5 Engaging Alternatives to the Elevator Pitch

With more opportunities today to get your message out, sales experts say it's time to re-think the time honored "30-second elevator pitch." In the many faceted world of digital communications, trying to engage a prospect in the 65 words you can say in half a minute seems downright verbose. The different ways available to instantly connect with one another require us to be brief and creative when pitching our idea, product, service or company. It's important to remember that you're not trying to make a sale. You just want to offer a proposition so compelling that it starts a conversation. Here are five ways to go. 1. A one-word pitch. You want to break through in a world of short attention spans? Come up with the one word that defines your brand. "Search?" That's Google. "Priceless?" MasterCard. President Barack Obama got elected in 2008 by equating himself with the one word, "hope." The one-word approach takes discipline and requires you to be clear about what it is you provide your clients. 2. A question pitch. A question can create a very powerful pitch. Giving equal time to the other political party, we'll reference President Ronald Reagan's 1980 campaign. He connected with voters struggling with a poor economy by asking the simple question: "Are you better off now than you were four years ago?" Pitching with a question can be way more powerful than pitching with a statement. Just make sure the facts are on your side. 3. A Twitter pitch. The late Steve Jobs was a master at this. His Apple product pitches neatly fit within 140 characters, long before Twitter exploded on the scene. In October 2001, Jobs introduced the iPod with the line, "1,000 songs in your pocket." A few years later came the MacBook Air, "the world's thinnest notebook." These Twitter pitches aren't a substitute for a whole presentation, but they can be a very powerful way to get people's attention and have them start asking questions. 4. A subject line pitch. Research into which emails get opened and which do not has uncovered some key findings on what makes a good subject line. A subject line that gets people to open an email can be a great subject line to get people to listen to your story. So what did the researchers find? The best subject lines offer up either a benefit or a promise to the recipient, drive curiosity, or share very specific information. Focus on those areas to create a subject line pitch people will open up to. 5. A rhyming pitch. It may sound corny to put your message into a rhyme, but the fact is, rhymes make ideas easier for people to understand and buy into. That's why they show up in advertising slogans. Pillsbury: "Nothin' says lovin' like something from the oven." Timex watches: "It takes a licking and keeps on ticking." "See the USA in your Chevrolet." "An apple a day keeps the doctor away." Rhymes have sold plenty of products and the right one could do the same for you. Keep in mind that you're not trying to make some profound statement that will blow people away. You just want to make the most of an opportunity to motivate a person to find out more about what you could do for them. Instead of that 30-second sales pitch you would use in an elevator, get creative. Try one or more of the five alternatives here to make what you do stand out in your marketplace. Here's to your continued success, as you keep putting together your best year ever.... Enjoy a great month!

Inside Lending Newsletter - Market update

QUOTE OF THE WEEK... "Society is always taken by surprise at any new example of common sense." --Ralph Waldo Emerson, American essayist, lecturer and poet INFO THAT HITS US WHERE WE LIVE... The Fed took the markets by surprise last week when it announced it would NOT begin tapering its Treasury and mortgage bond buying. But this was just common sense. Since May, the Fed's been hinting it could start tapering bond purchases in September, which sent bond prices south and mortgage rates north. People then worried this might hurt housing, a bright spot in our slow overall recovery. So it makes perfect sense for the Fed to keep buying billions a month worth of bonds to, in their words, "maintain downward pressure on longer-term interest rates." This is all great for the real estate market, although its recovery hasn't faltered just yet. Existing Home Sales in August hit their highest level in more than six years: a 5.48 million annual rate, up 13.2% from a year ago. Builders are on the bandwagon too. Single-family Housing Starts climbed 7% in August and are up 16.9% from a year ago. Single-family Building Permits reached a five-year high, and the home builders confidence index is at its best level in nearly 8 years. So if, thanks to the Fed, mortgage rates edge back down, things should really get interesting. BUSINESS TIP OF THE WEEK... To turn visitors into customers, optimize your website. Ask some current clients to test the site and tell you if it flows well. Then make the necessary adjustments. >> Review of Last Week FED, UP... All week, investors focused on Fed news and stocks finished up. Monday, former Treasury Secretary Larry Summers withdrew from consideration as the next Fed Chairman. The markets rallied, since it was feared Summers would quickly raise interest rates. Wednesday, we had the Fed's surprise announcement it would not taper its bond buying program: "the Committee decided to await more evidence that [economic] progress will be sustained before adjusting the pace of its purchases." Stocks hit an all-time high, then fell back Friday when two Fed members left the door open for tapering at the October meeting. Meanwhile, the economy slowly moved ahead. Industrial Production and factory Capacity Utilization were up nicely in August. The Empire Manufacturing index dipped slightly for September but continued to show growth in the New York area, while the Philly Fed index of manufacturing in that region rose to its best reading in more than two years. Inflation stayed well under control, the Consumer Price Index up just 0.1% in August. Existing Home Sales, single-family Housing Starts and Building Permits, all up in August, show the real estate market continues to recover. The week ended with the Dow up 0.5%, to 15451; the S&P 500 up 1.3%, to 1710; and the Nasdaq up 1.4%, to 3775. Bonds benefited from the Fed's commitment to keep buying them at the same healthy pace, as well as from Friday's stock selloff. The FNMA 3.5% bond we watch ended the week up 1.91, to $100.21. Average fixed mortgage rates moved lower in Freddie Mac's Primary Mortgage Market Survey for the week ending September 19 and mortgage applications were up 11.2% for the week ending September 13, according to the Mortgage Bankers Association. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up to the minute information. DID YOU KNOW?... The median price of an existing home sold in August was $212,100, up 14.7% from a year ago, the largest gain since October 2005.

Inside Lending Newsletter

QUOTE OF THE WEEK... "Small opportunities are often the beginning of great enterprises." --Demosthenes, Greek orator and statesman INFO THAT HITS US WHERE WE LIVE... Last week's small opportunity that could turn into a great enterprise in the housing market came from reports by a few real estate data firms. One observed that as home prices continue to increase, demand from move-up buyers does too. After gaining value on rising equity, those buyers can then come up with a substantial down payment on a new home. Another firm pointed out that thanks to the recovery in home prices, 18.5 million homeowners now have at least 20% equity. That's 40% of all homeowners who are in a prime position to sell. The same firm added that there are an additional 8.3 million homeowners who should have at least 20% equity in the next 15 months. That's assuming home prices keep appreciating at the rate they have. They very well may. A monthly real estate trends report from an online listing site said the median price of homes for sale in August was up more than 6% versus a year ago. Inventory, at 1.98 million in August, was up slightly from July, but down 2.5% from a year ago. The CEO commented, "... we are now looking at a housing market that much more closely resembles 'normal.'" Nice words, those. BUSINESS TIP OF THE WEEK... Never provide a service without delivering at least just a little bit more than the client expects. >> Review of Last Week TWO IN A ROW... Stocks last week posted their second consecutive gain, the Dow registering its best performance since January. Investors were starting to feel that this Wednesday's FOMC meeting would result in a smaller reduction in the Fed bond buying program than had originally been feared. The thinking was that the disappointing August employment report might give the Fed pause about tapering its $85 billion a month in asset purchases to boost the economy. Some feel the central bankers might make a small reduction in Treasury purchases, but maintain mortgage bond buying at the current level to help keep mortgage rates low. The week's economic data certainly did not show much evidence of a strengthening economy. August Retail Sales, up 0.2%, fell short of expectations and University of Michigan Consumer Sentiment came in way lower than forecast. It was encouraging at first to see that Initial Weekly Unemployment Claims fell to 292,000, their lowest level since April 2006. Unfortunately this wasn't a sign of a healthier job market, as a labor department official suggested the impressive drop was because of "faulty" reporting in two states that had experienced some computer glitches. The week ended with the Dow up 3.0%, to 15376; the S&P 500 up 2.0%, to 1688; and the Nasdaq up 1.7%, to 3722. Even though stocks were surging, Treasuries posted modest gains in a bond market that benefited from investors' cautious tone approaching this week's Fed meeting. The FNMA 3.5% bond we watch ended the week up .09, to $98.30. Average fixed mortgage rates remained unchanged in Freddie Mac's Primary Mortgage Market Survey for the week ending September 12. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up to the minute information. DID YOU KNOW?... Fannie Mae reported that consumers polled in August anticipate home prices to go up 3.4% in the next 12 months. >> This Week’s Forecast INFLATION OK, HOUSING STILL HOLDING, BUT WILL THE FED TAPER?... The Consumer Price Index (CPI) for August is forecast to show inflation still in check. Housing Starts are expected up a little for August, and Building Permits should hold steady. Existing Home Sales are predicted to dip slightly but remain well north of the 5 million unit annual rate for August. Interesting as all this is, the real focus will be on Wednesday's FOMC meeting. We'll finally learn if the Fed will begin tapering its bond buying program. If so, we'll then want to note if that includes mortgage bonds. Any reduction of those bond purchases will negatively affect mortgage rates.

Inside Lending Newsletter

QUOTE OF THE WEEK... "If you only care enough for a result, you will almost certainly attain it." --William James, American philosopher and psychologist INFO THAT HITS US WHERE WE LIVE... We all do care a lot about keeping the housing market on its steady path of recovery and last week saw more evidence of progress in that direction. An analytics and research firm that serves the industry reported home prices throughout the country were up 12.4% year-over-year in July, the 17th month in a row of annual home price growth. Another analytical company, specializing in property values, posted home prices up 10.2% year-over-year in August. They noted that the last time they saw double-digit annual home price growth was in mid-2006. Home builders are aware of this. Private residential construction was up 0.6% in July, to its highest level since September 2008. The National Association of Realtors (NAR) forecast that existing home sales are expected to increase 10% for all of 2013, then hit 5.2 million by the end of 2014. And even with the recent rise in mortgage interest rates, the Mortgage Bankers Association reported mortgage applications up 1.3% for the week ending August 30. Economists also noted that rates now are roughly the same as they were two years ago, while housing affordability is at an all-time high. BUSINESS TIP OF THE WEEK... Overcome your personal blind spots. Push yourself to try things that are alien to you. If you're feeling comfortable, you're probably not pushing yourself hard enough. >> Review of Last Week STOCKS UP ON BOTH GOOD NEWS AND BAD... The Dow ended its four-week losing streak, as Wall Street responded positively to developments regarding Syria, as well as to good and bad economic news, led by Friday's disappointing Employment Report. Just 169,000 nonfarm payrolls were added in August, but June and July numbers were revised downward, so the net gain was only 95,000 jobs. The unemployment rate dipped to 7.3%, but this was again from a drop in the labor force participation rate to 63.2%, its lowest level in 35 years. But investors saw this all as good news, since the Fed may hold off on tapering its bond buying program. There was also good economic news that actually was good. Better than expected reports came in for Initial Weekly Unemployment Claims, which dropped to 323,000. Productivity was up nicely in Q2, and ISM Services showed strong growth in that important sector. New car sales hit an annualized pace of 16.09 million vehicles, a rate not seen since before the financial crisis. Even the Syrian situation proved less worrisome to investors, who keyed on political assurances that any strike would be strategic and not require American forces on the ground. The week ended with the Dow up 0.8%, to 14923; the S&P 500 up 1.4%, to 1655; and the Nasdaq up 2.0%, to 3660. Decent economic data pushed bond prices down before the disappointing jobs report helped Treasuries, though not all bonds. The FNMA 3.5% bond we watch ended the week down 1.01, to $98.21. Average fixed mortgage rates edged up in Freddie Mac's Primary Mortgage Market Survey for the week ending September 5. Their chief economist blamed it on "... signs of a stronger economic recovery. Real GDP was revised upwards to 2.5% growth." Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up to the minute information. DID YOU KNOW?... Governments need to watch budget deficits, which are financed by government bonds. When more bonds are issued, more government revenues go to paying interest on them, instead of for productive purposes. >> This Week’s Forecast CONSUMERS SPENDING MORE AND SO ARE THE FEDS... This Friday, the important Retail Sales report for August is forecast to be up, as consumer spending keeps helping the economy. But federal government spending still exceeds monies coming in, so the Federal Budget should show a deficit for August. We also want to watch Initial Unemployment Claims, predicted to stay at their recently improved level below 350,000. The August Producer Price Index (PPI) is expected to show a very modest inflation rate for wholesale prices.

8 mistakes to avoid with your 401(k) - PLUS 12 safe grilling tips

A group of financial thought leaders was asked: what's the biggest mistake people make with their 401(k)s? Here are their answers. Mistake 1. Not saving enough. Most experts say you should save at least 10% of your gross income, starting in your 20s, in order to have enough for retirement. If you're not at this level, start by increasing your savings rate by 2%, which you'll barely notice. Then go up another 2% in 3 to 6 months. Be persistent and you'll get where you need to be. Mistake 2. Not maximizing contributions as early as possible. If you don't maximize contributions as soon as you can, you're not taking full advantage of the compounding and tax savings 401(k)s provide. Mistake 3. Missing out on your employer's maximum matching contribution. Employers often match employee contributions in steps. But you have to contribute the amount that will trigger the maximum match for each step. Failing to contribute enough to get the employer match is just leaving money on the table. Mistake 4. Keeping your own company's stock. If your company gives you stock, take it – but sell it as soon as you're allowed. Company stock is great if the company does well. But if it folds, you lose your life savings along with your job. Mistake 5. Not acting your age. Young people can be more aggressive in their investment approach; older people should be more conservative. Unfortunately, many people act the opposite. They want to protect their hard-earned money when they're young, then get aggressive trying to build funds fast as they approach retirement. But aggressive risks should be taken early when you're years away from collecting the money. If you haven't put enough away, don't risk what you have. Instead, increase your contributions, and plan to work a little longer. Mistake 6. Not paying attention. With 401(k)s, people often neglect to monitor performance, fees, and asset allocation. Look at these issues at least once a year, preferably with the help of a financial professional, whom some companies provide. Mistake 7. Second-guessing your investment choices. The opposite of not paying attention is second guessing your investment decisions every time markets go down. Manage your plan by reviewing it in a disciplined manner. Mistake 8. Tapping into 401(k) funds now. People tap into their retirement money thinking that present wants are more important than future needs. Don't do it. Your retirement savings are a priority! Always consult your financial advisor about your investments. 12 GUIDELINES FOR SAFE GRILLING Many people enjoy their outdoor grills well into the fall. We've even heard of folks in northern climes who keep their grills going all winter. But there's always a risk of fire with grills, so follow these safe grilling tips. Before Only grill outdoors. Never move a grill to a screened porch or garage, even if it's raining cats and dogs. Place grill on a flat, non-flammable surface, such as a driveway or section of lawn away from buildings and flammable items. Position grill at least 15 feet away from home, railings, and flammable items, not under eaves or branches. Clean grate with a sponge and dishwashing soap and remove all grease and rust with a wire brush. For gas grills, put a light soap and water solution on the propane tank hose and watch for bubbles, indicating a leak. If there is one, have a professional service it. During Never use gasoline, alcohol, or kerosene to light your charcoal. Once coals are lit, never add lighter fluid or other flammable liquid. Keep children and pets at least three feet away from the grill. Never leave a charcoal or gas grill unattended. When grilling, if you smell gas, immediately move away from the grill and call the fire department. After Tightly close grill lid and vents. Do not remove coals or move the grill for at least 48 hours. If you want to take advantage of today's improving housing market, we're glad to answer any questions about financing. We can also help with refinancing your existing home or funding home improvements. Please call or email us any time. We're always here for you.... Have a great day! P.S.: The housing market is recovering, but mortgage rates are volatile, though still at historically attractive rates. So if you're thinking about buying or refinancing, start the process early. Please call or email us to explore the appealing options available now.