Middle Class Insurance Customers Marketing Analysis - Too Many Donuts With No Filling

This marketing analysis is focused on the needs of middle class insurance customers. Find out why insurance sellers ignore marketing to this large class of buying customers with definite coverage needs.

The bulk of the blame goes both to the insurance companies and to insurance product agents. Starting with the insurance product agents it is first a manner of obtaining enough insurance customers and premiums to make it through the first four years. My marketing analysis shows that currently only 7 out of 100 agents last this long. In addition, their income even with subsidies is $15,000 below the national per capita income in most states. Surprisingly to some, the agents selling customers financial related plans are more apt to fail quickly that those selling automobile, homeowners, life, and health products.

THE AGENT LOGIC COMMISSION TRAP Since an agents income is supported by income and premiums, a false perception is easily conceived. If the agent receives 20% commission for selling home owners insurance, agents insuring a $800,000 home, get up to six times the compensation as marketing one $150,000 home owners policy. Using the same analysis, the life insurance agent selling a $4,000 annual premium life policy may make $3,200 instead of $800 for a $1,000 life policy. GREED SELLING instead of needs selling to the middle class insurance customers.

THE AGENT BIG HEAD TRAP In a recent study, I came up with 130 substitute titles and variations for "agent". It appears that a vast number of agents want to call themselves specialists, professionals, advisers, counselors, designers, advisors, planners, consultants, and experts among others. Added too frequently to all this is the word "financial". Financial is inappropriately substituted for risk, as they think these are words that customers desire to hear. The agent is falsely preying on making prospective clients feel they are dealing with a financial expert no matter what product they are selling. Wealthy customers want financial professionals to deal with. EGO SELLING instead of need selling to middle class people requires insurance risk protection.

THE INSURANCE COMPANY NAME GAME My info here can be verified by looking at the front page of insurance company home office websites. This is especially true with companies holding a history of over 100 years of existence. Hardly a single carrier states they are looking for new "agents" to hire. Regardless of products sold, they rave about the opportunities existing for new "financial representatives." Why? They want to ignore the middle class insurance customers and go after the wealth and jumbo premiums. A new agent is no more qualified to sell financial products and give investment advice than they are qualified to sell birthday balloons. It takes years of continued education, experience in full scale planning, and plenty of errors and omissions coverage. Talking with prospects about changing hundreds of thousands of dollars with asset strategy is not for the inexperienced. Forced PREMIUM SELLING to the wealthy, as opposed to serving middle class customers properly.

SAFETY IN NUMBERS In an analysis of my personal insurance selling career, 90% of total premiums and close to 97% of my sales were to middle class people. I enjoyed a successful career because of realized the value of making so many marketing presentations. Giving 20 appointments weekly to middle class prospects that had genuine needs was the solution. False hope is trying to create the emotion need and buying urge in a few wealthy clients that are being over pursued. Besides that a close to 90% closing rate, sure beat 35% to 45% by more than double. The safety in numbers also reaped in benefits often not realized. There were many multiple policy sales, shorter presentations, and the need for later profitable policy review work.

MIDDLE CLASS NEEDS There are few middle class people insurance education on properly protecting their most important assets at a reasonable cost. The agents trying to look after the essential needs of life insurance, major medical, car, home, some disability benefits, and hopefully long-term care face little competition. The needs and money is there, where are the agents? It is time to fill the donuts. HONEST SELLING to middle class insurance customers equals quality agent rewards.