7 Ways

7 Ways To Grow Your Insurance Business During This Recession Or Imminent Depression
By Kenneth J. Varga
7 Ways To Grow Your Insurance Business During This Recession
Copyright Notice Copyright by Kenneth J. Varga, 2006. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. Disclaimer The author, copyright holder, and publisher (hereinafter we) have used their best efforts in preparing this report. Other than the use of our best efforts, we make no representations or warranties with respect to this report. In particular, we make no representation or warranties with respect to the accuracy or completeness of the contents of this book. We specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranties may be created by implication. No oral or written statement by us or any sales representative or other third party shall create any warranties.
Copyright 2008 by Kenneth J. Varga. All rights reserved.
We do not guarantee or warrant that the information and opinions stated in this book will produce any particular results, and we caution readers that the advice and strategies contained in this book may not be suitable for every individual or business. We, individually and collectively, shall not be liable for any monetary loss, physical injury, property damage, loss of profit or any other damages, including, but not limited to, special, incidental, consequential or other damages. This report is not intended for use as a source of legal, accounting, or professional advice. Any such advice should be sought from competent professionals in such fields of knowledge. USA $97, But Worth A Whole Lot More For information about Group Purchase Pricing Call 1-408-2592912. To subscribe to Ken's Free Marketing Tip of the Week electronic newsletter go to www.kenvarga.com
Table of Contents Introduction 1 4 15 28 35 46 52 59
Chapter 1 Achieve The Real Purpose of Your Business Chapter 2 Build Customer Loyalty With Thank-you Letters Chapter 3 Use Special Reports To Get Your Clients To Do More Business With You. Chapter 4 Create A Policy-Explanation Letter That Will Separate You From Your Competition Chapter 5 Use These 13 Ways To Make Your Clients Feel Good Chapter 6 Identify The A, B. C Clients Of Your Practice Chapter 7 Contact Your Clients And Prospects At The Best Times
7 Ways To Grow Your Insurance Business During This Recession or Imminent Depression
Introduction: In Order To Change Your Business And Your Life, You Must Be Willing To Take New And Better Actions. Otherwise, If You Just Keep On Doing What Youve Been Doing, Then Youll Just Keep On Getting What Youve Been Getting.
The American Psychologist, Professor, and Author, William James (1842-1910), said... Action may not always bring happiness, but there is no happiness without action. To put it another way... Action Is The Ultimate Key To All Success! Thats right, if you want your business, your career, or your life to get better, you must take new and better actions than the ones youve been taking. Your business or life wont improve by itself. Only YOU can make it better. Only you can change your life.
And with the current economic climate of record foreclosures, increasing layoffs, bank failures, and a looming depression, you will lose serious business unless you adjust what you do to capture new business and keep your existing clients. So, my friend, please invest whatever time is necessary to implement the ideas in this book. These are some of the most effective ideas I have used in building two of my agencies that were worth 9 figures each. Implement these to protect your money base and grow your income to new heights... faster and easier than you may have thought possible! To your wealth and success, Ken Varga Your Dream Builder
The man who dies without adequate life insurance should have to come back and see the mess he has created.
~ Will Rogers ~
(1879-1935, American Humorist, Actor)
Chapter 1 How To Achieve The Real Purpose Of Your Insurance Business!

Listen, just like most agents, the main reason you probably got into the insurance profession, either by choice or by circumstance, is because you wanted to make more money to allow you and your family to live the lifestyle of your dreams, right? To put it another way, you wanted your insurance business or career to fund your ideal lifestyle. Lets face it, no matter what your ideal lifestyle may be, you no doubt realize youll need a certain amount of money to be able to enjoy it fully. The great news for you is that your insurance business or career does have the ability to provide you the freedom to live the lifestyle of your dreams. But, and this is a big but, to make the kind of money you want from your business or career, you cant continue running your business the same way youve been for the last five, ten, or even twenty years.
You are operating now in a different economic and business climate that requires some purposeful adjusting. One great way to motivate yourself to take action is to get excited about your goals. This is really the starting point. You see, by clearly defining your ideal lifestyle, and keeping it in front of your eyes constantly, you now have a compelling reason to put my ideas into action, even when you dont feel like doing so. Lets face it, like most agents, its very easy for you to get caught up in your daily activities, so you may put this book on the shelf and let it collect dust. Please dont fall into this deadly trap. Since each one of us has a limited number of hours in a day, its important for us to use our time as efficiently as we possibly can. Look, although there isnt enough time for you to do everything you want to do, theres always enough time for you to do the most important things in your life. Let me now share with you a story to illustrate the important point Im trying to make. If you have heard this story before, it is worth reading again. One day a wise teacher wanted to teach his students one of
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the most important lessons in life. So, when all his students had gathered around him, he took out a jar and started filling it with rocks of various shapes. When he couldnt fit any more rocks into the jar, he asked his students, Is the jar full? Yes, its full, the students replied quickly. The teacher then put pebbles of various shapes into the jar to fill up the gaps between the rocks. Again, just like before, when he couldnt fit any more pebbles into the jar, he asked his students, Is the jar full? And, again, just like before, his students answered, Yes, its full. The teacher then poured sand into the jar until it was filled to the top. And once again, when he couldnt put any more sand into the jar, he asked his students, Is the jar full? Well, by this time, the students were starting to catch on to what their teacher was doing. So they took a few seconds to think about it before answering, Yes, its full. The teacher then poured water into the jar. Now the jar was finally full.
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He then glanced at each one of his students and, after a few minutes asked, What important lesson have you learned from this exercise? Theres always room for more, shouted one student. Thats true, said the teacher, but it isnt the most important lesson Im trying to teach you. The teacher then asked each student what important lesson he or she has learned, and each of them gave him a similar answer as the first student, Theres always room for more. After the last student had answered, also incorrectly, the teacher then said to all his students, Listen very carefully. The important lesson Im teaching you today is If you dont put the big rocks in the jar first, youll never have room for them. My friend, that one sentence, alone, explains why most agents never achieve their biggest goals. You see, because they usually focus most of their time doing unproductive activities, they dont have the time to do the important activities that would allow them to achieve their biggest goals such as their ideal lifestyle. Theres no doubt about it. If these agents have a clear vision of
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their ideal lifestyle in front of them all the time, then they likely will do whatever is necessary to achieve their goal. Unfortunately, because most agents havent taken the time to define what their ideal lifestyles are, or what ultimate benefits they want their business or career to give them, they, from time to time, usually at the end of a long workday, say to themselves What Am I Doing All This For? Does this question seem familiar to you? Have you ever asked yourself the same thing? If so, did you come up with a good answer for it? Like most agents, in the early stages of your career, you probably had some specific and compelling goals that motivated you to work 12 to 14 hours a day, at least 6 days a week, even when you didnt feel like doing so, didnt you? If so, do you still remember what those goals were? Are they the same goals as the ones you have right now? Today, whenever you face adversity in your business or career, what drives you to keep on going? What motivates you to get out of bed every morning, to make cold calls, to go on appointments, and to put up with rejections?
Isnt this because you know, deep within your heart, sooner or later, your insurance business or career would provide you the money to live the lifestyle of your dreams? Well, this definitely was one of the main reasons I didnt quit my insurance business in the early years of my career, although I must have thought about it at least a thousand times. I knew if I persisted long enough, then, eventually, my business would become my greatest financial asset, providing me the freedom to live the lifestyle of my dreams. So, whenever I felt like giving up, I would think about my ideal lifestyle, and how wonderful it would be to live it one day. It was this compelling goal that motivated me to stay up late at night, even after a 16-hour workday, to study all the prospecting, sales, and marketing materials I could get my hands on, figuring out the best ways to take my business to the next level. In 12 Months! Listen closely. One of the keys to achieving anything you want out of life is to have a compelling reason for achieving it. You see, when you have a powerful enough why, youll do whatever it takes to find out the hows. This book gives you some important hows. All you have to do is USE them.
And, to give you more motivation to get more out of your business or career, I recommend you first define your ideal lifestyle. Here is how you do this Give at least 5 answers to each of the following questions. But give as many answers as possible, until you feel you have given deep, core, true answers for you. Not answers that you think you should give, but answers that ring true in your entire being. Use a separate piece of paper that you will keep, or put the answers in your goal book. 1. If I had unlimited money and time, I would go to these places 2. If I had unlimited money and time, I would buy these things 3. If I had unlimited money and time, I would do these activities 4. If I had unlimited money and time, I would help these people (organizations) 5. If I had unlimited money and time, I would become this type of person After giving at least 5 answers to the above questions, its time to set your income goal for the next 12 months. Use the following form to do this
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Setting Your Income Goal For Twelve Months From Now

If youre an agency owner, record your agencys goals here: Amount Date My present agencys monthly income is ___________________ My monthly income, twelve months from now ______________ Number of clients I have right now _______________________ Number of clients I have, twelve months from now __________ If youre an agency manager, a producer, a captive agent, a CSR, or a CSA, then record your goal here: Amount Date My present monthly income or salary is ___________________ My monthly income, twelve months from now ______________ Number of clients I have right now _______________________ Number of clients I have, twelve months from now __________ Signature Date
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-----------------By simply writing down your income goal, youve put your powerful subconscious mind to work for you. Now, for 24 hours a day, whether or not you realize it, your mind will help you find a way to turn your goal into reality. Itll give you the motivation to apply the ideas and secrets from this book in your business or career every week. Well, now that you have compelling reasons for putting this book into action, the next step for you to do is to set up a schedule to apply the systems in your business or career. Use the following form to help you set up a schedule. (See next page).
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Making Your Commitment To Success

I will read a chapter a week from this book, and do it on these days: Time Day Monday Tuesday Wednesday Thursday Friday Saturday Sunday _____________________ _____________________ _____________________ _____________________ _____________________ _____________________ _____________________
I will implement the action steps in my business or career on these days: Time Day Monday Tuesday Wednesday Thursday Friday Saturday Sunday Signature Date
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____________________ ____________________ ___________________ ____________________ ____________________ ____________________ ____________________
By completing the above Commitment To Success form and sticking to it, you will avoid falling into the same deadly trap that most agents have fallen into. The trap of not setting aside the time to do the important activities that really can impact your business. With each action step you take no matter how small it is youll be one step closer to creating your ideal business one that will allow you to live the lifestyle of your dreams. Volume One The man who removes a mountain begins by carrying away small stones. WILLIAM FAULKNER (1897-1962) American Novelist Income 12 Months!
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Chapter 2 How To Build Customer Loyalty With Thank-You Letters

How many thank-you letters have you received from the organizations youve been doing business with? If youre like most people, the answer is very few, am I right? And, for the thank-you letters that you had received, didnt you feel good toward the people or organizations that sent them to you? You bet! While many agents know the benefits of sending thank-you letters to their clients, only a small percentage of them actually do it. This is a big mistake! How about you? Do you send a thank-you letter to each customer who buys a policy from you right away?
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If you do, congratulations! Youre ahead of 97% of all agency principals and agents in the world. But, if you dont, I suggest you do so immediately. Youll be amazed at the enormous impact your thank-you letters can have on your customers. You see, when reading a well-written thank-you letter, like the ones shown on the next few pages, your customers will feel special and appreciated. And so theyll build a deeper bond with you. Just check out the following thank-you letter _____________________
Linda... Thank You!

[Date] Linda Dawson 7008 Seaworld Drive San Diego, CA 92109 Dear Linda, Thank you very much for choosing us to take care of your business insurance needs, and giving us the opportunity to help you protect your business, your other valuable assets, your dreams, and your future. We appreciate your business very much.
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We realize you have many insurance agencies to choose from, and by choosing to do business with us, youve placed your trust in us a trust we take very seriously. So, I promise you well do everything we possibly can to make sure your valuable assets are being protected properly at all times and to provide you with outstanding and personal touch service. To show my personal appreciation for your trust and confidence in us, Im enclosing a special report, How to Get More Customers to Call, Buy, and Beg for More, to help you take your business to the next level. Linda, if you have any questions about your policy, please call your Customer Satisfaction Representative, Julie Anderson, and shell be pleased to help you. Once again, thanks for being our client. Warmest regards, (Your name) Your Dream Protector P.S. Linda, have a profitable day! ABC Insurance Agency, Inc. Specializing In Protecting Your Dreams 123 Main Street, San Diego, CA, 94000
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As you can see, the thank-you letter on the previous page looks so much different from any thank-you letters you may have received from other people, right? Heres what a typical thank-you letter may look like
XYZ Insurance Services

#103 - 1234 Zoo Avenue, San Diego, CA, 92345 Phone: 619-555-5555, Fax: 619-555-5556 [Date] Linda Dawson 7008 Seaworld Drive San Diego, CA 92109 Dear Policyholder: I would like to take this opportunity to thank you for choosing me to be your insurance agent. I have enjoyed filling your needs for your life insurance. If theres anything further I can do for you, please dont hesitate to call on me. Sincerely, James Timm, CLU, ChFC
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Now, which thank-you letter do you think will make Linda Dawson feel more special? The one above, or the one on the previous page? The answer is obvious, isnt it? Theres no comparison. Theyre like night and day. In the letter on the previous page, the first thing Linda Dawson sees is the headline with her name in it. The name and address (and logo) of the agency is printed at the bottom of the letterhead. So she doesnt get to see it until she finishes reading the P.S. On the other hand, in XYZ Insurance Services letter, the first thing Linda sees is the name of the agency, the address, and the phone number. Can you believe what XYZ did? For the salutation, they actually wrote, Dear Policyholder, instead of Dear Linda or Dear Ms. Dawson. Who wants to be addressed as a policyholder? No one, especially not your clients!
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Anyway, if you were Linda Dawson, then receiving a letter with your name in the headline would make you feel extremely special, wouldnt it? Absolutely! Have you ever received such a sincere and compelling thankyou letter from any of the organizations youve done, or are presently doing, business with? You probably havent, right? And, if youve written thank-you letters before, I bet your letters are also a lot different from the sample thank-you letter on page 124, right? Also, I bet your letterhead probably looks similar to XYZ Agencys letterhead, doesnt it? In other words, it has your agencys name, your logo, your address, and your phone number at the top of the letterhead, instead of at the bottom, like ABC Agencys letterhead. Another big difference between ABC Agencys thank-you letter and XYZ Agencys thank-you letter is that in ABC Agencys thank-you letter, the signature title, Your Dream Protector is shown under Your Name, whereas, in XYZs letter, the titles, CLU, ChFC are shown under James Timms name. Listen, whether or not you believe it, using a title like Your Dream Protector is so much more powerful than President or
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General Manager, or an insurance designation like CLU, ChFC, or CPCU. Please understand this important fact. Although youre proud of your insurance designations (and you should be), your prospects and clients dont care one iota about them. Remember, Ive invested several decades and millions of dollars to test all the ideas, techniques, and strategies Im sharing with you in this book. Youll benefit enormously by following my suggestions even though some of them may make you feel uncomfortable. Okay. Besides sending a thank-you letter to your existing clients, whenever a prospect buys a policy from you, within 48 hours, send one to the new policyholder as well. Doing so will astonish them, creating a positive image of you and your business in their mind. On the next few pages are powerful sample thank-you letters you can send to your clients, both new and existing. Note the letters are almost identical, except that different reports are offered to the client depending on the type of policy they hold. ________________________________
Send the following thankyou letter to your new commercial lines clients. 21
Linda... Thank You!

[Date] Linda Dawson 7008 Seaworld Drive San Diego, CA 92109 Dear Linda, Thank you very much for choosing us to take care of your business insurance needs, and giving us the opportunity to help you protect your business, your other valuable assets, your dreams, and your future. We appreciate your business very much. We realize you have many insurance agencies to choose from, and by choosing to do business with us, youve placed your trust in us a trust we take very seriously. So, I promise you well do everything we possibly can to make sure your valuable assets are being protected properly at all times and to provide you with outstanding and personaltouch service. To show my personal appreciation for your trust and confidence in us, Im enclosing a special report, How to Get More Customers to Call, Buy, and Beg for More, to help you take your business to the next level. Please read it at your earliest convenience.
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Linda, if you have any questions about your policy, please call your Customer Satisfaction Representative, Julie Anderson, at [Your Phone #], and shell be pleased to help you. Once again, thanks for being our client. Warmest regards, (Your name) Your Dream Protector P.S. Linda, have a profitable day! ___________________________________
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Send the following thankyou letter to your new auto clients.
John... Thank You!

[Date] John Chang 268 Beach Avenue San Diego, CA 92222 Dear John, Thank you very much for choosing us to take care of your auto insurance needs, and giving us the opportunity to help you protect your vehicle, your valuable assets, your dreams, and your future. We appreciate your business very much. We realize you have many insurance agencies to choose from, and by choosing to do business with us, youve placed your trust in us a trust we take very seriously. So, I promise you well do everything we possibly can to make sure your valuable assets are being protected properly at all times and to provide you with outstanding and personal touch service.
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To show my personal appreciation for your trust and confidence in us, Im enclosing a special report, Forty-Eight Ways You Can Save Money On Gas. Please read it at your earliest convenience. John, if you have any questions about your auto insurance policy, please call your Customer Satisfaction Representative, Julie Anderson, at [Your Phone #], and shell be pleased to help you. Once again, thanks for being our client. Warmest regards, (Your name) Your Dream Protector P.S. John, have a wonderful day! _______________________________
Send this thank-you letter to your existing life clients.
Keith... Thank You!

[Date] Keith Nicholas 264 La Jolla Village Drive La Jolla, CA 92039
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Dear Keith, Thank you very much for choosing us to take care of your life insurance needs, and giving us the opportunity to help you protect yourself, your valuable assets, and your familys dreams and future. We appreciate your business very much. We realize you have many insurance agencies to choose from, and by choosing to do business with us, youve placed your trust in us a trust we take very seriously. So, I promise you well do everything we possibly can to make sure your valuable assets are being protected properly at all times and to provide you with outstanding and personal touch service. To show my personal appreciation for your trust and confidence in us, Im enclosing a special report, How To Keep Fit And Feel Better, to help you get the energy you need to achieve your dreams. Please read it at your earliest convenience. Keith, if you have any questions about your life insurance policy, please call me at [Your Phone #]. Once again, thanks for being our client. Warmest regards, (Your name) Your Dream Protector
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P.S. Keith, have a wonderful day! ______________________________ After looking at these 3 letters, I am sure you get the idea. You can create similar letters, no matter what line of insurance you are in. The idea is to say thanks, and to send your prospects and clients helpful information on a regular basis, so theyll think of you when they need more protection and when their friends need a service such as yours. What Your Customers Buy When They Buy Insurance Is The Protection From An Unexpected Financial Loss! Because your customers financial assets are their dreams, such as their homes, vehicles, businesses, or investments, youre really helping them protect their dreams (and future), regardless of the types of insurance they buy from you. So, when your clients read one of the sample thank-you letters, theyll form a positive impression of you in their minds. This is because they will consider you as their Dream Protectorsomeone who is helping them protect their dreams (and future), and not someone who has sold them an insurance policy.
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Chapter 3 Use Special Reports To Get Your Clients To Do More Business With You!
Hopefully, if you are reading this chapter, youve already read the thank-you letters above. If you did, you remember that the letters offered free reports to the prospect or client. One of the best ways to astonish your clients is to use special reports to show them how to benefit the most from their policies and also to improve other aspects of their lives. As Dream Protectors or Financial Doctors, you must help our clients protect their personal and financial assets with the right kind of insurance. This means, you must educate and let your clients know about the different kinds of policies you write or the ones that you can get someone else to write and then let them decide whether to buy from you or from your joint venture partners (or even from somebody else). If you dont do this, then youre doing a great disservice to your clients. This is because youre denying them the opportunity to
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get the best insurance protection for their families and their assets. For example, lets say you sell auto, homeowners, life, disability, and business insurance. Then, for the clients who only buy an auto policy from you, you must let them know you also sell the other four types of insurance homeowners, life, disability, and business. Chances are good that many of your auto policyholders also need or want a life, a homeowners, a disability, or a business policy, or even all four. While they may have already bought some of these policies from other agents, you must make sure theyre getting the proper coverage for their individual situation. You can use special reports to achieve this objective. Here are 9 powerful suggested titles you can use to generate special insurance reports. You can write these reports yourself, have someone qualified write them for you, or you can send an email to ken@kenvarga.com with a request for information on how you can purchase PDF copies on CD, copies that you can modify for your use. The titles are... 1. How To Protect Your Familys Dreams And Future And Make Sure You Dont Lose Everything You Now Own Because Of An Unfortunate Event!
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You use this report to educate your prospects or clients about the types of insurance protection available to them. 2. How To Make Sure Your Spouse And Children Dont Have To Suffer Financial Hardships In Case You Die Prematurely! You use this special report to educate them about life insurance. 3. How To Make Sure An Automobile Accident Doesnt Destroy Your Familys Dreams And Future! You use this special report to educate them about auto insurance. 4. How To Make Sure An Unfortunate Event Like Fire, Earthquake, Flood, Or Theft Doesnt Destroy Your Home And Your Familys Dreams And Future! You use this special report to educate them about homeowners insurance. 5. How To Prevent Your Family From Having To Suffer Financial Hardships In Case You Suddenly Become Disabled And Cant Work! You use this special report to educate them about disability insurance.
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6. How To Make Sure An Accident Or Illness Doesnt Bankrupt Your FamilyAnd Force You To Suffer Financial Hardships For Life! You use this special report to educate them about health insurance. 7. How To Make Sure An Accident Or Illness Doesnt Force You To Sell Your Home, Investments, And Other Valuable Assets... Just To Pay For Your Long-Term Care! You use this special report to educate them about long-term care insurance.
8. How To Make Sure An Unfortunate Event Like Fire, Theft, Or Lawsuit Doesnt Destroy Your Business And Your Familys Dreams And Future! You use this special report to educate them about business insurance. 9. How To Make Sure Your Business Doesnt Fail In Case Your Partner Or #1 Employee Dies Or Becomes Disabled! You use this special report to educate them about keyperson insurance.
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Let me ask you this question... After your prospects or clients read the titles of these reports, wouldnt they want to read each one to find out how they can protect their familys dreams and future, right away? Absolutely! By offering an insurance special report like life or LTC, youre positioning yourself as an expert in that area. So after your prospects or clients read the report, theyll be compelled to meet with you to find out more about it or to buy a policy from you. In short, for your existing single-policy clients, you can use the reports to sell multiple policies to them. And, for your prospects, you can use the reports to compel them to do business with you quickly and effortlessly. Here are some suggested titles to some non-insurance reports you can send to your clients to give even more value: 1. You Can Use These 67 Ways To Save Money! You can use this report, as well as the following reports, for both your personal and commercial lines clients. 2. Fifty-Nine Ways To Reduce Your Housing Expenses!
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3. How To Make Your Home Safer! et Double Your Income Within 12 Months! 4. How To Prepare For A Natural Disaster Before It Strikes! 5. How To Choose And Use Your Credit Cards Wisely! 6. Fifty-Nine Ways To Make Your Car Last Longer! 7. How to Get A Great Deal On Your Next New Car! 8. How to Buy A Used Car Without Getting Ripped Off! 9. Forty-Eight Ways You Can Save Money On Gas! 10. How To Keep Fit And Feel Better! 11. How To Eat Your Way To Better Health And Vitality! 12. Fifty Tips To Help You Sleep Better! 13. How To Become More Successful And Have More Fun On Your Job! 14. How to Make Your Overseas Travel (Vacations) Safer! As you can see, these special reports are designed to show your clients how to improve various aspects of their lives.
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By offering your clients so much added value, theyll consider you as a friend and professional advisor, instead of simply as an insurance agent. As Ive already shared with you, because your clients are the lifeblood of your business, you must go the extra mile to serve them like kings and queens. In return, in addition to doing business with you for years to come, theyll also refer everyone they know to you
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Chapter 4 Create A Policy-Explanation Letter That Will Separate You From The Competition
As Ive mentioned, one effective way to compel your current clients to do more business with you is to make doing business with you fun and easy. This includes making your communication with your clients easy to understand. As youre aware, insurance policies are written in legalese a language most or all of your clients usually dont understand. Even some of the newer, readable policies are difficult for many people to understand. Since your clients dont understand their policies, they dont read them. Instead, they rely on you to tell them usually verbally what their policies cover and dont cover. But because some of your clients dont want to look foolish by asking you to explain their policies to them, theyre reluctant to ask you. And so, misunderstandings could arise at a later date, especially when they file for a claim. What are some of these misunderstandings?
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Well, your clients may assume their policies would cover certain items but in fact they dont. Or there were exclusions that they dont remember you telling them about. And so they may not be covered fully for certain assets. If youve been in the insurance business for a while, then you probably have experienced this unfortunate situation a few times. To prevent this situation from happening, all you have to do is to include a simple policy explanation letter with each policy that goes out of your agency. In short, your special cover letter will explain to your client, in common language, the main benefits of their policy. It tells them what the policy covers and what it doesnt. This way, if your client says to you, I thought I had coverage for this item, or I thought I am covered for this amount on this item then you can ask them, Would you like to get coverage for that item? or Would you like to increase the coverage on this item by $50,000? If so, I can cover you for X number of dollars more in premium. As you can see, by doing so, your client will get the exact protection they need or want, preventing any misunderstandings from happening in the future.
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All right, before we examine the sample special cover letter, lets talk about the eight insurance words you should avoid using right away. 1. Carrier 2. Exposure 3. First party 4. Third party 5. Insured 6. Line 7. Liability coverage 8. No-fault Insurance Its fine for you to use these eight insurance words when youre speaking to your employees or co-workers. But, when youre talking to prospects or clients, avoid using them at all cost. This is because theyre insurance jargon and are meaningless to your prospects and clients. Here are the replacements for these eight insurance words Instead of carrier, use insurance company. Instead of first party, use you. And, instead of third party, use the other person.
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Instead of insured, use customer, client, or policyholder. Instead of exposure, use riskiness or the degree of risk. Instead of line, use type of insurance. Instead of liability coverage, use insurance that pays for the damages you do to somebody else or somebody elses property. Instead of no-fault insurance, use your insurance company will pay for certain financial losses, such as your lost wages and medical expenses, regardless of who caused the accident. Following is a sample policy-explanation letter for homeowners policies. You can change it to suit your particular situation. (See next page.) ((Income 12
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________________
Leslie, Heres Your New Homeowners Insurance Policy!

[Date] Leslie Smith #25, 7246 Beach Avenue Del Mar, CA 92100 Dear Leslie, Thank you very much for choosing us to take care of your home insurance needs. Since your home may be the single largest investment youve made, we appreciate the opportunity to help you protect your investment and your familys financial security from fire, theft, and other hazards, as well as personal liability. Your insurance policy is enclosed. Please review it at your earliest convenience. While Ive already explained the main benefits of your policy to you, to make sure it absolutely gives you the proper protection you need or want, heres a summary of it
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1. Your policy covers up to $250,000 of the replacement cost on your house, including the garage and other buildings on your property, for damages resulting from: Collapse of buildings Electrical damage to appliances Explosion Earthquake Falling objects Fire and lightning Freeze damage Glass Breakage Riot and civil disobedience Rupture of hot water system Smoke Theft Vandalism Water or stream damage Weight of ice or snow Wind, hurricane, and hail Please note: Your policy currently DOES NOT cover you for damages caused by floods. This protection is available to you for a small additional premium. If youd like to add it to your policy, please let me know.
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2. Your policy also covers you for these benefits: Double Income 12 Months! Personal Property - furniture, clothing, appliances, computers, books, and so on, at replacement value: $125,000 Maximum benefit for jewelry, watches, silverware, and furs: $25,000 Loss of personal property away from the premises: $20,000 Damage to other peoples properties: $1,000,000 each occurrence Medical payments to persons injured on your premises: $5,000.00 each person Additional living expenses: $50,000 each occurrence 3. Your total premium is $903 for the year. This includes a discount of $45 for your home security system and smoke alarm. The premium for the earthquake damage coverage portion is $265, and is included in that total. 4. Your deductible is $250. But, if the damages are caused by an earthquake, then your deductible is 10% of the value of the
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replacement cost on your house, for a maximum amount of $25,000 (10% of $250,000). For example, if an earthquake caused $250,000 in damages on your house, then the first $25,000 worth of repairs comes out of your own pocket. This means you would receive $225,000 from your insurance company. Leslie, if you have any questions about your policy, please call me at 123-4567. Once again, thank you for doing business with us. We appreciate it very much. Best regards, (Your name) Your Dream Protector P.S. Leslie, it truly was a pleasure serving you. Welcome to our family. Have a fantastic day! ABC Insurance Agency, Inc. -- Specializing In Protecting Your Dreams -123 Main Street, San Diego, CA, 94000 Phone: 619-123-4567, Fax: 619-123-4568, E-mail: client@abcagency.com
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______________________________________ As you can see, including a policy-explanation cover letter with each policy provides a personal touch service for your clients. This sets a new standard of excellent service in your clients minds. Some of them are going to say to themselves, How come my other insurance agents didnt give me a similar letter with my policies? This is the first step to astonishing or to wowing your new customers. Itll make you stand head and shoulders above the competition. In addition, your policy-explanation cover letter will prevent misunderstandings right from day one. In the above example, when Leslie reads your letter, shell know exactly what her policy covers and what it doesnt. So, if she has any questions about it, she can talk to you right away. For instance, if Leslie wanted to have flood coverage, but just forgot to tell you about it, then she can simply ask you to add it onto her policy. This will give her more protection and peace of mind. On the other hand, if you didnt include a policy-explanation cover letter with the policy, and because, like most of your
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customers, Leslie usually doesnt read her insurance policy, she may just assume flood coverage is included. The last thing you want to see happen is for Leslie to file a flood damage claim and then to find out she isnt covered for it. If this situation should ever happen to Leslie (like a similar situation has happened to many insurance buyers) then she could suffer damages that may wipe out her dreams and future. And this will cause you to carry a ton of regret with you into your future, because you know youve done a great disservice to Leslie by not educating her properly about her insurance policy. Thats why its so important for you to include a policyexplanation cover letter with every policy that goes out of your agency, whether its a homeowners, auto, business, life, health, disability, or marine. Today, although carriers are trying to make the policy contracts easier to read and to understand, including a policy explanation letter with each policy will provide your customers with an outstanding level of service. As Ive said several times, most of your customers usually dont read their insurance policies anyway. Okay. Please take time now to create your own policyexplanation cover letter for each kind of insurance you sell.
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Since each customers policy is usually different from the other, all you can do is to create a template and then enter the specific descriptions and amounts when you get the policy from your carrier.
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Chapter 5 Use These Thirteen Ways To Make Your Clients Feel Good
1. Remembering your clients birthdays. Send them cards, and also follow up with a phone call on their birthdays. Many agents send birthday cards, but very few actually follow up with a phone call. It only takes a minute to make each call, but the positive impact itll have on your clients will be enormous. Itll bond your clients to you deeper. 2. Remembering their anniversaries. Again, just like birthdays, send them cards as well as calling them. Theyll be pleasantly surprised to receive a phone call from you. Itll make you stand head and shoulders above and beyond the competition. Leave a message if theyre not available. 3. Sending them cards or gifts on special holidays and occasions.
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Keep in touch with your customers on Valentines Day, Mothers Day, Fathers Day, Independence Day, Thanksgiving Day, Remembrance Day, Christmas, New Years Day, and so on. Use them when appropriate. Doing so will create a positive image of you in your clients minds. 4. Sending them special reports or newsletters to educate them on how to benefit more from their insurance policies and also how to improve various aspects of their lives. By doing so, youll be providing them with more and more value. Theyll consider you as a professional advisor and close friend, instead of just as an insurance agent. See Chapter 3 above for a list of special reports you can give to both your personal and commercial lines and clients. 5. Greeting them promptly. Unlimit2 Months! Because a client is unfamiliar with your place, no matter how many times that person has visited you, theyll still feel somewhat uncomfortable. So a prompt greeting will make them feel more at home. Even if youre busy with another customer or on the phone, pause to say hello or make a gesture and eye contact to let the customer know youll be ready to help them soon.
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If you have employees, ask them to do the same with each prospect or client who visits your firm. 6. Calling the client by his or her first name or the name he or she prefers to be called. The clients name is the sweetest sound and the most important word to him or her. So use his or her name every few minutes during a conversation. When a client comes into your agency, greet him or her by saying, Good morning, John or Good afternoon, Mrs. Anderson. 7. Answering incoming calls by the second ring, with an enthusiastic and warm greeting. Most agencies answer their phones in a boring way. For example, ABC Insurance, may I help you? Instead, answer your phone with an enthusiastic greeting such as, Thank you for calling ABC Insurance. Its a great day here. This is Susan. How may I direct your call? When a call has been transferred to your desk, answer the call within 10 seconds of the transfer with a warm greeting such as, Good morning, this is Brian. 8. Smiling at your customers often.
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Doing so will tell them theyve come to the right place to do business and are on friendly grounds. Smile with both your mouth and eyes. A warm and sincere smile will brighten up your clients day. 9. Sending a thank-you letter to your customers within 48 hours of the sale. Weve already talked about this in detail. Just remember to include this as a part of your exceptional customer service philosophy from now on. Get Unlimited Insurance Clients Volume One 10. Including a translation of the policy contract with each policy you send or give to the customer. This is a one or two-page special cover letter explaining the main benefits of the policy in everyday language. This way, your client can understand what his or her policy covers and doesnt cover, allowing you to resolve any misunderstandings or discrepancies right away. (See Chapter 4.) 11. Handling customers requests or complaints quickly. Listen to them carefully, and be patient as they explain their requests or complaints to you.
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To make sure you understand them correctly, restate what theyve just said, using positive and easy-to-understand language. Avoid using insurance jargon. Make notes of key information, then explain to them what action youll take to resolve the issue and when you think itll be done. 12. Sending a newspaper or magazine article to the customers that you think will be of interest to them. This is another personal touch service thatll bond the customers to you deeper. While reading a magazine or newspaper, if you come across an article you think one of your clients would be interested in reading, cut it out and send it to him or her with a sticky note that says something like
Hi Linda, Thought you may be interested in reading this article. Bill P.S. Have a great day!
Within 12 Months!
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13. Learning as much as you can about your customers hobbies, lifestyles, their families and friends, and so on. By doing so, when you communicate with them, you can ask them about how theyre doing in each area, letting them know you care. Besides, the more you know about your clients, the better youll be able to protect them with the right policies. Automate this information so its easily accessible by everyone in your agency. As you can see, these 13 ways to make your clients feel good or special simply are little things with a personal touch. Its the little and personal touch things thatll make a big difference. Doing these low-cost personal touch services for them regularly will pay enormous dividends for you. So, please use as many of these 13 ways as possible in your business, practice, or career, right away. Now, to benefit the most from these 13 ways, please print them out and place them where you (and your employees) can see them often. This way, after reading them a dozen or so times over the next few weeks, youll remember them. So, eventually, youll do them automatically.
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Chapter 6 Identify The A, B, And C Clients Of Your Life Insurance Practice

Unlike a P & C agency, instead of identifying who are your personal and commercial lines clients, you classify the clients of your life insurance practice into three groups solely based on the business you generate from them. While the 20/80 formula may apply to your practice, if you have at least 100 clients, then youll find roughly your top 30 clients generate about 60 to 80% of your income. And this is usually true no matter how many clients you have above 100. For example, if you have 200 clients, then your top 30 (or 15% of your) clients generate between 60 and 80% of your business. Or, if you have 500 clients, then your top 30 (or 6% of your) clients generate between 60 and 80% of your business. Or, if you have 1,000 clients, then your top 30 (or 3% of your) clients generate between 60 and 80% of your business. Your top 30 clients are your A clients.
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Are you surprised (or even shocked) that 30 of your clients could generate up to 80% of your business? If so, youre not alone. When I shared this information with other life agents, they were surprised as well. But you know what? After theyve identified their top 30 clients, they found this to be true every time. For some agents, their top 30 clients may generate about 65% of their business. For others, its 72%. And, for a few of them, its about 80%. The reason this situation happens is, in your life insurance practice, youre highly leveraged much more leveraged than the P & C agencies and other non-insurance businesses. Depending on what kind of policies you sell, your annual premium may range from $1,000 to $50,000 or more. Sure, while you may have only a few clients whove purchased policies with $20,000 or more in premiums, youll find your top 30 clients usually generate at least 60% of your income. Let me prove it to you.
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Run a list of all your clients in descending order, by commission, for the last fiscal year. Add up the commissions generated by your top 30 clients, and then compare this amount to the total commissions generated by all your clients for the whole year. Well, what percent of your business did your top 30 clients generate last year? I rest my case. Okay. You just learned the first way to identify your A clients theyre your top 30 clients. The other way to identify your A clients is to use the 20/80 formula. Heres how it works... Run a list of all your clients in descending order, by commission, for the last fiscal year. Multiply the total # of clients you have by 20%. This will give you the 20% of clients that generate 80% of your income.
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Next, add up the commissions generated by these clients. Then divide this amount by the number of your top 20% clients to get the average commission per client. For example, lets say you have a total of 300 clients. This means 60 clients (300 x 20%) are your top 20% clients. If these 60 clients generated $180,000 in commissions, then the average commission is $3,000 ($180,000/60). The clients who generated a commission up to 30% below the average commission of your A client (between $2,100 and $2,999) are your B clients. Similarly, any clients who generated 30% or more below the average commission of your A client (less than $2,100) are your C clients. Record your results in the table below... Insurance Clients Volume One The Client Profile For Your Life Insurance Practice A. Total # of Clients B. Total Commission Generated by All Clients $ C. Average Commission per Client $ D. # of the Top 20% of Your Clients (A x 20%) or Your Top 30 Clients. These are your
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A Clients E. Total Commission Generated by Your A Clients F. Average Commission per Your A Clients (E/D) G. Commission Range for Your B Clients (F*70% to [F-1]) H. Commission Range for Your C Clients (F*70%)
$ $ From: $ To: $ Less than: $
As youve learned, it doesnt matter whether you sell P & C or life products, your business has three types of customers or clients A, B, and C. For simplicity purposes, customers mean the same as clients in this Action Step. Your A customers are your best and most profitable, and your Cs are your least. After youve identified who belongs to which group, youll be able to treat them accordingly, allowing you to use your time, effort, and money wisely. As youve learned, one of the biggest mistakes a lot of agents make is they treat (or try to treat) each one of their clients the same way.
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You should always treat a client whos doing $10,000 in yearly business with you better much better than one whos doing only $200. Imagine what would happen if the airlines were to treat all their first-class passengers the same way they treat their third-class passengers. If they did that, then they probably wouldnt have any first-class passengers, right? After all, why would you (or anyone else) be willing to pay extra for first-class service if all you get is third-class service? You wouldnt, right? Of course not! Look, because your A customers are doing so much more business with you than your B or C customers, you can say theyve paid a premium for first-class service. So they deserve to get better treatment from you than your B and C customers. Similarly, you should treat your B customers better than your
C customers.
Within 12 Months! After youve categorized your customers into three groups A, B, and C youll be able to figure out how to treat each
57
type of customer in such a way that will still make each one of them feel special. For example, maybe you respond to your A customers within 24 hours, to your Bs within 48 hours, and to your Cs within 72 hours. Or, you may want to get in touch with your As once a month, your Bs once every two months, and your Cs once every three or four months. Your ultimate goal is to get as many A customers as possible. This is because the more A customers you have, the more successful youll become.
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Chapter 7 How To Contact Your Clients (And Prospects) At The Best Times
One of the greatest time wasters is playing telephone tag with your clients or prospects. So, to save you (and also your clients) time, you want to contact them during their most suitable time. When you do this, theyll react more favorably to you and be more receptive to your requests. The table below shows the best time for you to contact your clients or prospects, based on their profession. Check to see whether youve been contacting your clients during the time suggested. If you havent, then, starting today, do so and youll able to get hold of them more often.
Professional Advertising & Media Executives Accountants Architects Artists Attorneys
Best Time To Call After 3:00 P.M. Before 11:00 A.M., between the 12th and 20th of each month Between 3:00 and 5:00 P.M. Between 3:00 and 5:00 P.M. Before 10:00 A.M., or after 4:30 P.M.
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Bankers Brokers, Stock Chemists Clergy Collection Agents Contractors Dentists Department Store Personnel Dieticians Doctors Druggists Engineers Executives Farmers Grocery & Convenience Owners Government Employees Government Officials Homemakers Jewelers Morticians
Before 10:00 A.M. Before 9:30 A.M., EST or 6:30 A.M., PST(Before the New York Stock Exch. opens) Between 3:30 and 5:00 P.M. Weekday mornings After 3:00 P.M. Before 7:30 A.M. or after 3:30 P.M. After 4:00 P.M. or on days off Between 8:30 and 10:00 A.M. Between 1:00 and 3:00 P.M. After 3:00 P.M. or on days off Between 1:00 and 3:00 P.M. Between 2:30 and 4:30 P.M. Before 8:00 A.M. or 12:00 to 1:00 P.M. Between 3:00 and 5:00 P.M. Wednesdays, from 1:00 to 4:00 P.M. At home, between 7:00 and 9:00 P.M. Between 2:30 and 4:30 pm. 10:00 and 11:00 am, or 2:00 4:00 pm. Between 9:30 and 11:00 am. 10:00 and 11:00 am, or 2:304:30 pm.
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Movers Newspaper personnel Nurses Personnel Directors Printers Publishers Purchasing Agents Real Estate Managers Reporters Restaurant Owners Surgeons Teachers Theatre Owners or Managers Wholesalers
Mid week, Before 10:00 am, or 12-1 pm. Between 1:00 and 3:00 pm. Weeknights, between 7:00 and 9:00 pm. Between 9:30 and 11:00 A.M. Between 1:30 and 3:30 P.M. After 3:30 P.M. Tues. to Thurs, Before 9:00 A.M. Tues. to Thurs, 9:00 to 10:30 A.M. Between 2:30 and 5:00 P.M. Between 1:30 and 3:30 P.M. Between 2:00 and 4:00 P.M. At home, between 7:00 and 9:00 P.M. Before 2:00 P.M. Before 9:30 A.M. on Saturdays
************************************************ FREE Newsletter Subscription! On a weekly basis, Ken publishes a FREE newsletter that gives you more in-depth insights and know-how about getting more customers, keeping your customers, and growing your business.
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You can sign up to receive your FREE copy by going to www.kenvarga.com You can also view some of the back issues by going to the resources page and looking for the past newsletter link at: www.kenvarga.com/resources.html
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How To Get Customers To Call, Buy & Beg For More!

If a multi-millionaire offered to sit down with you and show you all the secrets that made it possible for him to amass his fortune, would you be interested? Successful businessman and entrepreneur, Ken Varga has released an AMAZING "tell all" book that will have you skyrocketing your profits in no time flat. It's like sitting down with him and having him reveal all his secrets on how to be successful in business. His book is called "How To Get Customers to Call, Buy & Beg for MORE!" It sold 30,000 copies before the first copy rolled off the presses. You'll want to get your copy quickly so that you can start applying these secret techniques and amassing a fortune of your own.
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According to... Mark Victor Hansen author of Chicken Soup for The Soul "In my speaking career, I've met many speakers who have acquired their expertise by studying other experts in their fields, but I've met only a few who actually have spent a lifetime and millions of dollars to test every idea, concept, and strategy they shared with their audiences. Ken Varga is one of these rare individuals. Not only has he acquired a vast ocean of knowledge and experience by being involved in 32 different successful businesses, he has the ability to convey his cutting-edge ideas and strategies to his audiences in an easy to understand manner. Every attendee will leave his workshop or seminar with at least a dozen tested-and-proven ideas to take their business to the next higher level of success.
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Heres what Brian Tracy says about Ken After speaking with Ken Varga for only 14 minutes, I knew I was talking to an expert at starting an insurance business from scratch and then taking it to the million-dollar mark in record time. In the last ten years, I've spoken at dozens of insurance conventions, workshops, and seminars, meeting hundreds of speakers and authors. But none of them has the success records that Ken has. With 460,000 clients for his insurance agency, Ken no doubt is the most successful insurance agent I've met. And, believe me, I've met thousands of agents during my speaking career, including hundreds of Top of the Table members. Now that he has started to offer his speaking engagements and consulting services to insurance companies and associations, agents across the nation can learn and use his million-dollar ideas and secrets to make a fortune in the insurance profession the quick and easy way. Brian Tracy is one of the world's leading authorities on personal and business success. His fast-moving talks and seminars on leadership, sales, managerial effectiveness and business strategy
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are loaded with powerful, proven ideas and strategies that people can apply immediately to get better results in every area. He's the best-selling author of 16 books. He has written and produced more than 300 audio, and video, learning programs. Brian addresses more than 250,000 people each year. He has spoken in 23 countries, and speaks 4 languages. Learn more about How To Get Customers To Call, Buy & Beg For More by visiting our website at: www.kenvarga.com
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Massive layoffs. Financial institutions going bankrupt. The dollar continuing to fall in value. Budget deficit growing. Balance of trade increasing negative. Number of buyers decreasing in every industry. Discretionary income falling, falling. How will you and your insurance business survive with so many parts of the economy imploding? You must set up and run your insurance business to prevent the economic fallout from wiping you out. This book will help you do just that. Price: $97 USA
Copyright 2006 by Kenneth J. Varga. All Rights Reserved.

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7 Ways To Grow Your Insurance Business During This Recession Or Imminent Depression

7 Ways To Grow Your Insurance Business During This Recession

Copyright 2008 by Kenneth J. Varga. All rights reserved.

7 Ways To Grow Your Insurance Business During This Recession

Copyright 2008 by Kenneth J. Varga. All rights reserved.

7 Ways To Grow Your Insurance Business During This Recession

Table of Contents Introduction 1 4 15 28 35 46 52 59

Copyright 2008 by Kenneth J. Varga. All rights reserved.

Chapter 1 How To Achieve The Real Purpose Of Your Insurance Business!

Setting Your Income Goal For Twelve Months From Now

Making Your Commitment To Success

____________________ ____________________ ___________________ ____________________ ____________________ ____________________ ____________________

Chapter 2 How To Build Customer Loyalty With Thank-You Letters

Linda... Thank You!

XYZ Insurance Services

Linda... Thank You!

Send the following thankyou letter to your new auto clients.

John... Thank You!

Keith... Thank You!

Leslie, Heres Your New Homeowners Insurance Policy!

Chapter 6 Identify The A, B, And C Clients Of Your Life Insurance Practice

$ $ From: $ To: $ Less than: $

Professional Advertising & Media Executives Accountants Architects Artists Attorneys

How To Get Customers To Call, Buy & Beg For More!

Copyright 2006 by Kenneth J. Varga. All Rights Reserved.

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