To Make The Sale, Leave

To Make the Sale, Leave

By: Josh Seibert, Sandler Training®
  

The STORY:

Nick was having trouble trying to close the prospect. Still never having attended any company sales training courses, he hit upon a solution to the problem. One of the most experienced salespeople was in the back, and Nick decided to go and ask his advice.

“If you could excuse me for one moment,” Nick said, “I just remembered that I have an important message for one of the other fellows who is in the back room . . . I forgot to give it to him earlier.”

“You are going to come back, aren’t you?” asked the prospect.

“Of course,” responded Nick, “why would you think I wouldn’t?”

“Oh, I know I’m a royal pain in the butt when it comes to making a decision about buying something,” responded the prospect. “Most of the time, the salespeople get tired of trying to convince me and wander away, and I never see them again.”

Nick wasn’t sure what to say. He really needed to get the experienced salesperson’s advice so he turned and headed toward the back room.

“Wait a minute,” said the prospect, “I don’t want you to leave. I’ll buy it.”

“You’re sure?” asked Nick, hoping he hadn’t said too much.

“Definitely. Wrap it up.”

When the customer is out the door, thought Nick, I’ll go back and ask the experienced salesperson what to do the next time this happens.

The RESULT:

Nick did something very important for the wrong reason. From the prospect’s point of view, which is the only one that counts in selling, Nick was getting up to leave, never to be seen again. Again, the prospect would be left standing alone, not having bought anything. This pressure on the prospect, which Nick applied without realizing it, was enough to make the prospect give up and buy. Unfortunately, if Nick does ask for advice, he’ll probably be told the wrong thing.

DISCUSSION:

Getting up and leaving a prospect is almost impossible for a salesperson to consider. Why would you ever want to give the impression that you are going to walk out the door?

The reason for getting up and leaving is to let the prospect know it is time to make a decision.

The pressure is now on the prospect where it belongs.

This is not a tactic that you want to try with every prospect you come across. But if you have reached the “end of your rope” with one, you have nothing to lose by trying. The worst that could happen is you won’t make the sale. But then, you had no chance anyway.

APPROACH:

There are many ways to get up and leave. One approach is to physically start to move away.

Another is to simply look at the prospect and say, “Off the record . . . I get the impression that you haven’t come to a decision. Let’s assume that you decide it’s over. You don’t buy. What happens now?”

This verbal getting up and leaving forces the prospect to see a future in which he does not have your product/service. If he is in enough pain to be seriously considering buying, then looking at a future without buying is more painful. The only catch to the verbal leaving is that you MUST wait for a response. Do not rescue him or physically leave him.

Do not change “What happens now?” to “What happens then?” The word “now” brings the future, without your product/service, into the present, and as a result, pressure to decide becomes overwhelming.

THOUGHT:

“Leaving” the prospect makes the prospect want to come to a decision.

 

Josh Seibert is the president of Training & Development Solutions, Inc., Sandler Training located in the Piedmont Triad.  He can be reached at 336-884-1348 or www.training.sandler.com

©Sandler Systems, Inc. All rights reserved.

Part 4, Fees: Should I Join An Insurance Aggregator or Agency Network?

Many independent insurance agents, both new to the industry and established agents, at some point find themselves asking the question: “Should I join an aggregator or agency network?” Independent agents aren’t tied down by the restrictive contracts and obligations that captive agents are – but they face their own set of challenges as an independent business owner. This ongoing blog series investigates both benefits and drawbacks of agency groups.

Drawback #1: Membership fees
Agency networks exist because there are many insurance agents who need access to markets for their customers. The networks provide a service, and have to be compensated in some way to make money and stay in business. Therefore, they charge fees to the agency owner in exchange for access to markets. For an agency owner who’s just starting out in the industry and needs markets, but has little profit and cash-flow, this can be a problem. Agency networks typically charge fees in one of three ways: Monthly membership fees, initial start-up fees, or commission splits.

Some agency networks charge agency owners fees in MORE than one way, requiring a start-up fee, a monthly fee, AND a commission split on business written through their program. While others only charge a commission split. The commission split charge in some networks is taken on income earned through the carriers the agent accesses through the group, and/or on the commissions agents earn on the carriers with whom they have a direct appointment.The agency owner must investigate the contract of each agency network, and decide which network offers them the best markets for the littlest cost.

Should I join an insurance aggregator or agency network?

Many independent insurance agents, both new to the industry and established agents, at some point find themselves asking the question: “Should I join an aggregator or agency network?” Independent agents aren’t tied down by the restrictive contracts and obligations that captive agents are – but they face their own set of challenges as an independent business owner. This blog series will investigate the different types of groups that exist in the insurance marketplace, as well as the benefits and drawbacks of aggregators and agency networks.

Benefit #1: Access to markets and carriers

Perhaps the most obvious advantage, and the reason a majority of independent agents seek out these types of groups, is access to markets. What does that mean? It means independent agents don’t automatically have a carrier or insurance company they represent. They have to actively seek out contracts with multiple insurance carriers in order to offer their clients insurance coverage. The advantage for independent agents is that by representing multiple carriers, they can offer their clients more options, including TYPE of coverage plans, AND at the best price. Unfortunately, it’s extremely difficult to get markets when an agent first starts out in the business because they have no history with the carriers in the industry. They have to gain the trust of the carriers first. Agency networks and aggregators can help the agent achieve this by establishing a relationship with the carrier first. This means that the agency network is directly contracted with the carriers themselves, and then – with their pre-established relationship – helps agents they’ve vetted and contracted with themselves, become appointed to write business with those carriers.

Stay tuned for more in our blog series!