11 sales mistakes agents and advisors should avoid
Selling insurance or investments isn’t easy. By preventing these typical mistakes, however, you have a better route to success.
Selling insurance or investments isn’t easy. If it was, everyone would be doing it. Those who are good at it become successful, earning a good living. There are mistakes you should avoid along to road to success. Some are made even made by experienced agents and advisors from time to time.
1. Treating prospecting like initiation week in a fraternity. It’s easy to think of prospecting as an unpleasant experience that must be endured early in your career, then it’s inflicted on someone else, usually the newer folks. The pipeline can’t go dry. Instead: Think of prospecting like a professional athlete thinks about exercise. It’s an integral part of your routine every day. Both you and athletes don’t stop until you retire.
2. Talking about big tickets before you close the business. People do this regardless of their years in the business. You are confident a big order is coming your way. You tell your mentor. You tell your manager. You tell your peers. If it comes through, the excitement is muted, because the order was expected. If it doesn’t, you look bad. Instead: Keep your mouth shut until the business is written, then shout it from the rooftops.
3. Having only one big prospect for the month. You’ve created an “all or nothing” scenario. If they open an account, you’ve had a great month. If they don’t, you have no business for the month. This also relates to getting most of your business from one large client. Instead: Think of yourself as a cook in a diner working the griddle. You have many orders in different stages of completion. Once some are done and come off the grill, a new order takes its place.
4. Delaying your prospecting push until next month. It’s easy to throttle back in December, saying “I’ll do a big prospecting push in January.” Then you find a reason to push it off another month. Time passes. Instead: You need to be doing some form of prospecting continuously. You can “ramp up” and start a major campaign next month, but you still need to be doing something this month.
5. Sandbagging. Sometimes you have business you can write immediately, but you delay until the next period. A lot can happen in the meantime. The prospect can find a different use for the money. Rates can change suddenly. A product becomes unavailable. Instead: Write the business once you have the commitment and the prospect will put money in your hand.
6. Talking too much. It’s possible to persuade the prospect to buy and then talk yourself out of the sale! You need to look for signs when to stop presenting and begin closing. Instead: Include several trial closes in your presentation like “Does that make sense to you?” The answers should be “Yes.” After a few “yes” answers and after you’ve disclosed everything that’s important, move into your close and ask for the order.
7. Associating with negative people. There are agents in the office who are having a bad month and want to know others are in the same boat. There are people who have a negative attitude. You are running “your own business” independent of their business. Avoid spending time with them or letting them bring you down. Instead: Spend time with the optimists in your office, starting with your mentor.
8. Relying entirely on referrals for new business. Growing your business makes sense, but realize it’s a reactive strategy. You can’t ramp it up by pushing people for referrals without being annoying. Instead: Continue always asking for referrals, but also have a proactive strategy you can drive.
9. Not asking for the order. Some people don’t close, expecting the prospect to say: “Stop talking. I’m ready to buy. Where do I sign?” That rarely happens. If you don’t ask for the order, the prospect may say: “Let me think about it.” Instead: Move from presenting the proposal to asking for the order. Read the order back to your new client.
10. Ignoring the spouse in favor of the decision maker. Sometimes we focus on the person who takes the lead and writes the checks. Don’t forget there’s another party involved on joint accounts. They can make life difficult for the decision maker if they choose. Instead: When you present, give attention to both parties.
11. Not realizing some people will never buy. Some people don’t know how to say: “I’m not interested” or “I don’t have money available right now.” They don’t want to offend you, so they “string you along.” Instead: Sound them out, giving them the opportunity to “let you down gently.” If you think the money isn’t available, ask: “Is this the right time?” Draw them out. You can either plan follow up later or realize it’s not a good use of either party’s time.
We all make mistakes. We just need to remind ourselves what they are and make a conscious effort to avoid them.
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