Truth sellers vs. cellar dwellers: Winner takes all

• It hurts insurers because agent lies can embroil carriers in costly regulatory actions and client lawsuits. 

• And its hurts the lying agent because it's hard to sleep like a baby and wake up with self-respect when you're a lying low life.

So if we can't change the liars, what can we do? Adopt a concept I introduced in my last column: The Truth Standard. Under this approach, advisors will strive to tell clients what they need to hear—even if they don't want to hear it and even if advisors stand to make less money. Eventually, truth will become the gold standard of excellence in our  industry, and the bottom feeders will simply fade away.

So how do we promote a new Truth Standard? Here are a couple suggestions:

1) Inform prospects of the legitimate differences between your products and company and those of your competitors. Document your statements with objective, third-party articles, studies and websites.

2) Adopt a policy of full transparency about your education, business practices and track record. Ideally publish this information on the Internet, both on your site and on reputation-marketing platforms such as www.ethics.net (among others).

3) Don't hesitate to "call out" a competing agent's lies, diplomatically, of course. And when you inevitably close the sale, feel free to ROFL…Because he who laughs last, laughs richer.

"Eventually, truth will become the gold standard of excellence in our industry."

Steven R. McCarty is Chairman of the National Ethics association (www.ethics.net). Responses and questions can be sent to [email protected].