The internet paints a pretty picture for selling insurance, but what are they leaving out of the mix? Find out here.
People who consider selling insurance, either as a side business or full-time, have a skewed picture in their brains. They see money signs. Huge commissions. Six-figure lifestyles.
Is this picture impossible to achieve? No. There are many successful professionals selling insurance right now.
Is it realistic for the new salesperson? Well, not really. Just like any other professional, insurance agents work very hard for massive success.
There are literally thousands of articles online (mostly promotional) that project this lavish lifestyle on curious people. But they don’t get real with you. They don’t underscore these big promises with a realistic strategy for selling insurance.
Are you the type of person who wants to know the reality of the business and push the limits? Or do you prefer living in fantasy-land until you realize there’s no pot of gold at the end of the rainbow?
The 5 secrets of selling insurance that no one else will tell you
1. The sales cycle is different for each policy you sell
Selling insurance isn’t the same as your typical retail product. The sales cycles—everything that happens between the first contact and closing the deal—vary widely. Sometimes it depends on the particular client, other times it’s determined by the product.
Think about it; how many steps are there when you pick up a new client?
- Advertising and prospecting for new business
- Qualification/over-the-phone consult
- First meeting to discuss options
- Sales presentation
- Closing the deal
- Underwriting process from carriers
- Getting referrals and tapping their network
That’s only one prospect! And we skipped a lot of smaller steps on that short list.
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What it all means for you: develop organizational skills and establish a process. If you want to close more deals, you’ll have to juggle more balls in the air than anyone else.
2. You sell yourself just as much (or even more) than the product
Seasoned professionals sell more than insurance policies. They sell experience and expertise and guidance. They sell themselves as trusted advisors, not insurance agents. Do you see the difference?
If you’re selling insurance, that means you’re a commodity. What stops your next prospect, especially a twenty-something Millennial, from choosing a competitor for a better rate?
Your service level. Your relationship skills. Your value as a trusted advisor. If you don’t develop these skills and stick to them like iron-clad principles, you won’t last.
Insurance salespeople sell more than financial security products and policies. They sell themselves!
3. Lucky deals with huge commissions rarely happen on the road to success
Commissions make up a significant portion of a salesperson’s income, especially when they sell high-level policies. But, in the beginning, selling insurance isn’t so glorified. Commission rates start small, and you rely on a base salary (about $30,000 – $45,000).
In fact, many insurance professionals don’t make six-figure or even five-figure commissions. Instead, they bank most of their money on good referrals, sound marketing practices, consistent service, and diverse products.
They don’t go for the big fish; they create an ever-profitable aquarium of small fish.
And there are only two ingredients for the realistic approach to selling insurance: time and hard work.
4. All of your competitors use niche CRM’s for a sharper business edge
You’ve probably noticed that customer-agent relationships are a focal point in this post. But don’t overlook the organizational skills it takes to manage those relationships. For new agents, it’s particularly beneficial to expedite the time needed to master these two areas.
Enter CRM tools (or Customer Relationship Management tools). Whether you’re looking for a CRM to manage your entire business, or for a specific area like outbound calling, these tools make organization and management much easier.
It’s likely your competition already uses a CRM for their business, so maybe it’s time to give it some thought.
5. Your level of service, more than anything, determines your long-term success
Agents who pepper their business strategies with customer care will have an easier time selling insurance. Why? Because their clients (and their prospects) enjoy doing business with them.
Your first job, in almost any business, is to provide a product or service that solves a problem.
Your second job is to deliver that product and manage your relationships with those customers in a positive way.
If you’re choosing a career in insurance, you’ll need both of these elements to succeed. One without the other brings mediocre results.
If you’re serious about phone sales and want to triple the number of sales calls you make in an hour, give Call Logic a try. Sign up for our free trial now!