5 Reasons Insurance Agents Should Not Cold Call

Most insurance agents hate the idea of cold calling for prospects. Here are five reasons why cold calling puts the agent at a disadvantage.

1. Cold calling on prospects is usually an irritant. Most prospects hate to be called by strangers and demonstrate this by subscribing to the “Do Not Call List.”

2. As an agent, when you do reach a prospect by phone, you are usually treated disrespectfully.

3. You have to contact a large number of people just to get a few qualified prospects that may be interested in talking to you.

4. Even after getting a few qualified prospects, you will usually have to chase them down to get a second chance to talk again because they do not return your calls.

5. Cold calling is a difficult and tedious task that can wear you down, and discourage you from doing it long-term.

Experience has shown that most agents who cold call will usually only obtain one new customer for every 100 prospects contacted. Furthermore, it may take at least 5 phone dials to make just one contact. Is the best use of your marketing time?

Is there a simple solution?

An ever growing number of life agents are creating substantial full-time incomes by using life insurance sales leads from outsourcing the marketing to lead generation companies. In future posts, we’ll review several of these lead companies, and the experience agents are having with them.

Life Agent's Most Important Skill

Contrary to the most common beliefs, knowledge of insurance contracts, policy features, and company ratings are not the most important skill life insurance agents need. This type of knowledge is needed, but it is not vital to successfully selling life insurance. In a previous post, I covered some of the reasons why agents fail at selling life insurance.

How many stories have you heard of top producing agents who earn mid six-figure incomes not knowing how to even complete an application for insurance. Important? Yes. Vital to selling successfully? No. You can always hire an administrative person to complete applications and handle the "details."

So, what is the most important skill necessary for success in life insurance selling?

It is the ability to attract prospects that want and can afford to purchase your product and services. This ability is known as marketing.

Yes. Marketing is the most important skill every agent needs to be successful in selling life insurance.

6 Toughest Competitors In The Life Insurance Selling Game

Life insurance selling has never been an easy profession, and it is getting even tougher in the new internet age.

Here are the 6 Toughest Competitors for every agent selling life insurance.

1. Banks and credit unions are marketing life insurance to their captive audience of depositors and account holders at a tremendous rate.

2. Estate attorneys who prepare wills, trusts, and powers of attorneys are recommending and selling life insurance to their clients.

3. Stock brokers who are looking for additional sources of income are now selling large amounts of life insurance to their investment clients as part of a total financial plan.

4. Telephone sales reps who are paid an hourly wage, and trained to contact leads generated on the internet. These reps usually operate in a “boiler room” type of environment to sell term life insurance over the phone.

5. Direct mail solicitations for small amount of whole life insurance usually target age 50+ individuals looking for burial policies.

6. Accountants have long been the most trusted advisors to their clients. They are taking advantage of this relationship to sell life insurance to their clients along with other financial services.

Future posts will assist you in the most effective methods of beating the pants off your toughest competitors for life insurance sales.