We are all in search of the next new client……that’s what hunters do! As we approach 2012, most of us are creating next year’s business plan. Typical items to be in included are:
- Gross Revenue
- Expenses
- Net Profit
- New Business Revenue
And a host of other plans and objectives unique to your business.
What is the one activity that will have the greatest impact on all of the above 4 items?
We know that new client development comes with a price. Typical new business development costs include costs associated with prospecting, such as:
- Time
- Efforts to obtain new clients: The process of obtaining referrals, networking and telemarketing
- Sifting through the pool of prospective clients to find those that become clients.
- The process of developing credibility and building relationships with prospective clients.
- And all the other soft and hard dollar costs inherent in new business development.
Perhaps we should look for the low hanging fruit. Perhaps we should consider cross selling opportunities with existing clients.
These are companies where we have established creditability, trust and built a meaningful relationship. These are companies where we can arrange a meeting with minimal efforts. These are companies that have already benefited from our services.
These opportunities might include some or all of the following:
- 401k’s and other qualified plans.
- Multi-Life Disability
- Voluntary Benefits
- Adding additional products to the existing benefit portfolio. Perhaps LTD or LTC.
- Individual life for succession planning, key person or personal life coverage.
If you lack the expertise in these areas you may want to consider partnering with an expert. You will continue to be the client quarterback and would coordinate efforts with a team of other professionals.
What’s in it for you? Increased revenue of 10-25% with minimal effort. You already have the client. You have access to the client under favorable circumstances. New business costs are negligible. Closing ratios are high and you’ve further insulated yourself from competition. WHAT ARE YOU WAITING FOR?
Torelli, CLU, ChFC, MSFS is president of Newport Beach, Calif.-based e3 Financial.
