New to Insurance? Learn How to Say No.

[Travis Price]

Look, insurance is a competitive industry. It can be exciting when you're sitting across from someone and they want to buy something, anything.. FROM YOU!

Sales trainers tell you all the time that you have to hear a lot of "no's" to get to a yes, but they never teach you how to say no to a client.

Here's a friendly piece of advice. Before you contract.. hell, before you even license, determine who you want to sell to and how you want to sell to someone. Then, don't compromise on how you run YOUR business.

For example, I work in the Senior Healthcare Market and only do telesales out of my home. I have a dental product that a number of seniors find appealing and it brings them calling often.

I don't sell my dental plan without having my main product on the books.

I have people that want to meet in person. I could do that, but it also eats into my time of helping other people or answering questions of current clients driving all over the region. Not to mention the number of times you get stood up on appointments.

I turn away in person appointments and refer them to another agency, without payment.

I don't want to work with people that are going to take a lot of my time after the sale. Not to say I don't believe in customer service, because I do, but I also don't have a huge amount of time to just service ONE person.

I have a screen out process. If you don't fit into the ideal prospect for me, I'm not going to be the right agent for you...

And that's okay. You don't have to be all things to all people.

Yes, you will write less. You'll also have a healthier book of business. Referrals will be easier. Your time will be spent doing activities that make you money.

The best way to be able to say no is to be properly funded from the start. It's hard to say no when you don't have the money to eat.

You need a marketing budget and bills fund for at least a year. Want to jump in, but don't have the money? Work a job and ease yourself into insurance.

Despite what agents like to say, you can absolutely work this business part time, provided you treat it like a full time business.

 

[billyb]

Do you mind sharing which dental plan this is?

 

[GoldenBrotherins]

Curious about the marketing and bills budget for year. Do you not recommend taking advances with Medicare supplements? Would that not be enough to provide cash flow for both marketing and living expenses?

 

[sshafran]

Curious about the marketing and bills budget for year. Do you not recommend taking advances with Medicare supplements? Would that not be enough to provide cash flow for both marketing and living expenses?

Marketing budgets can be as low as $0 per client and as high as $400ish. I've heard some agents paying higher than $400 but that's usually call-center types w/ LOA's.

Talked to an agent this past week who built his book to 1,000 by being outgoing and "telling everyone what be did." He built the book to 1,000 in 4 years but this was not his first rodeo in sales - he had been in several other industries.

That my friend is a unicorn.

I am an introvert on the other hand and I would be the last person "meeting everyone in the room." So it cost me more to get to 1,000.

It's pretty simple. Assume your first year comp is about $300 on average (state and product dependent). You spend 100 per client? You have cashflow. Spend $500 per client? No cash flow for you until next year.

Also - the length of the cycle matters and will vary based on your target market. Flipping 68's from current plan to new plan is a shorter cycle. Talking to someone 6 months out where you may not see the deposit until 7 months for now... you need some reserves.

 

[Lorenzoditonti]

Bravo!

 

[marindependent]

Sales trainers tell you all the time that you have to hear a lot of "no's" to get to a yes, but they never teach you how to say no to a client.

Very Very Very well said. Thank you for the post!

 

[Travis Price]

Curious about the marketing and bills budget for year. Do you not recommend taking advances with Medicare supplements? Would that not be enough to provide cash flow for both marketing and living expenses?

Medicare Supplements tend to have a high persistency rate. Secondly, I have a long sales cycle. Finally, my first year commission is usually break even.

There's absolutely nothing wrong to take advances until you get on your feet. You do want to transition to as earned after renewals kick in to feed you.

However, you need a surplus of money available to eat and market.

 

[InsuranceGuy29]

Look, insurance is a competitive industry. It can be exciting when you're sitting across from someone and they want to buy something, anything.. FROM YOU!

Sales trainers tell you all the time that you have to hear a lot of "no's" to get to a yes, but they never teach you how to say no to a client.

Here's a friendly piece of advice. Before you contract.. hell, before you even license, determine who you want to sell to and how you want to sell to someone. Then, don't compromise on how you run YOUR business.

For example, I work in the Senior Healthcare Market and only do telesales out of my home. I have a dental product that a number of seniors find appealing and it brings them calling often.

I don't sell my dental plan without having my main product on the books.

I have people that want to meet in person. I could do that, but it also eats into my time of helping other people or answering questions of current clients driving all over the region. Not to mention the number of times you get stood up on appointments.

I turn away in person appointments and refer them to another agency, without payment.

I don't want to work with people that are going to take a lot of my time after the sale. Not to say I don't believe in customer service, because I do, but I also don't have a huge amount of time to just service ONE person.

I have a screen out process. If you don't fit into the ideal prospect for me, I'm not going to be the right agent for you...

And that's okay. You don't have to be all things to all people.

Yes, you will write less. You'll also have a healthier book of business. Referrals will be easier. Your time will be spent doing activities that make you money.

The best way to be able to say no is to be properly funded from the start. It's hard to say no when you don't have the money to eat.

You need a marketing budget and bills fund for at least a year. Want to jump in, but don't have the money? Work a job and ease yourself into insurance.

Despite what agents like to say, you can absolutely work this business part time, provided you treat it like a full time business.

Great post. I’m a firmly believer in quality over quantity. The numbers will come, and they will come from your existing GREAT clients that are chill, reasonable, polite, and most importantly RESPECTFUL.

I don’t do demands. I’m not a McDonalds cashier (no disrespect to them, they work hard, but you get the idea.). I’m a business professional and expect to be treated as such.

It hasn’t happened often, but if someone tries to get rude or pushy with me, the interaction is over. I would rather not have that money, and would rather not have that person in my life.

They’re just going to be a raging pain in the @$$, and time suck. Some of these people will take up every last second of your life if you let them.

 

[Travis Price]

I try really hard not to advise when people should say no to clients, but that they shouldn't be afraid to say no.

If you look at it in the large scheme of things, these people are paying you maybe $40 a month for your expertise. That's worth MAYBE 40 minutes of my time per month.

If on average I'm interacting with them more than 40 minutes a month, the I am losing more money than making on the transaction. That's a bad investment.

You have to own your time and realize that time is your most important asset.

 

[Markthebroker]

I turned away two people today. Two in one day I think is a personal record. Actually, they were both in the same hour, which is definitely a record.