Financial Advisors and Life Insurance Agents: Why are you alone in finding your own clients?

A direct question: Are you tired of feeling like a lone wolf in the vast wilderness of financial services? As a financial advisor or life insurance agent, you've likely spent countless hours trying to connect with clients on your own, relying on outdated methods and your personal network. But what if there was a better way? What if you could harness the power of a true partnership that not only supports your efforts but actively drives client acquisition?

And what if your firm actually invested money on prospecting clients, so that you can focus on being the financial services representative you signed up for?

In today's rapidly evolving financial landscape, the old ways of doing business are no longer cutting it in 2024+. The traditional model of individual advisors struggling to market themselves, while giving up a significant portion of their earnings, is not just inefficient—it's unsustainable. It's time (and in my opinion, long overdue) for a paradigm shift, one that recognizes the value of collaboration, leverages innovation in AI technology, and puts the focus back where it belongs: on serving clients and growing your income. Let's explore why the solo approach is failing and how embracing a new model of partnership could revolutionize your career in financial services.

Financial advisors and life insurance agents often find themselves in a challenging position when it comes to connecting with clients. The traditional approach of individual outreach, while personal, may no longer be the most effective strategy in today's rapidly evolving market. Let's examine this issue more closely, integrating some critical points that highlight the limitations of the current system.

Firstly, many advisors and agents are told that tapping into their "Warm Market" - friends, family, and acquaintances - is not just a strategy, but a mandatory requirement for most financial firms. Heck, it even says it on their job descriptions. While this can provide an initial client base, it often leads to huge discomfort and can quickly exhaust personal networks. It doesn't address the need for sustainable, long-term client acquisition strategies. This reliance on personal connections can be particularly challenging for newer professionals or those who have relocated to new areas.

Another significant issue is the lack of marketing investment from many firms or many firms choosing marketing poorly. Despite giving up a substantial portion of their earnings (15% - 50% of life case earnings) to their parent company, advisors often find themselves solely responsible for their marketing efforts. This raises the question: how much does your firm actually invest in YOUR marketing? YOUR Personal Marketing, not the firm in general. The disparity between the revenue share and the support provided can leave many feeling that they're not getting fair value for their contributions.

In an attempt to build their brand and attract clients, many advisors turn to social media platforms like LinkedIn. There are hundreds of current posts from life insurance agents talking about "why you need life insurance" and "what life insurance is for". How well is that going? Who on LinkedIn actually messaged you and said, "Hey, I would like to buy a policy from you!" The effectiveness of this approach is questionable. With thousands of agents posting similar content about life insurance, individual posts often get lost in the noise, garnering only 0-2 likes. This low engagement rate suggests that such efforts, while time-consuming, may not be yielding the desired results in terms of client acquisition. Going even further, the solitary nature of marketing and prospecting efforts can be both inefficient and demoralizing. Working alone 100% of the time on these crucial aspects of the business, while still giving up a significant portion of earnings, can feel fundamentally unfair. This model may have worked in the past, but it's increasingly at odds with the collaborative, technology-driven approaches that are becoming more prevalent in other industries. Are you aware of how these algorithms work on social media? The higher the "Marketing Budget", the more your post or ad is seen. You can only scroll up and down or left to right. The free post, without followers, simply ain't gonna cut the line.

Lastly, there's a growing concern that many advisors are receiving outdated training that doesn't adequately prepare them for the new world of clients. Today's consumers are more informed, very tech-savvy (some 65+ year olds I met surprised me with how they navigate Facebook) and have different expectations from financial professionals. Training that doesn't address these changing dynamics can leave advisors ill-equipped to meet the needs of modern clients. Yes, yes, you are in a training about how you approach clients. Does your firm teach you about collaboration?

My financial firm is challenging the traditional model of individual advisors and agents trying to connect with clients by themselves, as this model is showing signs of strain. What's needed is a shift towards firms that truly partner with their advisors, providing actual resources focused on client acquisition rather than leaving advisors to fend for themselves. A more collaborative approach, leveraging modern marketing techniques and technology, could not only ease the burden on individual advisors but also lead to more effective client outreach and better outcomes for both professionals and their clients. The future of financial advising and life insurance sales likely lies in finding this balance between personal relationships and institutional support.

I'm Dr. Leroy Simpson, Chief Engagement Officer of The Consortium of Louisiana. I invested in client engagement tools, especially in AI.

I was that broker that had to fend for themselves with each "one client" that I got. Now I have a firm where prospecting warm markets is a choice, not a requirement.

I have a firm where I can leverage artificial intelligence to engage clients. Trust me, they are appointments that I can go see because the AI nurtured prospective client knows I'm coming.

I have a firm where I can make 1000+ cold calls in less than a minute to where I can make a warm introduction for my agents and advisors. Those clients will know who that person is. The rest is up them...which they close.

There is a career agent opportunity at The Consortium. There is an opportunity for this business to no longer be hard and lonely. Bonuses. AI assistants. Referrals to be closed by experienced specialists. Programs for financial planning.

And....for those that are working another job..keep it :)

Louisiana. Come see what we are about. You are going to find something new here.