Close Close

Life Health > Running Your Business > Prospecting

Sales: The final frontier

Your article was successfully shared with the contacts you provided.

Mankind has always been fascinated with the unknown. It drives us toward discovery and a better life. Always improving is the American way.

Agents continue to want to discover the latest invention when it comes to prospecting. But the problem with a new idea is that it is not proven. It often takes a significant amount of money and time to determine the effectiveness of a new prospecting program.

My friend, Don has developed a marketing program that has worked for him for the last 11 years. It has generated revenue of more than $1 million per year for his practice. That’s well over $11 million of revenue after marketing and office costs.

He’s a great marketer, but it didn’t come easy. He had to form an idea, put all of the products and marketing materials together, and then launch. Direct mail and newspaper advertising have gained him more than 4,100 clients in that time, but he made a lot of mistakes and had to change and experiment often to improve the effectiveness of the campaign.

The outcome has been phenomenal. He now offers the whole turn-key system for a fee. I have referred some agents to him, and many have the same objection: “Why does it cost so much?” Most agents don’t understand the sacrifice that goes into creating effective marketing and prospecting campaigns. Also, failure must be factored in. Failure is an integral part of any campaign. That’s how we learn what isn’t successful.

See also: Evaluating the cost of new client acquisition

Bill, another producer, called to ask about a new idea. He gave me the details. It took me about 10 minutes to tear it apart. All I did was ask a few questions about his idea. He didn’t have answers, and it would take a substantial investment to discover the corrections to be made. Producers are uncomfortable with giving up commissions for campaigns that work and are proven over time. When I offered a different proven concept, he bristled at the commitment of time it required. I discovered that he was not willing to make ideas succeed. He required success without hard work. That is simply not a formula for success.

I create seminars and mailings for producers. I consistently hear that seminars are not effective for marketing. Please don’t tell Chris. He just mailed 5,000 pieces for a presentation at a catfish restaurant. He had more than 120 responses and had to expand his dates twice. I created the mailer and the presentation, but I have created a lot of mailers and have a good understanding of what does and does not work. The people who are saying these methods don’t work have some other system they want to push for a contract. Be careful. No matter what you do, remember that you — not the guy who sold you the system — must live with the outcome.

Only work with people who have been recommended with no strings attached. If there’s a buck in the referral, beware.

For more from Kim Magdalein, see:

Loyalty counts

Want some cheese with that whine?

Find the prospecting fountain of youth


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.