The Practice Doctor is IN

Al Depman, CLU, ChFC, CMFC, BH

It’s OK to Admit You’re in Sales!

December is generally an introspective month; a time when we think about what we accomplished over the course of the year, what we hope to achieve going forward, and who we are. Like it or not, if you’re in financial services, you’re in sales. And that’s not a bad thing.

What’s that? You’re not in sales? 

A favorite exercise of mine when addressing groups of relatively new financial advisors (under 5 years) is to ask the question: “How many of you are salespeople?”

Invariably, half will raise their hands and the other half will not.

To those who indicate that they not in sales, I ask, “So what business are you in?” 

The respondents couch their words carefully:

“I advise people on solutions to their financial problems.”

“I counsel people to make smart decisions about their money.”

“I don’t force people to do anything. They’ll do the right thing.”

“I help people make good decisions about money.”

Thanks to a century of stereotyping, the insurance salesman (and by association, any financial services person, male or female) has evolved into a creature to be feared. In countless cartoons, an encounter with this creature results in the victim buying something they don’t really need just to get rid of him. Despite the broadening of products and services that go far beyond just insurance, the stigma has remained. Hungry wire-house and boiler room product-pushers––pre do-not-call legislation––certainly didn’t help the reputation of representatives on the investment side of the business.

Resistance to this “salesperson” stigma is best represented by the advisor I spoke to recently who bought an engagement ring for his longtime girlfriend. He was days away from a proposal when she casually mentioned that there was “no way on earth I’d ever be married to a salesman.” Being committed to the career path of a financial advisor, he refused to bend. “I’m proud of being a salesman,” he responded. “Her vision of a salesman was that of a hard-closing guy who was more interested in placing a product than doing the right thing for the client.” 

The proposal having been shelved, the ring returned, and his pride intact, the advisor dodged the bullet. “We’re salespeople,” he said. “There’s nothing wrong with that. In fact, I believe it’s one of the more vital and noble professions.”

I’ve done quite a few exit interviews with first year advisors. The number one reason they quit the financial advising business is the tyranny of the sales requirement. The inevitable pressure of “gently suggesting solutions and products” versus “getting $7,500 in comp paid for by week 13” does in a good number of wannabe advisors. The turnover rate of new advisors surviving into year four is as high as 80 percent.

Over the years, I have seen some successful advisors assert that they are not salespeople, but “trusted advisors.” “C’mon,” I say, “you’re gathering assets and selling products even if your clients are simply ‘doing what you tell them to do.’” Some, especially those who are focused on building a recurring revenue stream, will concede that at one time, perhaps, they were hungry and “pushed a little harder.” Those who rely on the continuous stream of first year commissions tend to more readily accept the role of “salesperson.” 

My basic tenet is this: somewhere in the process of advising people there must be a transaction of some sort, the point where you get them to take action on their particular situation. Taking no action means that the client’s issue or problem remains unsolved. This transaction results from a question: do you think this is the right thing to do? That question is, in sales-speak, the “close.” 

When I was early in my career, I was taught a number of responses to overcome objections. We were to enter into combat, deftly parrying with the prospect until one of us gave up. This never really felt right. After trying it a couple of times and getting some morning-after bouts of buyer’s remorse, I dropped the technique. My eventual “sales” success came from developing a more inspirational approach. Over the next year, I integrated the “close” into each step of my sales process. These steps included variations on the following:

• The initial contact and setting the first appointment
• Confirmation of appointments
• Initial meeting
• Fact-finder
• Education
• Presentation meetings

My favorite ongoing question became: “Does this make sense?” and my favorite subsequent phrase was “Then let’s build on that.” By the time we got to taking action, the “close” sounded like this:

“So all of this makes sense? Then, let’s take action. Here is what I’m recommending.”

I did quite well with my new philosophy and approach.

Are there solutions to this question of “Am I a salesperson or not?” The recruiting process ought to be brutally frank and not pander to those afraid of being salespeople. The sense of pride in sales should be part of the recruiting process, not treated like a skeleton in the professional closet. For those not comfortable being in sales, there are other opportunities out there to explore.

What do you think? Are you in sales?

The Doctor is OUT

Al Depman, CLU, ChFC, CMFC, BH, a.k.a. “The Practice Doctor”, is MitchAnthony.com’s Business Practice Consultant. He is the creator of “The Practice Management Assessment” tool and materials and has authored numerous articles in professional publications on practice management, and author of the book, How to Build Your Financial Advisory Business and Sell It at a Profit, now available from McGraw Hill. Al combined his Liberal Arts studies with 10 years of management experience with McDonald’s Corporation to enter the financial services world 25 years ago. Since then, Al has evolved from an MDRT-level sales rep into a full-time consultant specializing in helping others engineer their business practices to the next level. Contact him at al@mitchanthony.com.

© 2009 Al Depman