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The Major Reason People Do Not Buy Insurance is Not Cost

It’s easy to believe that people avoid make certain purchases because of their cost. But this is too simplistic as the consumer always weighs the cost relative to perceived value. And perceived value is often an emotional perception.  People make decisions emotionally and there are a couple things we know for sure about typical human behavior: 1.  The emotion of fear trumps all other emotions for its motivational power.  Here’s proof. Among Americans, 76% live paycheck to paycheck meaning that once they pay their bills and have mitigated the fear of having their car repossessed, being foreclosed on, or being evicted, they stop earning.  Just keeping the wolf at bay is what motivates Americans to earn up to a specific level.  Given that fear runs American’s actions and financial preferences, you would think life insurance to be an easy sale.  But this preference to assuage this fear is offset by the next emotion. 2.  Americans prefer immediate to deferred gratification.  If that were not the case, everyone would have the purchase of life insurance at the top of their “must have” list.  Rather, Americans opt for having the latest smart phone, a cool BMW or vacationing in the latest trendy […]


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Posted by Larry Klein - December 17, 2013 at 12:01 am

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Financial Advisor Marketing – Two Great Tips from the Field

Financial advisor marketing can be elusive as you likely have no marketing training.  The good news is that a great education abounds for those who seek it. I was reading the interview with Dan Kennedy in Insurancenewsnet and he says something I have known but he says it profoundly: “I  don’t buy anything from anybody who doesn’t do good follow up before the sale because that tells me what life is going to be like after the sale.”   Financial Advisor Marketing Tip #1 Treat prospects as they will be treated when they become clients This reminded me of the financial advisor marketing advice I give concerning drip marketing – it must be done at minimum every 30 days. The consistency of the prospect seeing your communication tells the prospect the following: I will hear from this advisor/agent frequently if I hire him I hear from this advisor/agent more than I hear from my existing advisor/agent The consistency from this advisor/agent shows me that they have “staying power” and are not in it for one sale The consistency from this advisor/agent indicates he is a professional who has a real business, not just a sales effort If you do that drip marketing […]


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Posted by Larry Klein - November 11, 2015 at 9:05 pm

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Financial Advisor Hypocrite

Suppose you walk into a doctor’s office for an exam. After the exam he says to you, “You know, you really need to lose some weight.” You think to yourself, “Wow! That’s the pot calling the kettle black. My doctor must be at least 60 pounds overweight and he is telling me about my weight. Where does he get off?” How different is the above scenario from you telling your clients how to improve their net worth and protect their estate when your net worth is in shambles and you have no estate to speak of? Don’t be offended by this. The best way to change something is to accept the truth. Don’t deny it– you really have no right to tell others how to manage their finances when you have no evidence that you can manage your own. When I posted this notion previously on LinkedIn, there was a slew of comments from people who had been ill and used that as a justification for their low net worth. Others mentioned their youth and how they cannot be expected to have accumulated much. Again, you have more power when you accept the truth rather than generate defenses to it. […]


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Posted by Larry Klein - January 5, 2015 at 1:20 am

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Fundamental to Uber-Success in Financial Services Marketing

Would you like to call up your clients and have them buy whatever you recommend without hesitation?  Would you like to have a database of prospects where each month, you successfully convert a handful into new clients like clockwork? This is indeed possible yet seems unlikely to many producers because they overlook a critical aspect of making money the easy way. The idea is to develop such transparent trust such that your followers buy whatever you recommend. My Experience with Uber-Success When I was a producer in the securities business, I would come to the office each day, call several clients and make a trading suggestion and they would all say yes.  On an average day, I would generate $5000 in gross commission.  It was simple and easy because I was extracting value from my followers. I also maintained a database of prospects, about 800 or so.  Each month these people received my newsletter and also occasionally received an invitation to an upcoming seminar.  Over time, they received a continuous flow of new and smart observations convincing them that I was a person that added value.  While they were not yet clients, each communication was moving them closer and closer […]


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Posted by Larry Klein - June 27, 2014 at 7:28 pm

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