Happy Selling Ideas  

Article: HS/0001

16 April 2012

Ideas that give You SHAKTI

Why you should know your prospects

Selling life insurance requires a number of prospects to visit and a number of visits to any single prospect. Rarely does a sale close with one visit to a prospect. This is because prospects take time to absorb the idea that they should commit a long term financial obligation to purchase life insurance for a need that will arise 15 to 25 years later. There is a natural tendency to postpone such decisions, since there are more pressing matters on which the prospect would like to spend his time and money.

 The Closing Ratio for Known Persons

This basic characteristic of the life insurance market gives rise to a concept called the Closing Ratio or the Conversion Ratio. That is, how many prospects do you meet before you can close one sale. Traditionally when selling to known persons this ration is taken as 10:1. In other words, meeting 10 prospects will lead to one sale, on an average. Every agent has a Closing Ratio. For some agents it may be 5:1 and for others it may be 15:1, depending on knowledge, skills, habits, etc. When data is maintained for a long period of time for hundreds of prospects, the agent will have a fairly good idea of his or her Closing Ratio.

 The Closing Ratio for Unknown Persons

When selling to persons not known to you, the Closing Ratio approximates 40:1. That is you have to face 39 rejections before closing a sale! Compare this with facing 9 rejections before closing a sale, when selling to known persons. Which do you think is preferable: Selling to known persons or cold calling?

 Why the Closing Ratio is High for Unknown Persons

The Closing Ratio for selling to unknown persons is high because the unknown person takes time before he gets the confidence that he can do long term financial planning with a stranger. You have to build trust – both personal trust and professional trust before you can get the prospect to consider discussing his needs and agreeing to take a look at a solution you may have for him.

If you feel that you would not like to sell to your friends or relatives, then the agency career is not for you. If you are in a new town then the agency career is not for you.


Happy Selling!

N. Ashok Kumar


Mobile: +91 98 600 59 397



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SHAKTI is an acronym denoting strength. From the SHAKTI tools of IIST you will get the strength to learn, to improve, to excel and to master the science and art of selling life insurance. The full form of SHAKTI is Skills Habits Attitude Knowledge Training Interventions. Learn the selling skills and working habits, develop an attitude to excel, and acquire the knowledge of life insurance and products. Give yourself the SHAKTI to succeed in life.