How to overcome an objection and close the sale on the first visit
Regardless of how qualified a lead or referral is, you should still expect to hear an objection or two before you write an application. The degree to which you are prepared to deal with that objection can determine whether you will have made a sale or a wasted trip.
On rare occasion the objection is nothing more than the prospect’s concern about being taken for granted; however, an objection is normally an indication that they are not yet sold on the product, or you, the agent. The way you present yourself to your prospect, and the manner in which you present your products and message will determine to what degree the prospect’s objection is their lack of confidence in you or whether they just want to be sure they are making the right decision before they make a buying commitment to you.
NOTE: This post can help you get past almost any objection; however, it is important to accept that there is a significant difference between OBJECTIONS and CONDITIONS. An OBJECTION is a concern or reluctance raised by an individual that is capable of making a purchase. A CONDITION is a set of circumstances that make it impossible for the sale to be made at that time. If you understand the difference you will know when a sale is possible and when it is not.
Every objection a prospect presents can be refined down to one of three issues:
Many times Need is an extension of Value because the prospect does not yet understand the Value to them of the service you are offering. Once you establish Value it will be much easier to establish Need. This process works the same way when you go from Need to Value.
Even after you have established Value and/or Need, you must still have their Trust in order to make the sale. TRUST IS THE MOST COMMON OBJECTION. If you do not have your prospect’s trust, they will not see the value of what you are offering.
The following is a list of common objections you are likely to hear and suggestions to overcome them. The relevant issue will be in parenthesis beside them.
- “We want to think about it” (Trust) (Value) (Need)
What they are really telling you is that they have not yet decided that buying from YOU is right for them. This is an easy objection to overcome by getting them to focus on what their needs are and which of your products will serve that need. “Fine, which one of the plans I have shown you are you thinking about?” Be persistent until they give you an answer and then use the “No Obligation” close.
- “We want to shop around” (Trust)
Again, what they are telling you is that they have not yet accepted YOU. The reality is that most people do not want to deal with life insurance and the unpleasant associations it has any more than necessary. If you can make them feel comfortable enough, they will buy it, tonight. The "NO OBLIGATION" close is very effective with life and disability insurance and should come out of your mouth in a smooth, unrehearsed, even manner that sounds like you have been using it for years.
“Fine, let me explain how you can be protected tonight, without any obligation, and still be able to shop around. You can apply right now, get the application out of the way, be covered by paying the initial premium which you can get a full refund on when I deliver your policy, and call as many life insurance agents as you want to compare rates. It might surprise you that while I took only 10 minutes to explain our products, the average agent will spend HOURS explaining everything in his briefcase. Most people don't like to spend every night for a week listening to insurance pitches. You can start with one of these policies and call around for rate comparisons. I think when you are done you will find you can’t do any better.”
- “We have a friend/relative/acquaintance in the insurance business” (Trust)
They are afraid they might offend someone they know by not buying from them or they think that person can give them a discount. What they don’t normally consider is that if they do business with a friend they put that relationship in jeopardy if something goes wrong. If YOU mess up, they can yell at you without wrecking the atmosphere at Christmas dinner.
“I can understand you wanting to do a favor for someone you care about but you are doing them an even bigger favor if you keep your personal and business life separate. By law they can’t give you a discount and if you allow ME to handle your insurance and something goes wrong, you won’t feel bad about getting upset. How do you cuss out someone you have a relationship with and not hurt that relationship?”
- “We can’t afford it” (Trust) (Value)
Sometimes this is a lack of confidence in your issue, and on other occasions it is a valid concern about how the premium will affect their budget. The percentages will work in your favor if you first try to deal with the cost issue by asking: “Which one of the plans are you thinking about?”
You can narrow the choice to one, which is always the last step towards making a successful close. If this doesn’t get you the answer you are looking for you can ask if the least expensive plan will fit into their budget. If they say no, you should actually SAY the monthly premium so there is no misunderstanding as to how much money you are asking of them. If they still say they cannot afford it you can ask them if they are willing to place something this important before something else in their budget. Ask them what they would have to give up if one of them died and that person’s income was lost. It should make them think.
If you HONESTLY believe they cannot afford it then you have encountered a condition, not an objection, and conditions cannot be overcome that day.
• To comment on this article, or add more objections and ways to overcome them, please visit this new thread: Overcoming Specific Objections
Next page: More objections and how to overcome them
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