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Member of the Month - Telling Stories
Editor’s note: This article is a reprint from the December 2007 issue of Ethics Edge.
Ask Terry Herron to talk about his business and he offers this one-liner: “Sales is not a story of numbers. It’s a number of stories.” That’s also true when it comes to Herron’s business career and his current occupation as a retirement planner and owner of New Frontier Financial in Centennial, Colorado.
One story revolves around Herron’s Michigan childhood and his college training to become a teacher. After graduation, he realized the regional economy was weak and decided to move to a brighter, more vibrant place . . . Colorado.
Opportunity Rising
A second story unfolds when Herron received his Colorado securities and real estate licenses, working with several local companies. Then he entered high tech, where he sold business process re-engineering services. Years before the bubble burst, he sensed a larger opportunity emerging in financial services, assisting pre- and post-retirees. When the tech industry imploded around 2001, Herron was ready to pursue his new dream.
“My success in the high-tech industry resulted from working effectively with decision-makers, presenting solutions, and building long-term relationships. Providing excellent service enabled me to sell additional products,” Herron says. “Those are the same characteristics of a successful financial advisory practice.”
In 2001, Herron attended the 2001 Senior Market Expo, where he had the opportunity to pick the brains of many talented people. In December, he launched his new business, opening a bright new story that’s still unfolding. Today, Herron oversees a large practice focused on educating and guiding clients through retirement and beyond. He also helps new agents write successful stories of their own.
All great stories have great themes, and so do Herron’s. One is his ability to think strategically about external events and to respond nimbly. For example, he designed New Frontier’s services to explicitly address emerging consumer needs: annuities for income planning, LTC for estate preservation, and life insurance for catastrophe planning or wealth transfer to family and/or foundations.
Planning is Crucial
Another theme is the importance of planning. Herron’s empathy for his client’s dreams and designing actions to achieve those dreams is crucial, especially regarding retirement. Says Herron, “You absolutely must have income planning in order to create a good retirement, which is the basis for peace of mind.”
Planning has also played a key role in the development of Herron’s business. Case in point: Early on, he realized he did his best work with happily married people (or those who used to be), those between the ages of 68 and 75, and those who have children and possibly grandchildren. They also want to leave a legacy or possibly pay for college, are often spiritual, are in relatively good health, and have a liquid net worth of $250,000 to $4 million.
Over time, as his services expanded, Herron now attracted clients with higher net worths by utilizing tools such as revocable living trusts, irrevocable life insurance trusts, and premium financing. But one criterion has remained constant: love of family.
Yet another theme is the role of life events in motivating clients to act. Herron has built his practice around a limited number of events, including:
- being downsized or retiring from a company,
- having a family member get diagnosed with Alzheimer’s or other debilitating illness.
- retiring from a federal job and needing specialized help understanding the nuances of the federal pension system, and
- wanting to provide security for a special-needs individual.
Mastering Life Events
For each of these life events, Herron studied the complex financial issues involved, engaged with affinity groups who could put him in touch with people experiencing those events, and then expanded his credibility as an authority.
Which brings us to another theme in Herron’s stories: the importance of delivering value.
“My unique ability is my genuine concern to communicate to others my desire to provide dependable support that creates value and builds lasting relationships,” he says.
Herron’s final theme deals with best practices for ethics in financial services. For him, the key is suitability. “You need to integrate your suitability questionnaire early in the initial client meeting, not at contract signing,” he says. “Always make sure your product and company recommendations are in synch with suitability. That way, when you have the signing, there’s no question.”
Also helpful from an ethics perspective is joining the National Ethics Bureau. “I joined because our industry can benefit from monitoring,” he says. “Plus I liked the idea of being able to offer clients a way to view my professional profile on NEB’s web site. I also challenge them to see if their current advisor is an NEB member.”
But that’s another story.
How are you maximizing your NEB membership to grow your business? Would you like to be featured in our newsletter? The National Ethics Bureau welcomes your input. Send your comments to: hlew@ethicscheck.com
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