Everyone says you have to be a prospector to succeed in the life insurance business. After 12 years of working in our profession, I completely agree with this statement. "Prospecting" is an interesting word to me because it entails so many things we do, or at least should do, on a daily basis. Most people associate prospecting with meeting people. You meet someone at a party or a charity event, put their name on your list, and then call them for a meeting.
When I started in the business in the fall of 1995, I used a couple of methods for tracking my stats. I had a sheet with 15 spots per page to track the people I met. The sheet had room for prospect names, contact information, and the name of the person who referred me to them. I still use that same sheet, and I have all my data collated by quarters. I track all of my referred leads, ratios of calls to appointments set, first meetings, total meetings, and completed applications. At the end of each quarter and year, I calculate all my numbers. I can tell you to the decimal point how many people I need to meet to write an application.
How does tracking help your prospecting? I think the more you are accountable to yourself, and the more you understand and quantify what your activity really is, the more you will prospect. It's what feeds the lifeline of our business. But how do you prospect efficiently? I think everyone has their own style of prospecting. I have my own, of course, and I'll share some of it with you.
When I was new to the business, I remember an older agent told me to "ABP" -- Always Be Prospecting. I keep that idea in mind at all times. It doesn't matter where you are -- Las Vegas, Hawaii, the grocery store, a weekend birthday party -- there are always new opportunities to meet potential clients. As I have gained experience, I have become more methodical about whom I approach as a prospect. But when I was young, I would talk with everyone. That was my way of acquiring clients.
I have met clients on elevators, in line at theme parks, on airplanes, you name it. The idea is simple: Every time you have the opportunity to meet someone new, you are prospecting. For example, at a dinner party three months ago, I sat with seven people I didn't know, spoke to them all for less than five minutes each, and got all of their business cards. Since that dinner, I have met with four of these dinner guests. The ones I met with were in my target market and they were able to refer me to others just like them -- because I asked!
My favorite thing to do when I was younger was to work the room at a charity or company event. I would assess the room I was walking into before I entered, and tell myself how many favorable introductions I would need to make before I could leave. Sure enough, if you plan in your mind what result you want, it happens! This type of prospecting is a must for all new members of our business.
Recently, I attended a coffee gathering for parents at my daughter's new school, and the room was packed with more than 80 parents. In 10 minutes, I met three of the other fathers. Give me until the end of the year and I'll have another 20 prospects to meet with, from that one event! Just do it!
When you are meeting people, ask them what they do for a living, and they'll most likely ask you the same question. Once you complete your "elevator speech," I suggest some small talk for a short time -- it can help you gather important information about this potential prospect. At the end of the conversation, I always say, "I would love to get together to share some more ideas about what each of us do, so I might give you a call." Or I say, "Let's get together to share some more ideas, would it be OK to call you?"Be Direct
I believe that being direct and telling prospects what you plan to do is an important key to making a first and lasting impression. By telling them you might call, you take away the element of surprise when you do call. I find that even after three minutes of conversation, 90% of the people will take my calls. That doesn't mean I sell a policy to all of them, but I estimate I get appointments with 75% of the people I meet and follow up with. After I meet someone, I usually call them about two to four weeks later.
Sometimes I wait longer for various reasons; do what makes sense to you. It's better if you are somewhat fresh in their mind. When you call them, ask for 15 minutes of their time. (If you had great rapport, then ask to meet for breakfast or lunch). Be respectful of their time. Just think if someone that you had just met at a party called to ask you for an hour of your day -- you would say no, you're too busy!
You can be great at meeting people, but you also have to be great at getting referrals to take the quantum leap to success. How do we ask for referrals and follow up? When I started in the business, I asked for leads the same way I do today. At the end of my first meeting with a new prospect I say, "Do you know a few people who are just like you that I can call to be a resource for, preferably people who are married with children?" You could also try more subtle questions, such as, "Who do you know that's a successful business owner?" Or, "Whose offices are next to you on either side?"
Use whatever approach you want. The secret is to limit your request to no more than three sentences, and then stop talking and have your pen ready. I promise you this works. I have tracked my referrals for 12 years, and I have averaged more than 45 referred leads per month. If you ask for referrals, you will get them. It's the ability to ask constantly and be diligent about it that takes skill.
I read many business journals and other publications specific to my target market. They usually carry lists of people recently hired or promoted at companies in my market. I have my assistant compile these names under each company name, and then I use this to prospect. Ask your prospects or clients if they know any of the people on your list. While they are looking, tell them to asterisk the ones who they think would be good to call and "be a resource for."
With this technique, you can effectively double your referred leads. For some reason, people are more apt to say "I know him or her" when you show them that list. Make sure it's OK to call these individuals and refer back to your prospect or client who gave you their names. No approach works 100% of the time, but this one does a vast majority of the time for me.
A "center of influence" is a widely used term in our industry. It takes time to cultivate relationships with influential people and gain their trust so that you can get high-quality referrals or recommendations. In the past couple of years I have nurtured relationships with a property-casualty agent, a CPA who owns a significant firm, and a wealth management company. They are confident in my abilities as a financial and insurance professional, so they refer people to me. The key to all these relationships is that I established a rapport with them from the beginning, and I send clients to them, too. If you send clients first, they will reciprocate. Better yet, make sure your centers of influence are clients themselves, so they know the good work you are capable of providing.
I have written approximately 175 cases in each of the past five years, and the reasons for my success are simple -- hard work, efficient tracking systems, and good prospecting. I have always asked for referred leads and have built a pipeline for them over the years. In addition, I've been a good general prospector at social and family events I attend. It all adds up to having a lot of clients and new people to call.
If you consistently ask for referrals and build prospecting into your day-to-day life, you will have too many people to call and not enough time to call all of them. That's the goal. And it brings up a related concern: how to schedule your time efficiently ... but that's an entirely different topic for another article! Good luck and good prospecting.
Corey A. Metz, CLU, is an eight-time MDRT qualifying member with two Court of the Table qualifications. He has spoken at several industry functions and conducts a yearly seminar at a local college. He is owner of Metz Insurance and Financial, which assists business owners and higher-income individuals in business and estate planning.
