Don’t Be a Half-Brained Sales Professional

People (customers) are both logical in nature and emotional. That is to say, our brains are constructed in such a manner that the left brain and right brain (the two distinct anatomic halves) function differently—with specific tasks and processes for which they are designed and ordained to adhere to naturally.

The left brain is that half which seeks for details, facts and figures, the literal interpretation of things. The “other” half, the right brain, is quite different in its function. It is in the right brain that our intuitive senses reside. It is the retreat for all our feeling, fears, and beliefs. The right brain is the seat of our emotional being and is, therefore, the domicile of our impulse to act and to buy. The two are interconnected as a right brain process.

Where the left brain analyzes things—the right brain understands, empathizes, decides, and is moved to action. So together, the left brain and the right brain form all our thoughts and behaviors as human beings. And when the decision is made to buy something (a right-brain process), the planning and organizing needed to accomplish the act is processed in the left brain.

“These two minds, the emotional and the rational, operate in tight
harmony for the most part . . . In many or most moments these
minds are exquisitely coordinated; feelings are essential to thought,
thought to feeling. But when passions surge the balance tips: it is
the emotional mind that captures the upper hand, swamping the
rational mind.”

Daniel Goleman
Emotional Intelligence

Customers feel first and think second. This statement is not meant to be an indictment against customers, but is simply a recognition of how people process information and react to emotional appeals or stimuli. People buy out of emotion (right brain) and justify later with logic (left brain).

“Emotions influence every aspect of our thinking life: they shape
Our memories; they influence our perceptions, our dreams,
thoughts, and judgments—and our behaviors, including our
decisions whether to return to a place of business, how much we
are willing to pay for a product or service . . .”

Janelle Barlow
Emotional Value

Medical science and marketing research have proven that the customer-mind in relation to the buying behavior is anything but completely logical. A clear hierarchy exists in our thinking; we buy on feeling or emotions and rationalize our behavior afterwards with facts.

“The intuitive gut feeling is the engine of the decision train, and
logic and rationale are the cars it pulls behind. Yet in many of our
presentations to clients we spend too much time filling the
rationale boxcars with facts and figures and not enough time
trying to influence the engine that pulls the train—the gut feeling.
A powerful presentation first influences the emotion that drives the
decision and then adds logic as the client asks for it . . . Buying
decisions hinge more on feeling than they do on fact.”

Scott West & Mitch Anthony
Storyselling for Financial Advisors

So then, what does this all mean to the sales professional? It
means that in order to sell well, you must get emotional with customers! Get emotional with customers? What does that mean?

It means that in order to improve your sales, learn to speak and communicate in the language of the right brain. Don’t be a half brained sales professional—the kind that is always appealing to the logic of the left brain; who feels comfortable within the realm of facts and is all too eager to explain to the customer the internal rate of return of a whole life insurance contract versus a universal life policy, for example.

Be honest with the customer . . . be factual as well. That’s part of being a sales professional. But for your own sake in having a successful career in sales, and for the sake of the customer who is seeking clarity, understanding, guidance, and simplicity . . . be emotional in your sales conversations! Don’t hurt the customer’s “brain” with a bunch of facts and figures only. That can be overwhelming and taxing. Besides, it does not bridge the mind to the emotional right brain where the impulse to buy resides.

“There is no expedient to which a man will not resort to avoid a
real labor of thinking.”

Sir Joshua Reynolds
Influence

Make the sales conversation as easy to understand as possible while at the same time understanding that emotions rule our desires and impulses to buy.

“You know, Tom and Mary, waiting to buy this life insurance protection when you feel you are ready is a little like waiting until you’re ready to have kids. It never feels like you’re ready, but you know in your heart there’s no better time than now. Wouldn’t you agree that there’s no better time than now for you to ensure that your children, Lydia and Thomas, won’t have to move from the home you worked so hard to provide for them in the event you were to die?”

Or

“I understand the loss of a loved one can never be replaced. But what we have proposed here for you two is a plan for $200,000 in life insurance on each of you in order to avoid having the bills pile on as a result of lost income and all the worry that comes with not having enough money to live your life. That would be awful. That’s the last thing you’d want to see your family endure especially after the loss of a loved one. What do you think?”

OR

“Tom and Mary, after analyzing your situation, what is recommended for you in regard to auto liability coverage is $250,000 for bodily injury protection and $100,000 in property damage coverage. What this means to you is that if either of you or your teenage son, Thomas, were to be in an accident and found to be at fault, we will provide you with protection when the other driver comes after you for money for any injuries sustained up to $250,000. Our society is very sue conscious...and it is very common for the other driver to get an attorney and sue when you are at fault..."

"The same goes for any property damage, such as vehicle repairs or replacement and other damages to someone’s lawn or fence, for example, up to $100,000 of protection. At first glance, these amounts may look like a lot, but an auto accident can easily require these amounts if it were to be of a serious nature. Besides, we would step in and handle all the legal issues and damages on your behalf that your policy affords—protecting your personal assets like savings and investments from being seized as part of a settlement and avoiding the hassle of finding legal representation if you are sued by the other party. In that light, it’s worth it. Do you see how that would work for you and your family?”

We may debate on the exact verbiage of the preceding examples. And it is certain that someone reading this book will find some fault with the script. But don’t fault the effort I make in discussing the facts so much so as to support some of the emotional reasons why people buy life insurance or auto insurance as the two script examples suggest.

“If you want to influence, persuade, or motivate people, you have
to make emotional contact with them.”

Bert Decker
You’ve Got to Be Heard to Be Believed

Before holding sales conversations, plan out word-for-word what you are going to say to the customer. Get used to using emotional language, metaphors, stories, and illustrations in order to stimulate not only the left brain (the factual side or logical side of the mind) but also the right brain (the seat of emotions and the impulse to buy).

Again, don’t be a half-brained sales professional. Make the emotional contact with the right brain of customers as well. Use their names in the sales conversation. Use their children’s names as well. Paint illustrations of what it means to them to have life insurance, health insurance, auto or homeowners insurance with you. Remind them not only of what it is that they are buying, but what it does for them as well. That is the real art of the sales conversation.

It is easy to rattle off facts and figures—but what those facts and figures mean to the customer and how that is communicated can be the difference between a successful sales career and a mediocre or failed sales career. So plan to be successful by first considering the common emotional reasons why someone may buy a particular line of insurance or financial services product from a particular agent.

Some of those emotional reasons for buying are:

peace of mind, love of another person,
no hassles, ease of transaction,
moral/ethical obligation, convenience,
ease of accessibility,fear of loss,
reliability, expectations of gain (greed),
trust, dignity/self respect,
friendly staff, choice/freedom,
pride, make me feel special,
no worries, a good conscience

The above examples simply provide a baseline for you to begin planning out your sales conversation.

By way of another example, if I am in a conversation with a couple about life insurance, and through my questioning (interview/probing) I uncover that they have an overall need of $450,000 apiece in order to meet their specific needs arising from a death. But I discover that the two are most concerned about maintaining the other’s standard of living if they were to die. That is, they are seeking peace of mind emotionally when it comes to why they are really going to buy. A purchase isn’t made for what something is—a purchase is made for what something does for the buyer.

In our scenario, it would be incumbent upon me then to articulate how $450,000 insurance will pay the bills—but better yet, how the money will allay any of their concerns and fears about their children and either spouse having to suffer through the awful ordeal of selling the family home to downsize into something more affordable, changing schools, looking for additional work and sources of income, etc.

This is the language of the right-brain . . . If you want to sell well...to be different...better...and more successful as a sales professional, learn to speak it and not be a half-brained sales professional!

Copyright © 2009 - Tony Cefalu

When Great Customer Service Can Kill Your Business

Agents sometimes defer to service work over sales work. Why? Because, service work is easier than sales work any day. The premise for focusing on "extraordinary" customer service is that it helps with retention in an economic environment where every policyholder, and every client that is retained, represents a precious income stream into the agency operation.

That is what I call a "specious" argument. That is a fancy word that means, your argument rings true and makes sense on the surface...especially when everyone else is saying the same thing. But in reality, it is a failed philosophy; especially when it comes to customer service.

It is a reality of human nature to fall prey to the temptation of taking the path of least resistance when it comes to accomplishing certain things in life. Unfortunately, the the path of least resistance all too often represents outcomes that are less than favorable for the agency owner. Thus, we excuse away the hard work and necessity for aggressively capturing market share and creating customers for the passive activity of providing "unsurpassed customer service."

Please understand, I am not discounting the value of good customer service. What I am being critical of is the unreasonable focus and almost arrogant notion agency owners and staff members assume with their "personal charge" and pursuit of providing superior customer service over the noble effort of selling to people the products they so desperately need from us.

Selling activities represent risk...resistance...work & planning...investment of time, ideas, effort & money...intellectual energy...emotional investment...physical stress. Selling represents uncertainty.

Customer service is easy. Selling is tough.

Here is when great customer service can kill your business:

1. When you prefer to please rather than persuade someone
2. When you choose being "busy" over being productive.
3. When you think service is more important than securing someone's lifestyle and dreams.
4. When you would rather react to circumstances instead of reach out to people.
5. When you live under the fiction that customer service is how future sales are made.

Are you killing you business with customer service? Are you too busy with being the good guy; the good agent or staff team member who goes beyond the norm when taking care of policyholder problems, questions or concerns?

If so, it's time to shift your agency into a sales organization because, nice guys...do finish last...

Copyright © 2009 - Tony Cefalu

All Customers are Created Equal; Just Some are More Equal Than Others

I've been criticized by some individuals, particularly those outside of the sales profession, for my declaring openly that “all customers are created equal, just some are more equal than others!”  


Somehow it’s construed by some that I am unfairly biasing the treatment of one group of customers over another.  Well, the fact that I am biased toward “certain” customers versus  another group of customers is...true.  I am biased; but I am not biased unfairly!

What I am simply trying to state to small business owners, sales professionals, entrepreneurs and agents is that every customer has an economic value to your business or profession.  This economic value can be prioritized or graded.  In the case of the sales professional running an insurance agency, every customer, every separate account and policy generated brings unequal amounts of revenue into your business when compared to a separate and distinct "other" customer within the agency. 

Therefore, I am merely stating a fact of economics when I state; "All customers are created equal, just some are more equal than others."  Those customers or accounts which bring me more revenue value into the insurance agency versus another customer will get treated “differently” than those that do not bring in as much revenue value relative to my business unit.  This isn’t heresy; it is just prudent business practice.

Now please understand, I am not advocating that “certain” customers get treated well and “other” customers get treated poorly.  No, that is not the message.  All customers deserve a good experience, respect, attention, care, professional service, and the utmost in customer service and care. That is the right way to treat anyone person and any customer; with utmost concern for their wellbeing and benefit. That's the kind of trust they place in us as trusted insurance and financial services advisors.  

The message is this; with the limited time and money small business owners and agents have to dedicate to marketing efforts, the smart sales professional favors expenditure of these valuable assets on those who are most valuable to the business enterprise.  It doesn’t make sense on a business level to weight precious resources in favor of customers who do not have the greater “weight” of economic benefit, or revenue, into the business.

Prioritize your customer list and accounts.  Find out who the top 100, 200, 300 premium paying customers you have. Treat all customers as if they are the most important person whenever you are transacting business with them.  But when marketing resources come into question or a decision has to be made at where sales dollars are spent; spend wisely...Hug your customers..and Hug your better customers...closer.

Why? Because some customers are just more equal than others”

 Copyright © 2009 - Tony Cefalu

www.Sales Is a Contact Sport.blogspot.com: You Cannot Out-Perform Your Own Self Image

http://salesisacontactsport.blogspot.com/2009/12/you-cannot-out-perform-your-own-self.html#links

Copyright © 2009 - Tony Cefalu

You Cannot Out-Perform Your Own Self Image

Knowledge about people and a fundamental understanding of the dynamics of how behavior and one’s thinking are inextricably linked together is a valuable asset for the sales expert. That knowledge can spell the difference between being a great salesperson and a “not-so-great’ salesperson. Even though there are some inherently universal underlying personality traits among people, among customers, such as our natural tendency to be judgmental; people are still very different and very, very interesting when we examine individual behavior.

But, I think one of the most constructive lessons as a sales professional that I have learned is a lesson, not focused on the customer themselves, but a lesson focused on me as a professional in the insurance and financial services industry. An awareness of personality types and character traits within customers and the buying public is important and useful, as I’ve stated. But, it is an awareness and understanding about me, and even my profession, and my personality and character traits that has proved to be the most valuable facet of personal and professional growth I have ever experienced.

The power of understanding how self-image ties into individual behavior, personal results and outcomes, and a person’s likelihood for success in life is one of the greatest and most valuable sales lessons that can be learned.

I am Not a Psychiatrist...But I Do Play One at Work from Time to Time

I am not a revisionist historian; nor do I blame my parents, or any one for that matter, for my current faults, failures, and imperfections in life. Yes; I come equipped with all the standard human weaknesses, fears, psychological worries and imagined boundaries that the next person possesses. In fact, my family would probably say that I come “fully equipped” with all the extras when it comes to the psychological baggage that human beings can imagine for themselves.

But, I also understand that when past circumstances have been less than favorable for me in my maturation and development, ultimately the interpretation of those circumstances and whether or not they produce positive or negative results remains a personal choice nonetheless. Environment and personal choice play large roles in shaping our futures and our outcomes.

In developing this thought about self-image and the connection it has to actual real world performance results as a professional and as a person, I think it is helpful to be truthful about some of my own personal experiences and resultant thinking and outcomes.

What You Think…Is What You Are…

The connection between our individual experiences and circumstances and what we think of them directly affects outcomes for us. What we think…is what we are…. As I said, I am not a revisionist historian who blames others and their parents for their own problems in life. My parents did a fine job in raising us. But in sharing with you my revelations into the power of self-image, I begin with a story about my father.

Born in the 1930’s, my father was of a generation that was resilient and self reliant. He was a brilliant man; able to work with his hands building a home or fixing plumbing and electrical problems while just as easily as solving the Sunday crossword or managing one of the many businesses he was involved in. He had a college degree, worked as a professional within the parole and penitentiary systems, owned businesses, tried his hand at acting, was gregarious; the kind of  individual who could work with both his hands and his mind. He was truly an extraordinarily talented man.

He was also a disciplinarian…prone to being somewhat overly critical at times. It was just his way when it came to dealing with his children. I don’t fault him for it. In fact, it can be said that dad’s style created a mental toughness, of sorts, that has stuck with me even to today. But, it also was the reason for some other “not-so-beneficial” ways of thinking that I adopted as well.

I recall one day when I was about seven years old, dad was working on the furnace in the basement. I was there watching him; ready to help if he asked for anything. At some point, dad had asked me to hand him a tool; I’m not too sure what exactly it was that he had asked me to give him. But, in any event, it was the wrong tool. His reaction was less than approving…Let’s say it was one of his “overly critical” moments for me.

In the aftermath of his disapproval, I remember thinking that “dad is really good with his hands, but I am not.”  I thought, “I’ll never be a man-of-the-earth like him.” That is, I thought that I could never be “handy” like him or able to build and fix things using my hands. Because after all, I handed dad the wrong tool that day…So, I must be “bad” at using my hands for such things. Instead, I’ll be an academic…book smart instead of street smart.

And that’s how it was for me growing up. At every turn, I contracted at the thought of taking “shop” class in high school, and as an adult, I dreaded the thought of fixing something in the house or putting together something as simple as a Christmas bicycle. The words, “household maintenance,” became synonymous with being told I need to have a “root canal.” It was unpleasant to think I would have to do something that involved fixing, building, or having to use my hands to do either. I just couldn’t do it. At least, that is what I thought.

You Cannot Out Perform Your Own Self Image

Fast forward to when I was twenty-eight years old and my wife tells me that the garbage disposal at home was no longer working. Being the “can-do” kind of man I thought I was, I did the one thing any red-blooded, self-reliant man would do…I called a plumber.

When he came to the house, I showed him to the sink where the broken garbage disposal was and I proceeded to walk away to let him do his work undisturbed. No sooner had I turned did he advise me that the job was done and the garbage disposal was fixed. I said, “What? How can that be?”

He then showed me the reset button located at the base of the garbage disposal…It was a trip-fuse that would pop out and shut the disposal unit off in the event the tines within the disposal got jammed, for example, when a spoon or fork might fall into the drain unbeknownst to anyone. If the fuse didn’t shut the disposal off, it would likely overheat and burnout causing a fire or permanent damage to the disposal itself. It is a safety feature on the disposal that I was unaware was available.

After paying the $50 to the plumber for the service call, I vowed to never let something like that happen to me; at least it wasn’t ever going to happen to me again when it came to the garbage disposal!

Another time, I was considering remodeling the basement in my house to create an entertainment room for watching television and relaxing with friends when they visited. What did I do? Yes; I called a contractor and got an estimate for the work I wanted done. The price tag for all the remodeling I wanted done, $30,000.  I was stunned. I didn’t have that kind of money to spend.

After moping around for several days because the cost of the remodeling would be so expensive, my wife said to me, "You’re a smart guy. Why don’t you do it yourself? Call your father and ask him what to do. He’ll help you. Go to the library and get some books on how to do the work as well. I know you can do this yourself.”

She was right. I did exactly as she suggested. After a summer of dry wall and sanding, I got the basement remodeled how I wanted it to be done. The cost of the entire project was less than $5000; an 80% savings over the original contractor estimate.

Lastly, after I separated from the military following the first Gulf War, I started my civilian career with insurance sales. My manager had provided me with the name of a client who was in need of a review of his policies. I called the client, set the appointment and embarked on meeting them the next day.

At the time, I was the sole wage-earner for the family. With two children under three years old, we made the decision to have my wife stay at home in order to help raise the children while I worked. We also lived in an apartment and had to budget things very closely since I was starting a new agency and business in a profession that was a complete departure from what we both were accustomed to after spending the last nine years in the military.

The car I drove was a used one with the paint fading on it…it was functional, but it was also very “used” looking. My suits could be described in a similar manner; they weren’t used but they weren’t tailored or fitted like I would have wanted. They were plain. Money was “tight,” as some would say. And as a result, we had to watch carefully what we spent our money on.

Self Image Defines the Realm of the Possible

The next evening, while driving to the appointment, I noticed the neighborhood I was going to had a lot of condominiums in it. As I drove closer to my destination, I saw that the condominiums I had been looking at were not condominiums at all; they were houses, big houses. The address I pulled into had a long driveway that ended into a courtyard where there was a Mercedes and several other “high end” cars parked in it. My car looked out of place; I looked out of place. I felt very uncomfortable. These people were obviously very wealthy and in a different social strata than me.

I was correct. They were very wealthy people who had been successful in real estate. In their mid-seventies, they were a gracious couple who welcomed me into their home and allowed me to review their life insurance and investments with them. Afterwards, I returned to the office where I met up with my manager.

The Question That Changed My Professional and Personal Life Forever

Anxious to hear how his new agent had done that evening, my manager asked me, “How did it go?” I told him about the appointment, what we reviewed and about how they had become successful selling real estate and building homes.

He then asked, “Did you sell them anything?” And I responded with, “No. I can’t sell them anything.” Then he asked me the question of questions; the question that would reveal for me the secret to why most people fail in life, fail to realize their dreams, or fail to reach their potential and be successful.

It was a question that was as genius as it was an indictment against my own twisted thinking and poor self-image as an agent. He asked me, “Why not; who told you that you couldn’t sell them anything?”

“Why Not; Who Told You that You Couldn’t Sell Them Anything?”

I think he was stunned at my response. He just stood there looking at me with a puzzled expression, walking away after a couple of speechless seconds ticked by…I was embarrassed and somewhat ashamed at the fact that I hadn’t thought myself capable of selling this rich, elderly couple one of the products I had to offer. I did have products and services they could have used. But instead of talking to them about it when I was there for the review appointment, I left without ever broaching the subject; thinking I wasn't worthy or able to sell them anything.

If You Think You Can or You Think You Cannot; You are Right!

I wish I could end the story of the older couple by telling you that I returned for a second appointment after my manager’s comment selling them something that they needed. But that is not what happened. Yes; I did return in follow-up to suggest some things that they might want to consider with their current life insurance program and some other investment options they could pursue with me. But in the end, they didn’t buy and I walked away without any sale.

But, what I did walk away with instead was something far more valuable then I could have ever imagined at the time. What I gained was an understanding of the power of self-image to define me, to define my life, to define my outcomes and my success or failures both personally and professionally.

In retrospect, it wasn’t my father who told me I couldn’t fix things or use my hands for building and repairing things. It wasn’t anyone who told me I couldn’t fix a garbage disposal or remodel a basement room into an entertainment center. Nor was it any specific person who told me I couldn’t sell that older couple anything. It was me who was limiting…me.

Who Defines the Realm of the Possible for You?

I was the one who was placing limits on my potential and defining boundaries that confined me to being “just” an academic, or just a mediocre salesman, or someone who can’t instead of someone who could or can do something if he puts his mind to it.

How foolish I was in life. How could I have ever missed this before? How could I have done this to myself?

How About You? What Do You Think About Your Abilities & Our Profession?

Attitude isn’t everything; it’s the only thing. What do you think about yourself? What do you think about your abilities as an agent, a professional, an expert? Do you believe you can be successful? Do you think you bring value to people's lives when you consult with them? Do you respect yourself?

Believe in Yourself and the Future is Yours...

How do you feel about our profession; about being an insurance professional? How do you see yourself in relation to being an insurance agent? Do you feel funny about it; or a bit shy or even a little embarrassed about it because of the public’s misunderstanding about our industry?

Do you think we are noble in our pursuits to sell people insurance and investment products? When people ask you what you do for a living, do you try to avoid telling them the plain truth by masking it in language that paints a picture which is other than the whole truth?

Have past circumstances somehow convinced you that you can’t do something? Have past failures defined for you boundaries that limit your potential to be successful or achieve your dreams? Is your poor self-image telling you you’re not good enough for something or not smart enough? Who is holding you back? Is it you?

Everyone experiences self-doubt. Some experience self doubt more than others; but we all have some measure of doubt or question whenever we embark on a new endeavor, forge toward a new direction or undertake a new challenge. Unfamiliarity and uncertainty create a natural tension within each of us.What I am referring to goes deeper and speaks to the core belief you have in yourself, your abilities, your right to be happy and worthy of success.

What's Holding You back? Who is Holding You back?

Be sure that the boundaries in life that you do encounter are not one’s that have been self imposed.

You cannot out-perform your own self image. If you think you can’t make those calls, if you think you can’t make those sales, if you think you can’t achieve that goal…then you are right.

Today, if you visit my house, you will see that my garbage disposal works, my basement is finished and even my garage is dry walled and fitted out like an extra living room in my house. I did all of that because, I am a man-of-the-earth now. I no longer define myself as an academic...Instead, I am a man who refuses to think he is incapable of doing anything...I am a man that works with his mind...and his hands. No longer will I limit myself by poor thinking and a poor self image.

Am I arrogant for writing such a thing? I don't think so. It is because of the lesson of self image; the lesson that says, ‘You cannot out-perform your own self image,” that allows me to write these words.

It is because of the question I was asked years ago, “Why not; who told you that you couldn’t sell them anything?” I was never going to do that to myself ever again…I hope you feel the same way.

In my garage is a workbench full of tools. Ask me for a certain tool, and I promise you, I'll get you the right one. Proving once again, I am a man-of-the-earth despite any past failures, shortcomings, or evidence to the contrary.

Copyright © 2009 - Tony Cefalu

No One Will Have Done You a Favor by Buying Off of You

On the surface, I am sure the above caption sounds arrogant to the reader, but it isn’t meant to be an arrogant statement. At least, it is not intended to be a statement born out of an arrogant heart. Instead, it is meant to be one that is rooted in gratefulness and in the realization that the noble profession we have chosen, the insurance and financial services profession, is one of the greatest professions that has been conceived by the mind of man.

In a world where people toil to make a living, an honest living, and work to provide for their needs and their family’s needs, we get to do one of the better things in life and sell insurance.

What I mean by that statement is this; there are a lot of good and great things that people can do for a living. There are professions and lifelong pursuits such as being a physician to the poor and under-privileged, counseling of the mentally ill and those in crisis, being a nurse, a fireman, policeman and countless other vocations which can be said to be noble in serving the common good of all mankind. These individuals, and others like them, are heroes and are to be honored for the sacrifices and risks they take on behalf of others.

Our Profession is a Noble Pursuit…We Serve the Common Good of all Mankind

But for those of us who are agents, advisors and consultants who sell insurance products and financial services, I would like to say simply, we are cool.

Yes, our profession is a cool profession; a profession that is so often misunderstood and unfairly maligned by the general public, a profession that is vital to industry, vital to our high standard of living, vital to innovation and invention; a profession that is the foundation for so many other industries and people. Take away the insurance & financial services industry and you do damage to the entire landscape of society.

Keeping the Promises…Other People Make

We help keep the promises…that other people make to their loved ones and business partners. Though a loved one may die, a home burns down, business ambitions are lost, or a car is stolen; we are there for our clients…keeping the promises they have made to their families, their friends, their colleagues and business partners by way of insurance protection. We are the means to an end…And that end has nothing to do with what it is that we sell…but in what we can do for people and what our products can do for them.

So if we are so cool, why do people have such a low opinion of our industry and profession? Who is to blame for our poor public image?

To a large degree, those of us who work in this industry are to blame for the negativity and distrust dominating public opinion. Simply put, we aren’t talkative enough about the great things we do for people. Our problem is in a failure to tell our story to enough people…enough of the time.


We Don’t Tell Our Story to Enough People…Enough of the Time

We need to tell our story, to talk about our good deeds in restoring people and making them whole financially. We need to make sure people hear about how we’ve helped people avoid financial ruin or getting into a financial crucible where bankruptcy would have been the logical next step for them had it not been for insurance money to save the day.

Consider What We Do and You’ll Understand the Caption to this Article

That’s right, we are cool. We are in a great and noble industry. And when I hear people quip about how insurance is a “rip off’ or complain about how we work to deny claims and to not pay what we promise, I let people know that such a statement is untrue.

Why? Because I know and respect the people who make the industry so wonderful…good people…dedicated and hard working individuals…and I can’t remain silent when such things are said. Rather, I will tell the story of how insurance and the industry is one of the noblest professions around and how it can keep them from having an accident turn into a tragedy by way of financial hardship.

Consider Life Insurance & the Impact a Policy can Have on a Family’s Future

For example, the loss of a loved one is devastating, to say the least. As a human being who loves people and cares for them deeply, I wish I could take the pain and grief left for the surviving family members away when someone dies... But, I can’t take away their heartache; no one can. It is…what it is…and so life goes on and we can only pray and hope that the future is brighter for those left behind to carry on.

But, things don’t always move forward as hoped. In fact, it is my observation that the loss of a loved one does one of two things to the surviving family members. It either brings a family together making them closer than ever. Or, it tears a family apart driving a wedge between brothers and sisters, husbands and wives...fostering resentment and bitter feelings in the aftermath of a tragedy.

The reasons can vary widely as to why a division among family members can occur. Nonetheless, pile on the bills in the aftermath of a loved one’s death and the likelihood for strife and a rift among family and friends is dramatically increased. Hence, the miracle of life insurance and how it provides families and individuals with the liberty to deal with the pressures of a loved one dying and the associated financial pressures that follow. The agent who sells a life insurance policy today...can be preserving the relationships of brothers, sisters, mothers, and fathers for generations to come. I'll bet you never really thought of it that way before...That is why I say, we are cool.

I Did Not Drink the Kool-Aid®

I am not an apologist for the insurance industry, nor am I someone who blindly follows along; drinking the Kool-Aid® of mindless agreement with everything we do....I also don’t think they need me to argue in support of what they do…I believe their actions and good deeds speak for themselves. Are there bad actors in the industry? Yes. What industry doesn’t have its problem children; companies who practice illegal and deceptive practices that harm the consuming public and tarnish the reputation of others as a result. But those are few in number and they do get policed. Heightened vigilance in the industry to make sure consumers are treated fairly and right is something I am fully in support of in order to avoid and stop abuses and other misconduct by insurance companies.

Don’t Gush All Over When People Buy Off of You…You Know What I Mean…

Bottom line, when someone buys off of me…or you…be grateful that they chose you as their trusted advisor, their insurance agent who is responsible for making sure that they are protected for what they need and want. That is a good thing…gratitude is an appropriate reaction towards a customer who selects you and trusts you to be their agent, particularly since there are so many agent choices out there today.

What isn’t appropriate is the notion of gratefulness that is born out of a sense of unworthiness or favor…In other words, I do not think it is healthy to think of yourself as lucky or fortunate to have had someone actually do business with you, as if, the customer has better choices than you for an agent and they stuck with you anyway. That’s nonsense. You are the better choice.

My sense of the matter is that some agents, particularly new agents, do feel a bit of the “unhealthy” gratitude I just mentioned. The quicker that kind of thinking is dispensed with the better for you as a professional. Bottom line, no one will have ever done you a favor by buying off of you…

You will have done the favor by seeking them out as a prospect, planning a sales conversation that is persuasive and compelling, and in monitoring their needs and meeting with them periodically to review their situation and adjust their individualized insurance plan so it is current and relevant for what they want and need.

That’s a lot of work, energy, concern and dedication invested in a client by an agent…That’s why I say, No one will have ever done you a favor by buying off of you…It’s because we earn our livings by making sure other’s lives are secure…

For that reason, our clients should be thanking us for doing the worrying for them so they don’t have to…

No One Will Ever Have Done You a Favor by Buying Off of You...

The Favor Will Have Been all Yours...


Copyright © 2009 - Tony Cefalu

Off to a Good Start...But with No End in Sight

90% of the game is half mental.
Yogi Berra

Marathon runners are a very special breed of people. They’re special because of the limits that they push their bodies in a 26.2 mile race; limits that not only test the endurance of the human body, but the power of the will to go on despite the minds rejection of the endeavor and the spirits despair at the daunting task of a finish line unseen.

At what mile mark do most runners quit a marathon? If you are like me, you would probably say the 5th or 10th mile; when the finish line seems so far away and the body’s strain is beginning to anticipate the excruciating pain to come.

But like most things in life, a seemingly simple matter such as the question of when most runners quit running in a marathon race, is not as easily answered as first thought.

It is Important to Get off to a Good Start when Setting out to Run a Race

Aside from the first mile, the 26th is when the least amount of people quit the race. I think the reason that this is true stems from a simple explanation of line-of-sight, or vision for the finish line, where the power of the mind can push the body beyond normal physical limits by way of a clear goal toward the future.

It is important to get off to a good start at the beginning of a race. If a person is to have any chance of success at something, a clear picture of the end in mind is very important in order to start strong and committed, no matter the challenge or the goal. So the beginning of a task, such as the first mile in a 26.2 mile marathon, witnesses very few people quitting because a runners vision of the finish line is so fresh and untested.

Most runners don’t quit at the first mile or so of a marathon because of fresh line-of-sight to the goal…And most marathon runners don't quit during the final mile, the 26th mile either, because they have a vision of where they are going; a vision that is tangible, palpable and real…a vision they can actually see. Sure, they are physically exhausted, but their vision fuels them and tells them to keep going to reach their destination; their prize..

If There is No End in Sight…There’s No End in Sight

Most runners quit a marathon at the 20th mile, a rather strange point it seems to be quitting. Think of the personal investment made by the runner up this point; all the pain, tolerance and sheer will power to keep going just to stop short of the finish line. Why? I think the answer goes back to the original discussion of vision and having a clear line of sight to the goal.

When We Lose Sight of the Prize, the Finish Line…Quitting Makes Sense

When we lose sight of the prize, we lose sight of our purpose and motivation to continue on. If there is no end in sight for the runner, there is no end in sight that can be achieved. Even though a person may be invested both physically and mentally in a given endeavor; invested to the point at which it seems impossible to ever want to give up; it happens. When goals fade away and a vision for the future dissipates, no measure of personal power will sustain the effort to move forward and take another step.

Where there is no vision the people perish.

This underscores an important principle that is a key to success, health and happiness.

That important principle is this:

You must keep your vision alive and stay mentally, emotionally and spiritually fit in order to prosper as an agent, a business owners, husband, wife, father, mother and individual. Know your business plan and envision for yourself what it is you want your agency, or small business, to be known for and remembered for.

After all, there will be days when your body will say no while the mind has to say yes. There will be times when it seems that everything in life conspires to sabotage your goals and dreams. And there will be weeks or even months when you feel like you are hitting the 20th mile. Don’t stop. Keep your eye on the vision of what you want for your business and for you family.

The answer to running the race is to maintain your vision and focus on the finish line. Keep your vision alive and it will keep you alive. Don't give up. Keep striving towards the vision planted in your mind and heart.

In closing, here's a simple 3 step process to keep your vision alive.

1. Write it Down…Write down your vision for your life and career. I heard it once said, If you think it, ink it! That’s good advice. Agents who force themselves to write down their goals end up accomplishing those goals more readily than if they hadn’t.

2. Know your WHY. Why is this vision significant to you? What do you hope for? What is the bigger reason for your vision? Your why is your purpose. You must know your purpose or vision in life. Vision without purpose is like trying to drive a car without an address for a destination.

3. Review your Why statements on a weekly, if not daily, basis. Remember, if you keep your vision alive it will keep you alive.

Purpose fuels your vision and it fuels you. Write down your WHY and your vision for the future will stay clear.

Copyright © 2009 - Tony Cefalu

Hire for the Position, Not the Person

Recruiting, Hiring and Firing. It Comes with the Territory…

Recruiting, interviewing, hiring, executing background checks, plus training and integrating individuals into capable business associates is an undeniable function within all business entities. The agent-owner who effectively and economically executes their role in these areas will be the business entity that survives another day in fulfilling the business purpose. Those who get lost in the hiring process; getting bogged down by uncertain recruiting costs and high expenses involved with installing new hires into the organization...will not survive.

In order to remain viable as a business entity and to sustain growth, agency-owners must be constantly scouting talent while at the same time ready to assess the potential of a candidate’s fitness to fill a given position. Thus, it is extremely important for the agent-owner to draft detailed job descriptions for each position within the organization detailing all function within the agency that fall under the requirements of the position before ever considering to recruit and hire someone.

The on-boarding of new talent can be expensive. At least, it can be expensive when considering the cost involved with acquisition costs and the time invested in evaluating each potential hire. It can also be expensive from a production standpoint. Specifically, if the candidate hired does not perform well in the position they are hired to fulfill, the expense to the agent–owner can be enormous...and can be measured in actual dollars and cents.

That is the great challenge in hiring any new employee into an agency or other small business; making them a center for profit versus an expense on the balance sheet at the end of the year.

How Can I Increase My Chances of Making a New Employee a Profitable Employee?

So, what can an agent or small business owner do to increase the likelihood that a new hire will be a revenue center for them rather than another expense to worry about? The best thing an agent can do to ensure that happens is by being disciplined in the hiring process.

What does it mean to be disciplined in the hiring process? What it means to be disciplined in the hiring process is this; all too often agents who have determined that their business operation needs a new employee will seek to fill that position with someone who is seasoned in the business and already licensed rather than someone who can satisfy the requirements of the job. Worse yet, the reason for hiring some individuals will rest on whether the agent-owner “liked” them or not for some particular reason.

Experience, licenses and a likability factor are important aspects to consider during the selection phase; but alone, these factors in determining whether to hire someone or not can produce disastrous results for the agent-owner. Remaining disciplined in your approach to recruiting and evaluating talent is vital in matching the right candidate for the position at hand. The proper way to evaluate talent is against a standard based on the skill sets necessary to perform the functions of the open position.

Use a Job Description & Match the Requirements of the Position to the Person

Being disciplined in the hiring process means deliberately matching the skills and abilities of a candidate with the detailed tasks as outlined in the job description. This process helps prevent the agent-owner from succumbing to the temptation of bypassing the steps necessary in matching talent to the skill sets outlined in the job description. As a result, instead of relying on the uncertain factors of "personality" and "industry" experience when assessing a candidate, the agent-owner can focus on specific competencies and skill sets as outlined in the job description.

The candidate who is hired for what they can do, rather who they are...has the greater likelihood of being the best hire. The benefit to be gained in adopted such a policy when recruiting talent is this; trading the opportunity to hire the best candidate for the expediency of selecting someone with experience and a license is a foolish thing. Such an unstructured and random selection process can only result in the wrong person being hired.

That alone has a cost all its own; literally.

Copyright © 2009 - Tony Cefalu

Your Money is Your Business...Literally!

Expense Management is a Key to Survival for the Small Business Owner

It is a very competitive business landscape in virtually every sector of the market; particularly hard hit by rising costs in recent years has been the insurance and financial services industry. The slightest miscalculation in spending valuable agency resources can result in a tremendous amount of harm to vital cash-flow needs and deplete precious capital reserves needed to continue operating the agency and meeting payroll demands.

As premium revenues steadily decrease among most insurance companies along with increasing operating expenses, agents are seeking new outlets and touch points to acquire customers and access new streams of prospects to drive growth, achieve policy count increases and offset the challenge of higher operating expenses. The adoption and use of the Internet and direct access points are two examples which indicate the heightened concerns agents have for rising costs in doing business while trying to maximize revenues. These new channels promise a low cost burden to the agent while at the same time delivering a high impact marketing benefit…That’s just what any small business owner needs today.

It all Begins with a Simple Choice

Expense management is not as complicated a matter as is often made of it at the agency level. In fact, when considered against the backdrop of some simple questions related to sales & marketing, determining what is a wise business expense to assume versus one that is not…is a simple task.

It is not the choice between one thing to spend money on and another that presents difficulty for most agents. It is the actual follow through on that decision, or the execution of the choice to spend or not to spend, that causes the most problems for agent and other small business people. Making the choices between good and bad, wise and foolish, smart and…not so smart, are easy choices to make. But acting on those choices; now that is a different challenge altogether.

The Two Question Standard and The Magic of Follow Through

Expense management begins with the two question standard.

1. Is the money I am considering spending intended to drive prospects to my business?

2. If not, does the money I am considering spending go towards keeping the business entity viable and operating effectively and efficiently so I can drive customers to my storefront and keep the current ones that I have acquired?

-If the answer to both questions is, no; then don’t spend the money…Or, if you feel absolutely compelled to spend the money anyway, at least, spend the money very slowly, deliberately…and very reluctantly.

-If the answer to either is, yes, then spend it…And, yes, spend it carefully and wisely.

Recognize that the farther you deviate from this two question standard, the farther away the business drifts away from profitability and solvency.

Expense management has to do with the discipline of follow through.

Can you say, no, to one expense and, yes, to another after applying the two question standard…and then actively follow through with the decision?

Before you answer that question, consider the following example: You are contemplating buying satellite radio for your business car because you are in it so much; with all the driving back and forth to appointments & meetings plus the local channels have such poor reception, satellite radio would be a welcome addition to the business environment.

The above example is a seemingly inane circumstance; the kind of expense that is common and minimal in comparison to other large expenses that an agent, or business owner, is accustomed to making.

Satellite radio; it’s only $12 month, that's $144 a year to enjoy the benefit of uninterrupted reception with a myriad of channel choices for a reasonable cost. What harm can it do to have that in the car? Besides, my comfort is an important aspect of work and of life itself. I have earned it.

I would agree with what could be said to justify the purchase. But those things are irrelevant when considered against the two question standard.

1. Is the money I am considering spending on the satellite radio intended to drive prospects to my business? (Answer: No)

2. Does the money I am considering spending on the satellite radio go towards keeping the business entity viable and operating effectively and efficiently so I can keep current customers or drive new customers to my storefront? (Answer: No)

I am not begrudging agents and other business owners the liberty to spend their money on what they want. The freedom to make choices and decisions is one of the great attractions of being a business owner; and being an American for that matter. What I am suggesting is that agents take the time to consider their expenditures, and impulses, through the filter of the two question standard.

Impulses and Careless Spending can Lead to Business Failure

Many times, I have observed the unnecessary spending of precious business funds on things that are not relevant to the business goal. Blackberry phones, expensive pens and office items, unneeded office furniture and decorations, unnecessary and frequent business meals and excessive spending on office supplies to name a few are examples of expense traps that many agents can fall prey to when making spending choices. And as a matter of record, it is oftentimes the small and seemingly “harmless’ expenditures that cause big problems for the agent owner.

Inevitably, the day will come when money is needed for an expenditure that could actually drive prospects to your storefront, but the funds are not there; Why? Because satellite radio and that Monte Blanc pen you wanted for the office to impress clients was purchased instead. Logic could be used to justify the purchasing of all of the aforementioned items, but if squarely applied to the two question standard and critically assessed in regard to their benefit to the overall success of the agency, the answer would be to forego those expenses and apply them to marketing & sales processes within the office that will have a direct impact on revenues and in lowering expense ratios.

Freedom can Kill You…And it can Kill the Business…

Again, I feel it necessary to remind readers that your money is your business, literally. The ability to spend money and to make choices is a relative matter and a highly personal one as well. Some agents have the fortunate ability to spend more than others. Some agents have a very narrow margin of discretionary money, and are thus; more sensitive to cash-flow issues. This causes them to keep expenses strictly centered on profit and growth spending moreso than the individual with a greater capacity for spending outside thee boundries of necessity.

Agents operating under narrow margins, which are most common, have no latitude for deviation from the two question standard. Still, the wonderful part of business ownership is the ability to exercise personal authority over the spending of money as you see fit. Afterall, it is your business, and no one elses, when it comes to what you spend your money on.

But with the wonderful privilege of business ownership and the freedom of choice that comes with it, there can also be the curse of that same freedom and liberty associated with business ownership. Freedom without self-discipline is a killer. It’s a killer of profit. It’s a killer of production excellence. It’s a killer of a small business…and it is a killer of personal achievement. Freedom without discipline soon leads to bondage and enslavement, if not literally, at least financially when it comes to agent owners.

The Answer to the Question is Not the Solution.

The Solution to the Question is Not the Answer.

What You Do with the Answer is the Solution to the Question.

In regard to expenses and managing them properly as a business owner, there’s a certain discipline necessary that every agent-owner must exercise in order to adhere to the two question standard.

That discipline is rooted in the habit of always personally asking the two question standard whenever contemplating business expenditures and executing upon what has been concluded to be the answer to those questions.

For the answer to expense management issues is not the solution to the question; it is the active adherence to the answer that is the solution to the question…and the question, once again, is this:

1. Is the money I am considering spending intended to drive prospects to my business?

2. Does the money I am considering spending go towards keeping the business entity viable and operating effectively and efficiently so I can keep current customers or drive new customers to my storefront?

The answer is going to be either, yes or no. But the solution is not in concluding on a yes or no answer. The solution is in the deliberate, disciplined act of not spending when it is so indicated, or by spending when it is indicated. That is the discipline of expense management. Sounds simple in its basic form…and it is simple. The hard work is in the application of the answers; the discipline and determination to execute on the answers is the challenge and the magic to effective expense management as an agency owner.

Expense Management Relies on Metrics

Finally, expense management relies on metrics or reports that are generated in regard to revenues, expenses, production, growth, retention and a number of other factors which are used to measure the condition of the business entity and the effectiveness of business processes and personnel. One thing is certain, in any modest sized business organization, there are always metrics available to measure and gauge various aspects of the business and assess alternatives to increase production, improve upon service and manage expenses.

Use metrics in order to analyze the condition your business is in and to be able to adjust your operations accordingly; to capitalize on an opportunity, identify a shortfall, and avoid a business threat or to improve upon an operational efficiency.

Successful People Know Their Numbers

Metrics, in regard to your expenses, provide the owner with a line-of-sight to problems on the horizon before they become problems in the moment where time to make a good decision is not an option.

It has been said on many occasions; successful people know their numbers. Know your numbers…Use the reports made available to you to stay informed on where you are spending money and how you may improve upon business operations to create efficiencies and reduce overall costs at the same time.

Use the two question standard to determine whether or not to spend money on something…Then apply discipline to the answers you conclude. That is the simplicity of expense management at the agent owner level.

Afterall, your money is your business.

Copyright © 2009 - Tony Cefalu