Selling Insurance is 95 Percent People Business
And 5% Product Knowledge

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Are you in the people business or the
insurance business?

Selling insurance is a 95 percent people business, and only a 5% product knowledge business when it comes to selling people.

If you are still trying to sell a product and telling people how great your product and your company is, your probably going to to fail. 

This topic page will explain to you why we need to be in the people business, and once you read it, and think about it, it should change how you sell.

Selling insurance is an art that is learned over time. There are no shortcuts.  Just like anything else in life, practice, practice, practice.

The premise of this insurance selling techniques article is discuss how to deal with people when in a selling situation and what makes the sale actually happen.

Selling Insurance is 95 Percent People Business And 5% Product Knowledge. What you say, and how you say it, is what counts.Selling Insurance is 95 Percent People Business and 5% Product Knowledge. What you say, and how you say it, is what counts.

When we complete an insurance selling situation, many agents really don't  know why the prospect actually ended up buying their product.  They think they know, and they think that it was because they done a good job of making the presentation.

But lets take a real look at what really happen?

This is where some of us in the insurance selling profession need clarity, especially the newer agents.

Think about it. When we are selling life insurance, or for that matter any type of product, and make the sale, it is usually because we were able to find something that the person wanted to solve in their financial life.

And usually, when a sale is not made it is because the agent was all wrapped up in trying to convince the prospect:

      1. What a great product or company it is that he or she is selling 
                                   - verses - 
      2. Listening to and finding out what makes this person tick.

What you say, and how you say it, is what counts.

How you approach, how you listen and how you communicate with that prospect is important, but most importantly - it is how are you talking to that prospect.

Most sales people have a tendency to think that everyone thinks like they do, or sees things the way they do. This results in an agent creating or developing their presentation around the way they think things in life should be. Big Mistake

The reality of this hit me between the eyes when, in one of my early training schools, when we were talking about communication, the teacher said when you are selling someone, who are you talking to?

  • Are you talking to them ?      
  • Are you talking to their dad?  
  • Or talking to their college professor?

I sat there and was thinking. What the heck is he talking about, just like you are probably doing right now.

Then he explained. His explanation discussed how peoples decisions in life are influenced by other peoples input. And if these people were a very important part of the prospects make up, they will hold what they say as gospel.

Here is a short analogy of why "Selling insurance is 95 percent people business".  It is the concept that you present to people  which is important vs selling insurance.

Here are a couple examples 

Lets say your prospect took a course on insurance and his instructor in college told him the only insurance they should buy is term insurance.  Guess what, you will probably never be able to start this prospect out with a permanent type policy.

Or lets say over his upcoming years all he heard his Dad say is, "don't put you money in life insurance, it is a rip off, only put in the bank or stock market". You will need to dig deep to get the reason why they don't like insurance, then bring the person back to his world.
Or maybe he/she is in the military, where they are taught in the financial classes they attend, not to ever buy anything with out sleeping on it.

I use to sell USAF officers and I made a great living by knowing this critical piece of information. I created a no close - close that helped me knock out the competition.

  • When I got done with my presentation i would say " Mr prospect, we talked about a lot of ideas tonight, and i see that you liked most of them, so what i would like to have you do is sleep on what we talked about, and if it sounds as good to you in the morning as it does now, then you can give me a call or I will give you a courtesy call tomorrow evening. However if you want to start this program this evening we can do that now.

So what is it that really makes someone actually buy something?

Is it really your product? Is it really all that insurance lingo that you try to impress people with and show them how smart you are? The answer is no.

They buy insurance because somewhere you were able to start talking to them about something they were really interested in talking about. And you were talking to whatever philosophy it was they believed in.

That is what is called "learning the people business."

Ever hear that saying about when people buy or do something? I think it goes like this, "boy did you ever hit their hot button".

The best way to find their hot button is to use power phrases and concept selling techniques.

And how do we find that hot button, by asking questions and feeling out how a person thinks. My confidential questionnaire can help you do that.

You will note in this questionnaire, there is a question I ask:

Item F :) "When making financial decisions, do you make your own decisions or do have to consult someone?"  By asking this question upfront, it usually told me who I am going to be talking to.

The art of selling insurance is something that one learns over time, through trial and error. Our web-site is here to try and help you accelerate your understanding and learning of some of these life insurance selling techniques by providing proven and tested sales tips to help you.

We hope you will become part of our team and subscribe to our site.  

Have a great day-Ted 

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