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Self-fulfilling prophecy?

One expert says fear of a recession could lead to one.

Increasing anxieties over a recession could be the cause of the next recession, according to Analyticom President Dan Geller, developer of the theory of money anxiety.

Geller’s theory explains that an increase in money anxiety can lower consumer confidence and cause a recession by reducing consumer consumption by just 5%. Since consumer consumption makes up about 70% of gross domestic product, a 5% reduction in spending equals 3.5% of GDP, which is greater than the projected GDP for 2019.

In July 2019, the Money Anxiety Index was flat at 44, the same as June, but slightly higher than May’s 42.7 points. While these figures are relatively low and don’t point to an immediate recession, Geller explained that the constant hype about a recession could increase the level of money anxiety.

“An example of how recession hype can increase peoples’ perceived anxiety and reduce their confidence in the economy can be seen in the preliminary August figures of the Michigan Survey of Consumer Sentiment,” Geller explained. “The August index decreased 6.4% from the previous month indicating that the level of consumer confidence in the economy dropped in the first couple weeks of August.”

“Since the Michigan index is based on what people think about the economy, in the form of a questionnaire, it is highly likely that the recent recession hype influenced the respondents’ confidence about the economy,” he explained.

Nearly half of experts surveyed by Zillow back in 2018 said they expect the next recession to begin sometime in 2020, according to the company’s Home Price Expectations Survey, a quarterly survey of more than 100 real estate experts and economists.

Since then, the talk surrounding recession has only increased as more and more experts begin to predict a recession by late 2019 or early 2020.

There were several dire warnings this week about the economic dangers posed by President Donald Trump’s ramped-up trade war with China.

“On a scale of 1-10, it’s an 11,” Cowen Managing Director Chris Krueger said in a note to investors, describing the economic ramifications of the trade war. 

In July, Zillow’s panel of more than 100 housing experts and economists said the next recession is expected to hit in 2020. A few even said it may begin later in 2019, while another substantial portion predict that a recession will occur in 2021. But unlike last time, the housing market won’t be the cause.

Advertising vs Public Relations

Advertising Versus Public Relations

When you or your clients see information about a product or service, do you know if the information is provided as advertising, or is it considered public relations? Knowing the differences can help you decide what might work best in your marketing efforts.

Advertising

Advertising is described as a paid, non-personal, one-way public communication that draws public communication towards a product, service, company, or any other thing through various communication channels, to inform, influence and instigate the target audience to respond in the manner desired by the advertiser.

Advertising can be done through print ads, radio or television ads, billboards, flyers, commercials, internet banner ads, direct mail, etc. Social media platforms are now a major source of advertising.  The advertiser has exclusive control over what, how and when the ad will be aired or published. Moreover, the ad will run as long as the advertiser’s budget allows or determines it is effective.

As advertising is a prominent marketing tool, it is always present, no matter if people are aware of it or not.

Public Relations

Public Relations is a strategic communication tool that uses different channels, to cultivate favorable relations for the company. It is a practice of building a positive image or reputation of the company in the eyes of the public by telling or displaying the company’s products or services, in the form of featured stories or articles through print or broadcast media. It aims at building a trust-based relationship between the brand and its customer, mainly through media exposure and coverage.

Public Relations can be called as non-paid publicity earned by the company through its goodwill, word of mouth, etc. (It is often referred to as “earned media”).  The tactics used in public relations are publicity, social media, press releases, press conferences, interviews, crisis management, featured stories, speeches, news releases.

Key Differences Between Advertising and Public Relations

Adverting draws public attention to products or services through paid announcements. Public Relations uses strategic communication to build a mutually beneficial relationship between the public and the company or organization.

  1. Advertising is a purchased media, whereas, public relations is considered earned media.
  2. While advertising is a monologue activity, public relations is a two-way communication process. The company listens and responds to the public.
  3. Advertising is used to promote products or services with the objective to induce the targeted audience to buy. Public Relations aims to maintain a positive image of the company in the media, with an indirect result of those effected becoming customers.
  4. In advertising, the advertiser has full control over the ad, such as when, how and what will be displayed. In public relations, the company pitches the story, but has no control how the media uses or does not use it.
  5. In advertising, the ad placement is guaranteed, but there is no such guarantee of placement with public relations.
  6. In advertising, as long as you are willing to pay for it, the ad will be published or aired. Usually in public relations, the story is only published once, but it might be published in many media.
  7. Credibility is higher in public relations than advertising. This is because customers know it’s an ad and may not believe it easily and be skeptical. For Public Relations, third party validation improves credibility.
  8. Advertising mainly uses paid announcements (ads) to draw public attention to products or services. Public Relations is the use of strategic communication that aims at building a mutually beneficial relationship between the company and the public.

Advertising and Public Relations both use communication channels to inform and influence the general public. While advertising is a highly expensive marketing tool, it can reach a large number of people at the same time. Public Relations is “free of cost” implied endorsement along with validation of the third party.

Linkedin provides sales networking and leads

Using LinkedIn to Increase Sales

The real powerhouse for business networking and prospecting is the business focused social media site, LinkedIn.

Social media platforms enable you to stay in contact with friends and family and stay current on their life activities. They can also benefit you on the business side, especially for sales. For many people, the top social media networks that come to mind are Facebook, Instagram and Twitter.

While these sites have some benefits for sales prospecting, with general consumers, the real powerhouse for business networking and prospecting is the business focused social media site, LinkedIn.

In fact, when it comes to business, LinkedIn with over 360 million members world-wide, is the top social media choice for business networking and sales prospecting.

If you are using the popular social media business platform, LinkedIn, you might find that there are additional ways to reach potential clients or connect through others to increase sales.

For many, LinkedIn has been somewhat thought of as the go to social site when you’re looking for your next job. It certainly has value for this purpose, and it is extensively used by recruitment specialists world-wide to find and contact prospects, but its benefits far exceed that. In the know business people use LinkedIn more and more as a revenue generating, sales prospecting tool.

LinkedIn is a perfect tool to make lead and sales prospecting smoother, quicker, and ultimately, profitable. It is an extremely cost-effective tool for business development.

Modern sales techniques have changed, and LinkedIn allows you to connect directly with and gather information on companies and prospects, as well as develop relationships and contact decision makers directly.

Here are some proactive, easy to implement strategies for using LinkedIn as a tool to effectively increase your sales prospecting and grow revenues.

Optimize your LI Profile

With a couple tweaks, you can turn your LinkedIn profile into a powerful sales asset. The most important thing is that your profile is 100% complete. There is a high chance that your prospects will look you up if they are interested in what you are selling. When they do, your profile should give off a professional impression of you and your company.

Connect and Engage

An important thing to do when beginning to get serious about using LinkedIn for prospecting is to take a long hard look at your contacts. Contacts are the bread and butter on the site. If yours are predominantly family, your college classmates, and friends, you need to do a little work.

Connections spawn more connections. Your primary contacts open a route to a wide range of second and third level connections. This is how to scale up your efforts.

Target and Map Your Leads

LinkedIn users generally put a tremendous amount of information on their profiles. Everything from which teams they work with, what projects they are focusing on, which office they work out of and more.

You can use this information to develop a map of who the decision makers are and how they can be reached and influenced to make the sale. (Start by checking out the “viewers of this profile also viewed…” box on their profile.)

Use Groups to Keep Up To Date and Engage With Prospects

Groups on LinkedIn are collections of people with similar likes, needs, skills and more. They are a great way to learn about the industries you target for sales and can be a great source for new prospects. Engaging with member questions is a great way to build trust and authority while raising your thought leader profile which can lead to sales inquiries. They are also a great “soft” way to make contact with a prospect.

Turn Your Profile Into A Lead Generator

Much of what we’ve touched on so far has been outbound information, where to go to find prospects, how to engage, etc. This is purely inbound. The prospects you’ve engaged with through connections and Groups will most likely seek out your profile to learn more about you. (Information flows both ways on LinkedIn!). So it only makes sense to optimize your profile to drive sales. Make sure you have current links to your company site, your Twitter account and your Facebook page. Include some high-quality recommendations from existing happy customers – think quality, not quantity. This can give visitors a better idea of who you are and what you’re all about. Remember, effective sales is all about building trust and relationships.

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How to Help Customers Understand Title Insurance

Sure you know the ins and outs of title insurance, but it is likely buyers and sellers have limited knowledge of what title insurance covers and why they need it. You need to be able to respond to questions that will be asked, or have answers to some that should be asked, to be able to best serve your customers.  Learn more about title insurance regulations, and other key points to explain to customers why the policy you provide is to protect their interests.

This blog contains general information only, not intended to be relied upon as, nor a substitute for, specific professional advice. We accept no responsibility for loss occasioned to any purpose acting on or refraining from action as a result of any material on this blog.

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