This piece of advice wants you to believe you can learn valuable information by closing studying what your competition does. Career Agency “a” has an 18% agent retention rate after 18 months, Competitor career agency “b” has a 16% agent retention rate after the same 18 month time period. You are told that studying your competition will find ways your product is superior.
THE TRUTH #1
To me it looks like a case of a blinded new agent searching for information and techniques from other untrained agents. I look at facts, not some fabricated unsubstantiated information. Your prospect does not care if you offer the product of agency “a”. agency ‘b’, or unknown agency “c’. When you are sitting at the prospects table, you are the ONLY COMPETITION. There you must focus completely on you presentation skills. If you presentation if given very well, your prospect will often buy, no matter what company you represent. If this were not true, there would not be 600 active life and health insurance companies in existence.
You are told that the insurance market is saturated with people who have already bought a policy like you are offering. In addition you are told that people are also looking to buy the cheapest policy available. Add to the misleading that insurance is a “mature product”. So to sell it, squeeze it in with benefits and price.
THE TRUTH #2
Let’s start by covering market saturation. If the market was truly saturated and mature there would be a shortage of insurance purchasers. Would the person who came up with this crazy misconception look at some facts? Millions of Americans each year buy all forms of insurance policies endorsed by AARP. They were not badgered by a local insurance agent, but did the transaction willingly by themselves. Most next year will purchase an additional AARP policy, without having anyone compare price, competition, or market over saturation to them.
The misconception that price is so important to the buyer. Agents who feel that price sells policies may think they are an expert. I know that they are dead wrong. I would strongly suggest that you stay clear of any person wanting to buy because your policy costs the lowest. The next year they will no longer be your client. Instead they will have become the client of a different company insurance agent offering an even lower price.
The price issue is standard mode of operation for what I consider a lowdown replacement “roller” agent. And there are thousands of them. Why? They get the client to buy their policy for slightly less, and the client losses initial benefits like the “suicide clause”. The agent is the only winner. This agent gets credit for writing a brand new insurance policy and is subject to full first year commissions.
Price is never the primary driver for making a sale or not. To sell insurance honestly, you must convince your prospect how each feature you mention will benefit him. Next, and almost as important, you must sell your client on you. Have you provided him for reasons to think you are trustworthy, like-able, and knowledgeable? Price comes in last place. If you have motivated your client in the first two phases often he will be eager to buy. He wants to start receiving the benefits of your insurance product right away. Here’s a True Tip: If you are still in the butterfly stage, try this. Offer you prospect 2 versions of the product at 2 different prices. Then ask him which of the 2 suits him the best. He will usually take the higher priced option.