Strategies to Build a Profitable Business Instead of [Just] Earning Commissions

Businessman drawing business strategy concepts with chalk

Author: Senior Insurance Marketing Association, June 17 2016

In any sales situation we have to have a strategy, a format that helps our prospects understand and identify “how” our solution will address their concern. In other words “why should I buy this product, today, from you?” When we move from “selling” to helping our prospects “buy” we have improved our relationship skills, our listening skills and grown our business. And to do this there are some simple principles and 5 strategies’ that can help.

Human Relations in Sales

Selling includes both objective facts and subjective impressions.

  • Know your products. This is a sales strength. It promotes confidence.
  • Prospects will do business with someone they like. 
  • Be yourself. If you try to be someone you are not, you will be regarded as insincere.
  • Expect the best from your prospects.

Foundation

It is important to develop and maintain a relationship throughout the selling process without creating new obstacles to overcome.

  1. Do not answer questions in such a manner as to create new ones.
  2. Reinforce the prospect’s emotional decision to buy from you with logic.
  3. Develop positive emotions without arousing negative ones.

In order to develop this relationship, you must first contact the prospect, assess their initial situation, and determine the prospect’s familiarity with our Company and our products and services.

Through questions and interaction, you then can begin to analyze the factors and identify the reasons that motivate the prospect to make a purchase. Every prospect has reasons for making a purchase. Once you uncover the particular reasons that motivate your prospect to buy, you will have fewer roadblocks in creating the proper buying environment for that prospect.

Solutions

When you analyze the reasons that make your prospects buy and turn those reasons into needs, you can then tailor the features and benefits presentation to give a solution to those needs.

If you have developed a relationship and presented the solution that satisfies your prospect’s motivation for buying, you should have a prospect that is ready to buy. However, you must motivate the prospect to make the purchase. Remember people buy on emotion but are moved to action through logic.

Verbal Communication

  • Use everyday vocabulary.
    • Avoid using industry language, technical terms and acronyms only you would understand.
    • Speak clearly.
    • Let the prospect set the pace of the conversation.
    • Monitor your tone and inflection when speaking.

Non-Verbal Communication

Non-verbal cues are those expressions and gestures that communicate to your prospect without your speaking. They can work both for you and against you.

Use positive non-verbal cues such as:

  • Utilizing good eye contact
  • Smiling
  • Being genuine and relaxed
  • Uncrossed arms and legs
  • Nodding in agreement

Needs and Solutions

  1. Use systematic question and solution interview to uncover the prospect’s needs.
  2. Present solutions in a logical sequence.

Following these two steps helps create the effect of all solutions being powerfully combined and leads your prospect to the conclusion to buy now. Then apply the following strategies to build a profitable business instead of earning a commission.

Strategy 1: Recognize the dollar value of each prospect.

IF…

  • It takes 50 names
  • To make 24 contacts
  • To get 10 appointments
  • Of which 8 presentations
  • Result in 2 sales
  • With an average $2,885 annual premium (health policy premium, plug your own product premium numbers in)
  • And an average First Year Commission     $577 (health commission, plug your own product commission numbers in) 

Then…

  • Each contact is worth $48.08

($577 x 2 = $1,154 divided by 24 = $48.08)

Strategy 2: Learn from your mistakes.

  • Two ways of learning
    • Experience: Learn from your own mistakes
    • Wisdom: Learn from the mistakes of others
  • When your ideas, concepts or presentations get rejected, analyze what went wrong, and make adjustments for next time.
    • Recognize that rejection is a form of communication.
  • Get feedback from your manager and other successful Sales Professionals.
    • Feedback can help you realize when to make adjustments.

Strategy 3: Never underestimate the value of practice.

  • Every presentation gives you an opportunity to strengthen your sales skills.

Strategy 4: Realize that in sales, more people say “no than say “yes.” That’s normal and so are you!

Strategy 5: “NOTHING SUCCEEDS LIKE SUCCESS!”

  • Setting and achieving personal goals is rewarding.
  • Use goal achievement as a motivator.
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