Smart Marketing, a publication of BuildYourMarket.com, a division of Prospect Digital.
October 2006

In This Issue

FEATURED ARTICLE

Attract More Clients with Tax Planning.

WEBSITE

How To Create A Great New Source Of Business.

MARKET

Is Seminar Marketing Overdone?

INSIGHT

What are people doing with lump sum distributions?

Event Schedule

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featured article

Attract More Clients with Tax Planning.

"Investors face surprise tax hit in mutual funds" was the Wall Street Journal headline and "A painful tax trap" was the way they described it. It was reporting the billions of dollars in taxable distributions that mutual funds anticipated this year. What a great marketing opportunity!

Advisors are constantly looking for a marketing edge to push them ahead of the competition. For many advisors that edge is right under their nose – tax planning. Successful advisors focus on tax planning year around and here's why—in a recent CEG Worldwide survey, one of the services most requested by affluent investors was income tax planning.

“It turns out that even affluent investors have substantial lack of understanding when it comes to avoiding taxes,” said Catherine McBreen, managing director of Spectrem Group, in the May 25 th issue of Financial Planning. “These investors may be missing out on important opportunities to save tax dollars because they aren't up to speed on many of the best approaches, including 529 plans, annuities and in-kind charitable giving,” said McBreen.

Top Advisor Coaches Tom Gau and Ken Unger pointed out a couple of years ago that less than 10% of all advisors are currently offering their clients any tax planning.

Are clients confused about income tax planning issues? Apparently. Is this an area where you can differentiate yourself? You bet.

Where to start?

Income tax planning begins with the tax return, the form 1040. If you aren't familiar with how to read a tax return then get training. For example, at BuildYourMarket.com, we offer training programs like the video on "How to read a tax return." Current users go to Learn>Taxes for the full tax planning marketing program.

Not a current user? Click here to view sample video. Want the whole program, including "Tax Planning Seminar?"

Go to BuildYourMarket.com and signup today!

We also offer our "Power Marketing Webinar" where you will learn about BuildYourMarket.com and other Best Marketing practices.

Many advisors tell us that they don't do tax planning for clients because they are afraid to ask for the tax return. Once you start asking you will be surprised how many clients gladly provide that information for your review.

What are the main benefits of offering tax planning to your clients?

  1. Differentiation. Adding this overlooked service to your practice will steer clients to you and will drive away competitors.
  2. The tax return is a cornucopia of information about your client's financial situation that you can use to make better recommendations. It opens the books and shows you all the different types of investments in the client's portfolio. The Schedule D shows you the capital gains and losses. The Schedule E shows you any self-employed income, and so on.
  3. Build stronger relationships. It's true that clients care very little for what you know until they know you care. When you walk through their tax return and discuss each item in their financial inventory you can't help but communicate concern and empathy. Your attention to their complete financial picture demonstrates more integrity and helps build trust. Understanding why they made certain investment decisions helps you understand how their ‘money personality' works. All of these insights will help you build stronger client relationships.

How do you communicate your new services?

Now that you understand the value in adding tax planning to your services, how do you communicate it? One of the best ways to communicate your new service is through drip marketing. The concept is simple, you send out several promotional pieces over a period of time to a subset of sales leads. Your objective is to ‘get your message out' constantly and consistently!

This concept was developed in response to the “Law of 29” in which many marketers believe that an average prospect will not convert to a client until they've seen your marketing message at least 29 times. Of course this is not an exact science, but converting prospects to clients and motivating current clients to reach their financial goals requires constant and consistent contact. You will not get the job done with a phone call or a meeting every now and then. You must “drip” on them to reach maximum success!

To effectively use drip marketing you must have a plan of action and follow it though. Don't just put one together and push it out the door! Take your time to develop a strategic and measurable plan. For the best results you should incorporate a drip marketing campaign into your yearly marketing plan.

You can use drip marketing in your postcards, newsletters, e-mail newsletters and any promotional or sales brochures. To get the best and most consistent results, automate the process. Your cards and newsletters need to go out automatically and at regular intervals. This is exactly what we do for you at BuildYourMarket.com.

Seminars are a great venue to promote your new service because you have a captive audience. People have chosen to come hear you speak, so incorporate your tax planning service at a prime opportunity in your presentation.

Highlighting your new service in routine client meetings is a two-fold, good measure. Not only do you pass this information to current clients, but you can ask them to do some word-of-mouth advertising for you.

Once you make the decision to increase your focus on income tax planning you will need an action plan. Here's an introductory To-Do List:

  1. Subscribe to BuildYourMarket.com
  2. Find the training on Reading and Using the Tax Return.
  3. Start the positioning for your tax planning services with your target market using our marketing campaigns.
  4. Decide how to handle processing the tax returns and reporting the observations and recommendations.
  5. Create the marketing pieces and strategies to announce and follow-up on tax planning leads.

If you are looking for more training and education on marketing and tax planning, get started BuildYourMarket.com where we offer training programs, tax planning, IRA planning, strategy and more. You will find everything you need to market tax planning and to build your business!


Does your CRM just lay there? Bring it to life with BuildYourMarket.com, the original web-based brand management tool for financial advisors. This one application integrates your CRM with your website and generates four color print-on-demand newsletters and postcards. If you are a registered rep, all your marketing communication is linked to your compliance officer’s desktop.

Insight

Retirement and spending are no longer synonymous according to a recent Congressional Research Service survey. The survey suggested that most retirees are savers and investors.

84% of distribution recipients saved all or some of their funds.

44% of recipients rolled over the entire amount of their most recent distribution into an IRA or other retirement plan.

40% of recipients saved at least part of their distribution in some other way.

Nine of the methods recipients used to save retirement money fit into the standard economic definition of saving, including:

  • Investing in an IRA, annuity or other retirement program
  • Investing in a savings account or certificate of deposit
  • Investing in stocks, mutual funds, bond or money market funds
  • Investing in land or other real property
  • Investing in a family business or farm
  • Purchasing a home, paying off mortgage or making home improvements
  • Paying bills, paying off loans or other debts

The retiree market is ripe for financial advisors who understand how they operate.

BuildYourMarket.com has a storied history of marketing and converting retirees into viable clients. Take advantage of our innovative and business-building strategies to expand your client-base today!

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WEBSITE

How to create a great new source of business.

How much business have you generated from your website this year? What's your internet marketing strategy? Some advisors might be asking, “Can I really generate business from my website?”

A content-rich, professional website can do much more than generate business; it can dramatically drive prospects and clients to your door and open the floodgates for rapid business growth.

A recent U.S. Department of Commerce report revealed that 52% of online users 15 years of age or older are using the Internet to buy goods and services. This number jumped 8% between 2001 and 2003 and is expected to continue rising.

The rise in online purchases is not confined to the younger generation. In 2003, 47% of online seniors made purchases on the Internet according to Pew Internet and American Life Project. In fact, Pew Internet says seniors are the fastest growing wired demographic.

The opportunity to grow your business online is limitless. However, most businesses experience little to no growth with their websites. How is this possible when so many people are on the Internet? It's simple; most people don't know how to generate business with their websites.

Here's several tips you can implement to make your website a marketing success.

Step One is to drive traffic to the site. There are a number of effective tactics for increasing targeted traffic to your site. Notice we said, “targeted traffic”? Internet marketing allows you to focus your message on a targeted audience. Here are some specific tactics for driving targeted traffic:

  • Get on the search engine radar with a content-rich homepage that focuses squarely on your target audience. Make sure your content is fresh because it will score higher in consumer searches.
  • Advertise locally. There are local versions of the national search engine products that will further refine your targeted audience. These are normally priced on a pay per click basis, unlike conventional advertising where you pay regardless of the results.
  • Get the word out. Plaster your web address on every piece of advertising, collateral or mail that goes out to your clients. Your website should be featured in every marketing effort.
  • Take advantage of credibility marketing by getting published often and wherever possible. The more prospects and clients see your name in print or online the more credible you become. Capitalize on the newest form of publishing—e-zines, which are online magazines.

Step Two is to capture information on those visitors so you can continue to market to them.

  • Give them the opportunity to contact you. It's amazing how many websites conceal the ‘response mechanism'. If the visitors don't see it within moments, then they won't respond to your website.
  • What's the call to action? All marketing responses need a call to action, what's yours? Is it embedded in the site? Is it easy to act upon?
  • Remember ‘Permission = Value'. Seth Godin's book, “Permission Marketing” reminds us that we get permission to contact someone in exchange for offering them something of value. What are you offering that has value to your visitors? One of the basics is your e-newsletter. Give visitors a prominent, simple newsletter sign up. All you should expect is a name and an email address. If you ask for more than that you run the risk of losing a high percentage of potential sign-ups.
  • We value your privacy. The news is loaded with stories about identity theft. Make sure your data is secure. If it is then let the visitors know by telling them in plain language, “We Value Your Privacy.” Link this to a strong privacy policy and you are miles ahead of your institutional competition.
  • Market using White Papers. If you are using credibility marketing you already know the power of the white paper. This is a high value package of relevant information designed with your target audience in mind. Even though it's self-published, it gives the aura of skill and know-how and carries the ‘flavor' of third-party credibility. It's as if you were interviewed by a professional journal or think tank on a specific subject within your area of expertise. Since these carry a higher perceived value, the ‘permission=value' formula would say you had permission to ask for more information from visitors in exchange for the white paper.
  • Use the website to sign-up for events. When you do a webinar, public seminar or workshop, use you website as a place to sign-up.
  • ‘Follow-on' articles. In the content of your e-newsletter discuss topics like taxing IRA distributions, or managing portfolio volatility. Provide the readers with a link for more information on your site. If you put the information behind a password then you can ask for their name and email address in order to access the ‘rest of the story'.

The final step is to get those prospects into your ‘drip marketing' program so you can keep your value proposition in front of them. Dripping involves you sending out several promotional pieces over a period of time to a subset of sales leads with a clear, constant and consistent marketing message. For example, you might send out newsletters, e-newsletters, postcards and sales brochures on education planning during the Back-to-School season to capture “top of mind” presence with your target audience. Remember, at BuildYourMarket.com we specialize in online drip marketing programs for financial advisors.

If you are looking for more training and education on website marketing, go to BuildYourMarket.com and learn more about our revolutionary web-based marketing platform for advisors!

We also offer our "Power Marketing Webinar" where you can learn more about BuildYourMarket.com and Best Marketing Practices for financial advisors. Click here to register!

Need help with direct response marketing? Go to BuildYourMarket.com and check out Direct Response Solutions—your one-stop shop for seminar invitations and direct response mailers that work!

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MARKET

Is Seminar Marketing Overdone?

Don't believe the scuttle butt. Presented well and to the right audience with the right follow-up systems; seminars are still an extremely effective marketing tool for financial advisors. The problem is that many advisors aren't paying attention to these details. Are there advisors using seminars effectively? Yes! In fact, some of the very top advisor coaches are convincing their clients to focus more on seminar marketing in these turbulent times and these advisors are reaping large harvests from their efforts.

Why use seminar marketing?

Begin with the end in mind, says Steven Covey. In this case, we want to collect a group of highly-motivated, high-value clients from our seminar marketing. We want the return on investment (ROI) to be extremely attractive. We want these to run like clock work. We want our seminars to consume the least amount of our time. Does that about sum it up?

The primary objective of seminars is to generate a lot of new business, not to get compliments on your teaching ability, humorous stories or the quality of the meal you serve.

There are several links in this chain: we need to make sure that the audience has the potential to meet our expectation, we need to close for appointments with 50% of the attendees and we need to convert those appointments into business.

How do you get a target audience?

What is your target audience? A target audience is one where the audience's needs and concerns are aligned with your value proposition and service offering. For example, if your ideal client is the active, affluent senior living in Temecula California then don't expect good results from a seminar that appeals to Baby Boomers with education funding concerns.

In the seminar business there are two ways to qualify attendees: first is with the right mailing list and the second is through the invitation's copy. The right list means using a vendor with a large enough database of households and data points about those households to match your target audience. If your target audience is affluent seniors, then you really don't have a targeted audience. That's simply too broad. But if your target audience were retired boat owners in the state of Texas who were married, owned their homes and were over age 62, then you would be getting closer to a target audience.

How do you qualify with copy?

You want certain characteristics in your audience. For instance, you might be focusing on the IRA rollover market among retirees who own their homes in central Arkansas . When you write the copy you insert phrases like, “You must attend this seminar if you are planning an IRA rollover in the next 6 months.” Or, “If your IRA is worth less than $250,000 then you might not benefit from this workshop.”

How do you get qualified, targeted leads to your seminars?

Once you have aligned your value proposition with your target market you are well on your way. The next task is to rent space in the mind of your target audience through drip marketing.

Drip marketing is extremely effective because you send promotional pieces with clear, constant and consistent marketing messages to a targeted group over a period of time. The group begins to identify you through the pieces and you become like a jingle they just can't get out of their heads. Once you're on their mind and they make contact, you simply have to followthrough with your value proposition.

As you send out your promotional pieces consider putting a schedule of your seminars in them, so there's plenty of opportunities for people to make it to your presentation. The more opportunities you give them to hear what you have to offer, the better your chances of getting them to your presentation.

You can market your seminars through the promotional pieces to catch your target group's attention and drive them to your event. However, the copy in these pieces must not only have the aforementioned qualifiers, but must be fresh, engaging and professional. You must communicate quickly and often how you can earn or save them more money.

If you are looking for more training and education on seminar marketing then go to BuildYourMarket.com and look under the market tab. You will find highly-detailed, easy-to-use marketing strategies to build out your brand, capture market share and reach financial independence. Current user should check out Learn>Marketing and DRS. Not a current user? Click here to learn more about BuildYourMarket.com


Does your CRM just lay there? Bring it to life with BuildYourMarket.com, the original web-based brand management tool for financial advisors. This one application integrates your CRM with your website and generates four color print-on-demand newsletters and postcards. If you are a registered rep, all your marketing communication is linked to your compliance officer’s desktop.

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