It is amazing what a new client can do to our overall practice. When we are working with new problems and solutions, our minds stay focused and engaged. But ours is a unique business because it is entirely agent-driven. Our phones don't always ring, so we need to be proficient in actively acquiring new clients if we want to succeed.
A weekly activity objective is critically important. My goal is to have 10 appointments scheduled for the next week before leaving on a Friday. This has driven me for more than 10 years, and it has created four key benefits.
First, I am always looking ahead to next week instead of being consumed by this week's problems. Within the next 90 days, we will have either a huge sale or a great disappointment, either of which can derail a career. The big sale can make us complacent and the disappointment can discourage us, unless our weekly objective is based on activity instead of sales results. Our sales cycle is long enough that by the time we realize we need money, it's too late. Therefore, we need something other than commission to motivate us every day. When I am laser-focused on next week, this week's events cannot distract me, because they weren't the reason I came to work.
Second, this commitment puts me in front of enough people to make a good living. I may not know where each week's business will come from, but if I see enough people, someone will buy something.
Third, I know when my workday is done. I do not have an office or study at home, so time at home is all play. The only way to peacefully enjoy my time at home is to know that I was productive at the office and that more business is on the way.
The fourth benefit is that constant activity creates a consistent income, which is rare in a pure commission field. With the endless potential and possibilities in our business, we should never envy others who have a steady paycheck. If we have perfectly consistent activity, then consistent results should follow.
Referral-gathering
The most effective and least expensive method of client acquisition is to create an endless chain of quality referrals. A tremendous resource on this subject is Wayne Cotton's Web site, www.mycapabilitygap.com.
To make the most of my referral-gathering efforts, I first had to establish a specific client profile. After a brief study of my practice, I found that my most enjoyable and profitable client relationships actually fit very narrow parameters, from age and income to even hobbies. I then knew exactly who I was looking for and what to do when I got there. Our business provides the opportunity to be so many things to so many people that we can easily become distracted and diffused. We should focus on one or two areas and become experts in them. Ours is a society of specialists, not generalists, and it's important that we know our own specialty.
I also have learned to treat the referral-gathering interview as its own event. It is so easy to treat referrals as an afterthought, which causes clients to treat them that way, too. But when I properly set the stage and lay out my clearly defined profile, the quality and quantity of my referrals increase significantly.
Overcoming objections and making appointments
In order to turn these introductions into appointments, it is important to properly overcome the most common phone objection. After I've asked for a meeting, the prospect almost always says, "That sounds fine, David, but my schedule next week is really up in the air right now. Call me on Monday and we'll set something up."
This objection derails more appointments and careers than any other. It is destructive because it doesn't sound like an objection at all, and in the mind of the prospect it may not be. The problem is that nothing will change between now and Monday, so when I call back he or she will ask if I can follow up in another week. This pattern will continue until I break through it. When I hear that from a prospect, I respond with, "How about this? Let's tentatively plan on Tuesday at 9 a.m. at your office. I'll put that in an e-mail to you, and if you end up having a conflict, just let me know."
This is a reasonable response to the prospect's statement and it helps reveal whether he or she was serious about wanting to meet. People tend to do nothing about anything, so I want the appointment scheduled such that the prospect has to do something to stop it.
This response also is appropriate when the prospect says, "I'm in my car right now and don't have my calendar in front of me. Call me tomorrow when I'm in the office." The fact is everyone has their calendar on the phone they're holding. So the response above helps me break through that objection. The confirmation e-mail simply says, "I look forward to meeting with you on Tuesday at 9 a.m. at your office. See you then." It does not say, "Let me know if that works for you." Again, the prospect is going to have to take action in order to stop the meeting.
Making the sale
In order to ultimately turn a prospect into a client, it is important to have an effective closing strategy. In nearly every selling interview, after I have made my proposal and discussed it with the prospect, there is a pause.
I look at the prospect, and he or she looks at me. My life would be so easy if at this critical moment, the prospect would say that he or she wants to buy. Of course, if it was that easy, then the insurance company would have little need for my services. I have worked hard to get to this point, from obtaining the introduction, setting the appointment, gathering data, and preparing and presenting a solution. Yet, I still have not made a dollar, and I won't unless I can bring the prospect to a point of decision. I have to speak before the prospect says, "Let me think about it and get back to you." That comment puts me on the defense, and it is unwise to ask, "Do you want to buy this?" The prospect does not want to make a decision or take action, so I must have a strategy to bring him or her to that point.
An effective closing question is, "Mr. or Mrs. Prospect, everything we've discussed is based on setting aside $200 a month. If we double that to $400, then all of these values would double. Would you like to do more, or do you feel this is sufficient for the time being?" Either answer results in a sale, and I am into the application.
After completing the application, as obvious as this may sound, I have to ask for the check. It is easy to get nervous and talk past the sale, but I must confidently ask for the order. The prospect can appreciate my advice all day long, but if he or she won't buy anything, then nothing was accomplished and no one wins. It is ironic how difficult it can be to convince clients to act, yet how quickly they are satisfied with the action they take.
Work is not work when our minds are engaged in helping new people find solutions to their financial problems. Ours is a most fulfilling career when we are regularly converting new prospects into satisfied clients.
David M. Johnson, CLU, is an associate general agent with The Johnson Financial Group in Norcross, Ga. The Johnson Financial Group is affiliated with American United Life Insurance Company, a OneAmerica company. Registered Representative of and securities offered through OneAmerica Securities, Inc., Member FINRA, SIPC, a Registered Investment Advisor. Insurance Representative of American United Life Insurance Company(R) (AUL) and other insurance companies. The Johnson Financial Group is not an affiliate of OneAmerica Securities or AUL and is not a broker-dealer or Registered Investment Advisor.
