Often, you have the opportunity to buy a seminar system, to participate in a direct mail program, a lead service, a telemarketing program, etc. The question is: Will your money be well-invested and will you get a return?
Here are the seven questions to ask:
1. How does the system deliver prospects, and does it make sense to you? If the mechanics do not make sense, then pass. For example, if a lead service collects cards at the county fair and this is not the type of prospect you want, then move on.
2. Is there a guarantee of performance? The marketing vendor cannot guarantee YOUR performance (if you can’t sell, you won’t do any business), but you should get a guarantee as to what they promise, in writing.
3. Can they provide third-party evidence of their success and integrity? If they have letters from clients, review them. Also, look them up with the Better Business Bureau www.bbb.org/us/Find-Business-Reviews/. Practically every business has some complaints, so be reasonable (perhaps you’ve had client complaints). Read the details and how the issues were resolved. An overall rating from the Better Business Bureau of “B” or better is acceptable because any more than a few routine complaints would get the company a much lower rating.
4. Do any of the financial companies that you are affiliated with recommend the marketing vendor? If none of your affiliated companies recommend this vendor, this is not necessarily a sign that the company provides a poor service. However, if your broker-dealer, FMO, carrier or other financial institution has the company on their approved vendor list OR is willing to place it on their list, then they have done due diligence that gives you an extra degree of comfort.
5. What enhancements have been made to their product or service in the last 12 months? This question will take them by surprise and if they cannot answer it well, this is an indication they are not very customer-focused or do not maintain their product to keep up with the current environment.
6. What is your anticipated return on investment? Assume you invest in a system that shows you how to do seminars better and promises to increase your seminar results by 25%. The system is $2,000. Currently, you take in $10,000 from each seminar. A 20% increase would give you $2,000 more per seminar. If you do a seminar a month, that’s a return of 100% per month. Many producers don’t believe such outcomes are possible. Top producers do and they implement these opportunities — that’s why they are top producers. Be careful of the trap of under-investing in your business and “saving your way to greatness.” Similarly, if you buy leads at $20 each and close one out of 10, assuming you make $3,000 from each new client, then your investment is $200 and your income is $3,000 — a 1,400% profit every time you invest in 10 leads.
7. What training is provided? It’s nice to get a product or service that’s effective but in any situation where you buy a marketing aid, YOU account for at least 50% of the success. For example, the best seminar system in the world won’t help you if you say “uh” and “um” every other word in front of an audience. The best leads won’t make you any money if you call and say “Hey there — wanna invest?” While some financial professionals have a lot of experience and polish, you may need support. The vendor should offer structured training other than just a written manual.
To increase income, don’t look for ways to save money. That’s not how to make maximum profit. Rather, seek to invest your money in opportunities that pay off and use these seven questions to screen them.
Bob Richards is vice president of marketing at ProspectMatch, www.prospectmatch.com.