One of the main reasons for under performance in life insurance sales is the lack of adequate prospecting activity. It is quite common for the agent to wake up in the morning and wonder whom to visit during the day. All the motivation to be a top performer, to qualify for MDRT, etc., goes up in smoke on this one single issue – the lack of an adequate number of prospects. Yet all successful agents have found their unique way of solving this problem. The successful agents have found a way to maintain a constant stream of prospects. A Prospects’ Register is the source of all agency business and hence it is necessary to put in adequate efforts at creating a list of prospects. So how does one develop a list of prospects? Let us answer that question by first taking a look at what should not be done to develop a list of prospects.

There are many suggestions that you will come across when you ask for ideas on preparing a list of prospects. For example you can set up a canopy in a mall and collect the names of visitors to your canopy. Or you can collect a list of names of people living in a housing colony by approaching the society’s chairman or secretary. Or you can travel in a Mumbai or Chennai local and talk to co-travelers for business. Or in so many other ways you can collect the names of people not known to you.

Life Insurance is sold to Known Persons

That is precisely the trouble with such advice. You are being directed to approach people not known to you. Life insurance is a relationship business. You get business not because your product or your company is excellent. You get business because people like and trust the life insurance agent. The business of an agent is built on trust and confidence. Life insurance is sold on emotional grounds for the emotional needs of the prospect.

So how do you build a prospect base? The answer is simple. List all the persons you know. In case there is a marriage in your family you list the persons to whom you send an invitation list. It is the same process to follow when you want to list prospects for your business. In case you feel that you do not want to do business with friends and relatives, then life insurance is not the business you should be in. You can only sell to known persons.

Look at it from a practical angle. If you attempt selling to known persons, the rate at which you will be closing sales is 10:1. That is for every 10 persons you meet, you will close 1 sale. If you attempt to sell to persons not known to you, the ratio is 40:1, that is you will have to take 39 rejections for every sale you make. When you attempt to sell to known persons many relationship questions or doubts are erased from the minds of prospects, leading to fewer objections, which is why the ratio is 10:1 and not 40:1.

Prepare a List of Known Persons

So how do you make a list of known persons? You need a format. Click Here to download a copy of the  Gold Mine. The Gold Mine is a Prospecting Tool developed by IIST and has been in use for many years and by thousands of agents. Using the Gold Mine you will be able to develop a list of more than 500 names. Many agents have developed a list of more than 2000. Download the format and use it for your business. You will never run out of prospects.

Learn how to get references

You can also develop your list of prospects by asking for references. However that is a skill that you need to develop so that when you ask for references from your existing customers you actually get the references. References are easy to gt provided you train yourself in the art and science of how to get references.

One Prospect, Many Policies

Another aspect of developing a prospecting base is that each of your prospects can be sold multiple number of times, provided you have maintained a good relationship with the prospect. It is said that there are at least 5 or 6 occasions a working person’s life when the opportunity to sell life insurance arises. When the prospect gets his or her first job, marriage, birth of children, increase in salary, promotion at his or her job, change of job, and retirement planning. On each occasion the need for a life insurance policy arises. So one prospect, if the relationship is maintained, can be sold multiple policies over his or her productive life span. The lesson is therefore maintain a good relationship with your existing customers

Cross sell to other family members

Each prospect represents many linked and related prospects within his or her family and friends circle. Maintain a good relationship with each of your prospects to tap these sources.

Happy Selling! April is a good month to develop your list of prospects. Don’t settle for anything less than 500. In case you have any difficulty get in touch with me.