In 1980, Don Speakman was making a little over $18,000 a year as an underpaid assistant at a printing company. He struggled to make ends meet with a family who required more than he made. Recruited by a manager who thought he might be a good risk, he started the laborious process of selling insurance and equities. But he wasn't alone; he had three other friends to keep him company.
The four Musketeers started out by giving public seminars on his products, but Speakman survived his compatriots and he is certainly wealthier as a result. His gross commissions this year are $1 million, his company pays his overhead and he has a pretty good ROI. However, the real reason to be envious over this high achiever is because he works so little and makes so much. He only sells 2 days a week and has no desire to put in more effort. The rest of the time he spends with his family or whatever else strikes his fancy.
Over the past 13 years of looking at peak performers, from time to time I have the opportunity to sit down with the best of the best: people who consistently push the envelope of success to even higher levels. These super producers all have certain characteristics in common. They are surprisingly and simplistically innovative and enormously perseverant.
Here are a few of the techniques that people like Don Speakman use to out distance the competition, work a whole lot less and make a whole lot more.
1. Make the first sale a client builder, not a quota maker. The first sale is always the hardest for the client and you. One of the things that top producers consistently do is develop relationships for the long term. Ben Feldman — undoubtedly the world's greatest financial services salesmen — says to his clients that the moment they sign the contract is the time the relationship starts.
The sales producer who wants to make quick money asks for the big sale first. The one who understands people knows that big money comes after trust is developed. When you have trust, commissions fly into your lap. Concentrate on getting the prospect to buy the relationship; the amount doesn’t much matter. The client is giving you enough money to test the trust he has given you. He will then observe how you treat him after the check is cashed. One top producer even asks the prospect directly what is he most comfortable buying first. This is very straightforward and very effective.
2. Remember the concept of compound interest as it pertains to people. Don Speakman, the leading producer at one of the country's largest financial institutions, uses a newsletter to keep in contact with his clients (this includes realtors). He believes keeping in touch will keep sales coming. But he also uses it as a referral-gaining tool. In his public seminars, he hands the newsletter out to attendees and encourages them to write down the names of others who would benefit from receiving a copy.
Some people may feel threatened when asked to write down the names of friends so a salesperson can call them. But few would feel intimidated by a free newsletter subscription. Speakman encourages the referrals by giving away a cross pen to anyone who writes at least three names down. The pen is purchased in bulk by the home office and bought by Speakman at a deep discount. If a name is worth $1000 in commissions, you would have to be a couple of bricks shy of a load to not use this idea.
3. If you can get the wife on your side, you'll make the sale. As obvious as it sounds, if you knew the wife could make or break the sale, you would treat her like the decision maker. If you think the wife need only be present during your interview, think again. One top producer noticed the male breadwinner had read too many Money Magazine reports on interest rates. On came the flurry of objections, so much so the originator was sure he would lose the sale.
After listening to her concerned husband, the wife with the cooler head said, "Honey, shut up and listen to what Don has to say." Do women influence the sale? According to LIMRA and Oppenheimer Funds statistics, women now make 43 percent of the buying decisions on financial products today, and they conservatively influence 57 percent. In the next three years — because of changing demographics and single head of household increases — those numbers will go up by 30 points. If you treat the woman with respect and courtesy, you'll certainly bat better than .500.
4. If you wrestle with a pig, you'll always get dirty, but the pig likes it. According to many top producers the best markets are people 55 and older not only because they have money, but they are also flat out nicer to be around. Clients younger than 40-years-old are much more likely to dump you and your products for a better deal often without regard for you. Those clients who have been around the block a few times know that its better to "dance with the guy who brung ya." Many of the top producers interviewed mention that it is sometimes more difficult to initially gain the trust of retireds, but they stay loyal longer.
5. Target the type of people you enjoy selling to. Many peak performers say that not only do they niche market, but they also target those they enjoy doing business with. In interviews with such top performers as Guy Baker in Newport Beach, California and Don Speakman in Pittsburgh, both say the hardest people to sell are the technical types like engineers accountants and doctors. These are the professionals most likely to have some knowledge of financial issues through magazines like Money but enough information to make them dangerous to themselves. The prospects most likely to trust you are widows; most women will become widows sometime in their life. These are the people who have suffered a great loss and need an advisor they can trust. If you already have clients in their elderly years, you have a great source of future business if you know what they need and want.
6. Put your activity on a point system. If the biggest reason producers fail in this business is due to low activity, then you ought to make sure you are in daily touch with enough people to make some money. In most interviews with producers who make millions, I have discovered that they possess a surprising amount of self-discipline. Nearly all set daily, if not hourly, goals for themselves to achieve. One of Manila's biggest producers in the Philippines is Belen DeJesus.
DeJesus runs one of the biggest agencies in the South Pacific and has been a member of the top of the table for a decade. The Philippines is one of the poorest nations on the planet. In personal production, DeJesus has a knack for finding people with money. Still, it isn't because she has superior intelligence. She started her career as a telephone operator with Manila's telephone company. A career in the life insurance business in her chauvinistic country meant that she would have to work harder than any male she competed against.
DeJesus realized that if she was to make a living in this very competitive industry she must not only set hourly goals, but also develop a system for keeping herself committed to those objectives when the enthusiasm waned. Her method was to make ten phone calls in the morning before she would allow herself to have a cup of coffee. She would force herself to ask each client for referrals before she left the closing interview. To forget to ask, was to deprive herself of participating in a favorite hobby for that week. This kind of discipline is the mettle of true winners. It is virtually impossible to be stopped short of success when you are doing the right things consistently.
Speakman has a wonderful method of keeping himself on track. He works on a daily point plan. Much like the Granum "one card system", he assigns ten points to a face-to-face interview, five points to a phone call where he is trying to sell, and one point to dialing the phone. His goal is to hit 50 points — or he doesn't go home.
Speakman believes that activity equals success. Who can argue with a guy who makes a millions annually? He makes his 50 points or it's a late night until he gets the job done. Sometimes he has brings his sleeping bag to the office knowing that a busy day is no excuse for avoiding prospecting activities that make him money. Like the postal service: he delivers rain or shine.
7. The softer you close, the more you'll sell. Big producers believe that hard closes often equate to short-term sales and long-term losses. Don't get me wrong; most are great closers they just believe that strong relationships sometimes take months and years to develop.
Ed Williams, one of the most successful financial planners in Southern California, heard me speak at a broker/dealer conference in 1988. He prospected me shortly afterward. I mentioned to him that I was going through a divorce and that I wanted to see what the other side would get. He didn't get my business until 1993, five years later. But then he collected the commission on a million dollar policy. His attitude was, “I’m going to wait patiently for you to need and want to work with me. I'm going to be there for you. When you're ready, we'll do business". This is the kind of commitment to clients that is rare enough to be quoted in the Guinness Book of World Records .
8. If you always do what's right for people, you'll always make a lot of money. Most prospects are wary and skeptical of anyone selling financial products. As they grow older, clients give their trust more hesitatingly. They have been ripped, reamed and racked by salespeople who thought that sales are a transaction rather than a life long relationship. I gave virtual total trust to two financial/insurance planners during the Go-Go years of the late 80s. Each planner put much of my company's pension money into real estate limited partnerships and over-the-counter stocks; almost every partnership is now worth zero and my 2-year-old daughter uses the stock certificates to color on. Now I give sales people little to start with, and then watch the level of effort they go through to make sure that what they sold me is the appropriate product in the long run. Top producers realize that this business is a life long career — not a summer job.
9. Top producers constantly look for new business. Very few rest on the security of renewals. While nearly every big producer possesses an ego that suggests effortless success, when they are forced to be honest, they are scared stiff they won't be in business next year. Top producers are always looking for new business, but with an innovative approach. Speakman includes a lottery ticket in a pre-approach letter — now that grabs the prospect's attention.
I have often heard of salespeople who send a dollar bill to get prospects to notice them, but a lottery ticket represents millions in potential winnings. It excites his prospects enough that most say they were hoping he would call to see who gave them so much excitement. He sends the ticket with a cover letter that says, "If you don’t win, call me.” Of course you are more likely to be electrocuted in your bathtub than win the lottery, so it's a safe bet that the prospect that doesn't win will remember the agent who gave him a chance to hit the big time.
Top producers think differently than salespeople at the bottom. They have a mindset that is focused toward the long-term, while obsessed with building solid client relationships. They believe that people buy trust first, and products second. They make hundreds of thousands if not millions in commissions because they always look for new business and care enormously about the people who they call their clients. These are the new breeds of salespeople and they are making plenty for their effort.
The four Musketeers started out by giving public seminars on his products, but Speakman survived his compatriots and he is certainly wealthier as a result. His gross commissions this year are $1 million, his company pays his overhead and he has a pretty good ROI. However, the real reason to be envious over this high achiever is because he works so little and makes so much. He only sells 2 days a week and has no desire to put in more effort. The rest of the time he spends with his family or whatever else strikes his fancy.
Over the past 13 years of looking at peak performers, from time to time I have the opportunity to sit down with the best of the best: people who consistently push the envelope of success to even higher levels. These super producers all have certain characteristics in common. They are surprisingly and simplistically innovative and enormously perseverant.
Here are a few of the techniques that people like Don Speakman use to out distance the competition, work a whole lot less and make a whole lot more.
1. Make the first sale a client builder, not a quota maker. The first sale is always the hardest for the client and you. One of the things that top producers consistently do is develop relationships for the long term. Ben Feldman — undoubtedly the world's greatest financial services salesmen — says to his clients that the moment they sign the contract is the time the relationship starts.
The sales producer who wants to make quick money asks for the big sale first. The one who understands people knows that big money comes after trust is developed. When you have trust, commissions fly into your lap. Concentrate on getting the prospect to buy the relationship; the amount doesn’t much matter. The client is giving you enough money to test the trust he has given you. He will then observe how you treat him after the check is cashed. One top producer even asks the prospect directly what is he most comfortable buying first. This is very straightforward and very effective.
2. Remember the concept of compound interest as it pertains to people. Don Speakman, the leading producer at one of the country's largest financial institutions, uses a newsletter to keep in contact with his clients (this includes realtors). He believes keeping in touch will keep sales coming. But he also uses it as a referral-gaining tool. In his public seminars, he hands the newsletter out to attendees and encourages them to write down the names of others who would benefit from receiving a copy.
Some people may feel threatened when asked to write down the names of friends so a salesperson can call them. But few would feel intimidated by a free newsletter subscription. Speakman encourages the referrals by giving away a cross pen to anyone who writes at least three names down. The pen is purchased in bulk by the home office and bought by Speakman at a deep discount. If a name is worth $1000 in commissions, you would have to be a couple of bricks shy of a load to not use this idea.
3. If you can get the wife on your side, you'll make the sale. As obvious as it sounds, if you knew the wife could make or break the sale, you would treat her like the decision maker. If you think the wife need only be present during your interview, think again. One top producer noticed the male breadwinner had read too many Money Magazine reports on interest rates. On came the flurry of objections, so much so the originator was sure he would lose the sale.
After listening to her concerned husband, the wife with the cooler head said, "Honey, shut up and listen to what Don has to say." Do women influence the sale? According to LIMRA and Oppenheimer Funds statistics, women now make 43 percent of the buying decisions on financial products today, and they conservatively influence 57 percent. In the next three years — because of changing demographics and single head of household increases — those numbers will go up by 30 points. If you treat the woman with respect and courtesy, you'll certainly bat better than .500.
4. If you wrestle with a pig, you'll always get dirty, but the pig likes it. According to many top producers the best markets are people 55 and older not only because they have money, but they are also flat out nicer to be around. Clients younger than 40-years-old are much more likely to dump you and your products for a better deal often without regard for you. Those clients who have been around the block a few times know that its better to "dance with the guy who brung ya." Many of the top producers interviewed mention that it is sometimes more difficult to initially gain the trust of retireds, but they stay loyal longer.
5. Target the type of people you enjoy selling to. Many peak performers say that not only do they niche market, but they also target those they enjoy doing business with. In interviews with such top performers as Guy Baker in Newport Beach, California and Don Speakman in Pittsburgh, both say the hardest people to sell are the technical types like engineers accountants and doctors. These are the professionals most likely to have some knowledge of financial issues through magazines like Money but enough information to make them dangerous to themselves. The prospects most likely to trust you are widows; most women will become widows sometime in their life. These are the people who have suffered a great loss and need an advisor they can trust. If you already have clients in their elderly years, you have a great source of future business if you know what they need and want.
6. Put your activity on a point system. If the biggest reason producers fail in this business is due to low activity, then you ought to make sure you are in daily touch with enough people to make some money. In most interviews with producers who make millions, I have discovered that they possess a surprising amount of self-discipline. Nearly all set daily, if not hourly, goals for themselves to achieve. One of Manila's biggest producers in the Philippines is Belen DeJesus.
DeJesus runs one of the biggest agencies in the South Pacific and has been a member of the top of the table for a decade. The Philippines is one of the poorest nations on the planet. In personal production, DeJesus has a knack for finding people with money. Still, it isn't because she has superior intelligence. She started her career as a telephone operator with Manila's telephone company. A career in the life insurance business in her chauvinistic country meant that she would have to work harder than any male she competed against.
DeJesus realized that if she was to make a living in this very competitive industry she must not only set hourly goals, but also develop a system for keeping herself committed to those objectives when the enthusiasm waned. Her method was to make ten phone calls in the morning before she would allow herself to have a cup of coffee. She would force herself to ask each client for referrals before she left the closing interview. To forget to ask, was to deprive herself of participating in a favorite hobby for that week. This kind of discipline is the mettle of true winners. It is virtually impossible to be stopped short of success when you are doing the right things consistently.
Speakman has a wonderful method of keeping himself on track. He works on a daily point plan. Much like the Granum "one card system", he assigns ten points to a face-to-face interview, five points to a phone call where he is trying to sell, and one point to dialing the phone. His goal is to hit 50 points — or he doesn't go home.
Speakman believes that activity equals success. Who can argue with a guy who makes a millions annually? He makes his 50 points or it's a late night until he gets the job done. Sometimes he has brings his sleeping bag to the office knowing that a busy day is no excuse for avoiding prospecting activities that make him money. Like the postal service: he delivers rain or shine.
7. The softer you close, the more you'll sell. Big producers believe that hard closes often equate to short-term sales and long-term losses. Don't get me wrong; most are great closers they just believe that strong relationships sometimes take months and years to develop.
Ed Williams, one of the most successful financial planners in Southern California, heard me speak at a broker/dealer conference in 1988. He prospected me shortly afterward. I mentioned to him that I was going through a divorce and that I wanted to see what the other side would get. He didn't get my business until 1993, five years later. But then he collected the commission on a million dollar policy. His attitude was, “I’m going to wait patiently for you to need and want to work with me. I'm going to be there for you. When you're ready, we'll do business". This is the kind of commitment to clients that is rare enough to be quoted in the Guinness Book of World Records .
8. If you always do what's right for people, you'll always make a lot of money. Most prospects are wary and skeptical of anyone selling financial products. As they grow older, clients give their trust more hesitatingly. They have been ripped, reamed and racked by salespeople who thought that sales are a transaction rather than a life long relationship. I gave virtual total trust to two financial/insurance planners during the Go-Go years of the late 80s. Each planner put much of my company's pension money into real estate limited partnerships and over-the-counter stocks; almost every partnership is now worth zero and my 2-year-old daughter uses the stock certificates to color on. Now I give sales people little to start with, and then watch the level of effort they go through to make sure that what they sold me is the appropriate product in the long run. Top producers realize that this business is a life long career — not a summer job.
9. Top producers constantly look for new business. Very few rest on the security of renewals. While nearly every big producer possesses an ego that suggests effortless success, when they are forced to be honest, they are scared stiff they won't be in business next year. Top producers are always looking for new business, but with an innovative approach. Speakman includes a lottery ticket in a pre-approach letter — now that grabs the prospect's attention.
I have often heard of salespeople who send a dollar bill to get prospects to notice them, but a lottery ticket represents millions in potential winnings. It excites his prospects enough that most say they were hoping he would call to see who gave them so much excitement. He sends the ticket with a cover letter that says, "If you don’t win, call me.” Of course you are more likely to be electrocuted in your bathtub than win the lottery, so it's a safe bet that the prospect that doesn't win will remember the agent who gave him a chance to hit the big time.
Top producers think differently than salespeople at the bottom. They have a mindset that is focused toward the long-term, while obsessed with building solid client relationships. They believe that people buy trust first, and products second. They make hundreds of thousands if not millions in commissions because they always look for new business and care enormously about the people who they call their clients. These are the new breeds of salespeople and they are making plenty for their effort.
