This document provides information on identifying qualified prospects for life insurance sales. It defines what makes a qualified prospect, including that they have a need for life insurance, can afford it, and can qualify medically and financially. It also discusses factors that indicate increased need for life insurance, such as financial improvements, increased responsibilities, or life changes. The overall message is that successful prospecting requires identifying individuals who have both the need for and ability to purchase life insurance products.

2. What Makes aQualified Prospect?Does he or she have a NEED for life insurance?Can he or she AFFORD to pay for it?Can he or she QUALIFY?Can he or she BE APPROACHEDunder favorable circumstances?2

3. HOT50%35%WARM20%COLD10%PROSPECTOMETER(Measuring the Value of a Name)Timeliness:Has there been a recent change resulting in: Financial Improvement?

4. Increased Responsibility

5. Increased Receptiveness?(PLUS INFORMATION BELOW)PROBABLE BUYER(A Prospect for You, Now!)Can you get to see the prospect on a favorable basis?Are you fully equip to satisfy the prospect’s particular need?(PLUS INFORMATION BELOW)QUALIFIED PROSPECT(A Prospect for You)Does the prospect have purchasing power?

6. Does the prospect have a need for your product?

7. Can the prospect meet medical and underwriting requirements?(PLUS INFORMATION BELOW)PROSPECT(For Some Lucky Agents)DEGREE OF PROBABILITY OF BUYING NOW Do you know the prospect’s name, address, phone number, place of employment, occupation, age, family status, hobbies, interests, etc.SUSPECT3

8. A Lot of Things Happensas a Matter of…Timing4

9. SITUATIONS THAT INDICATE NEED FOR LIFE INSURANCEFinancial ImprovementIncreased ResponsibilityIncreased Receptiveness5

10. FINANCIAL IMPROVEMENTAppointment or PromotionSalary IncreaseBonusInheritanceProbate of a WillWinning a Law SuitCompletion of Installment Payments on Car, Home, etc.Policy Becomes Paid-up or Has MaturedDependent Relative Dies or Becomes Independent Successful SpeculationReal Estate TransfersAwarded Business ContractBusiness ExpansionGets Building PermitPatents AwardedGovernment Action Gets Favorable to BusinessWinning in the Lottery Increased Prosperity6

11. INCREASED RESPONSIBILITYMarriageNew ChildAdoption of a ChildEngagementTaking First JobChanges Job and Loses Group InsuranceNew HomeBorrows MoneyParent/Relative Becomes DependentDeath of WifeDeath of HusbandChild Enters CollegeInterest in Some CharityHas a “Special Child”Becomes a Key-PersonImprovement in Standard of Living7

12. INCREASED RECEPTIVENESSDeath of a Friend or RelativeNarrow Escape From DeathObserving Narrow EscapeSees Life Insurance in ActionSees What Life Insurance Could Have DoneBirthdaysAge ChangesApproaches RetirementBecomes Uninsurable or RatedFinancial LossesGraduationsBecomes Executor or Administrator of Estate Improved Social StatusNew ResidentFriend/Relative BuysBirth of GrandchildrenChild Gets Special HonorsFailure of CompetitorDeath of CompetitorFavorable Business ForecastTakes Child Into BusinessChange in ManagementBusiness Re-OrganizationAnother Agent Sold Idea but Didn’t Ask for the Application8

13. Who Do You Know Who…9

14. The Sales Pipeline*It’s in “Seeing the People”There is not a business going that does not depend on new people to see. Somehow someone must put names into the pipeline so that what comes out the other end are completed missions. Although there are multiple facets to operating any business, the entrepreneurial spirit would mean nothing without new prospects, and these mean less if no contact is made. The success of any business venture can be measured by the percentage of time spent face to face, and this time occurs only when someone asks for the meeting.GeneralPublicTargetedMarketSpecificProspectsEliminatedby ChoiceInitial ContactNo NeedAt This TimeStudy ofTheir NeedsProposalInappropriateProposedSolutions toClient’s ProblemsConfirmThe PurchaseAssure Client Satisfaction* from the “Business of Selling,” Allesandra & Cathcart10

15. Client Referral ModelPersonalReferralsFamilyRelativesFriendsSocialContactsSocialReferralsAcquaintancesNeighborsKeyBusinessRelationshipsBusinessAssociatesBusinessContactsOccupationalReferrals11

16. PersonalReferences1. ____________2. ____________3. ____________Best Friends1. ____________2. ____________3. ____________Sports1. ____________2. ____________3. ____________Associates1. ____________2. ____________3. ____________Attorney1. ____________CPA1. ____________Doctor1. ____________Family1. ____________2. ____________3. ____________CENTER OF INFLUENCE________________________Neighbors1. ____________2. ____________3. ____________4. ____________5. ____________Professionals1. ____________2. ____________3. ____________4. ____________5. ____________6. ____________7. ____________Greeting Cards1. ____________2. ____________3. ____________4. ____________REFERRAL POSSIBILITIES12

17. BUILDING & EXPANDINGYOUR MARKET13

18. What’s the BestProspecting Method?Client PrestigeReferralsClient ReferralsEndorsementsProfessional ReferencesSeminarsAdvertisementsLeadsMailing or Telephone ListsCold CallingThe value of the method increasesas you move from the bottom to the top. 14

19. AGENT CONTROLPROACTIVEPROSPECT CONTROLREACTIVEImpact of Various Prospecting Methods TOPOF THE TABLETarget MarketNetwork of AdvisorsCOURTOF THE TABLEReferralsMDRTResearch Followed by Phone CallSHORTCAREERDirect MailFollowed by Phone CallFace-to-FaceCold CallingDirect MailNatural MarketThe following Prospecting Pyramid clearly illustrates the impact of various prospecting methods on an agent’s career. Generally, the more an agent relies on “cold” methods of prospecting, the lower his/her productivity and the shorter the career in sales. Agents who direct their prospecting efforts toward Target Marketing achieve the highest production and maintain long-term, successful sales careers.15

20. First Year Commissions and Lives/Cases SoldAverages for U.S. Agents and Members of MDRT Table Levels16* U.S. Average Commissions and Lives/Cases from LIMRA

21. AGENT SURVIVAL RATESGAMC17

22. Organized ProspectingList NamesEvaluate NamesRecord Names & DataOrganize for CallsRecord Results18

23. Methods of ProspectingPERSONAL OBSERVATIONFRIENDS & ACQUIANTANCESDIRECT MAILCENTER-OF-INFLUENCE’S LEADSREFERRED LEADS(Endless Chain)COLD CANVASSSEMINARS/WORKSHOPSSUSPECTSNEWCONTACTSFOLLOW-UPCONTACTSCASESOPENEDCLOSINGINTERVIEWSSALESCOMMISSIONS: $ ____________19

24. Weekly Sales Success FormulaPERSONAL OBSERVATIONFRIENDS & ACQUIANTANCESDIRECT MAILCENTER-OF-INFLUENCE’S LEADSREFERRED LEADS(Endless Chain)COLD CANVASSSEMINARS/WORKSHOPS20GUIDEL INESYOURS TANDARD SSUSPECTS12NEWCONTACTS8FOLLOW-UPCONTACTS10CASESOPENED6CLOSINGINTERVIEWS2SALESCOMMISSIONS: $ ___________________20

25. Weekly Sales Success FormulaBelow, the Weekly Sales Success Formula is charted in the form of a funnel. On the left-hand side of the funnel, you will see “Guidelines” showing the suggested number of Suspects, New Contacts, Follow-up Contacts, Cases Opened, Closing, Sales and Commissions. On the line below the funnel, enter the average weekly amount of “Commissions” you wish to generate. Then develop, and fill in the lines down the right-hand side of the funnel, “Your Standards” — as required to generate the “Commissions” you set to achieve.“SUSPECT” - New people whom you plan to contact in the near future. You only have a “Suspect” when you know the name, address where to be contacted, phone number, occupation, approximate age, family status, hobbies, interests, etc.“NEW CONTACT” - A ‘New contact’ is when you have an appointment to speak to someone for the first time about one of the company’s products.“FOLLOW-UP CONTACT” - A second or subsequent interview, as part of the selling process, on any previously Opened Case.“NEW CASE OPENED” - A “Case” is “Opened” when you have had your first interview and decide to continue your negotiations.“CLOSE” - A “Close” consists of a face to face (not telephone) conversation during which you ask the prospect to take some positive action, such as signing the application, to be recorded whether the attempt was successful or unsuccessful.“SALE” - A “Sale” is any interview which results in your obtaining all the necessary requirementsto complete a sale: — signed application, premium payment, medical evidence arranged.21

26. 22Are You Seeing3 People Per Day?“If you are not seeing 3 people per day, you haven’t earned the right to complain about the state of your financial circumstances.”

27. Always remember the basic premise of any sales endeavor:“You’ve Got to Kiss a Lot of Frogs to Meet a Prince.”That’s the job and you’ve got to kiss themDon’t try to substituteYou can’t mail them a kissYou can’t stay in the office and wait for them to hop in and kiss youYou can’t let advertising change them into princesYou can’t ask your secretary to kiss them (he or she hasn’t got the stomach for it)It doesn’t take a lot of smooching to tell a prince from a frogYou can’t change kissing styles every 30 days or spend all your time in Kissin’ SchoolYou’ve got to spend time with frogs and you’ll find them out there in the marshesThen, when you find one, you got to make contactKissing is a contact sport-Source Unknown23

28. CONTACTSAt this point, when your prospect is ready to buy, you have a 90% chance of being called.You are probably the only person to make eight contacts with this prospect.You are building top-of-the-mind awareness (TOMA).Nurturing slowly, your prospect gets to know you and your company.Customer RelationshipYou are becoming a factor in the prospect’s mind.89.9% of salespeople have given up by this point.79.8% of salespeople have given up by this point.65% of salespeople have given up by this point.50% of salespeople give up.PROSPECT24

29. 25HOT50%35%WARMDEGREE OF PROBABILITY OF BUYING NOW20%COLD10%Success in Our Businessis All AboutQuality Prospecting…Everything else is Commentary.

30. Success TriangleGOAL SETTINGSALESKNOWLEDGEQUALITYPROSPECTING26

31. The 8 Keysto Bullet-Proofing Your PracticeRate your practice fromScale of1 to 8with 1representing your best practiceRelationship Management

32. Activity Management

33. Time Management

34. Inventory Management

35. Referral-Based Prospecting

36. Values-Based Fact-Finding

37. Product Expertise

38. Assistant Coordination27

39. “You Miss 100% of the Shots You Don’t Take.”Wayne GretzkyGreat Hockey Player28

40. JANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDECProspectingSalesOne Reason for Sales SlumpThe vast majority of salespeople experience sales slumps. The one reason why dry spells occur can be understood with the aid of this chart.Let’s say you start a job in January and spent a lot of time in prospecting, in fact, it took 90% of your time that month. Naturally, there is a time lag between your initial contact with your prospect and the confirmation of a sale. This is called the Sales Cycle, and generally, the higher the price, the longer is the sales cycle.As time goes by, sales increase. Your prospecting activities begin to pay off. You become more and more impressed with yourself. You’re making customers happy, your sales manager is thrilled and your bank account looks better all the time.But as your sales increase, you keep decreasing your sales activities because you think “I don’t need to prospect, I’m making sales?” Months later, you enter a dry spell but you can’t figure it out. The answer is simple, you have stopped prospecting. The prospecting groundwork you laid at the beginning of the year has already paid off, and the well of new business is starting to run dry.Sales slumps can be avoided by continually prospecting. One simple truth to remember in this business is that “if you stop planting, you stop reaping.”

41. SynergiaBusiness PresentationsJoaquin “Duke” G. Wilwayco8301 Ephraim Road, Austin, TX 78717Phone: (512) 799-2999Fax: (512) 671-6377Email: dgwilwayco@aol.com