Five Ways Approach


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I've taken the liberty of copying this from another thread (thanks Atlas)...

Five Ways Approach

By: Burt Misel, CLU, ChFC

Atlas: Hello, my name is Atlas. Are you the owner?

Mrs. Gatekeeper: No, he is busy, what is this regarding?

Atlas: I'm Atlas and I don't have an appointment, I was just stopping by to introduce myself before my next appointment. {Hand Card}

Atlas: Can you do me a favor?

Mrs. Gatekeeper: Yes

Atlas: Would you go ask Mr. Big if he could spare 30 seconds so I can introduce myself? OR

Mr. Big: Yes

Atlas: Great, I help business owners maximize their profit, would you have any objection to us meeting so I can show you the kind of work I do?

Mr Big: Yes/No -->

Atlas: Great how about ___ at __AM? OR

Mr. Big: What do you do?

Atlas: Mr Big, you're in business today. One day, you will be out of business, one of five ways:
4)Voluntary Sale

What I do is make sure that no matter how you get out of business, you get out with maximum profit.
With that in mind, can we meet?

Mr. Big: Yes Offer two times and dates for the appointment.

Mr: Big: No Well that is fine Mr. Big, however things do always have a way of changing. With that in mind do you mind if I stay in touch with you?
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Ok, so I get the appointment.

I sit with the client and....

introduce myself

probe -- risk assessment

agitate -- get client to recognize risks

Solution --

task --

(Doing this to force myself to think about these things)
It works well for me, it is really nothing more than an introduction that basically says you know what you are doing. Of course it helps to know exactly what you are doing, it catches me sometimes! Think of it this way, you are a business owner and one day I walk in and give you the Five Way about the five ways you'll leave the business in you are now in, exactly what is your response going to be? Of course Skeptism comes to me and have witness it, clogs going on in their heads trying to figure out what I'm talking about and how I am wrong, but the five way is genious, it is a list I haven't myself been able to prove wrong, you'll leave your business one of those ways!

I'm kind of hesitant too even talk the 5 Way here because it usually gets a negative reaction overall. I really don't care but at times it is, "Why Bother?", everyone else today seems to be busy at building the "Better Mouse Trap", well insurance is a people's business and will remain that way for the most part. First thing to understand, is that they will first say it is old school? Well let us go out and interview business owners and just see how many have been approached in this manner? Not many, if you could find one in your area I would be shocked. Next thing is they will say it is just too negative! First off, they likely never used it, never really heard of it and yes the reason to buy insurance tends to be negative!
How well has then been working for you?

Well, I'm not quite out the door and hitting the streets, but it strikes me as a good way to open the door the all issues insurance a small business owner may have.

The way I was trained in sales was to confront the customer, if needed, with the hard truth. I'm willing to verbally slap a prospect if that is what it takes to penetrate the haze of procrastination and denial. Mind you I can do it in a matter-of-fact way, without making an enemy -- more like a concerned friend, or parent.

And I also like it because I don't want to reinvent the wheel. One of the former members of this board had a mantra that scripts don't work and that it's all about not having the personality of a stale cracker. BS, I say!

I know from my own experience, that if you give me a script that works, I can internalize it, make it my own, perform with it and improvise. As someone once said, "The world is a stage."

The main reason I've not field tested it is that I'm still preparing myself for the rest of the discussion. I suspect the 5 ways is like a top, once you spin it, it can go in many ways. I feel like I'm getting close to talking intellegently about the types of insurance and applying them to the needs of the business owner, but there are still glaring holes that I need to fill:

1. What is the typical response from the prospect -- and how do you transition to what they likely need? What kind of probing questions should I be asking?

2. How best to agitate? I suppose questions like "what would happen to your finances if you were hit by a car and were unable to work for six monthes?"

Again, why try to make a beter mousetrap? I know at least a couple of you guys could rattle of half a dozen questions that work well.

3. I get a bite! OMFG, what do I recommend? Is ROP worth the extra $$$. Can I whip out a preprinted needs/wants analysis and walk through it? I want to be thorough (because you know I'll forget to get what I need in my excitement).

4. A questionaire and checklist to make sure I get everything else. GAHH!!! where do I get that??? They want a ballpark, too? AHHH!!!!! (feeling overwhelmed) :swoon:

I know this is a lot to ask of you guys (James, you've already given so much). But if you can just point me in the right direction.....
Once you get the appointment, you are sitting down and explaining to the business owner what you can do for them. You do this by exactly or not so exactly explaining what you have in your tool belt.

First you have Life and DI, and of course your knowledge on how it works. How it assist on such things as Business Continuation, Key Man and of course don't forget the actual idea of selling insurance for the basic reason of the DB, as in bringing the DB back into the life sale.

You have to come up with some form of script or outline on how you proceed with your talking points. How structure it is is basically up to how it best suits you as the sales person. Asking question during this period is crucial, the more the client speaks the greater your chance of landing a sale. If he or she is talking, likely they are telling you what they want or what problems they are percieving is important too them, don't try too outsell the client! If they say they don't need life or DI at this time than use that too set up your next meeting, yet if they feel that way why would they have agreed to the appointment in the first place unless you sold the appointment too hard to begin with?

You bring up a critical factor, the cost, what do you do if the client ask you the cost of the plan? Don't fall for this, likely that is a negative being directed at you, of course that depends on how they ask the question. The cost isn't the most important thing as I suggested with the WL/Term mix, I can adjust it any way to meet any budget even if it means taking out the WL portion or using STDI instead of DI till 65. If they ask that question directly during the Meeting time you have to assure them your plan and cost will of course depend upon what they budget for it! In other words how can I come up with a plan for you untill I know what you are willing too spend?

As far as ROP, that is a loaded question. I don't think it is worth the extra money and some have questions about the likely Tax Free return the carriers are boasting about. Yet others like it for Key Man as an alternative and cheaper way than WL, that alone is enough to raise eyebrows if you ask me, why not just sell cheap NLPG? In other words cutting cost is okay, but as always you have the problem of "Diminishing Return".
From another forum having a 5 ways discussion:

Once in a meeting with a business owner, it is crucial to have questions that will make them sit up and take notice. Disturbing questions like:

-If you were hit by a truck today and didn't make it home, what exactly happens to your business? Who will run it? How long and how much will it take to replace the amount of profitablility you brought to your business?

-If you were hit by a truck today and could not work for the next year, how will your business run without your leadership? Do you have a second-in-command? If not, how long will it take to get a replacement trained and up and running?

-What are your plans and goals for your business next year? Five years from now? Would you like to retire? When and how? Will you need to sell your business to fund your retirement? How has it been valued? By whom?

-How do you attract and retain employees? How happy are you with your current group benefits package?

These are just some questions that I ask business owners. There are alot more out there depending on the responses you get. I guarantee you most small business owners have never had these questions asked of them. Immediately, you set yourself apart from the competition by adding value and disturbing them to the point where (if they're motivated) they want to act as soon as possible.

Again, if you don't know the in's and out's of buy-sell agreements, key person insurance, voluntary bene's outside QRP's, and business valuation, either get a person to do joint work with, or don't bother. This approach will not work for someone who is not skilled in complex insurance cases.

Any other good questions in your arsenal to draw then out?