How to handle persistent sales agents
Question: Ever since I started working, agents have been calling me to sell insurance and investment products. Even if I tell them I am not yet financially ready, they press me to tell them when they can call back. They even ask me for referrals, which I hesitate to do because my friends may not be ready as well. They might even get mad at me for giving their name. What is the best way to handle such sales agents so that they stop calling.–Asked at “Ask a friend, ask Efren” free service available at www.personalfinance.ph and Facebook
Answer: Believe me that sales agents are a very resourceful lot. They will manage to hunt you down even if you change your phone numbers. And why is that so? Why are agents so persistent to the point of appearing to be pesky?
Firstly, you must understand that sales agents are only human. They too have financial needs that can only be afforded through the commissions they earn. Such needs range from funding a single’s lifestyle to raising a family and even preparing for retirement. The higher the proportion of a sales agent’s earnings comes from commissions, the more enterprising he will be. A sales agent is invested in the business of selling financial products just as you are in the business of selling your services to your employer. And this is where the sales agent’s resourcefulness springs from.
But there are hallmarks of a true sales agent that you can use to your advantage:
1.) Values confidentiality. The sales agent should be worthy of your trust. Ask the sales agent, for example, to keep whatever you disclose to him a secret, especially with respect to your personal financial information. You may go as far as asking him to issue you a signed non-disclosure agreement (NDA).
2.) Puts your interests first. Ask the sales agent what he can do for you and not what you can do for him in terms of allowing him to earn commissions. A good sales agent will start probing into your financial goals, assessing your risk level preference, establishing your current financial performance and condition before he even brings out a financial product to sell. A great sales agent will be able to translate all of your needs and financial situation into numbers, particularly when it comes to financial projections that are based on your own assumptions about the future. Again, all of these exchanges of information underscore the need for the NDA.
3.) Has a holistic view. Even if you mention just a few of your financial needs, a great sales agent will also help you uncover areas of your finances that you might not be considering for the moment but will play a critical role in your future. A great sales agent will also provide you with several scenarios about your future finances given varying assumptions. This holistic approach, which is done again with your interests at heart, will lead to a comprehensive financial plan that you can surely call your own.
4.) Is realistic. A great sales agent will temper your assumptions about the future. This speaks volumes about his knowledge and experience. For example, if you assume an inflation rate of 10 percent a year for a high-priced education in Metro Manila, he might say to you that high tuition will probably not increase as much because they are already high. On the other hand, he will tell you that assuming a 2-percent a year long-term inflation rate on your cost of living will be on the low end given a historical top line inflation rate for the country of around 4-5 percent a year.
5.) Puts his money where his mouth is. A great sales agent will not just verbally communicate all that we discussed from numbers 2 to 4. With his confidence in his work, he will be bold enough to send you his analysis and recommendations (prior to selling financial products) in writing. He is not afraid that you will hold him to whatever he submits to you. But a great sales agent is also a pragmatist and will tell you that his analysis and recommendations are not cast in stone and that you should both revisit his work every two to three years or when major changes in your financial situation occur.
6.) Can facilitate the execution of your financial plan. A great sales agent will have the range of financial products to help you execute his analysis and recommendations. And if by chance he does not have what you need, he will not hesitate to give you recommendations on where you can avail yourself of them.
7.) Stays connected. A great sales agent will keep the lines of communication open and will give you updates not only on those financial products you bought but also on economic, political and social events that may be relevant to you.
8.) Believes in continuous education. A great sales agent will never rest on his laurels. He will continue to attend training and seminars not only to update himself on current developments in the capital markets but also to upgrade his skills. Both in-house and third party certification programs help build the credentials of the sales agent.
This list is by no means comprehensive but is stringent enough to help you determine who to talk to or not. And once you have locked into a relationship with one, you can say to subsequent callers that you already have a great sales agent servicing you and that you only give referrals to him.
If you want to learn more about financial planning, please visit www.personalfinance.ph. There are free tools there to help guide you. You may also wish to attend our Financial Planner’s Training program for the cities of Davao, Mandaluyong, Cebu and Baguio. Check our website for the details and on how you can potentially attend for free.
(Efren Ll. Cruz is a Registered Financial Planner of RFP Philippines, personal finance coach, seasoned investment adviser and bestselling author. Questions about the article may be sent by SMS to 0917-505-0709 or emailed to [email protected]. To learn about Estate Planning, attend the 3rd Chartered Trust and Estate Planner (CTEP®) on June 6 to July 11, 2015. To inquire, email [email protected] or text <name><e-mail><CTEP> at 0917-3464126 to register.)
