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It’s an age-old question we all contemplate at one time or another: Is my glass half empty or half full? On any given day you can probably tick off a dozen problems with our industry and your own agency. We all can. If you choose to focus on that, your glass is half full.

On the same day, I’m sure you can also find as many or more reasons why there has never been a better time to be in this business. That’s seeing the glass as not only half full, but overflowing.

Of course, if you look at a glass of water from far away, it’s hard to tell if it’s full or empty. In other words, many of us don’t realize how good we’ve got it. At the end of the day, ours is a business based on trust, nothing more, nothing less, and that can’t be measured by traditional Wall Street standards. That’s why we continue to beat out the sophisticated Wall Street guys.

For over 30 years, the Wall Street big shots have tried an end-run around the agency-based distribution channel. First it was 1-800-CHEAP INSURANCE. Then it was the Internet. These direct writers scoffed at the agency-based distribution channel. They believed it was inefficient and too expensive. They assumed the only thing customers really wanted was the cheapest auto or homeowners insurance they could find. From their perspective, insurance has been nothing but a necessary evil and a commodity product. And sure, they did pick up some market share with their thinking, but it’s no secret that they’ve hit a plateau with nothing near a dominant share of the industry.

So here we are, 30-plus years later, and agents are still king. Why? Because we’re in a business based on TRUST! People will pay extra for knowing that you, the agent, will be there to take care of them when an accident or tragedy occurs. It’s hard to get that feeling dialing an anonymous 1-800 number. Even though most of your customers deal with you over the phone and not face to face, they still know you’re there. You’re not in your office for 24 hours a day—they get that; they understand—but what matters to them is your accessibility. You’re part of their local community. You have a name they know. Simply put, they can find you. It gives them peace of mind.

THE HUMAN SPIRIT

A good friend of mine who owns a successful insurance agency in Oklahoma tells agents “don’t worry about computers or impersonal direct marketing.” Why? Because, as he points out, there are two things a computer can’t do: First, he says, “A computer has a hard time pivoting to another sale,” and, second—most importantly—“A computer can’t have the human spirit.”

Being local is definitely a competitive advantage. But it’s not the only one. Take a look at what’s going on around you. We live in an age of accelerating change, from technological advances to breakthroughs in medicine. They’re all changes that have had a huge impact on our lives.

Today you can sit at home, pay your bills online, watch a first-run movie on your television with surround-sound, surf the web, communicate with your best friends—wherever they live—and you can do it all instantly. Technology is making it easier for us to cocoon.

Then there are advances in biotechnology, such as the discovery of new drugs that can prolong life. Did you know that if you live to age 65 you have a 50 percent chance of making it to your 90th birthday? Think about that. Not only are most of us are going to live longer, but it’s entirely possible we’ll be retired for as long as we worked!

It’s an amazing environment, but ask people about their lives today and most say they don’t have enough time to do everything they want to do. It’s a Catch-22. Here we are, with more and better tools with which to control what we can do, but we have less time to do what we want to do. You probably feel the same way. That’s why, when asked about your business and prospects for the future, it’s natural to see the glass as half empty instead of overflowing.

But it bears repeating: There has never been a better time to be an insurance agent. As our world has grown more complex, as big corporate scandals have shaken our faith in Wall Street and the political system, our psyche has been forever changed. We’ve been burned, and clever ads don’t con us any longer. That’s true of your customers as well. They want what you want—something they can touch and feel. In the insurance and financial services industry, that’s you, the local and trusted professional.

I’m not here to tell you that customers don’t evaluate price, convenience, knowledge and superior service when they’re evaluating insurance or financial products. They do. Of course they do. But in the end, the competitive advantage you have is the personal relationship you develop with your customers. In other words, as in the childhood game of tag, you are “it.”

The Need for Someone Like You

Remember, in the chaotic and time-deprived atmosphere we all live in, customers need personal advisors more than ever. They might get down-and-dirty price quotes from the Internet, but that’s about where it stops. The Internet certainly can’t help them evaluate value. No matter how sophisticated a web site, and no matter how many megabytes of memory a computer has, neither can explain the choices and impact of various types of coverage or financial products. That means the Internet can never be a trusted advisor. It’s a problem for customers, because most don’t know enough about the details of insurance, the law, or their potential liability to make intelligent buying decisions without the help of an informed professional—you.

EVERY FILE IS A BEATING HEART

I was visiting an agency in California a few years ago, and while waiting to meet with the agent I started talking to one of his customer service representatives. She was having a tough day dealing with some customers but she never became unglued. “How do you stay so positive?” I asked. She responded by pointing to the file cabinets that lined the wall. “Every file is a beating heart and everyone on the phone is trying to get through life. My job is to make our customers’ lives easier.”

True, changes in the industry and new competition require us to formulate new strategies to compete effectively and win business. The power of the personal relationship is the key advantage we offer. Yet how are you leveraging this advantage? Do you know the names of each person you insure? Do you measure your agency’s success by the number of policies-in-force, or by the number of customers with whom you have a personal relationship? Do you focus on selling just one or two lines of insurance instead of meeting all the needs of your customers? Sadly, many of the most successful agencies today resemble direct-writer shops with lots of staff handling the phones, high employee turnover, and have an impersonal feel. Although this approach may be an attractive short-term business model, it will ultimately fail. Why? Because there is no compelling value proposition anchoring the customer to the agency.

Banish Old Ways of Thinking

Have you heard or made this comment recently: “Competition is coming out of the woodwork and it’s killing me on price,” or, “If things don’t change soon the flood of policies leaving by the back door is going to put my agency under.” Rumors of the demise of the agency-distribution system are greatly exaggerated and generally come from agents who are unwilling to adapt to a changing marketplace. Many of these same agents are frozen by fear; fear that they’ll suffer the same fate as dinosaurs—extinction!

OPPORTUNITIES ABOUND FOR ALL AGENTS

It was less than 20 years ago when all of the major insurance companies advised their independent distribution centers (agents) to transform from salespersons to business owners. Did every agent make the change? Some did, but many did not. Remember the days when there were clearly defined boundaries between insurance agencies, banks, and brokerage houses? They’re gone! With the 1999 repeal of Glass-Steagall, Depression-Era national legislation that created those barriers, the lines of demarcation have blurred. Today, companies are focused on retention and organic growth, and many have formed strategic alliances. For the personal insurance professional this is nothing short of the next gold rush, not seen since the 1850s in California.

So why are the majority of insurance and financial services professionals waiting on the sidelines to strike the mother lode? Perhaps it’s because the change isn’t what they had planned. Great opportunities rarely meet you on the same path. Instead you must recognize the opportunity on a new course, in a new direction. You can do it, but you have to embrace change first. You have to become an evangelist of change. Look around your agency every day and find something you can change for better results. Write it down, then next to it write down the date that you’ll initiate the change. When that day comes, just do it! And don’t worry; I’ll be giving you loads of strategies to help you get there.

In the process of writing this book I had the great fortune to talk to thousands of personal insurance agents and witness firsthand the transformation of agencies all across the country. Many agents have made a conscious choice to take an offensive stance rather than playing defense. These agents are redefining their roles as personal insurance and financial services professionals, and adapting to new market conditions. They’re leveraging their greatest single asset—a personal relationship based on trust. That’s what this book is all about, because those personal relationships are the landmarks on a road map to the future.

In the pages that follow I’ll define the opportunity, show you how to exploit the obvious, and help you lay a foundation for the greatest business opportunity of your lifetime.

Your Success Depends on You

If you’re willing to give 100 percent to make your agency a success and if you follow the system that I detail in the following pages you will succeed. But first ask yourself some difficult questions. Am I ready? Am I enthusiastic about changing my agency? Am I ready to change my life and the way I view my business? Am I ready to put the fun back into what I do? Am I willing to get recharged and fully engaged in what I do for a living? If you answered a resounding “Yes!” then you’re ready to join me for this incredible journey.

Congratulations! You’ve decided to become part of the future instead of the past, so let’s get started. It’s time to take a closer look at that glass of water!

Chapter Highlights

— As a personal insurance agent you already have a competitive advantage over other distributors of insurance products—a personal relationship with your customers.

— Consumers need a personal advisor for their own protection. They won’t get that from 1-800-CHEAP INSURANCE. They will get it from you.

— Change is inevitable, so banish your old ways of thinking and profit from it!

— Clearly defined boundaries between insurance, banking, and financial services are gone. Adapt to today’s realities to guarantee yourself a seat at the distribution table.