Make more money by selling less productArticle added by Rodney Ballance on September 17, 2012
Rodney Ballance

Rodney Ballance

Branson, MO

Joined: September 22, 2011

People do not want to be kept in the dark about anything, especially about their money. When they realize that you’re purposefully trying to keep them ignorant because you’re not willing to expand your own understanding, they will drop you like a hot potato.

I recently had a conversation with a dear friend in our industry. He had attended a training call I'd conducted the previous week, and was telling me why life insurance agents would never do what I recommended.

I had shared that an agent who is considered to be the portal to the financial world by their clients should be well versed in all aspects of personal finance. I told them that they needed to be less concerned with selling a product every time they met with their clients and more concerned with providing knowledge and understanding.

I know, this is completely opposite of what the companies tell us we have to do, but think about it this way for a moment: If your client, Jane, comes to you asking about investments, what do you have to do? If you’re not properly licensed, you may believe that you have to refer them to someone at Edward Jones or some other mutual fund salesman to get their questions answered.

Now the problem comes in, because you know that if you send the client to another rep who can do the same thing you do and more, you might lose that client all together.

So, what do you do? You start bad mouthing the stock market and everyone who sells anything related to the market, except an indexed product, which you just happen to have available.

So, instead of referring the client to someone who can actually broaden their understanding of how other tools work, you sell them something. If the client believes that they’re going to be sold something every time they see you, they’re eventually going to start going to see other advisors anyway, and you’ll still end up losing that business.

People do not want to be kept in the dark about anything, especially about their money. When they realize that you’re purposefully trying to keep them ignorant because you’re not willing to expand your own understanding, they will drop you like a hot potato.

So, what’s the solution? Naturally, the primary solution is to grow your own understanding of how various financial tools work, and not just take it for granted that the easiest solution is always the right solution. One simple solution is indexed products.

I know indexed products are hot right now, and we make a lot of money selling them, but what happens in an inflationary economic cycle? Markets drop and interest rates rise. Are you truly preparing your clients for the best return on their money possible in that environment?
What about this as a scenario? What if your client, Jane, came to you today and asked about investing? What if you told her that investing can be good, but risky?

If you could provide a good source of knowledge for your clients and use that source to grow your own understanding of how to integrate various financial tools to help your clients, wouldn’t that be a good opportunity? Expand your network and understanding outside of what you sell and you’ll expand your earnings accordingly.

Now let’s look at that same scenario again. Jane comes to you asking a question about investing. You turn her on to an educational program where she can enhance her own knowledge and understanding where you know there are no competitors. You understand that she will become a better client because she understands the very things you want her to know about how to use foundational tools like life insurance and annuities successfully.

Jane is so happy that you didn’t just sell her something else that she tells her friends. Those friends request an appointment with you to have you implement safe foundational planning strategies for their portfolios.

Now, you may not have made a quick sale by bashing the mutual fund guys, but you’ve solidified a relationship with an existing client who is now a primary source of referral business for you, resulting in numerous life insurance and/or annuities sales.

Don't “always be selling.” Do "always be adding value to others," and they will add value to you!
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