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.

Life In The Fast Lane

Life in the Fast Lane By: Pat Wedeking

Life insurance is important…we all know that.  Life insurance rates have gone down significantly over the past 10 years as people live longer…many of us know that. Now life insurance is easier to transact… I know some of us might even challenge that one.  This article seeks to update you on the latest advancements in life insurance underwriting and how Smart Choice® is embracing this change making life insurance easy.

Americans are dangerously underinsured when it comes to life insurance; the opportunity to do the right thing for your clients and earn a significant income doing so has never been greater than it is today.  One of the largest life insurance growth markets in the world is the U.S. middle market and companies across the globe are recognizing this and investing in the effort to deliver life insurance to the masses.  As a result, there is more competition and prices have come down consistently for a decade. Recently, more and more companies are introducing new, better ways to get life insurance in force quickly.

Accelerated Underwriting Programs are hitting the market in a big way right now with different carriers introducing their version of Accelerated Underwriting each month.  These programs rely on data to assess risk as opposed to what used to be invasive bodily fluid draws asking your clients to give blood and urine to a medical professional they’ve never met in order to determine the proper underwriting class.  “What kind of data?” you ask, the list includes driving records, prescription data, credit scores, lifestyle index scores and the life insurance industry’s centralized database they call the medical information bureau (MIB.)  Add it all up and many actuaries are saying this is an equivalent way of assessing risk.

What was a 6, 8 or 10-week process can now be done in a matter of moments. Policies that used to be issued quickly at rates that are 200% to 500% of fully underwritten rates are now being issued at the same lowest rates available.

This is an evolution – or a revolution – so still most policies are underwritten the “old way” but more and more we are seeing products and processes that accelerate the process.

One of the carriers on the Smart Choice Quick Life platform, for example, has eliminated the need for blood and urine for all cases with face amounts of $500,000 and under.   Another carrier on this platform is offering some applicants the chance at the best prices without blood and urine up to $1 million and still another is reviewing all cases that fit a certain profile and giving us pleasant surprises with “Issued as applied for, underwriting requirements waived” messages often within hours of submitting the case to underwriting.

Yet another carrier has gone one-step further… the furthest of any carrier in the market today.  This carrier is instantly issuing policies up to $1 Million in face amount for all applicants who fit a certain profile and where data is available for consideration.  These are policies are issued on the spot, delivered electronically, with electronic payment and at a price that is most competitive.

Smart Choice has embraced this evolution and offers access to instant coverage through the expansion of the Smart Start program that we call Smart Start Life.  This makes Smart Choice among the select few in the country to have access to this product.  In partnership with InsureNOW, part of the largest distributor of life insurance in the United States, this program is available to Smart Choice offices nationwide.

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How to Sell (More) Life Insurance:

  1. Create awareness that you offer this type of insurance. We call this one “State Farm Sells Life Insurance” because this company is one of the top sellers of life insurance in the country simply by letting it be known that life insurance is available to their policy holders. No commercials, no pushing or pressing, just awareness.  Let your clients know that you offer life insurance.  Ask us, we can help you with email signatures, announcement letters and emails and even a customer friendly shopping mechanism you can link from your website.

Life Happens Pro ( https://lifehappenspro.org/ ) offers a simple, cost effective way to leverage best-in-class life insurance marketing resources to drive business to you.

  1. The one sentence that works. “Life insurance rates have gone down. Part of our service is to see if we can save you money so I am going to have our life insurance expert give you a call. Okay?”     When you get a “yes” to that simply enter the name and contact information into the Smart Start Life online form and you will hear from our life insurance expert that will act on your behalf.  Wait for commissions to arrive.
  2. Offer a Policy Review. “When is the last time you reviewed your life insurance progam?”  is another great question to ask.  They either say “Recently” in which case you can ask if you can review to see that they got the best price available – or they say, “It’s been a while” to which you can respond with an offer to do it right away – or they say, “I don’t have life insurance” which is your queue to help that family.
  3. Ask all Business Owners about Life Insurance. What can be an emotional, slow decision for families becomes a simple economic decision for most business owners. Buy Sell agreements and Key Person policies are some of the easiest life insurance sales you will ever make.
  4. Use a Quick Entry Process. Make your life easier with a new breed of processes that take the processing burden off your task list.  Smart Choice Quick Life and Smart Start Life are two of the best available.

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Brief Bio

Pat Wedeking is the Founding President of the Life Insurance Direct Marketing Association (LIDMA.org) and the Chair of the Life Happens. He is the founder of two life insurance distribution companies and now operates Crump’s InsureNOW platform.  Pat lives in

Front of the Pack: Coming Out Ahead in an Everchanging Financial Landscape

Front of the Pack: Coming Out Ahead in an Everchanging Financial Landscape

by Michael Miller, State Director Minnesota, Wisconsin, and Iowa

The stock market has climbed to new heights over the last few months. Recently, the Dow Jones Industrial Average closed over 26,000 points, a record high. While this is great news for the country, it overshadows some serious challenges the insurance industry faces.

While stocks climb, insurance companies are hurting after billions of dollars in losses after several major hurricanes last fall and wildfires and ensuing mudslides in California in December and January. The latest tax bill gave businesses substantial breaks, but left a wake of uncertainty regarding healthcare. Meanwhile, distracted driving is a persistent problem, driving claims and premiums up.

How does an independent insurance agent stay ahead of the game, despite the multiple financial challenges facing our industry? Here are a few ideas I’ve shared with my agents to help them get ahead and stay ahead.

Diversify your offerings and demonstrate your value.

One of the first things I recommend agents do is review the range of insurance products they offer. Many independent agents get into the business writing personal lines, but few expand into commercial, life, and health markets. They do so at their peril. Selling personal lines insurance is a great way to learn the insurance business, but there’s heavy competition from online brokers and captive agents. Adding commercial carriers and learning how to write a great life insurance policy can help you stay in the black, even when the personal lines market is in a downturn.

Regardless of what insurance products you offer, make an effort to demonstrate your value to every client and potential client who walks in your door. Your agency isn’t just a place to buy insurance, it’s a risk management consulting firm. Help your clients understand the risks they face as homeowners, business owners, spouses, and parents, then offer them custom insurance solutions that cover that risk. That’s a level of expertise and service the online brokers simply can’t provide.

Identify your lead generation strategy . . . and work it.

The most successful agents will all tell you that they never take their foot off the gas. They are always sourcing and reaching out to new leads, even when they’re running at or near capacity. Creating and implementing a consistent lead generation process ensures you’ll never run out of new business.

Where is your current business coming from? What opportunities are you ignoring? Identify them and create a plan. Will you join a networking group to get referrals or buy a list of leads? Once you have leads, will you reach out to them by phone, mail, or email marketing? How often? The answers to these questions will help you develop a lead generation strategy you can use all year.

Don’t leave talent on the table.

No agent is successful all on their own. We all rely on teams to grow our agencies, whether they’re outstanding producers and CSRs at our office or our families at home. Who are you underutilizing on your team? On the flip side, are you so overwhelmed with work that you need to hire someone? Make the most of the human talent available to you—your own and that of your team.

Think a year ahead.

The most successful agencies think long-term. It helps them stay focused on their goals and whether short-term financial downturns. Envision where you want your agency to be this time next year. What will you do to reach that goal? Consider subscribing to trade magazines and newsletters to stay ahead of trends in the insurance industry. Use these insights to recalibrate your goals and adjust your plan.

When It’s Time to Move On

You’ve spent your career helping families and businesses mitigate risk and protect their assets and loved ones. You have a full book of business, wonderful staff, and a great office. Have you ever wondered what will happen to the insurance agency you’ve worked so hard to build once it’s time to move on?

You’re in the risk management business, so chances are you’ve thought about this quite a bit. But if not, here are a few tips to take the mystery out of selling your agency:

  1. Get an insurance agency valuation to determine its actual worth, including your book of business, location, the markets you offer, and your phenomenal staff.
  2. Create a plan to sell your agency at least three years before you plan to leave the business with the help of a good business attorney.
  3. Know your sale options, from selling your agency for free through Smart Choice® to identifying a buyer within your agency, your family, or your professional connections.

 

Source:

Insurance Journal

Increase your book of business using existing clientele

One of the best ways to increase the size of your book quickly is by tapping into your existing base of customers. There’s almost always more business to be had with your existing clients. Start by doing a review of coverage with each client. Then sit down with them and ask the right questions to elicit and uncover coverage gaps you can offer to fill. Use that opportunity to make them more loyal to you when you offer to shop their coverage and find them better coverage at a better price.
Start with your top premium clients and work your way down – selling personal lines to commercial-only accounts, and ascertaining if your personal lines clients have businesses you could potentially write for them. You already have a number of P&C clients on your book. What better place to look to increase revenue, than the people you already do business with? Not only does this increase retention and loyalty, it makes less likely your client will want to shop and move their business elsewhere down the road.

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!

There Is Always Something To Be Grateful For

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There is Always Something To Be Grateful For

“Gratitude unlocks the fullness of life. It turns what we have into enough, and more. It turns denial into acceptance, chaos to order, confusion to clarify. It can turn a meal into a feast, a house into a home, a stranger into a friend.” –Melody Beattie

Every year there are blessings, big and small. Are we grateful for those blessings or do we just brush over them wishing and hoping for more? We all want more. We all want more money. A bigger house. A better car. The list goes on and on. But, as the words by Melody Beattie state, if we can really, truly be grateful, then we are able to see the true gifts of life before us. Through gratitude we are able to realize that what we have IS enough and so much more. What if we stop looking at the arguments and differences as a hindrance, and look at them as an opportunity to show support, love, and acceptance? What if we refuse to let the chaos and confusion of everyday life take over, and see how to add order and clarity to the situation? What if we look at this “meal” as a wonderful feast to not only take a break from life’s distractions, but to also have the opportunity to make memories with family and friends?

Thanksgiving is a day to look beyond the exhaustion of cleaning, cooking, and hosting and to realize that this day is truly about giving thanks, showing appreciation, and illustrating gratitude through our words and actions. Let’s take a moment to look around and to be grateful for what we all have and how fortunate we are.

Smart Choice® wishes you a Happy Thanksgiving! “May the beauty and blessings of Thanksgiving bring warmth and peace to you, your family, and friends!”