NAILBA Perspectives Winter 2020 | Page 10

MARKET STRATEGY “It’s important to consider the higher level of education that you have to continue to pursue if you want to work in the business market.” Keith Eck CLU, ChFC, founder/owner of Keith Eck Financial High net-worth mountain from page 9 and financial problems tend to become magnified. But what’s the most unique thing about this market that really differentiates it from the middle market? Mr. Eck said, “The things that stand out to me are the potential sizes of the cases, both in the amount of premiums and the multiple needs business owners have. Needs center around estate planning, buy/sell arrangements, business continuity, and equity among kids who are working in the business and those who are not. In addition, the higher net-worth market typically has multiple asset management needs, where retirement plans, personal wealth accumulation, liquid alternatives, and cash accounts all come into play.” For Ms. Kaelberer, the higher net-worth market gives her the chance to provide more assistance. “There are more unique opportunities,” she said, “for creativity in financial planning and tax planning. Taxes are more important to this market. And because people in this market tend to have more, we can simply do more!” Benefits of talking amongst themselves Both of these advisors have a ton of experience with this market, so not much surprises them these days. But I asked about what surprised them early on. In other words, is there something that an advisor not currently active in this market might be surprised to know? Ms. Kaelberer said, “Once you win over your higher net-worth client, he or she is more likely to refer you to other potential clients. It seems these folks talk with one another more about taxes and investments, which then leads to them sharing our firm name with others. Also, interestingly enough, they appreciate value — they are not as focused on price — and they are willing to pay for added value.” Mr. Eck added, “It’s not really a surprise, but it’s important to consider the higher level of education that you have to continue to pursue if you want to work in the business market. For example, 10 Perspectives Q1 2020 I am a member of a nationwide organization, the Business Enterprise Institute (BEI), which trains advisors from different disciplines on the nuances of business succession planning so my team can better assist our business owner clients who are looking to exit their businesses.” Of course, as all NAILBA general agencies are well aware, many life insurance wholesalers offer advanced sales support, so I asked these two about whether and how they use brokerage general agencies and other wholesalers in the course of their business. Mr. Eck told me, “Yes, I definitely use wholesalers, but mostly on the investment side. My firm is associated with a producer group that is a member of Capitas, a nationwide organization of high- level insurance brokers. They provide access to life or disability carriers that offer their products to non-captive producers. Don’t go it alone “Our producer group,” he continued, “also has product experts that run all my illustrations and provide design assistance for difficult cases. I pay for access to these specialists, but there is no way I can stay up to date with the products and product changes of all the companies that are available to our group. I can’t imagine trying to run my company by myself without the assistance of our support team and wholesalers with some of the good investment firms I use.” Ms. Kaelberer sees it a little differently. “We have never relied on wholesalers or brokerage operations for assistance here,” she said. “Information on their product specifications or sales ideas are valuable; however, our firm focuses on comprehensive planning, so solo strategies or external pieces don’t fit well with our philosophies.” And those differences in philosophy and approach clearly distinguish just a few of the different approaches top producers take to elevating their market, illustrating clearly how there’s more than one way to reach the top of the mountain.