CJR
Expert
- 97
I got a hold of one of Travis Tubbs presentations, and really liked the close he used, basically starting high and brining it down, as opposed to the three options close.
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Slip Me Your Thoughts
- Thread starter KRobby
- Start date
- 19,124
Ha!! No, when he started with the $200/mo thing I said hell no!!
But the money purchase thing works very well for him. Travis Tubbs is the best FE agent I've ever known about and he uses the money pitch.
I don't. It's not in my comfort zone. But I do see the value. Once you have a money commitment the deal is done. You are just finishing the paperwork at that point.
- 5,274
The key to writing more average premium is finding out how to ask for more.
Simple enough, really - although I am hesitant to push for high premium without assessing the client's needs by properly prequalifying the prospect.
Upon seeing what the client wants to accomplish (cremation, burial, income replacement), and after I prequalify them on bank, budget, and health - and after I position what I'm selling versus the other options - I close with a three-option approach, kinda like the "good, better, best" routine.
Prior to that, I did get an idea of affordability and have planted the seeds of "something is better than nothing" if he cannot afford what he wants, but can justify buying what he needs.
My pricing levels typically reflect what the prospect wants in the price range he gave me, although I will show pricing a little bit higher. Your prospect won't take offense to this, and occasionally will take the higher price.
The takeaway I've had in this business is that selling premium without consideration of "who" these people are is a dangerous proposition for the general population (perhaps not for the most elite agents).
I long ago gave up driving to have the largest average premium, but instead decided to work harder to drive up total "app-tivity," producing more quality business designed to meet the needs of my client versus the want of my profit, which in turn, keeps business on the books longer and shields my business from replacement.
Never used the $ per day bit, but have use the "ridiculously high/low" to get a dollar commitment. Goes something like this, "Could you afford $500 per month?" Usually results in a chocked look and a "no" response.. Then ask with a smile, "But you could afford a dollar per month" Usually results in a "Well, yeah I could do that. Then, "Well in between those two ridiculous amounts is a figure that you could afford, what would that be?" That usually leads to a dollar commitment from the prospect so you know what you have to work with. The thinking behind this is there is no sense showing them something they are convinced they can't afford.
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Sold a cancer plan yesterday with that idea.. Showed the lady the plan I usually present and explained why I chose to use that comapny and that plan using my expenses as an example. She objected to the price... I then showed her a plan with considerably less benefits at half the price.. When she brought up the benefit amounts, I simply told her, "if you were starving to death and I laid a half loaf of bread on the table, would you refuse it because it wasn't a full loaf?" Of course she said, "No.".. "That is what we are offering here. You can't afford the full loaf, but this will certainly stave off the hunger if you have cancer by easing the financial burden on you and your family." .. Corny? Maybe.. Does it work?.. Yes. With cancer and with life coverages.
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Sold a cancer plan yesterday with that idea.. Showed the lady the plan I usually present and explained why I chose to use that comapny and that plan using my expenses as an example. She objected to the price... I then showed her a plan with considerably less benefits at half the price.. When she brought up the benefit amounts, I simply told her, "if you were starving to death and I laid a half loaf of bread on the table, would you refuse it because it wasn't a full loaf?" Of course she said, "No.".. "That is what we are offering here. You can't afford the full loaf, but this will certainly stave off the hunger if you have cancer by easing the financial burden on you and your family." .. Corny? Maybe.. Does it work?.. Yes. With cancer and with life coverages.
After I do presentation I usually show plan that costs 100 a month as my starting point, I say I'm going to give you an example of the prices, and reiterate, this is only an example, you can go higher or lower depending on your budget.
20,000, that, will cover your final expenses, and still leave a chunk of change to your daughter, will cost you $99 a month, I have my tablet with the price turned towards them, and I shut up. Wait for them to say something and read their reaction.
If I see they are horrified, they're like hell no, I jump in, ok so that's to high for your budget, so let me show you the price for 15,000 or 10,000, so you know all your options.
Sometimes they ask what's the next price, then I will show 30k .....
If it's high premium I always say, are you sure you can handle that every month.
20,000, that, will cover your final expenses, and still leave a chunk of change to your daughter, will cost you $99 a month, I have my tablet with the price turned towards them, and I shut up. Wait for them to say something and read their reaction.
If I see they are horrified, they're like hell no, I jump in, ok so that's to high for your budget, so let me show you the price for 15,000 or 10,000, so you know all your options.
Sometimes they ask what's the next price, then I will show 30k .....
If it's high premium I always say, are you sure you can handle that every month.
- 19,124
I think a lot of agents do something along those lines. Here they are asking about the money purchase close. Those agents don't discuss anything until they get a premium commitment. The ones that do it religiously won't give a person a price on say $10,000 even if the person asks for it.
And it works great for those that can do it and won't waver from it.
LOL, thats one of my favorite direct mail leads cards
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Yea, I wont waiver, if I cant get a monthly budget number I bounce. Even if they say how much is $10,000, I rebut with "well if it was $300 month could you afford it?" When they say no I reply with "Well the only really important number that matters is what you can afford right?" They agree, I also tell them I have no idea how much $10,000 is on them because I have not even asked about their health or medications. Once they agree and say well ask me the health questions I circle back around with the affordability question again before I move forward, it they still wont give me a number I leave, and NO i dont leave them a business card, those things cost me .4c each!!
Yeah.. But back in those days, $1.00 per day would be equal to $50.00 per day today. When I started a $30.00 per month sale was considered a great sale. According to the inflation calculator, $30.00 per month in 1971 is equal to $176.26 today..That is $2115.00 AP. A couple of those per week equals a pretty decent living.
- 29,635
LOL, thats one of my favorite direct mail leads cards
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Yea, I wont waiver, if I cant get a monthly budget number I bounce. Even if they say how much is $10,000, I rebut with "well if it was $300 month could you afford it?" When they say no I reply with "Well the only really important number that matters is what you can afford right?" They agree, I also tell them I have no idea how much $10,000 is on them because I have not even asked about their health or medications. Once they agree and say well ask me the health questions I circle back around with the affordability question again before I move forward, it they still wont give me a number I leave, and NO i dont leave them a business card, those things cost me .4c each!!
Damn, those are some expensive business cards JG!
