the conversation that we need to have with all of our clients who earn a paycheck. Ask them if they've protected their car, their home, and their paycheck. When they question you on that last point, that's when you start the dialogue.

Marvin H. Feldman is the president and chief executive officer of the
LIFE Foundation. He can be reached at mfeldman@lifehappens.org.

If you would like to see this article in it's original form online please click here.

Hello Marvelous People:
 
Just a brief blog message to keep you abreast of current events with The National Flood Insurance Program. As always, our team stays committed to helping you with any of your concerns. We are grateful to be working with you.
 
If you still do not have Flood Insurance, it's not too late to get it before this Hurricane season becomes active.
 
Special thanks to David Micheler for his efforts in writing this article.
 
Marvin LeBlanc
 
Louisiana Insurance Commissioner Jim Donelon Addresses

Kiwanis DawnBusters
 
STATE OF LOUISIANA INSURANCE COMMISSIONER
This morning  (June 29, 2011) our guest speaker at our Kiwanis DawnBusters meeting was State of Louisana Commissioner of Insurance, Jim Donelon. He spoke about the National Flood Insurance Program (NFIP) this morning and the importance of getting the program  re-authorized before September 30th of this year.
 
On the topic of flood insurance Jim first wants to explain to people the importance of heeding the warnings of local officials and evacuating when potential storms threaten our area. He explained that most of the people who did not evacuate for Katrina did so because of bad experiences with
contra flow during the evacuation for Ivan the previous year.
 
The system has been improved since then and is now much better.
 
Jim explained the great value that flood insurance is to the home owner; the average home owner pays about ten dollars a month. Even with the low cost only 40% of land owners in Louisiana carry flood insurance.

However, the NFIP is currently 18 billion dollars in debt with 15 billion of that coming from Katrina and Rita. There is a fight in the country to re-authorize the program because a small amount of people benefi t from it. Only 12 states are net consumers of the NFIP the other 38 states have pay in and have never collected.

The recent floods this year have opened eyes across the country that just because you do not live on the coast does not mean you are free from the potential of flooding. Off course the other argument is that everyone pays into a program that only a few benefit from.
 
Mr. Donelon was asked about State Farm’s roll in the NFIP and if they were still selling flood insurance. He explained that State Farm did not stop selling flood insurance they just announced they will no longer adjust flood claims for the NFIP. State Farm was accused of shifting liability to NFIP for damage that they should have been covered from wind.

After Katrina they were allowed to have the same adjuster adjust wind and flood damage.

By David Michler

Could Home-Priced Insurance be a Contrarian Indicator?

SmartMoney ran an interesting article this past week on insuring against a
drop in home prices. In short, the article focused on how underdeveloped the
market for hedging and insuring against falling home prices is and how it is
starting to develop.

Up until recently, the only way to insure a home against falling prices was
to buy futures contracts on home prices in 10 metropolitan areas, including
Boston , Miami , and Las Vegas . Of course, if you didn’t live in one of the
10 metropolitan areas, you won’t be perfectly insured. If you lived in Reno
and bought futures contracts based on home sales falling in Las Vegas , you
could still lose if Las Vegas home prices rose while Reno home prices fell.

Today, firms are beginning to sprout around the country offering direct
insurance for local markets. One, Home Headquarters, a nonprofit, sells
insurance at a cost of 1.5 percent of the home’s value for homes located in
Syracuse , New York . More firms are set to enter the market this year.

This tells us something: new products (and articles about them) tend to
proliferate toward the end of a strong trend – either down or up. Perhaps
this latest data point on insuring against falling home prices, combined
with all the other negative data points on housing, is a sign the end is
near in a good way.

Peace, Love and Gumbo

Marvin LeBlanc,

Hello Marvelous People!

A special shout out of thanks goes out to Rod Mabe and his team members over in Coconut Creek, Florida for sharing this great little story. Painting a vivid mental image with proper questions is the point of this story. And maybe just a little “dash” of humor as well ya’ll.

Military Insurance – Sold Cajun Style
Boudreaux, the smoothest-talking Cajun in the Louisiana National Guard, got called up to active duty. Boudreaux’s first assignment was in a military induction center.

Because he was a good talker, they assigned him the duty of advising new recruits about government benefits, especially the GI insurance to which they were entitled.

The officer in charge soon noticed that Boudreaux was getting a 99% sign-up rate for the more expensive supplemental form of GI insurance. This was remarkable, because it cost these low-income recruits $30.00 per month for the higher coverage, compared to what the government was already providing at no charge.

The officer decided he’d sit in the back of the room at the next briefing and observe Boudreaux’s sales pitch.

Boudreaux stood up before the latest group of inductees and said, “If you has da normal GI insurans  an’ you goes to Afghanistan an’ gets youself killed, da governmen’ pays you beneficiary $20,000. If you takes out da supplemental insurans, which cost you only t’irty dollars a mons, den da governmen’ gots ta pay you beneficiary $200,000!

“Now,” Boudreaux concluded, “which bunch you tink dey gonna send ta Afghanistan first?”

 

 

 

 

 

 

 

 

 

 

 

We enjoyed this blog post so much, Spare Some Change? written by Beth Budreck for the LIFE Foundation, that we wanted to share it here with all you Marvelous People:

When I mention the words “life insurance,” people tend to scatter quicker than if I were a sketchy character asking for spare change. And while the holidays are over and the bell-ringers have all gone home, it’s never too late to spare a little change, particularly for your loved ones. As an insurance professional, I can spout statistics and evidence on the importance of life insurance, but I won’t. Instead I’ll let the stories speak for themselves. I have worked with these three women and want to share their stories of “spared change.” (I have changed their names to maintain their privacy.)

Erin came to work for me while she was in high school. She had moved to the Chicagoland area from Memphis four years earlier, not because she made the choice, but because “life happened” and the choice was made for her. While driving home from her grandparent’s funeral the day after Christmas, a drunk driver hit the car she was in head-on killing both of her parents. She and her two brothers went to live with their aunt and uncle, who already had three children. Their family had doubled overnight and so did the responsibilities. But because her parent’s had ample life insurance, Erin and her brothers were able to stay together and were “spared the change” of missing out on all the positive things that the future held, such a private college education. Of course, nothing can replace the loss of a parent, but Erin did not have to lose the promising future her parents would have wanted for her.

Tammy came to work for me about a year ago. She hadn’t planned to move back to the Chicagoland area either. Tammy was living in sunny Arizona with her husband of eight years. They had just taken a slice of the American dream by starting their own business. Their business was starting to pick up as they were settling into their lives together. One night, however, Tammy woke up to find that her husband’s preexisting heart condition had taken a fatal toll. Tammy tried to save him while calling 911, but there nothing she could do. He died on April 15; he was up for life insurance eligibility on May 17. Tammy was left with business loans, a mortgage and no life insurance. In the midst of mourning the loss of her husband, she had to make the difficult decision of moving out the home they had built together. “When he had been able to get life insurance, he didn’t think he needed it,” Tammy said. Tammy was not “spared change” in her life. When I asked Tammy what she would say to people about her experience, she stated firmly, “Even if you don’t think you need life insurance, you do.”

Anne, a bright spirit, worked for me while getting her college degree. Always smiling, she was the kind of person that lit up a room. Anne had talked about getting herself a life insurance policy for some time. She told me, “My parents think I don’t need it,” but decided to get the policy anyway. Ten days after we completed the application, Anne died in a car accident. The life policy was validated. A few days after the accident I spoke with Anne’s mother who said, “If it weren’t for this policy, we wouldn’t have enough money to bury my daughter.” Anne was a 22-year-old woman with no kids, no husband and no major assets. Yet, through her choice, she was able to “spare some change” for her own parents.

How will you spare some change for your loved ones in 2011?

Beth Budreck, CLU, has a BS in finance and has been running her Chicago-area State Farm agency for over 21 years. She is married with two children, a boy who is 7 and a girl who is 8.

This is not my story. But it’s a story from a lady I’ve known for over 20 years that is also in the Insurance Profession. Read and know that you should not “WAIT” for an Insurance Professional to ask you these important questions. Whatever town you are in, ask the trusted professional about these issues.

Annette writes:

My family is in the midst of a nightmare and, sad to say, we are not unique. One of my younger sisters was diagnosed with advanced breast cancer in June. I assure you, I will never again hear the comment that someone has cancer without feeling a deep dread in my pit of my stomach because I know what the individual and entire family will endure. My sister is a 41 year old single mom of a 14 year old boy. Immediately gripped with the fear of possibly losing her, we were also immediately thrust into making decisions. Decisions that I quickly recognized coulda, woulda, shoulda been pre-determined through a thorough Insurance & Financial Review.

What does her Group Medical provide for? Not provide for? Does she have prescription coverage? What are the benefits for Paid Sick Leave? Disability? What are her monthly bills? Does she have any savings? Does she personally own any policies? How will the family get her back and forth to Houston? How will we pay for lodging and meals during the stays? Who in the family can miss work for these trips? Who in the family can take day shifts at home between treatments? Who can take night shifts? Who can do the housework? Who can cut the grass? Who can cook meals? Who can help with her son? Obviously, the list can go on and on.

Guilt? I have felt tremendous guilt and anger with myself. Do you know how many times I have said, “Why didn’t I just ask her?” As early on as when I was a new agent and she was newly married, why didn’t I ask her to review her coverage? As we both became single mothers, why didn’t I just ask her to meet with an agent and have a cup of coffee about things? As I worked with an Attorney to complete a Will, a Living Will & Medical Power of Attorney, a Trust for my children, a Durable Power of Attorney, why didn’t I just ask her if she had prepared these? As she turned 40 years old, why didn’t I just ask her if she scheduled a base-line mammogram? We both have March birthdays: as I completed my annual mammogram, why didn’t I just ask her if she had scheduled hers?

I had obligations as her older sister and as an insurance professional to “just ask” questions, and I failed her. Now it is too late: she is forever un-insurable. She will not be able to purchase a Hospital Income policy, Disability Income policy, Mortgage Disability Income, Life Insurance, Long-Term Care insurance. Now it is too late: nothing in her life is private. I am handling sensitive medical and financial matters. My parents and all siblings are in her home day and night taking over the life she had with her son.

I feel good about my insurance & financial planning. How many times have we said that our client base deserves the same financial planning that we provide for ourselves? My sister deserves this, but now it is too late. Why didn’t I just ask? Why didn’t her insurance professional just ask? Getting insurance education is easy - ask questions before it is too late.

We enjoyed this blog post so much, Spare Some Change? written by Beth Budreck for the LIFE Foundation, that we wanted to share it here with all you Marvelous People:

 

 

 

 

 

 

 

 

 

 

 

When I mention the words “life insurance,” people tend to scatter quicker than if I were a sketchy character asking for spare change. And while the holidays are over and the bell-ringers have all gone home, it’s never too late to spare a little change, particularly for your loved ones. As an insurance professional, I can spout statistics and evidence on the importance of life insurance, but I won’t. Instead I’ll let the stories speak for themselves. I have worked with these three women and want to share their stories of “spared change.” (I have changed their names to maintain their privacy.)

Erin came to work for me while she was in high school. She had moved to the Chicagoland area from Memphis four years earlier, not because she made the choice, but because “life happened” and the choice was made for her. While driving home from her grandparent’s funeral the day after Christmas, a drunk driver hit the car she was in head-on killing both of her parents. She and her two brothers went to live with their aunt and uncle, who already had three children. Their family had doubled overnight and so did the responsibilities. But because her parent’s had ample life insurance, Erin and her brothers were able to stay together and were “spared the change” of missing out on all the positive things that the future held, such a private college education. Of course, nothing can replace the loss of a parent, but Erin did not have to lose the promising future her parents would have wanted for her.

Tammy came to work for me about a year ago. She hadn’t planned to move back to the Chicagoland area either. Tammy was living in sunny Arizona with her husband of eight years. They had just taken a slice of the American dream by starting their own business. Their business was starting to pick up as they were settling into their lives together. One night, however, Tammy woke up to find that her husband’s preexisting heart condition had taken a fatal toll. Tammy tried to save him while calling 911, but there nothing she could do. He died on April 15; he was up for life insurance eligibility on May 17. Tammy was left with business loans, a mortgage and no life insurance. In the midst of mourning the loss of her husband, she had to make the difficult decision of moving out the home they had built together. “When he had been able to get life insurance, he didn’t think he needed it,” Tammy said. Tammy was not “spared change” in her life. When I asked Tammy what she would say to people about her experience, she stated firmly, “Even if you don’t think you need life insurance, you do.”

Anne, a bright spirit, worked for me while getting her college degree. Always smiling, she was the kind of person that lit up a room. Anne had talked about getting herself a life insurance policy for some time. She told me, “My parents think I don’t need it,” but decided to get the policy anyway. Ten days after we completed the application, Anne died in a car accident. The life policy was validated. A few days after the accident I spoke with Anne’s mother who said, “If it weren’t for this policy, we wouldn’t have enough money to bury my daughter.” Anne was a 22-year-old woman with no kids, no husband and no major assets. Yet, through her choice, she was able to “spare some change” for her own parents.

How will you spare some change for your loved ones in 2011?

Beth Budreck, CLU, has a BS in finance and has been running her Chicago-area State Farm agency for over 21 years. She is married with two children, a boy who is 7 and a girl who is 8.

Hello Marvelous People!

We enjoyed this blog post so much, Spare Some Change? written by Beth Budreck for the LIFE Foundation, that we wanted to share it here with all you Marvelous People:

When I mention the words “life insurance,” people tend to scatter quicker than if I were a sketchy character asking for spare change. And while the holidays are over and the bell-ringers have all gone home, it’s never too late to spare a little change, particularly for your loved ones. As an insurance professional, I can spout statistics and evidence on the importance of life insurance, but I won’t. Instead I’ll let the stories speak for themselves. I have worked with these three women and want to share their stories of “spared change.” (I have changed their names to maintain their privacy.)

Erin came to work for me while she was in high school. She had moved to the Chicagoland area from Memphis four years earlier, not because she made the choice, but because “life happened” and the choice was made for her. While driving home from her grandparent’s funeral the day after Christmas, a drunk driver hit the car she was in head-on killing both of her parents. She and her two brothers went to live with their aunt and uncle, who already had three children. Their family had doubled overnight and so did the responsibilities. But because her parent’s had ample life insurance, Erin and her brothers were able to stay together and were “spared the change” of missing out on all the positive things that the future held, such a private college education. Of course, nothing can replace the loss of a parent, but Erin did not have to lose the promising future her parents would have wanted for her.

Tammy came to work for me about a year ago. She hadn’t planned to move back to the Chicagoland area either. Tammy was living in sunny Arizona with her husband of eight years. They had just taken a slice of the American dream by starting their own business. Their business was starting to pick up as they were settling into their lives together. One night, however, Tammy woke up to find that her husband’s preexisting heart condition had taken a fatal toll. Tammy tried to save him while calling 911, but there nothing she could do. He died on April 15; he was up for life insurance eligibility on May 17. Tammy was left with business loans, a mortgage and no life insurance. In the midst of mourning the loss of her husband, she had to make the difficult decision of moving out the home they had built together. “When he had been able to get life insurance, he didn’t think he needed it,” Tammy said. Tammy was not “spared change” in her life. When I asked Tammy what she would say to people about her experience, she stated firmly, “Even if you don’t think you need life insurance, you do.”

Anne, a bright spirit, worked for me while getting her college degree. Always smiling, she was the kind of person that lit up a room. Anne had talked about getting herself a life insurance policy for some time. She told me, “My parents think I don’t need it,” but decided to get the policy anyway. Ten days after we completed the application, Anne died in a car accident. The life policy was validated. A few days after the accident I spoke with Anne’s mother who said, “If it weren’t for this policy, we wouldn’t have enough money to bury my daughter.” Anne was a 22-year-old woman with no kids, no husband and no major assets. Yet, through her choice, she was able to “spare some change” for her own parents.

How will you spare some change for your loved ones in 2011?

Beth Budreck, CLU, has a BS in finance and has been running her Chicago-area State Farm agency for over 21 years. She is married with two children, a boy who is 7 and a girl who is 8.