For the insurance agent successfully prospecting the wealthy, high commissions and word-of-mouth contact are commonplace.
But if you're new to the game, marketing your business to this specialized group takes some knowledge and know-how.
Referrals are the key to selling your products and services to wealthy clients. If you want to profit from this lucrative market, you must first define what sets it apart; familiarize yourself with the special needs of the wealthy; and learn to network appropriately.
Defining the Prosperous
Insurance companies use various guidelines to separate affluent clients from the masses. Income alone may not sufficiently define clients as affluent, as in the case of one who inherits a large sum of money.
So what designates particular clients as truly wealthy?
Some of the factors insurance companies examine in segregating wealthy clients from others include:
o Home Value: the truly affluent usually own a home valued at more than $1 million.
o Possessions: many well-off clients own collections of fine art, jewelry, or other collectibles.
o Policy Amount: the rich often generate premiums of $10,000/year or more.
Grasping Their Perspective
In order to sell your products to the wealthy, you must first get to know how they think—and how their needs are different from other clients.
As an agent, you should talk with them about their situations and lifestyles; the time investment needed to make sure they're adequately insured, and the pros and cons of changing any existing coverage amounts.
Many wealthy clients can only spend a limited amount of time discussing these matters, so prepare ahead of time and make your presentation as brief as possible if you want to sell them on your services.
Showing them you value their time means a great deal to affluent clients. After all, time means money!
Making Yourself Available
Due to large amounts of money invested in possessions like homes, cars, art collections and antiques, insurers often must remain on call for their affluent clients 24 hours a day.
For example, if a customer purchases a rare painting, he will most likely want it insured immediately to counter any financial loss he may experience if it is lost, damaged or stolen. This type of client likes to know he can reach you at any time, and you'll do whatever it takes to remedy his needs.
Risk management is very important when handling accounts for the wealthy.
Because they hold more possessions at higher values, their needs are more expansive. Many times the only way to help them realize cost-effective savings is to encourage them to set their deductibles high, and then cover smaller claims on their own.
Dealing with Expectations
Wealthy clients can, at times, become demanding and difficult to work with. Because their premiums are high, their expectations usually are, too.
In addition, these clients often work through intermediaries, business agents or managers, which can present a special challenge when it comes to maintaining close contact and clear communication.
Once again, keep it brief and you'll go much further.
If you dedicate yourself and your time to affluent customers and their special needs, they'll reward you with financial gain that can carry you for years to come.
You must become adept at recognizing and seizing networking opportunities if you want to target your sales to the affluent.
Here are some common ways:
o Move in wealthy circles. Get to know their lawyers, accountants and other advisors.
o When you service a wealthy client, ask for referrals for his friends, family and business associates who may need insurance.
o Get to know professionals in other lines of work, and trade referrals with them.
o Attend social functions where the wealthy circulate, and introduce yourself as an insurance specialist for the affluent.
The more you can paint yourself as an authority amongst wealthy customers, the more likely you are to gain their business.
By placing yourself in the right surroundings and demonstrating your professional expertise, you can find the referrals you need to build a strong agency targeting wealthy customers.
By defining the distinctions of the truly wealthy; becoming familiar with their special needs; and taking advantage of networking opportunities, you can target high-dollar customers successfully.
A little knowledge and understanding go a long way with wealthy clients…and can move you toward the financial success you've always dreamed of.