Unless you’re one of the few people who has all the business you need, then you’re always working to attract new business. And to attract new business, an investment is almost always required.
Most of us, when we think of investing, we think of investing money. The truth is that we have two types of assets to invest in our marketing. It is true that one of the assets is our money, but the other asset we have is our time, and there is a time and a place to invest each of these assets. Problems arise when you spend money on marketing when you really should spend time. Deciding which asset to invest in is pretty straightforward. There are two basic factors that determine the appropriate course of action. The first is deciding which asset you have more of, and the second is deciding whether there is a fundamental difference in the quality of insights gained from each marketing approach.
Start by simply asking yourself what you have more of: time or money? Although this seems quite basic and quite obvious, I am always amazed at the number of people who, even though they have more time than money, choose to invest their limited financial resources. I regularly meet professionals who invest their financial capital in finding prospects on the Internet, buying leads, direct mail campaigns, and buying advertising in local newspapers, billboards, or the yellow pages. More often than not, they don’t get the return on investment they anticipated (read: “the return they really need!”) and end up in the position of deciding whether or not to quit.
Why is it that when someone has more time than money, they still choose to invest their money? Usually, the decision stems from two reasons. The first reason is that everyone else is doing it. Everyone around you is building their business, or at least trying to build their business, by investing in what I call “passive” marketing methods. And even though they complain about poor results and/or the poor quality of prospects, they continue to do so.
The second reason people choose to invest their money instead of their time is that many people don’t know what else to do. How else can you find leads if you don’t advertise, buy leads, or use the Internet? The alternative means of finding quality leads and prospects is to invest your time, or what I call “active” marketing. It’s “active” because you actually have to leave your desk to do your marketing. The key, of course, is to “invest” your time rather than “spend” it, and the way to invest your time is to meet as many people as possible. I’ve identified five proven marketing methods for successfully investing time. These are the same methods that I promote in my popular booster programs. Are here:
1) Personal Observation Conversations (success related to not just having these conversations, but actually conducting them – an art.)
2) Effective networks (how do you make an effective network?)
3) Proper use of centers of influence (do your COIs send you referrals?)
4) Constant generation of client references (most people stop asking because they don’t get results, because they don’t know how to do it effectively)
5) Find Prospects Speaking in Public (it’s not about insurance)
By investing your time regularly, you’ll generate a steady stream of no-cost or low-cost prospects. Does this mean that if you have more money than time, you should invest your money in generating new business? No, not necessarily.
This brings us to the second determining factor. There is a fundamental difference in the quality of results between those generated by time and those generated by money. In many, many situations, the quality of the prospects generated as a result of investing money is inferior to those obtained through personal effort (building relationships). Let me explain why. When you attract prospects by investing their money (passive methods), they don’t come to you based on your relationship with them. For example, if you are looking for new customers, you will primarily attract price buyers (customers) rather than actual customers. If you’re looking for new agents, you’ll primarily attract candidates who are looking for a job rather than a business opportunity. On the contrary, if you search for prospects by investing your time (active methods), you will attract people thanks to you. You will find potential customers who want to do business with you because they like YOU. You will find potential agents who want to work with someone just like YOU. Because the dynamics of finding prospects are so different with active methods, a much higher percentage of your interviews and presentations will lead to success.
Bottom line: Just because you have more money than time doesn’t mean investing money is the best marketing avenue to pursue. I know many successful professionals (and I assume you do too) who don’t advertise their business. Instead, your new business comes from a variety of referral sources. My recommendation for marketing success is to take a step back and assess the quality of your business. Also, examine how you are going to generate new business. If the quality of your business is not what you would like it to be, if you have low retention, a high drop rate, or small purchases, consider the source of your business. Consider changing your business model to one where new business is generated through personal actions rather than impersonal methods. You’ll be glad you did.