TaxCoach Briefs:    February 5, 2009

Volume 4, Number 7

• Marketing Minute: Lessons From South of the Border
• Member Event: 2009 TAMMY Awards
• Subscriber Q & A: "I already Have an Accountant."

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MARKETING MINUTE (EAL)
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LESSONS FROM SOUTH OF THE BORDER

I grew up here in Cincinnati and went to college in upstate New York, so I'm used to harsh winters. But I sure don't like them. The last couple of weeks have been especially ugly here in Cincinnati (and not just because our arch-rival Pittsburgh Steelers won the Super Bowl). Last week brought a foot of "white death" from the sky and closed schools for four days. Tuesday we got another eight inches and another snow day. (Al Gore keeps promising global warming, but I'm about ready to ask for my money back!)

So I'm glad to report that I'll be spending most of next week in sunny San Diego, working with a group of insurance agents and financial planners looking to use tax planning to open cases. I hate to leave Keith and Catherine back home in the cold, but somebody had to "take one for the team," and I selflessly offered to make that sacrifice. Nobody really wants to fly from Ohio down to the Mexican border in February -- but when duty calls, I'll answer.

Mexico doesn't ordinarily figure into our marketing strategies. But yesterday it did, in the form of a marketing consultation with a new member. She's an enrolled agent in Tucson with 25 years' tax experience. She and her husband also own investment property in Mexico.

That combination gives her unique access and credibility with fellow investors in Mexico. She's used it to attract clients throughout Arizona and even to consult with other tax professionals on behalf of their clients.

We spent much of that consultation discussing how she could grow that particular market. At one point, she mentioned that she has contacts with some of the property managers who work for those investors, and added that they were facing much the same financial challenges we read about daily here. Almost thinking aloud, she said she could probably get them to include her flyer in their next month's billing notice if she offered to pay the postage.

Whoa! At that point, I had to stop her, congratulate her, and tell her what a marketing genius she is. What a great idea! Take the recession, leverage it to build her relationship with a valuable referral partner, and reach new clients all at once! That puts a whole new spin on "endorsed mailing."

We've talked before about the "endorsed mailing" idea. This is a “super-referral” that involves using a client, colleague, or friend to mail your offer to their clients. Here’s how it typically works:

1. Find a colleague in a noncompetitive field who is willing to endorse you and your services to their customers. It’s best if you can use existing clients who can share their own story, but certainly not necessary. And it’s best if you can use colleagues in whatever field you want to target. Will your real estate agent endorse you to other agents? Will your doctor endorse you to other doctors? Will your dentist endorse you to other dentists? Those endorsements are worth far more than any advertising or cold prospecting. (It’s even better if you can endorse your colleague back to your clients.)

2. Prepare a letter for your colleague to mail to their clients. Write it in your colleague’s voice (“I’m writing to introduce you to a colleague of mine who can save you some serious taxes.”). Offer an immediate benefit. (“His proactive tax planning service will start saving you money immediately.”) And urge the recipient to contact you immediately. (“Why wait until tomorrow when you can start saving money today?”) You might want to prepare a reply card, too.

3. At your expense, print the letter on your colleague’s letterhead, and mail it in your colleague’s stationery. This is important. You need to make sure the letter gets opened and read. The whole point of the endorsed mailing is to borrow your endorser’s credibility. It does no good to mail the letter in your own stationery, only to wind up in the recipient’s “junk mail” pile.

In this case, our member's flyer is more of a "ride along," akin to the product ads you might see included with a credit card statement. But, like the endorsed mailing, it gets the offer to a targeted market at a minimal cost. Most important, it takes advantage of the credibility the property managers already have with their clients.

Who do you work with who can endorse you to their clients? Your printer? Your property-casualty agent? Your mortgage broker? Don't waste time waiting to approach them! Now is the time to ask for those referrals!

This certainly isn't the only way our new member can harness the Mexico connection to reach these high-value clients:

• Most of us send Christmas cards to colleagues and clients. But these can get lost in the seasonal deluge. Several vendors offer Thanksgiving cards to stand out from that clutter. In this case, why not "Cinco de Mayo" cards?

• Most of us offer some sort of client referral program. The usual reward is cash -- but actual cash becomes less effective as you move up the financial food chain. We've suggested American Express gift cards or donations to local charities for higher value clients. In this case, why not pinatas or Mexican-themed gift baskets? (Ed's politically incorrect wisecrack about Montezuma's Revenge deleted -- Keith.)

April 15 isn't much of a fiesta. But our member can use these sorts of tie-ins to match her message to her market. How can you use the same sort of ideas in your practice?

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MEMBER EVENT (EAL)
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2009 TAMMY AWARDS

Movie fans across America and the world are eagerly waiting for February 22. It's Oscar night, when Hollywood's royalty gather to toast each other and celebrate another year of achievement. Will Mickey Rourke finally earn the respect he's always craved with a Best Actor for "The Wrestler"? Will Heath Ledger come back from the dead to accept an award for "The Dark Knight"? And what about some of the movies not nominated, like "The Love Guru," "Larry the Cable Guy," and "The Hottie and the Nottie"?

But movie fans aren't the only ones getting excited. This is also the time when tax professionals across America gear up for the TAMMYs -- the Tax Advertising and Marketing awards.

What's that, you say? Never heard of the TAMMYs? Really?

Of course you haven't heard of the TAMMYs. Keith and I just made them up. But that doesn't mean we can't sponsor our own fun this award season.

Do you have a web page, newspaper ad, direct mail piece, TV or radio ad, or other marketing material you're proud of? Send it to us! Don't worry about categories -- we're making this up as we go along, and if we like it, we'll figure out where to put it. We'll even have trophies for the winners! (We're hoping to get "Vince from ShamWow" to host a red-carpet event.)

Send your materials to Catherine at the address at the bottom of the Briefs. We'll accept entries through March 1. Keith and I will send our tuxes out to be cleaned and look forward to presenting results on April 16!

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MEMBER Q & A (EAL)
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Q: I'm frustrated because every time I approach someone about taxes they say "I already have an accountant." How do I move beyond this so I can get the client?

A: This may seem like an up-front dealbreaker. But objections like this are usually just a way to avoid a conversation.

The key to moving forward is to acknowledge the objection, in as flattering a way as possible. Then follow up with a “wedge” question, specifically designed to drive a wedge between the prospect and their current accountant.

The conversation might go something like this:

Prospect: “I already have an accountant.”

You: “Of course you do, and I expected that would be the case. But can I ask you a question?”

Prospect: “Okay . . .”

You: “When was the last time he came to you and said ‘here’s an idea I think can save you money?'”

Prospect: “Never!” (Alternatively, they fall out of their chair laughing.)

Once you drive that first wedge in, you can start asking more questions to distinguish yourself from the current accountant. Have they shown your new prospect how to use a 105 plan to write off their LASIK surgery? ("Nope.") How about using an S-Corporation to minimize employment tax? ("Nope.") Hiring the kids to start building a college fund? ("I'll take 'Tax Strategies My Accountant Never Showed Me' for $200, Alex.")

No need to assassinate the other accountant's character. And don’t be too eager to sell your services just yet. Your goal here should be to show your prospect you offer enough additional value to justify breaking that old relationship. Give it time and watch it pay off!

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We're happy to answer your questions on TaxCoach content, features, or marketing. While we give first priority to our All-Star and Hall of Fame members, we work to answer all questions. For best response, email support@taxcoachsoftware.com. If we think the answer will be useful to all of our members, we'll publish it (anonymously) here in the 'Member Q & A' section of TaxCoach Briefs.

Regards,

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