When it comes to prospecting, one of my favorite sayings is, you have to chase squirrels and rattlesnakes while you hunt buffalo….
You’re probably thinking, Eszylfie, what the heck does that mean?
It’s quite simple; squirrels are small deals, and buffalos are larger ones.
The positive side of landing a huge deal is clear, more money for your insurance business. One deal can mean hitting your revenue goals for the entire month! However, getting fixated on closing a “buffalo” size deal can be detrimental to your business.
For one, closing one typically takes a lot of work, time and probably needs to be approved by several decision makers.
It can be a massive headache despite the potential reward. The keyword is “potential.” You could spend tons of time working a deal only to end up not closing it; which happens to even the most skilled salesperson. By spending tons of time chasing one deal that doesn’t close you’ve lost time that could have been spent closing other small deals to keep your business running.
Let’s say; you do end up closing a few big deals, if you continue to make buffalo hunting your focus it will eventually catch up to you in the form of revenue peaks and valleys. There are just too many variables at play when it comes to closing a large deal; such as having to coordinate with their CPA’s, lawyers, business partners, and not to mention the challenges you might face with underwriting and the approval process.
Small deals aren’t as glamorous, but they are more likely to come in because it’s easier to get a prospects buy in when there’s typically only one decision maker.
Small deals keep your business running because consistently closing prospects means you’ve found your sweet spot; it also means that your process can be replicated and scaled up. Imagine where you would be if you had a track record of consistently closing deals?
I still have my ledger book from my first years in the business, and I’ll pull it out to show advisors the $50 a month deals I used to write when I started out. It’s what kept the lights on for me while I got better and could prospect UP to reach the type of clients I desired.
As a financial advisor, if you focus solely on fewer large accounts and one of those disappears, the consequences can be devastating. That’s why you should be pushing hard to catch squirrels and expose your business to as many people as possible while nurturing the smaller clients as well. Those squirrels will be your initial bread and butter, so make that your focus.
Don’t get me wrong; this article wasn’t meant to dissuade you from pursuing large deals 100% of the time. It’s OK to pursue them but take advantage of the easy pickings along the way.
Sales shouldn’t be risky. If you’re finding yourself putting everything on the line for one deal, you’re doing it wrong. You can make an excellent living for yourself if you discover the lowest hanging fruit and replicate your closing process repeatedly.
– Eszylfie Taylor