Before attending Peter Montoya seminar, Ken Lydecker–a retirement planner working in the area just outside Chicago–was successful. He just wasn't as successful as he wanted to be. Ken and his two partners, Dave Nicholson & Suzie Hagmeyer, had been averaging $700,000 to $750,000 in gross commissions per year, but couldn't seem to break that barrier. Then they attended PBU in November 2003, and things began to change.
"In the three years prior to Peter Montoya, we only had one month with $100,000 in revenue" Ken says. "In the eight months since, we've had three." Achieving $100,000 months has been his milestone goal, a sign the business was rising to a new level. But until Ken and his partners gained the focus and accountability PBU provided, they hadn't reached that plateau.
Turning Down the Easy Business
Ken says their business is built on two target markets: closely held businesses with between 20 to 120 employees, and individual clients with approximately one-half million dollars of invested assets. With the latter, Ken noticed the simple, transactional type business in which someone brought in $100,000 and said, "How do I invest this?" was not leading to the creation of a growing, long-term relationship with that person. So, Ken and his partners changed their business model; they resisted the temptation of simply "accepting" the "easy money" of the transaction business, and instead began sitting down with their clients to have what he calls "conversations about life and money." Over a period of months, they helped each person dissect their goals, values, what they aimed to accomplish and so on. "We tell them it's not about which stock they own or mutual fund, but what they want out of life," Ken says.
The result is a thorough financial analysis–presented in an easy-to-understand format–that captures clients' long-term business and loyalty. Ken says the methodology has been a "win-win" for both client and company. "A client for whom we do comprehensive planning gains a much better perspective on their overall financial picture. They understand the link between their cash, their investments, and their insurance. Therefore, they walk out of our office more prepared, and with a better feeling about their financial future. And due to the more broad-based scope of the services they provide, the system generates four to five times the revenue of the simpler transactional business.
Called on the Carpet by Coaches
Of course, sticking to a plan of converting an easy transaction client into a "planning" client isn't easy. It takes commitment and discipline. And Ken says one of the most valuable aspects of PBU has been the monthly coaching from their Brand Strategist, who calls each partner on the carpet when they deviate from this marketing strategy.
"Having a coach who holds you accountable every month has been huge for us," Ken says. "We know every 30 days, we're going to have to account to someone. But the coaching wouldn't have meant nearly as much if I hadn't gone to PBU and spent three or four days learning where I needed to focus my energies."
A Kick from the Bucket
Ken also learned to add some creativity to his business. In addition to using a "drip" direct-mail program to reach prospects and conducting interactive forums at active adult communities around Chicago, he's also come up with a new "brand" for how he allocates his clients' investments when they get ready to retire.
"In light of the last four or five years and the craziness of the market, we came up with three "Time Buckets," he says. "This system lets our clients allocate their money based on where they want to be at three time periods in their post-retirement life: the first 5 years, the second five years, and 10 years and longer."
Ken tells the story of one wealthy client who took about six months to fully buy into the system and the detailed "life and money" analysis. "Finally, he wrote us a check for a million dollars, and when he came back from his office to the conference room, he carried with him an actual bucket filled with hundred dollar bills, labeled "Bucket No. 3,"
We all got a kick out of the image, and realized how effective the concept had been. Ken, Dave, and Suzie all agree: "Combine knowledge, confidence, creativity, and some great "coaching" from someone like Peter Montoya, and you can reach any height". |
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