7 Harsh Truths that Will Make You a Better Advisor

By Ryan Pinney

If I asked you what it meant to become a better advisor, what would you say? Becoming a better advisor could mean selling more policies, expanding your business to include partners and staff, or using technology effectively to spend more time with your family.

But no matter how you define success, you can only get there by absorbing the lessons from these seven harsh truths about our industry.

1. We approach insurance like amateurs.

I often meet agents who believe that competing on price, products, and customer service is enough. But these things have turned us into commodities in consumers’ eyes. We need to lay the groundwork that truly positions us for success. To do that, identify your niche and present your value proposition. Be smart about finances—calculate your ROI on leads, and find a support staff or BGA to save time and money on back-end processing.

2. We don’t know how to market.

Few people generate enough leads on their own to be successful.

Agents frequently ask me for advice on website design and social media before they have a target market or a process that guarantees consistent follow-ups. They don’t understand that few people generate enough leads on their own to be successful.

Part of the problem is that we still use this antiquated terminology of "prospects." And what we really mean is that we’re going to go out there and cold call people. Or we’re going to start a conversation with someone at the grocery store and try to get them to say, “I’m interested in life insurance,” and then we pounce.

We’re told to mingle at the Chambers of Commerce. We’re told we need centers of influence and referrals. The problem is that we don’t do any of this well. So we turn to the 100 friends and family members we know, and when we run through that list, we’re out of business.

This is not the business model for any other industry that I know of.

That’s why – when agents ask me for marketing advice – I suggest they create a plan for up-sells, cross-sells, and referrals to maximize the lifetime value of every client. Serve your existing clients first before marketing to new leads. That’s the most helpful perspective shift you could make to not only keep yourself in business, but to grow that business over time.

3. We don’t have repeatable processes.

Repeatable processes help you be more effective and efficient. For example, you should deal with common situations the same way every time, using tools like phone scripts and email templates. One a task is systematized, you can move to automation where it makes sense, such as in email marketing.

4. We don’t know how to earn referrals.

In my experience, clients account for roughly 80% of profits and 20% of expenses because they’re open to up-sells, cross-sells, and referrals. But do your clients know what type of referrals you want? Or what you do with them? You need a systematized way of asking for referrals, accepting them, and following up with both parties.

5. We haven’t modernized the way we do business.

I still know agents who lug client files to and from meetings. They aren’t using modern tools that provide data security and actionable business intelligence. For example, a client relationship management (CRM) system lets you effectively track prospects and clients using automated marketing and follow-ups. Software and web analytics tell you which emails your prospects opened and which web pages they visited. Social media and text messaging keep you up-to-date with clients’ needs and financial goals. All together, these tools help you do more in much less time.

6. We forgot to make it about the customer.

Consumers don’t need a sales pitch about you, your agency, or the carrier(s) you represent. Instead, consumers need to know how you can be of value to them. What will they get by working with you? It’s as easy as saying, “I’ll help you define your personal financial goals and create an uncomplicated plan to achieve them.”

7. We’re afraid of success.

This is the most important of these 7 harsh truths.

At a NAIFA Sales Summit, I once spoke to a woman who sold health insurance. Her business was down, so I asked if she’d branch out into life insurance, annuities, or long-term care insurance and, if so, how many of her clients would likely buy another product from her. One in five? One in 10? One in 20?

She estimated one in five of her 1,200 clients would probably buy.

I told her, “You’re worried about losing your income, but you have such great clients that one in five would buy something else from you. But you haven’t offered any of them any other products or services.”

You’re afraid to be successful because you’re not willing to put in the little extra work it takes to ask the clients you already know will say yes.

I told her that all the things she’d been complaining about were not the problem. “You’re afraid to be successful because you’re not willing to put in the little extra work it takes to ask the clients you already know will say yes. You’re not willing to learn about a new product or service that you can offer with your existing licensing. Basically, you’re the reason you’re not successful.”

She told me she had never thought of it that way.

Success means getting a client to say, “Yes, tell me more.” But then we have to expand our knowledge to sell that new product. This is hard, and many agents aren’t willing to do it. To succeed in this business, we can’t be afraid of something because it’s hard. We have to leverage people and companies who have the specific knowledge we need, and rely on them when the client says yes.

Many agents aren’t taught that if the way of doing business changes, we have to change our business model accordingly. That’s what any other industry in the world would do. Successful companies in other industries are constantly coming up with alternatives and new ways to approach the problem to be successful. We largely fail at doing that as an entire industry.

But when we’re able to put the consumer first, use tools and technology that help us do our jobs faster, and reach out and ask for help when we need it, we’ll all become better – and more successful – advisors.

Ryan J. Pinney, LACP is a twelve-year MDRT member with twelve Top of the Table qualifications. Recognized for using innovative technologies to drive insurance sales, streamline the application process, and speed up underwriting, Ryan has been honored by AdvisorToday as a “4 under 40” Financial Advisor, by LifeHealthPro Magazine as one of the “24 Most Creative People in Insurance,” and as a National Association of Independent Life Brokerage Agencies (NAILBA) ID Twenty award recipient. Utilizing a wide array of digital marketing tools and home-grown technology, his agency sold thousands of policies direct-to-consumer over the internet last year. Ryan is also active in the industry, where he has served as National Trustee for the National Association of Insurance and Financial Advisors (NAIFA) and Divisional Vice President of the Million Dollar Round Table (MDRT).