SOME CLIENTS AREN'T WORTH CHASING

I have been ask many a time and very recently again by an advisor how to follow up once you have done a proposal and especially after you have already done it more than once. I believe this article by my fellow MDRT member,  David Alarid has some of the answers. 

October 2015 BY: DAVID ALARID

I’m fortunate enough to speak all over the country to insurance companies, new agents in my community, and organizations such as the Million Dollar Round Table and the National Association of Insurance and Financial Advisors. One way I get powerful messages across is through stories of real experiences that I’ve had in my business.

This way of teaching is more memorable than simply stating a key element of the business. During my speeches, I focus a large portion of time to what I call the objections clinic, which is how I address the typical objections we receive from prospects.

We go through scenarios of what to say when the client says, “I can’t afford it,” “I have it through work,” etc. Through these examples, advisors learn to think on their feet and learn whether to fight for a client or whether to let them go. I also share an anecdote from early in my career that is especially helpful to agents who are working to build their practice.  

The Real-Life Experience: Difficult Prospects At the beginning of our career, we work to build our client base and we seek any prospect we can find. I know I spent endless hours chasing people who didn’t recognize the need for life insurance. One example of this was a business owner I cold-called for many months, trying to schedule an appointment.

When I finally secured the appointment, a senior agent, Brian, came with me. When we arrived, the business owner said he had forgotten about our meeting. Once we explained we were there to discuss life insurance, he jumped to ask if he could buy it that day. This sounded like good news, but the process wasn’t that simple. We asked him many questions necessary to determine which policy would best suit his needs. Once we determined the policy amount of $1.5 million, he signed the application and within two weeks it was approved. It then became my responsibility, as the trainee, to set up another appointment to obtain payment. 

Unfortunately, at this step the business owner was not returning my phone calls to finalize the policy. After four weeks, Brian and I stopped in his office without an appointment, and with the policy in hand. When the owner saw us walk through the door, a look of regret washed over his face; however, he agreed to meet with us. He gave us a few typical reasons why he couldn’t buy the policy and asked us to come back in six months, promising to buy the policy at that time. Brian explained to the prospect why purchasing the policy that day would help him and would have no effect on the objections he recited.

However, the prospect indicated he still wanted to wait. As we walked out — no finalized policy in hand — Brian handed me the portfolio and told me to file it and not follow up with the prospect. I heeded Brian’s advice and did not follow up.  

The Lesson: Here’s Why I Didn’t and Why You Shouldn’t Either As advisors, we have to ask people to be responsible and protect their families. However, if they don’t want to take the necessary steps and precautions to do so, then we can’t chase them.

It was a great lesson I learned early in my career. Chasing becomes a waste of valuable time that could be better spent personalizing plans for those who are truly interested in a policy. As new agents, we waste so much time pursuing individuals whom we believe are prospects and interested in purchasing protection.

When instances such as my personal story happen, we realize these prospects don’t really want to work with us or set themselves up for financial protection. It is never a good sign when we care more about the prospect’s problem than they do. Find prospects who have character and who care about their families — and then work with them. These prospects will be the ones who care about setting up a plan that’s truly best for them, instead of just rushing through the process and signing on the dotted line.

It’s easy to look for specific qualities in your prospects — such as money, need and positive health — but the most important quality to look for is character. 

Unfortunately, we can’t force individuals to set up a plan to protect their families and to establish a legacy if they don’t want to spend the time doing so. It’s important to identify non-prospects and remove them from your life and your business.  

David Alarid is an associate partner with Tax & Financial Group with more than 25 years experience, specializing in comprehensive investment, retirement, estate and business planning strategies as well as life, health and disability insurance programs. David is a qualifying and life member of Million Dollar Round Table with Court of the Table honors.