| This marketing analysis is focused on the needs of | | | | here can be verified by looking at the front page of |
| middle class insurance customers. Find out why | | | | insurance company home office websites. This is |
| insurance sellers ignore marketing to this large class | | | | especially true with companies holding a history of |
| of buying customers with definite coverage needs. | | | | over 100 years of existence. Hardly a single carrier |
| The bulk of the blame goes both to the insurance | | | | states they are looking for new "agents" to hire. |
| companies and to insurance product agents. Starting | | | | Regardless of products sold, they rave about the |
| with the insurance product agents it is first a manner | | | | opportunities existing for new "financial |
| of obtaining enough insurance customers and | | | | representatives." Why? They want to ignore the |
| premiums to make it through the first four years. My | | | | middle class insurance customers and go after the |
| marketing analysis shows that currently only 7 out of | | | | wealth and jumbo premiums. A new agent is no more |
| 100 agents last this long. In addition, their income | | | | qualified to sell financial products and give investment |
| even with subsidies is $15,000 below the national per | | | | advice than they are qualified to sell birthday balloons. |
| capita income in most states. Surprisingly to some, | | | | It takes years of continued education, experience in |
| the agents selling customers financial related plans are | | | | full scale planning, and plenty of errors and omissions |
| more apt to fail quickly that those selling automobile, | | | | coverage. Talking with prospects about changing |
| homeowners, life, and health products. | | | | hundreds of thousands of dollars with asset strategy |
| THE AGENT LOGIC COMMISSION TRAP Since an | | | | is not for the inexperienced. Forced PREMIUM |
| agents income is supported by income and premiums, | | | | SELLING to the wealthy, as opposed to serving |
| a false perception is easily conceived. If the agent | | | | middle class customers properly. |
| receives 20% commission for selling home owners | | | | SAFETY IN NUMBERS In an analysis of my personal |
| insurance, agents insuring a $800,000 home, get up | | | | insurance selling career, 90% of total premiums and |
| to six times the compensation as marketing one | | | | close to 97% of my sales were to middle class |
| $150,000 home owners policy. Using the same | | | | people. I enjoyed a successful career because of |
| analysis, the life insurance agent selling a $4,000 | | | | realized the value of making so many marketing |
| annual premium life policy may make $3,200 instead | | | | presentations. Giving 20 appointments weekly to |
| of $800 for a $1,000 life policy. GREED SELLING | | | | middle class prospects that had genuine needs was |
| instead of needs selling to the middle class insurance | | | | the solution. False hope is trying to create the |
| customers. | | | | emotion need and buying urge in a few wealthy |
| THE AGENT BIG HEAD TRAP In a recent study, I | | | | clients that are being over pursued. Besides that a |
| came up with 130 substitute titles and variations for | | | | close to 90% closing rate, sure beat 35% to 45% by |
| "agent". It appears that a vast number of agents | | | | more than double. The safety in numbers also reaped |
| want to call themselves specialists, professionals, | | | | in benefits often not realized. There were many |
| advisers, counselors, designers, advisors, planners, | | | | multiple policy sales, shorter presentations, and the |
| consultants, and experts among others. Added too | | | | need for later profitable policy review work. |
| frequently to all this is the word "financial". Financial is | | | | MIDDLE CLASS NEEDS There are few middle class |
| inappropriately substituted for risk, as they think | | | | people insurance education on properly protecting |
| these are words that customers desire to hear. The | | | | their most important assets at a reasonable cost. |
| agent is falsely preying on making prospective clients | | | | The agents trying to look after the essential needs |
| feel they are dealing with a financial expert no matter | | | | of life insurance, major medical, car, home, some |
| what product they are selling. Wealthy customers | | | | disability benefits, and hopefully long-term care face |
| want financial professionals to deal with. EGO | | | | little competition. The needs and money is there, |
| SELLING instead of need selling to middle class people | | | | where are the agents? It is time to fill the donuts. |
| requires insurance risk protection. | | | | HONEST SELLING to middle class insurance |
| THE INSURANCE COMPANY NAME GAME My info | | | | customers equals quality agent rewards. |