The right insurance prospects at the right time

By Jacques Werth

High Probability Selling

You have probably heard that "No one wants to buy insurance, it has to be sold." There may have been a time, about 30 years ago, when there was some truth to that slogan. Today, it is obsolete.

Prospects for insurance seldom buy when you need to make a sale. They seldom buy for most of the good reasons that they should own insurance. Anything you do to try to change those facts will cost you time, money and emotional stamina. However, some prospects do become your clients when you can persuade them to buy. When that happens, it's good for them and bad for you.

It's bad for you because you'll try even harder and work even longer, to make it happen that way again. That will prevent you from spending your time and resources with prospects that are ready, willing and able to buy now.

Prospects buy in their own time for their own reasons

Imagine you are someone who needs insurance; however, it's not at the top of your list of priorities. Then, one day an agent (or financial advisor) calls and tries to convince you to make an appointment to discuss how to improve your financial situation. Most often, your response will be, "I'm not interested."

Like most agents, this one does not give up that easily. If the agent does not immediately accept your negative response, by the end of the conversation you most likely will never do business with that agent. Why?

Resistance and rejection

Attempting to sell to someone who does not want to buy causes resistance — sales resistance. The more subtly and persistently you try to get them to change their minds, the more adamant their resistance becomes.

Think about the last time a salesperson was able to convince you to buy something that you did not already want. Think about how difficult it is for you to change your own mind.

Statistically, the more you talk to a prospect who has not said "yes" to your prospecting offer, the less likely they will ever buy from you. That way of prospecting and selling also creates real rejection — personal rejection — which is not an enjoyable way to make a living.

Find high probability prospects

The simple, but not obvious, solution is to find prospects when they are ready, willing and able to buy. Did you notice that term "prospecting offer” above? An offer is very different from a sales pitch. It's very different from an introduction, opening line, conversation or any other euphemism for "pitch." An offer garners a yes or no response.
You have probably heard that "No one wants to buy insurance, it has to be sold."

There may have been a time, about 30 years ago, when there was some truth to that slogan. Today, it is obsolete.

There are plenty of people shopping for insurance now and a lot more who haven't gotten around to it yet. However, it is not profitable to pay for shopper leads. There are too many competitors for those leads and too few actual buyers. They are all are looking for the lowest price, and many will never buy insurance from anyone.

The right prospects

Many successful agents know how to find affluent prospects who are ready, willing and able to buy, and are too busy to shop for insurance. Those agents learn how to call a list of good prospects and make brief prospecting offers. Their offers get an immediate yes or no response. The offers are so concise and inoffensive that most prospects will welcome your phone calls over and over, until the time is right for them to buy. To be effective at that kind of prospecting, it is necessary to present differently worded offers each time you call.

This telephone prospecting system enables the average agent to make offers to between nine and 15 prospects per hour. It depends on the niche market they are working. It may take between 40 and 90 prospecting offers until a prospect says yes to your offer.

Example: If you prospect for 10 hours and contact 10 prospects per hour, you should average between 1.1 and 2.5 appointments. Most of them will buy insurance on the first or second appointment.

How can you optimize the percentage of affluent prospects that will buy from you? If you want hear more, please send me a message.

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