I'm just starting out in insurance. I passed the Life & Disability tests, but I don't have an agent's job yet. I would like to know your thoughts on HBW Financial.
I'm an actuary that wants to switch to sales because I'm bored. I would like to try being a part-time agent until I get the hang of selling. So far I have rejected NAA and AFLAC for part-time work. I've sent an e-mail to New York Life, but they haven't gotten back to me yet. In the mean time I'm looking at HBW.
I was hoping you could tell me if I should stay away from HBW.
Well to each his own. But I try to stay away from companies with people running them that were part of the A.L. Williams(Primerica) Cult, see link click here.
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Wayne B., CLU, ChFC, CFP
MDRT 5yr qualifier
I'm trying to figure out what client would want to work with a part-time agent, or don't you consider insurance to be serious.
I consider insurance to be serious. I just don't want to give up my regular job until I figure out how to sell insurance.
Since I'm an actuary I believe I can give an intelligent insurance presentation to a client, but will they buy from me? So I think I face more of a selling problem than a seriousness problem.
I plan to use High Probability Selling (HPS) techniques. I don't know if you guys have seen their website http://www.highprobsell.com/.
They offer a no nonsense approach to selling. Being interested in a product is not enough to be a High Probability Prospect. One has to need, want and be willing to buy soon if I can meeting their requirements.
Generally, HPS techniques deal with getting fewer appointments, but closing over 75% of them. They take NO for an answer.
I consider insurance to be serious. I just don't want to give up my regular job until I figure out how to sell insurance.
Selling insurance is going to be very tough for you. You will be looking at working at least 3-5 hours during the evening and working the entire weekend to be successful. Some people like to "test" the waters, but 99% of those people fail because they forgot two important elements. 1) You test out a type of wine and not a career change......unless you can perform 100% at both jobs. 2) Performing due diligence and preparing for what is ahead and sacrificing A LOT !!!!
Since I'm an actuary I believe I can give an intelligent insurance presentation to a client, but will they buy from me? So I think I face more of a selling problem than a seriousness problem.
I was a straight D student in high school, an A- student in college, President of the Psychology Club and I helped many people get into graduate school and further their career aspirations. I got my ass handed to me the first 1 1/2 years in sales but I persevered. When you factor in the fact that the "average" reading level of Americans is at a 10th grade level (last time I checked) we are not talking about a very challenging situation for the average person. Intelligence is only 15% of the equation followed by 35% product knowledge and 50% personality.
Everybody bases their decision on emotions and THAT is followed by logic. I don't care what anybody tells you....the research available on the internet and various sales, business and psychology all paint the same picture. Get them emotional and then offer a logical solution to ease the particular "emotional" feelings you made the client feel or exude. But you have got to be careful from crossing ethical lines by trying to manipulate the client and know when to say when!
I plan to use High Probability Selling (HPS) techniques. I don't know if you guys have seen their website http://www.highprobsell.com/. They offer a no nonsense approach to selling. Being interested in a product is not enough to be a High Probability Prospect. One has to need, want and be willing to buy soon if I can meeting their requirements.
I guarantee you that at least 80% of the people you try that method with will tell you to go to hell if you work with the small business population and the individual market. Here is a discussion about the book Savage's books and Sandler System
A gentlemen whose name I forgot mentioned the book Honest Selling. I recommend you buy both books and anything from Brian Tracy. Commit to reading EVERY SINGLE DAY until you find the force!
Generally, HPS techniques deal with getting fewer appointments, but closing over 75% of them. They take NO for an answer.
Jacques's methods work with a "disclaimer." The key is to get fewer appts. with more highly qualified people who match a certain criteria is very accurate, but what he recommends you use with everybody is incorrect. Each individual you talk with has a their own needs and all have a different personality and as such, that requires a different plan of attack. I will not talk and react the same way to woman or man who is 50+ years old versus a family man in his early 30's or single mother with 1-2 kids. The books The Closer 1 and 2 have excellent chapters on different personality types, but if you really want to rise above everybody....go take a personality course at your local college or pick up a few books at the library.
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[COLOR=#000066]"Tell me and I will forget. Show me and I will remember. Involve me and I will understand." Confucius
Years ago in the beginning of my career I took The Wilson Learning Course, I learned what type of personality I was, analytical expressive, and learned how to modify my personality to relate efficiently with other personality types.
You have the odds stacked against you doing this part time. However, this business, if you can survive the first 2 years, is very rewarding and you are the one that sets how well you do.
Years ago in the beginning of my career I took The Wilson Learning Course, I learned what type of personality I was, analytical expressive, and learned how to modify my personality to relate efficiently with other personality types.
You have the odds stacked against you doing this part time. However, this business, if you can survive the first 2 years, is very rewarding and you are the one that sets how well you do.
Is that course still available? I'm not familiar with it and google didn't turn up anything. Sounds very close to the Myers-Briggs Test and similar ones.
You guys really know how to beat up an individual.
I wish I could start full-time, but I can't take the initial hit to my income. I need to learn the selling process part-time. You are saying that it is not possible to learn the selling process on a part-time basis. I guess I'll find out.
I am going to focus on selling to one particular group and one easy to sell product (term insurance):
1. I am going to hire a telemarketer to find HPS prospects at work.
2. These will be executives age 30 to 50 that make $100,000/year or more.
3. I will pitch $1,000,000 face amount term policies.
This should be an easy test to see if my process works. Can the telemarketer find enough HPS prospects at a reasonable price? I'll find out. Can I close 75% of these prospects?
While I'm at work the telemarketer will be finding me HPS prospects. Generally it will take about 3 hours of calling to get 1 HPS prospect, because most of the time the executive will not be in his office when the telemarketer calls. So that's going to cost about $75 per lead. For 4 leads that's $300, but if I close 3 of them I'll make around $1,500 if I'm paid 100% first year commission.
If I come home from work and call one lead a day, then in theory I should be about to net about $1,200 per week. That's not bad for part-time work.
I'm not delusional. I don't expect to this to work at first. But if I keep at it then I do expect to see results.
An HPS prospect is someone that needs, wants and is willing to buy now what I am trying to sell if I can satisify their requirements. The HPS process involves quickly developing trust and respect. The HPS process focus is on the salesperson's time. Stop wasting your time on prospects that don't want to buy what you have to sell. Stop educating prospects. Stop wasting your time on prospects that are only interested. Interested prospects rarely buy what you have to sell. They'll waste your time and resources, then they'll buy from their brother-in-law.
OK, before you get ready to beat me up again, I know that there are all kinds of pitfalls to the process I have outlined. It might cost more to get HPS prospects. I might not be able to close 75% of my leads. I might close 0% of my leads for several months.
Most agents are barely getting by. Yet some agents are making hundreds of thousands a year. What's the difference? The agents that are making big bucks are not working harder because there aren't enough hours in the day to work that much harder. No, the answer is they are doing something different than the other agents.
Matt,
We are not trying to beat you up and say what you are doing is wrong. in fact, I'm sure I speak for a lot of the people on this board when I say that we commend you for thinking outside the box and trying something different. Read a sales book once a week, find a mentor, practice, practice, practice..... and you will be on the right path.
While I'm at work the telemarketer will be finding me HPS prospects. Generally it will take about 3 hours of calling to get 1 HPS prospect, because most of the time the executive will not be in his office when the telemarketer calls. So that's going to cost about $75 per lead. For 4 leads that's $300, but if I close 3 of them I'll make around $1,500 if I'm paid 100% first year commission.
How did you come up with these numbers?
If I come home from work and call one lead a day, then in theory I should be about to net about $1,200 per week. That's not bad for part-time work.
So you are going to call the executives after you get home from work AT NIGHT!
An HPS prospect is someone that needs, wants and is willing to buy now what I am trying to sell if I can satisify their requirements. The HPS process involves quickly developing trust and respect. The HPS process focus is on the salesperson's time. Stop wasting your time on prospects that don't want to buy what you have to sell. Stop educating prospects. Stop wasting your time on prospects that are only interested. Interested prospects rarely buy what you have to sell. They'll waste your time and resources, then they'll buy from their brother-in-law.
Glad to see you recognize that, but I would stay away from calling them HPS. Clients is a better term, even better is using their first name.
Most agents are barely getting by. Yet some agents are making hundreds of thousands a year. What's the difference? The agents that are making big bucks are not working harder because there aren't enough hours in the day to work that much harder.
Really? It is actually a combination of working hard and smarter. You start off by working hard and as you pick up money and can make sound business decisions you combine that with being smart about your money and allocating it to specific areas of the business for growth. Break down your monthly goals to the hour including daily/weekly/hourly goals, activity and time spent daily and per activity. Now take into consideration how many hours you work a day. One agent on this board I know works 30ish hours a week and has been in the business for 4+ years and pulls in a nice 6 figure income. He has also earned that because he worked his 6 off when he first started and had long hours.
I'm in the same boat. I went independent 5 months ago, I have been working 10-12 hours a day 5ish days a week and are on track for a nice 6 figure income. Do you consider that working harder or smarter?
I got some of my numbers from an HPS telemarketing CD. It told me it would take about 3 hours to get one lead for high face value term insurance.
I assumed that if I sold 3 1,000,000 policies a week that I would make about $1,500 in commission. However, my commission numbers could be off depending on the actual percentage of first year premium paid.
As far as making calls, I can start work at 6:00AM and leave at 2:30PM. That will give me two to three hours to make calls.
I would never called an actual client an HPS.
As far as working harder and smarter. I agree that both are required. It sounds like you're doing just that. But you can only work so hard. One must be smart too.
HPS isn't a bad system, basically a twist on the "Consultant Sale". I don't see why going part time creates such negativity with some but I'm sure it can be done. I wouldn't though expect to get 3 out of 4 sales and I really don't care what system you are using esp. when dealing with people making 6 figure income. Its not like you will be the only one knocking on the door!
I'm thinking you are overthinking this by a mile and a half! The first thing is why market to the one niche (very small niche) that everyone one and their Uncles are marketing too? Plus I really don't get this 1Mill Term Policy and actually thinking you need to market to this group? Obviously you know the cost for a 35 yr old is roughly around $500 dollars a year or about $42 dollars a month, does one really need to make 6 figure income to afford such a premium? NO!
If you are going to do this correctly the first thing you have to learn is don't go in with a predetermined sale (I would imagine that goes against the whole idea of HPS or it should!), obviously you have already gone down that mentallity road and that is your first stumbling block. They'll smell you out before you even knock on the door!
I mean wouldn't it be better to figure a way to determine what they actually need and not what you think they need?
I got some of my numbers from an HPS telemarketing CD. It told me it would take about 3 hours to get one lead for high face value term insurance.
I assumed that if I sold 3 1,000,000 policies a week that I would make about $1,500 in commission. However, my commission numbers could be off depending on the actual percentage of first year premium paid.
As far as making calls, I can start work at 6:00AM and leave at 2:30PM. That will give me two to three hours to make calls.
I would never called an actual client an HPS.
As far as working harder and smarter. I agree that both are required. It sounds like you're doing just that. But you can only work so hard. One must be smart too.
Take a day or two to read the information in this link
His system isn't bad and I will admit I use parts of it in my sales process, but it is just that "a system." Your goal should be to absorb as much sales and product knowledge as you can and then take the steps that most people have a problem with "ACTION and REFLECTION."
Last edited by salpro22 : 06-07-2007 at 10:33 AM.
Reason: link correction
I agree that it is likely that the real world will be much more difficult than I expect. I will have to learn to adapt.
I think lower income people won't need high face value term insurance as much even though they can afford it. I can always ask the marketing department of the insurance company I'm selling for to clue me in on what business executives buy.
Once I actually start working I will report back on my progress.
Salpro22, thanks for the links. I check out that information.
For a job I'm now talking with NYL and Mutual of Omaha. These are plan A. HBW Financial is now plan B if plan A doesn't work out.
I agree that it is likely that the real world will be much more difficult than I expect. I will have to learn to adapt.
I think lower income people won't need high face value term insurance as much even though they can afford it. I can always ask the marketing department of the insurance company I'm selling for to clue me in on what business executives buy.
Once I actually start working I will report back on my progress.
Salpro22, thanks for the links. I check out that information.
For a job I'm now talking with NYL and Mutual of Omaha. These are plan A. HBW Financial is now plan B if plan A doesn't work out.
I was referring to households in the 40-100 grand level, if you use 10 or 20 factor for figuring a quick need you'll easily come up with 1 million needed. Now I may not agree but most use a simple 10 or 20 multiplier of income to figure out the need of insurance.
NYL or MO would be great way to enter the business, a lot better then HBW or in my case NAA.
Have you heard of HBW Financial?
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