Center for Financial Advisor Education

Transcription

1 Center for Financial Advisor Education FA 200 WORKBOOK Techniques for Prospecting: Prospect or Perish WB

2 THE AMERICAN COLLEGE The American College is an independent, nonprofit, accredited institution founded in 1927 that offers professional certification and graduate-degree distance education to men and women seeking career growth in financial services. The Center for Financial Advisor Education at The American College offers both the LUTCF and the Financial Services Specialist (FSS) professional designations to introduce students in a classroom environment to the technical side of financial services, while at the same time providing them with the requisite sales-training skills. The Solomon S. Huebner School of The American College administers the Chartered Life Underwriter (CLU ); the Chartered Financial Consultant (ChFC ); the Chartered Advisor for Senior Living (CASL ); the Registered Health Underwriter (RHU ); the Registered Employee Benefits Consultant (REBC ); and the Chartered Leadership Fellow (CLF ) professional designation programs. In addition, the Huebner School also administers The College's CFP Board registered education program for those individuals interested in pursuing CFP certification, the CFP Certification Curriculum. The Richard D. Irwin Graduate School of The American College offers the master of science in financial services (MSFS) degree, the Graduate Financial Planning Track (another CFP Board-registered education program), and several graduate-level certificates that concentrate on specific subject areas. It also offers the Chartered Advisor in Philanthropy (CAP ) and the master of science in management (MSM), a one-year program with an emphasis in leadership. The National Association of Estate Planners & Councils has named The College as the provider of the education required to earn its prestigious AEP designation. The American College is accredited by The Middle States Commission on Higher Education, 3624 Market Street, Philadelphia, PA at telephone number The Middle States Commission on Higher Education is a regional accrediting agency recognized by the U.S. Secretary of Education and the Commission on Recognition of Postsecondary Accreditation. Middle States accreditation is an expression of confidence in an institution's mission and goals, performance, and resources. It attests that in the judgment of the Commission on Higher Education, based on the results of an internal institutional self-study and an evaluation by a team of outside peer observers assigned by the Commission, an institution is guided by well-defined and appropriate goals; that it has established conditions and procedures under which its goals can be realized; that it is accomplishing them substantially; that it is so organized, staffed, and supported that it can be expected to continue to do so; and that it meets the standards of the Middle States Association. The American College has been accredited since The American College does not discriminate on the basis of race, religion, sex, handicap, or national and ethnic origin in its admissions policies, educational programs and activities, or employment policies. The American College is located at 270 S. Bryn Mawr Avenue, Bryn Mawr, PA The toll-free number of the Office of Professional Education is (888) AMERCOL ( ); the fax number is (610) ; and the home page address is theamericancollege.edu. Certified Financial Planner Board of Standards, Inc., owns the certification marks CFP, CERTIFIED FINANCIAL PLANNER, and CFP (with flame logo), which it awards to individuals who successfully complete initial and ongoing certification requirements. Copyright 2010 The American College Press All rights reserved W Workbook

3 CONTENTS The American College... W-2 Table of Contents... W-3 Techniques for Prospecting: Prospect or Perish Assignment Schedule... W-4 Special Notes to Advisors... W-7 Course Overview and Expectations... W-9 Student Survey... W-17 Sales Planning Project 1... W-19 Breakout Class 2... W-29 Quiz Class 1... W-31 Quiz Class 2... W-33 Handout W-37 Action Project 1... W-41 Breakout Class 3... W-49 Quiz Class 3... W-51 Handout W-55 Handout W-57 Sales Planning Project 2... W-59 Sales Planning Project 3... W-63 Breakout Class 4... W-67 Quiz Class 4... W-69 Action Project 2... W-73 Breakout Class 5... W-77 Quiz Class 5... W-79 Handout W-83 Handout W-85 Action Project 3... W-87 Breakout Class 6... W-95 Quiz Class 6... W-97 Handout W-101 Handout W-103 Sales Planning Project 4... W-105 Breakout Class 7...W-113 Quiz Class 7...W-115 Sales Planning Project 5...W-119 Breakout Class 8... W-123 Quiz Class 8... W-125 Handout W W-131 Most Valuable Concepts... W Workbook W-3

4 TECHNIQUES FOR PROSPECTING: PROSPECT OR PERISH ASSIGNMENT SCHEDULE This workbook contains quizzes, exercises, projects, and case studies intended to supplement the material in the FA 200 textbook, Techniques for Prospecting: Prospect or Perish. Class Assignments in Text Assignments in Workbook 1 Chapter 1 Course Overview and Expectations Date Acknowledgment of Course Requirements (Due Class 2) Student Survey Sales Planning Project 1 (Begin, Due Class 3) Most Valuable Concepts 2 Chapter 2 Acknowledgment of Course Requirements (Due) Date Breakout Class 2 (Due) Quiz Class 1 (Due) Quiz Class 2 (Due) Action Project 1 (Begin, Due Class 4) Most Valuable Concepts 3 Chapter 3 Breakout Class 3 Date Quiz Class 3 (Due) Sales Planning Project 1 (Due) Sales Planning Project 2 (Begin, Due Class 5) Sales Planning Project 3 (Begin, Due Class 7) Most Valuable Concepts 4 Chapter 4 Breakout Class 4 Date Quiz Class 4 (Due) Action Project 1 (Due) Action Project 2 (Begin, Due Class 6) Most Valuable Concepts 5 Chapter 5 Breakout Class 5 Date Quiz Class 5 (Due) Sales Planning Project 2 (Due) Action Project 3 (Begin, Due Class 7) Most Valuable Concepts W Workbook

5 Class Assignments in Text Assignments in Workbook 6 Chapter 6 Breakout Class 6 Quiz Class 6 (Due) Date Action Project 2 (Due) Sales Planning Project 4 (Begin, Due Class 8) Most Valuable Concepts 7 Chapter 7 Breakout Class 7 Quiz Class 7 (Due) Date Sales Planning Project 3 (Due) Action Project 3 (Due) Sales Planning Project 5 (Begin, Due Class 8) Most Valuable Concepts 8 Chapter 8 Breakout Class 8 Quiz Class 8 (Due) Date Sales Planning Project 4 (Due) Sales Planning Project 5(Due) Most Valuable Concepts Date Review Session for Final Examination Final Exam Review Practice Exam (Complete in class) Date Final Examination. This is a closed-book exam consisting of 50 multiple-choice questions. You cannot refer to your textbook or any other materials during the exam. 200 Workbook W-5

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7 SPECIAL NOTES TO ADVISORS WORKBOOK MATERIALS DISCLAIMER While every precaution has been taken in the preparation of this material to insure that it is both accurate and up-to-date, it is still possible that some errors eluded detection. The authors and The American College assume no liability for damages resulting from the use of the information contained in this workbook. The American College is not engaged in rendering legal, accounting, or other professional advice. If legal or other expert advice is required, the services of an appropriate professional should be sought. CAUTION REGARDING USE OF ILLUSTRATIONS The illustrations, sales ideas, and approaches in this workbook are not to be used with the public unless you have obtained approval from your company. Your company's general support of The American College's programs for training and educational purposes does not constitute blanket approval of the sales ideas and approaches presented in this workbook, unless so communicated in writing by your company. USE OF THE TERM FINANCIAL ADVISOR OR ADVISOR Use of the term "Financial Advisor" as it appears in this workbook is intended as the generic reference to professional members of our reading audience. It is used interchangeably with the term "Advisor" to avoid redundancy. Financial Advisor takes the place of the following terms: Account Executive Agent Associate Broker (stock or insurance) Financial Consultant Financial Planner Financial Planning Professional Financial Services Professional Financial Services Specialist Health Underwriter Insurance Professional Life Insurance Agent Life Underwriter Planner Practitioner Producer Property & Casualty Agent Registered Investment Advisor Registered Representative Senior Advisor ANSWERS TO THE QUESTIONS IN THE COURSE The answers to all essay and multiple choice questions in this course are based on the text materials as written. COURSE COMMENTS The American College welcomes your comments about this course, particularly suggestions for its improvement. The comment cards at the end of this workbook can be used for this purpose. 200 Workbook W-7

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9 COURSE OVERVIEW AND EXPECTATIONS Welcome to FA 200, Techniques for Prospecting: Prospect or Perish. This introductory section begins with an overview of the course objectives. Then it discusses the components of the course, and reviews the various assignments and activities that will help you apply what you learn. Finally, it closes with a discussion of what is expected from you. OVERALL COURSE OBJECTIVES The Financial Services Specialist (FSS) and LUTCF designations utilize the enormously successful and quality training courses from The American College's Financial Advisor (FA) series. The American College and National Association of Insurance and Financial Advisors (NAIFA) have partnered to offer these courses, which enable students to gain the necessary skills associated with being a competent and ethical financial advisor. (See the earlier explanation in the Special Notes to Advisors section for the meaning of the term financial advisor or advisor as used throughout the materials of this course.) The goal of this course is to introduce you to the prospecting process and the methods and strategies that can help you succeed in the financial services industry. The readings and activities in this course will enable you to understand how you can improve your own practice and increase the quantity and quality of the prospects you select and approach. By the end of the course you should be able to: Describe the psychology of prospecting from both the advisor's and prospect's perspectives. Identify target markets using your natural markets as a basis. Select appropriate prospecting sources and methods. Implement relevant prestige building and preapproach activities. Create and utilize telephone approaches to set appointments. Set goals and track progress using a prospecting system. Identify methods of servicing your clients that can lead to repeat business and referrals. Describe relationships with other professionals that can have a positive effect on your long-term success. Achieving these objectives depends on the time and energy you invest in completing the assignments in this course. The next section provides an overview of the course components and the assignments related to them. COURSE COMPONENTS AND ASSIGNMENTS The American College's LUTC and FSS courses offer practical on-the-job training. Therefore, they require students to take action and participate fully. Except for the final examination, each component of the course is designed to facilitate action and participation, which can translate into more new clients and better client relationships. The course components include the classroom the text the workbook the final examination 200 Workbook W-9

10 The Classroom The classroom is where the idea-sharing that gives FSS and LUTC courses their unique value takes place. Of course, the value you receive in the classroom depends on your preparation and participation. The students in an FSS and LUTC classroom represent various levels of knowledge and experience in the financial services industry. Sharing with one another provides everyone an opportunity to grow in proficiency, professionalism, and productivity. In fact, the classroom's "magic" only happens if everyone is prepared and participates. The Text The discussions in the classroom focus on the application of the concepts discussed in the textbook. Thus, you are expected to have completed the reading assignment before class. In addition to the regular textbook information, chapters also contain a chapter review and some may have a case history to read. The Workbook The workbook contains an assignment schedule and all of the mandatory assignments that must be completed for each class. The assignments are primarily breakouts (discussion questions), case studies, quizzes, sales planning projects, and action projects. Assignment Schedule. The assignment schedule located in the front of the workbook lists your assignments for the entire course. There is a space on the assignment schedule to write the date for each class session, which your moderator will announce at the first class. By following the schedule, you can readily determine the material that is to be covered in every class and the work that is expected of you. Except for the assigned readings in the textbook and assignments your moderator gives to you, all other activities can be found in the workbook. Let's take a look at them. Breakouts. For each class there is a breakout, a set of questions and/or exercises designed to focus your attention on the topics your moderator will most likely cover in class. The breakouts ask you to apply what you learn. For example, many of them ask you to explain a concept as you would to a client or prospect. You may then be asked to participate in a role-playing exercise based on your answer to the breakout. You are expected to have breakouts completed for each class. Case Studies. Some classes may use case studies (located in this workbook). A case study provides a specific set of facts and circumstances about a sales situation. You are then asked to come up with specific recommendations and to support your rationale for them. The case studies are a part of the class discussion at the moderator's discretion. You are expected to have them completed for any class for which they are assigned. Quizzes. There is a quiz that must be completed for each class except Class 1. The quizzes for Class 1 and Class 2 are due in Class 2. The quiz questions will be one of three types of multiple choice: straight answer, multiple option, or except. Quizzes are due at the beginning of each class. Sales Planning Projects. Sales planning projects focus on the behind-the-scenes activities that support and enable successful interaction with prospects. They explore the planning involved with marketing, prospecting, interviewing, and servicing financial services products. A sales planning project can also provide learning experiences that sharpen your ability to advise prospects and design appropriate plans for them. Thus, possible activities could include market research, record keeping, interviews of other financial advisors and professionals, and so forth. Forms are provided for each project. You will be given one week or more to complete each assignment. Begin working on the project the day it is assigned. If you wait until the last minute, you can miss the purpose and lose a real benefit. W Workbook

11 Sales Planning Project Sales Planning Project Assignment Summary Title Assigned Class Due Class 1 Identifying Market Segments Developing an Inventory of Prospects Tracking Prospecting and Sales Activity Goal Setting Segmenting Clients into A-B-C Service Groups 7 8 Action Projects. Action projects focus on the skills and techniques to use when working directly with a prospect. They explore the areas of contacting the prospect for an appointment, working with a prospect during an interview, and asking for referrals. In every action project, there is a specific, brief assignment that calls for personal contact with a number of prospects for a definite purpose. Sometimes an approach is suggested. Action projects typically fit into a financial advisor's daily routine. Very little preparation or extra research is involved. Sales are inevitable, but they are not required for completion of the action project. Action Project Action Project Assignment Summary Title Assigned Class Due Class 1 Selecting Target Markets Obtaining Referred Leads Approaching Prospects by Phone 5 7 Most Valuable Concepts. Reflection is an important part of the learning process. This activity is designed to allow you to think about what you have learned in each class and write the most valuable concept, sales idea, or marketing strategy that you learned in the class. Your moderator may ask you to share those ideas with the class. The Final Examination At the end of the course, you will take a 50-question multiple-choice examination that consists of the three multiple-choice formats (straight answer, Roman numeral, and EXCEPT) used in the workbook quizzes and chapter reviews found in the text. All answers are based on the material in the text. The final examination will not be difficult if you have read the text and completed all of the quizzes and chapter reviews. In order to pass the course, you must pass the final examination with a score of at least 70 percent. 200 Workbook W-11

12 Passing Requirements Attendance Your participation in the classroom discussion is crucial to the effectiveness of an FSS or LUTC class. Therefore, your attendance is also vital. To successfully complete the course, you must attend at least six of the eight regular classes. Lateness of more than 20 minutes is half an absence; so is leaving early. Missing more than 40 minutes is a full absence. Two absences are permitted. If you end the course with two and one-half absences, you have exceeded the allowable limit. Moderator's Grade The moderator records grades for quizzes, projects, and participation in class sessions. These grades are combined to obtain the average grade for all classroom-related work. This average grade is called the Moderator's Grade. Examination Grade There is a 50-question final examination at the end of the course. The questions are multiple choice. A grade of 70 percent or higher is necessary to pass the exam. Term Grade The average of the Moderator's Grade and the final examination score must be no less than 70 percent to obtain credit. This average is called the Term Grade. Three Requirements In summary, to qualify for successful completion of the course, you must meet each of the following three requirements: Satisfy the attendance requirement for your course. Score 70 percent or more on the final examination. Receive a Term Grade of at least 70 percent. EXPECTATIONS Before Class Complete all assignments before the class meets. The average amount of time you should plan to spend on completing these activities is at least 2½ hours per class-about the same amount of time spent in classroom discussion. Some classes will require more time, others less. Activities include the following: Read and study the assigned pages in the text. Complete any breakouts and case studies. Complete the class quizzes. Complete any sales planning project assigned. Complete any action project assigned. Complete all other assignments required by the moderator. During Class Students. Turn in your assignments at the beginning of each class. The moderator has been directed to penalize late assignments by 50 percent. If more than a week late, papers receive a zero. Moderator. The moderator is an individual nominated by the local NAIFA association and appointed by The American College. He or she is not a teacher by profession, but a full-time financial advisor or management person. The moderator shares with you the demands of self-discipline and the constant pressure of time. Consequently, the moderator cannot afford the luxury of catering to anyone who is negligent about completing work on time, maintaining reasonable order, or respecting the rights of others. The moderator needs and deserves the full cooperation of every student. W Workbook

13 PERFORMANCE OF ACTION PROJECTS BY NON-SALES STUDENTS AND MANAGERS All students are expected to do the action projects. This applies to students who are non-producers and to those in management. It includes, for example, students who are office staff, home office executives, state insurance commissioners, finance officers on a military base, and others who may not be licensed to sell insurance. If you cannot do the projects yourself, you are expected to handle them in one of the following ways (listed in order of preference): 1. Select an FSS or LUTC student who is with your company or in your community to work with you on the project. Base your reports on your joint work. 2. If there is no local FSS or LUTC student from your company to work with, do joint work with one of your company's advisors who is not taking the course. This can be a former FSS or LUTC student or someone without any FSS or LUTC experience. 3. If you are in management and it is not possible to work with an advisor/student, assign the project(s) to one or more of the advisors under your supervision, and report these results. 4. If you have no advisors to work with and none under your supervision, arrange to interview one or more advisors each week, and use the interview as the basis of the project report. Write what the advisor did on the project reporting form. 5. If the four preceding options are unworkable for you, it is up to you to suggest alternative solutions on which you and your moderator can agree. For example, you may develop two presentations to write out or present to the class during the course. These may be on special topics, or you may research a particular insurance sales topic, to write about and give photocopies to all class members. Topics can include state laws, statistical information about insurance, actuarial studies, articles in insurance magazines, self-improvement topics, relationship insights, or a question that came up in class that needed research. Keep in mind that these five alternatives are special options for isolated instances. In almost all situations every student in the class is expected to complete the action projects as assigned for a passing grade. You are expected to do the field activity and make the follow-up approaches yourself. Most projects can be done in a meaningful way by persons who are not producers. If you need to do the projects in one of the ways suggested above, discuss it in advance with the moderator and reach agreement on how to proceed. As a safeguard, put your agreement in writing, include both of your signatures, and file the agreement. 200 Workbook W-13

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15 NOTE TO FSS AND LUTC STUDENTS Please read this page carefully, sign at the bottom, and return it to your moderator in class. Occasionally there are misunderstandings concerning the requirements for the successful completion of the course. The purpose of this memorandum is to insure that the requirements and the ground rules laid down by the moderator are clearly understood. Failure to sign this form does not relieve you from these requirements. ACKNOWLEDGMENT OF COURSE REQUIREMENTS To be signed by student It is my understanding, from the explanation received in the first class session and outlined in the Course Overview and Guidelines section of the workbook, that successful completion of this course requires meeting the attendance requirements, achieving a passing examination score (70 percent), and earning an overall average (term grade) of 70 percent on all work for the course. Specifically, I understand that 1. Credit for the course will not be given to any student who fails to attend at least six of eight class sessions. The maximum number of absences is two. Missing more than 20 minutes of class is a half-absence. Missing more than 40 minutes of class is a full absence. It does not matter whether absences are due to illness, injury, business appointments, company or agency meetings, vacations, or conflicts in personal schedules. No attendance credit is given for attendance at an exam review session. I further understand that neither the local NAIFA officers or the moderator has authority to excuse absences, because the requirement applies impartially to all students. 2. Grades are assigned during the course by the moderator. Grades for participation in class discussions (and preparation for them), and scores made on action projects, sales planning projects, and quizzes are averaged. That number is then averaged with the final examination to arrive at the Term Grade. 3. Written assignments are to be handed in at the beginning of the class session in which they are due. Papers up to one week late are automatically reduced by 50 percent and to zero after one week. 4. To receive credit for the course, I must sit for and receive a passing grade on a final examination acceptable for any course offered by The American College. The correct answers to the final examination questions are based solely on the information found in the text. The American College reserves the right to set aside the final examination of any class and require another examination. 5. Course results will be mailed out within 4 weeks after the final exam date, assuming all course requirements have been met, including payment of tuition. These reports will indicate a "passing" or "not passing" status only. No numerical grade is assigned. I have read the course requirements and understand them. I further understand that recruiting or attempted recruiting of personnel of another company is not permitted in any American College course or in connection therewith. Finally, I understand that any student whose behavior adversely affects reasonable order and harmony in the classroom will not be allowed to continue with the course. There will be no tuition refund, and the student may be barred from future participation in FSS and LUTC courses. Sign your name Date Print your name 200 Workbook W-15

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17 Name: Date: STUDENT SURVEY Instructions: For each of the following activities, circle the appropriate number corresponding with your proficiency (how well you perform the activity) and interest (how much you would like to learn about it). Use a rating scale of 1 (low level of proficiency or interest) to 3 (high level of proficiency or interest). 200 Workbook W-17

18 Answer the following questions: 1. What kinds of problems do advisors have when they struggle to prospect? 2. What happens when we prospect effectively? What are the outcomes? 3. Review the list of activities on the first page. This gives you an idea of what the course aims to cover. List two learning goals, specifically skills you want to learn or enhance by taking this course.` W Workbook

19 SALES PLANNING PROJECT 1 Identifying Market Segments (Assigned Class 1; Due Class 3) Purpose The key to long-term success is for you to identify and penetrate one or a few related target markets that have a high concentration of people who meet your ideal client profile. The best way to do this is to apply the target marketing process discussed in the text. Thus, the purpose of this sales planning project along with Action Project 1 Selecting Target Markets is to introduce you to some of the main principles of the target marketing process. We encourage you to employ the entire process as discussed in the textbook, building on the success you will experience from using this simplified approach. Assignment This project requires you to utilize principles from the first two steps of the target marketing process: defining your product, and identifying and segmenting your natural markets. At the completion of this project, you will have defined your products in terms of the financial needs your products can meet and your personal traits. (Multi-line agents may opt to focus on one or a few products rather than all of their products to keep this project manageable.) In addition, you will have created an ideal client profile by segmenting your natural markets. Finally you will have identified at least three market segments to consider as target markets. Important Note: You will need to complete this project before you can start Action Project 1 Selecting Target Markets, which is assigned next class and due in Class 4. Action Project 1 requires you to contact four prospects for a 15-minute market survey. Thus, complete this project sooner rather than later in order to leave yourself enough time to identify prospects and conduct your surveys. Procedure Study the portion of the text related to the first two steps of the target marketing process. The procedure that follows is based on the information there: 1. Define your product (question 1 on Report Form 1). This involves describing the financial needs your product meets as well as your personal traits: skills, experiences, hobbies, interests, and so forth. 2. Next, using the worksheets provided, segment your natural markets. Follow the directions that appear below: a. List your 10 best clients in the column headings of the worksheet. Think in terms of both profitability (how much income they produce in terms of commissions, fees, and referrals) and likability (how much you enjoy working with them). b. Then, fill in the information for each client to complete the chart. Note that there are three empty rows for you to add any characteristics you 200 Workbook W-19

20 feel important to record. What follows is an explanation for the column headings that are not self-explanatory Value = approximate amount of income the client produces for you (fees, commissions, and so on). Also, estimate the number of referrals he or she has given you. Needs = the major financial needs of the client (whether you addressed them or not). Think in terms of needs, not products. For example, you would write "estate planning" or "survivor's income" rather than life insurance. Income/Assets = estimated household income and investable assets (includes investment accounts, cash, and so forth; excludes housing) Interests = hobbies, organizations, leisure pursuits, and so forth in which they participate Triggers = the triggers that contributed to the client's willingness to talk to you, such as the birth of a child or reading an online article Personal Characteristics = what makes them likable 3. Analyze the worksheets you completed and create an ideal client profile (question 2 on Report Form 2). An example of the final product appears below. C. Ideal Client Profile My ideal client is someone who: has a household income of $65,000 or more has investable assets of $70,000 or more has young children understands basic principles of investing wants a face-to-face relationship desires advice from a competent professional about retirement and educational planning is family-oriented appreciates the value of good advice and is willing to pay for it is reliable and honest 4. Review the worksheets again and identify at least three market segments that are potential target markets (question 3 on Report Form 3). These are groups of people whose members have common needs and common characteristics that make them relatively distinct from non members. Ideally, they will have a formal or informal communication system and be large enough so that you will not run out of prospects. 5. MAKE COPIES OF THE REPORT FORMS TO REFER TO WHEN COMPLETING ACTION PROJECT 1, WHICH IS ASSIGNED IN CLASS 2. W Workbook

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29 BREAKOUT CLASS What is your major product? List some appropriate segmentation variables you can use to identify market segments for this product. Need/want/value Segmentation Variables Ability to pay Suitability Approachability 2-2. Think about someone you know who has a strong personal brand. What is his or her value proposition? How did this person gain his or her reputation? A. Describe the important aspects of the brand. B. What is the main value proposition offered? C. How did the person obtain the reputation they have? 200 Workbook W-29

30 2-3. Select a product (or service) you provide and a target market to which you currently market it. What are the compelling logical and emotional aspects of the needs met by the product or service? Logical Aspects Emotional Aspects W Workbook

31 Name: Date: QUIZ CLASS 1 (Due Class 2) Instructions: This quiz covers the reading material found in Class 1. Study the reading assignments, then circle the correct answer for each of the following questions. Each question is worth 10 points (100 points total). 1. Which of the following is an activity associated with prospecting? prequalifying prospects asking the prospect to buy analyzing the prospect's situation exploring the prospect's financial goals and needs 2. Monty is deciding what to say to his prospect to set an appointment. To which of the following steps of the selling/planning process does Monty's activity relate most? Identify the Prospect Approach the Prospect Meet the Prospect Service the Plan 3. Pat Prospect tells Adelaide Advisor that she wants to bequeath a sizeable charitable contribution to her alma mater at her death. The contribution will be earmarked for an addition to the library that already bears her name. Most likely, Pat's motivation is a need for security affiliation esteem self-actualization 4. Sophia, whose daughter is 8 months old, has been reading a few books on 529 plans. In which stage of the buying process is Sophia? information search problem recognition evaluation of alternatives purchase decision 5. Liz shows up late to her appointment with Dawn, a complete stranger. Which of the following describes how Dawn will probably view Liz in light of her tardiness? I. "She is respecting my time." II. "She must be a professional in high demand." I only II only Both I and II Neither I nor II 200 Workbook W-31

32 6. Which of the following statements is (are) true regarding fear of rejection? I. Prospects usually are rejecting your product or service, not you. II. Rejection is an occupational hazard for financial advisors. I only II only Both I and II Neither I nor II 7. What advice would you give Mark, an advisor who suffers from a lack of motivation and a fear of rejection? I. "Ask yourself, 'What's the worst that could happen?'" II. "Think about your vision and mission. Then make plans to achieve them." I only II only Both I and II Neither I nor II READ THE FOLLOWING DIRECTIONS BEFORE CONTINUING The questions below differ from the preceding questions in that they all contain the word EXCEPT. So you understand fully the basis used in selecting each answer, be sure to read each question carefully. 8. All of the following describe client-focused selling EXCEPT It cultivates mutually beneficial relationships with clients. It utilizes consultative and financial planning strategies. It creates solutions that reflect client goals, values, and needs. It uses advisor-centered, manipulative, high-pressure strategies. 9. All of the following are characteristics of a qualified prospect EXCEPT needs and values your product and/or service is suitable for your product or service has bought your product or service at least once can be approached on a favorable basis 10. All of the following are statements that a doer would make EXCEPT I know where I'm going. I am passionate only about making a lot of money. I focus on completing the tasks that will get me closer to reaching my goals. I take full responsibility for my failures. W Workbook

33 Name: Date: QUIZ CLASS 2 (Due Class 2) Instructions: This quiz covers the reading material found in Class 2. Study the reading assignments; then circle the correct answer for each of the following questions. Each question is worth 10 points (100 points total). 1. Which of the following would best describe an advisor's general market? health care professionals within the tri-state area Justine's friends and relatives the population within 15 miles of Justine s office women businessowners 2. Age, gender, education, ethnicity, occupation, income, and marital status are characteristics that define which of the following segmentation variables? geographic demographic psychographic behavioristic 3. Which of the following statements best defines a value proposition? a compelling reason offered to prospects to buy financial products and to buy them from you a private (not shared with prospects) declaration of how you want your target market to perceive you an alternate approach that a company can use to select and target markets. a criteria for evaluating the viability of a target market 4. Which of the following is the most important aspect of establishing the position of your personal brand? implementing appropriate prestige-building activities creating a logo delivering what you promised in your value proposition devising a targeted advertising campaign 5. Monroe sells life insurance and 529 plans. Which of the following statements regarding Monroe could be relevant for positioning his product? I. He is a former teacher. II. He meets income replacement and estate planning needs using life insurance. I only II only Both I and II Neither I nor II 200 Workbook W-33

34 6. Which of the following statements is (are) correct regarding selection criteria for a target market? I. You should assess how well your resources fit the market segment's needs. II. Aim to conduct market surveys with five to seven different market segments. I only II only Both I and II Neither I nor II 7. Which of the following statements regarding marketing coverage strategies is (are) correct? I. A market specialization strategy concentrates on marketing a product to multiple target markets. II. A single segment concentration involves marketing one product to a single market segment. I only II only Both I and II Neither I nor II READ THE FOLLOWING DIRECTIONS BEFORE CONTINUING The questions below differ from the preceding questions in that they all contain the word EXCEPT. So you understand fully the basis used in selecting each answer, be sure to read each question carefully. 8. Javier wants to market to partners in law firms within the city of Philadelphia. While he doesn't know any lawyers personally, his office is in the same building as the Philadelphia Bar Association. All of the following statements regarding this market are correct EXCEPT It is a natural market for Javier on the basis of access. It meets the definition of a target market. It is a market segment. It is Javier's general market. 9. Your positioning statement should contain all of the following EXCEPT the identity of your target market the category (type) of your service (education, estate, retirement planning) how you are different from the competition a detailed description of your personal traits W Workbook

35 Name: Date: 10. All of the following statements would be appropriate for positioning a life insurance policy to young middle-class parents with less than $100,000 in assets EXCEPT What would happen to your family if you were not there? Would they have to change their lifestyle drastically? How would your absence affect your child's college education? How much more debt might he or she incur? Life insurance helps you secure your family's current lifestyle and finance the goals and dreams you have for your children. Life insurance helps you pay the cost of federal estate taxes so you can pass along all of your estate to your heirs. 200 Workbook W-35

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37 HANDOUT 2-1 In your small groups, identify and create a profile for one market segment you think is a possible target market for Joe Advisor. Look for two or more clients that have the same occupation, interests, employer, and so on, then do the following: Write a descriptive name for the segment. Describe what you suspect to be their common characteristics. Describe what you suspect to be their common needs. Note any formal or informal communication networks. Explanations: FYC = First Year Commissions RC = Renewal Commissions Referrals = how many referrals resulted in sales Assets are broken down by retirement and nonretirement investable assets CALL is a little league baseball organization Memories scrap booking indicates that the wife is involved in a scrap booking club set up by a consultant from Memories, a scrap booking company Joe Advisor uses the term charitable to indicate that the clients give money to various charities and help the local poor 200 Workbook W-37

38 Client Name 1. K&J Ormsby Value FYC $600 RC $60 Ref 2 Needs Surv Inc Debt Repay Ed Plan 2. M&J Sole 3. D&A Lamb 4. M&C Capets FYC $500 RC $50 Ref 3 Surv Inc Debt Repay Ed Plan FYC $550 RC $55 Ref 1 Surv Inc Debt Repay Ed Plan FYC $750 RC $75 Ref 3 Surv Inc Debt Repay Ed Plan Est Plan 5. M&W Thistle FYC $620 RC $62 Ref 3 Age 38/37 32/32 38/36 44/43 46/44 Occupation HH Income/ Assets (Retire. and Investments) Interests Professor WCU / Homemaker $80,000 $100,000 Ret $35,000 Inv CALL baseball, CA Rotary Club, Memories scrap booking Service Coordinator WC Luxury Car / Homemaker $85,000 $80,000 Ret $15,000 Inv CALL baseball, hunting, golf, Memories scrap booking Triggers New baby New Job, sister bought life insurance Family Status Married, 4 child (0,3,6, 9) Married, 2 child (3,6) Partner J&G Tombstones / Exec Assist ABC Co. $75,000 $65,000 Ret $12,000 Inv Golf, football, Gold's Gym member, CC Chamber of Commerce New house Married, 2 child (1,3) Comp Program, Fed Gvt / Elec Eng, Fed Gvt $135,000 $500,000 Ret $65,000 Inv Memories scrap booking Dropped to part time Married, 2 child (2,5) Surv Inc, Debt Repay Est Plan Sole Prop, Landscaper / Admin Assist, P&G Elec $110,000 $720,000 Ret $37,500 Inv CALL baseball, hunting, camping Risk Tolerance Moderate Moderate High Moderate High Personal Characteristics Teachable, planner, charitable Laid back, charitable, church Humorous, church, values family Laid back, planner New house Married, no children Loyal, teachable, charitable W Workbook

39 Client Name 6. J&T Babbit 7. M Eleby 8. E&L Coulter Value FYC $1,000 RC $100 Ref 3 Needs Surv Inc Est Plan Ed Plan Debt Repay FYC $500 RC $50 Ref 1 Future Insur FYC $400 RC $40 Ref 2 Surv Inc Debt Repay 9. B&S Moore FYC $500 RC 50 Ref 2 Surv Inc, Debt Repay Est Plan 10. D&M Nelson FYC $450 RC $45 Ref 3 Age 40/ /39 46/46 48/45 Occupation HH Income/ Assets (Retire. and Investments) Interests Accountant (CPA), AstraZeneca / Homemaker $105,000 $850,000 Ret $75,000 Inv Gold's Gym member, CA Rotary Club Corrections Officer, Colson County Prison $55,000 $30,000 Ret $20,000 Inv CA Rotary Club, Gold's Gym member Real estate agent, Century 21 / Nurse, Brandywine Hosp $105,000 $150,000 Ret $35,000 Inv Girl scouts, boy scouts, CC Chamber of Commerce Electrician, CC School Dist / Nurse, Brandywine Hosp $150,000 $800,000 Ret $150,000 Inv Boy scouts, CC Chamber of Commerce Surv Inc, Debt Repay Partner, Brandywine Optical / Beautician, ULookFine $100,000 $500,000 Ret $115,000 Inv CC Chamber of Commerce, CALL baseball Triggers Created will Engaged New job Created will Web article on life insurance Family Status Married, 2 child (3,5) Single Married, 2 child (6, 10) Married, 3 child (6, 21, 21) Risk Tolerance Moderate High Moderate High High Personal Characteristics Values family, analytical, loyal, planner Teachable, educated, charitable Planner, values family, loyal Partner in side business, planners Married, 1 child (9) Loyal, educated, charitable 200 Workbook W-39

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41 ACTION PROJECT 1 Selecting Target Markets (Assigned Class 2; Due Class 4) Purpose This action project builds upon the work of Sales Planning Project 1. Together these two projects are designed to introduce you to the target marketing process. In this project you will experiment with selecting a target market and positioning your personal brand. Specifically, you will practice evaluating and selecting target markets and developing a positioning statement. Assignment This project requires you to choose the two most promising market segments you identified in Sales Planning Project 1 and evaluate them as potential target markets. Next, you will conduct a preliminary assessment of each market segment using the selection criteria discussed in the text. Then, you will create and conduct a market survey, contacting two prospects from each market segment (a total of four interviews). You will be asking each of them to help you by participating in a survey and answering a few questions about their group or market. Finally, you will choose one of the market segments and create a positioning statement. Procedure For background information on this project, refer to the information in the sections, "Select a Target Market" and "Position Your Personal Brand and Products". 1. Select two market segments from Sales Planning Project 1 that interest you the most. 2. Do a preliminary analysis of both market segments using the three selection criteria described in the text. Record your analysis in the tables located on Report Forms 1 and Review the information you have gathered. Consider what you feel you need to know in order to more accurately assess each market segment. Then, create your survey questions (see pages 2.28 to 2.29 for ideas). List all possible questions on a separate piece of paper or in the space provided on the next page (this does not have to be turned in for grading). Then, prioritize the questions and select the top six. Write them in the Question column of the table located on Report Forms 3 and Identify five prospects from each market segment. You will only need to interview two of the five, but identify five in case you cannot reach one or two of them. Thus, you will interview a total of four prospects, two from each market segment. 5. Call each person to see if they would spend minutes answering several questions about the group. Make sure they understand that your purpose is to gather general information about the group from their personal perspective, not to sell them something. 200 Workbook W-41

42 Note: For accurate results, you would need to conduct several market surveys for each market segment. The purpose of this project is to allow you to "test drive" the target marketing process. 1. Record your notes from each discussion using a separate sheet of paper for each. Then, summarize your findings in the tables on Report Forms 3 and Discuss what you will do with each market segment. Will you target one, both, or neither? Give reasons for your decision (question 3 on Report Form 5) 3. Finally, select one of the market segments and describe how you will/would position yourself in it by writing a positioning statement (question 4 on Report Form 5). List of Possible Market Survey Questions: W Workbook

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49 BREAKOUT CLASS What are your favorite sources of prospects? Why? 3-2. What are your favorite prospecting methods? Why? 3-3. What steps do you take to establish centers of influence? 200 Workbook W-49

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51 Name: Date: QUIZ CLASS 3 (Due Class 3) Instructions: Study the reading assignment from Class 3, then circle the correct answer for each of the following questions. Each question is worth 10 points (100 points total). 1. In which of the following situations is Rich a nominator? Rich asks his client, Barb, for referrals. Rich approaches Ivan to gain access to the Hispanic community. Rich's best friend, Tom, gives Rich's name to a stock broker. Rich tells his life insurance agent to call his brother, Mitch. 2. All things being equal, which of the following would be the best prospect for Glenn? his aunt and uncle who live next door a co-worker of his friend, Rich Mookie Blaylock, an orphaned account owner the lady working at the meat counter at Food Mart 3. To determine the value of each telephone call you make, you should do which of the following? Divide the number of phone contacts you made by the total number of appointments. Divide the total amount of commissions earned by the total number of telephone contacts. Divide the amount of first-year commissions earned by the total number of sales. Divide the number of appointments made by the number of qualified prospects. 4. Which of the following sources would provide the strongest start to a relationship with a prospect? a personal introduction by a client to the referral asking a client for referral names at an annual review a referrer gives you qualifying information such as contact information, interests, hobbies, and family situation of a referral using the list approach with a center of influence 5. Which of the following statements is (are) correct regarding prospecting? I. Prospecting sources are places where you will find prospects. II. Prospecting methods are ways to identify and select individual prospects. I only II only Both I and II Neither I nor II 200 Workbook W-51

52 6. Which of the following statements regarding networking is (are) correct? I. Advisors must be patient and expect no immediate returns. II. Advisors need to see networking from a short-term perspective. I only II only Both I and II Neither I nor II 7. A good prospecting system will allow you to do which of the following? I. Identify which prospects you should contact first II. Evaluate and prioritize prospects I only II only Both I and II Neither I nor II READ THE FOLLOWING DIRECTIONS BEFORE CONTINUING The questions below differ from the preceding questions in that they all contain the word EXCEPT. So you understand fully the basis used in selecting each answer, be sure to read each question carefully. 8. All of the following statements about the referral process are correct EXCEPT You borrow the trust the referred lead has in the referrer. In their highest form, referrals are unsolicited. You eliminate the need for making telephone calls. The most common cause of referral reluctance is fear of rejection. 9. All of the following people would be potential centers of influence for Larry EXCEPT his wife's friend, Mary, who is active in the local Chamber of Commerce a local basketball star, Harry, whom Larry barely knows Barry, the president of the Rotary Club to which Larry belongs his son's Boy Scout leader, Jerry, who is a well-respected attorney W Workbook

53 Name: Date: 10. Record keeping is important to successful prospecting for all of the following reasons EXCEPT You can make better decisions if you have data to analyze. You will have a basis for planning daily, weekly, monthly, and annual marketing and prospecting activities. You will be better able to diagnose problem areas that need support. You will be assured of a successful career in financial services. 200 Workbook W-53

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55 Do the following in your small group: HANDOUT Have each person quickly share the characteristics of his or her ideal client. 2. Identify the characteristics that were most common. For example, several members of your group may have said that one characteristic of an ideal client is that he or she is a homeowner. 3. Then, list the most unique characteristics of an ideal client shared and explain the rationale behind them. Each person's ideal client should be different. We want to find reasons why a particular characteristic may appeal to an advisor. 4. Finally, describe three ways to attract prospects who match your ideal client profile and explain why you feel they would be effective. 200 Workbook W-55

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57 HANDOUT 3-2 Small Group Activity: Record Keeping Weekly Prospecting Activities Phone/face-to-face contacts 50 Appointments seen 12 Qualified prospects obtained 8 Fact-finding interviews conducted 4 Closing interviews conducted 4 Sales completed 2 Referred leads obtained 10 First-year commissions generated Workbook W-57

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59 SALES PLANNING PROJECT 2 Developing an Inventory of Prospects (Assigned Class 3; Due Class 5) Purpose The objective of this sales planning project is to create an inventory of prospects and use information you have about them to make decisions related to approaching them for an appointment. Assignment In this project, you will identify prospects that you will test against your ideal client profile. Then, you will gather information to help you prioritize which prospects to contact first (prequalifying them) and make decisions about what to say when you contact them. Procedure 1. Using the grid on the report form, add the most relevant characteristics of your ideal client profile in the blank columns provided (for example: income and assets, number of children, marital status, organizations, interests, and so on). Choose criteria that represent information readily discovered through observation or by asking a referrer. 2. Then, list at least 10 prospects (use abbreviated forms of names: "J. Ran" could stand for "Jason Raney") and complete the chart with the information you have for each prospect. Descriptions of the predetermined columns appears below for your convenience (the first column will be discussed in step 5; leave it blank in this step). Source Note the specific prospecting source. For example, if John Smith referred the prospect to you, write an abbreviated form of his name: JoSmt. Target Market Identify the target market the prospect of which the prospect is a member. Try to identify prospects from at least two different target markets, one being the target market you identified in Action Project 1 Selecting a Target Market. Specific Needs Write the needs that you suspect the prospect has and that you can meet. Identify the needs you feel are most pressing. Favorable Basis Record the favorable basis upon which you can approach the prospect. You do not need to complete the Call Date and Appt Date for this project. 3. Describe how you will prioritize your prospect (question 1 on Report Form 2). 4. Assign each prospect a priority ranking (column 1) using an A, B, C system (A = High priority. B = Normal priority. C = Need more information or a favorable basis upon which to approach the prospect). Cross off any names of people who are not prospects. 200 Workbook W-59

60 5. Describe how you will move prospects from a "C" ranking to a "B" or an "A" ranking (question 2 on Report Form 2) or determine that they should be dropped from your list. 6. Using the favorable basis and suspected specific needs, approach your prospects using the prioritization system. Describe any differences, if any, the prioritization process makes to your results (question 3 on Report Form 2). W Workbook

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63 SALES PLANNING PROJECT 3 Tracking Prospecting and Sales Activity (Assigned Class 3; Due Class 7) Purpose This sales planning project will provide you with a summary of prospecting and sales activity data necessary to calculate your prospecting and sales effectiveness ratios and the dollar value associated with each type of activity. Assignment Compile a record of your total key prospecting and sales activities over a 4-week time period. Procedure 1. Using your daily schedule or monthly business planner, keep a daily total of your prospecting and sales activities in each of the following eight key areas: phone/face contacts made appointments seen qualified prospects obtained fact-finding interviews conducted closing interviews conducted (Note: If the closing interview and fact finder take place during the same interview, indicate as both a fact finder completed and a closing interview conducted.) sales completed (Note: If you sell two products in one interview, count that as two sales.) referred leads obtained first-year commissions generated 2. Then, at the end of each week for 4 consecutive weeks, total the results of your daily activity for each week and record them on the accompanying tracking form. When you have completed 4 weeks of recording your activity, total each category of activity for the entire 4-week period and report your results by completing the prospecting and sales activity tracking form. 3. Turn in the report form to your moderator at the beginning of Class 7 and keep a copy of the form for use in Sales Planning Project 4 Goal Setting. 200 Workbook W-63

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67 BREAKOUT CLASS Describe two ways you utilize social mobility to build prestige Describe your experience in developing and/or using professional brochures. 200 Workbook W-67

68 4-3. Explain how you use advertising. Think in terms of target markets, places you advertise, content of the advertisement, frequency that you run them, tracking success, and effectiveness What preapproach activities do you use to interest prospects in meeting with you? W Workbook

69 Name: Date: QUIZ CLASS 4 (Due Class 4) Instructions: Study the reading assignment for Class 4; then circle the correct answer for each of the following questions. Each question is worth 10 points (100 points total). 1. Which of the following statements is the most accurate regarding prestige building? Prestige is something you are born with or inherit. Prestige building is your public relations campaign to position your personal brand favorably in your target markets. Prestige is achieved only through public recognition in the newspapers. Appearance and manners are not really relevant to creating prestige. 2. The prospecting method that relies on your ability to let people know who you are and see you active in the community is known as asking for referrals centers of influence networking social mobility 3. Which of the following is a guiding principle when becoming involved in your community? Join as many organizations as you can to get your name out in the community. Be sure there are a sufficient number of opportunities for self-promotion in the organization. Align yourself with organizations you would support regardless of business activity. The values of the organization do not matter if there are enough prospecting opportunities. 4. Which of the following statements is correct regarding the use of preapproach letters? A good letter should do the selling job by itself. An effective system of follow through is crucial to the success of any mail program. It is important to send more letters than you can follow up with the following week. It is best to use a postage meter to provide a uniform, professional appearance. 200 Workbook W-69

70 5. Which of the following suggestions regarding speaking to groups is (are) correct? I. Use speaking opportunities to pitch your products and services. II. Public speaking allows you to be viewed as an expert, so focus on educating and motivating your audience. I only II only Both I and II Neither I nor II 6. Which of the following statements is (are) correct regarding a personal brochure? I. Personal information should attract prospects with whom the advisor wants to work. II. Communicate your accomplishments and credentials in a way that reflects what your target market wants to know. I only II only Both I and II Neither I nor II READ THE FOLLOWING DIRECTIONS BEFORE CONTINUING The questions below differ from the preceding questions in that they all contain the word EXCEPT. So you understand fully the basis used in selecting each answer, be sure to read each question carefully. 7. All of the following statements regarding the use of seminars as a prospecting method are correct EXCEPT You should avoid active participation in the seminar if you have an aversion to public speaking. Seminars require a great deal of thought and preparation to attain a high degree of professionalism. Seminars build your credibility as an expert and help build trust in you. Seminars increase your efficiency by seeing many potential prospects at one time. 8. All of the following statements regarding advertising are correct EXCEPT The ultimate goal of advertising is to create new clients. The role of advertising in client creation may be difficult to measure. Advertising promotes a level of prospect familiarity with the advisor. Advertising is designed to create immediate results in increased sales. W Workbook

71 Name: Date: 9. All of the following statements regarding preapproach letters are correct : EXCEPT The preapproach letter creates in the prospect a sense of familiarity with the advisor. They help develop good work habits by committing the advisor to call on prospects every week. The goal of a preapproach letter is to arouse the prospect's interest in meeting with the advisor. Preapproach letters should provide detailed information to stimulate the prospect's interest. 10. When writing an article for publication, you should do all of the following EXCEPT Be sure to pitch your products or services to make it worthwhile. Research publications that your clients and prospects read. Get approval for the article from your compliance department. Obtain extra copies of the article to send to prospects and clients. 200 Workbook W-71

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73 ACTION PROJECT 2 Obtaining Referred Leads (Assigned Class 4; Due Class 6) Purpose Referrals are unquestionably the most effective and efficient source of generating a perpetual supply of qualified prospects. Chapter 2 of the textbook discusses principles and concepts relating to the referral process. In this activity you will apply some of these ideas to obtain referred leads. Assignment Asking for referrals, like any other process, is most effective when planned in advance. In this assignment you will identify sources of referrals (nominators). These can be clients, centers of influence, or people from your natural or target markets. You will then write and practice a script for approaching your nominators for referrals. Next, you will approach your nominators to obtain referrals. Finally, you will approach those referrals for an initial discussion or an appointment and report the results in Class 6. Procedure 1. First, identify your nominators, those persons that you will ask for referrals. Obviously the more the better, but for this project focus on five high-quality nominators, preferably from your target market(s). 2. Write an approach script for referrals. Customize it based on differences among your nominators, the market that they represent, your relationship with them, and any other relevant criteria you recognize. Practice your script alone and with anyone you can secure for this purpose. 3. Approach your nominators and ask for referrals. 4. Approach your referrals, mention the referral source, and discuss your purpose in contacting them. Attempt to establish a basis for beginning a relationship, and ideally schedule an initial appointment to discuss your services face-to-face. 5. Summarize what you learned from this project (question 5 on Report Form 2). 200 Workbook W-73

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77 BREAKOUT CLASS What words would you use in a 10-second commercial at a social event in response to the question, What do you do for a living? from the following prospects? A. A divorced female CPA in her late 40s with no children B. A married lawyer in his 30s with young children 200 Workbook W-77

78 5-2. What words would you use as part of the feel, felt, found technique to respond to the following prospect objections? A. I have an advisor I work with already. B. I don t want to waste your time. C. I have enough insurance. W Workbook

79 Name: Date: QUIZ CLASS 5 (Due Class 5) Instructions: Read Chapter 5 ; then answer the following questions to test your knowledge. There are 10 questions worth 10 points each. 1. Which of the following best describes the primary purpose of the telephone call to a prospect? to set the stage for making a sale to make a sale to establish a relationship with the prospect to set an appointment for a face-to-face meeting 2. Which of the following is the component in a telephone script that contains a compelling reason, or the promise of a positive emotional experience for the prospect to want to meet with you? the benefit the greeting the connector the offering of information 3. Which of the following is the component in which you mention the face-to face meeting, telling the prospect what you would like to do when you meet? the alternative-choice close the offering of information the advisor's company affiliation the connector 4. Which of the following is an aspect of preparation that deals with doing the things that need to be done, when they need to be done? being disciplined being mentally prepared being physically prepared being proactive 5. Which of the following correctly describes one of the four principles of phoning? When you are on the phone, use your selling skills. People are rarely irritated by telephone solicitations. All leads are created equal. There is no such thing as call reluctance. 200 Workbook W-79

80 6. Which of the following statements concerning the use of the feel-felt-found technique is correct? It should be used in response to a prospect's questions. It should be used in response to the prospect who says, "I'm all set." It is a most useful as warm-up technique to prepare for a phoning session. It should be used in response to a prospect's problem or objection. READ THE FOLLOWING DIRECTIONS BEFORE CONTINUING The questions below differ from the preceding questions in that they all contain the word EXCEPT. So you understand fully the basis used in selecting each answer, be sure to read each question carefully. 7. All the following statements concerning prequalifying questions are correct EXCEPT Many successful advisors prequalify prospects after the prospect has agreed to an appointment. Prequalifying before the initial interview will allow you to prepare for a smooth transition to the other needs and products. Prequalifying questions should be detailed and specific. You should have a short script prepared to let the person down gently if you know he or she will not qualify. 8. All the following categories of prospects fall within the exceptions to the do-not-call law EXCEPT established business relationships referred leads business-to-business calls personal relationships 9. All the following are telephone effectiveness ratios EXCEPT Contact Percentage: Contacts Dials Presentation Rate: Presentations Contacts Appointment Rate: Appointments Dials Appointments per Hour: Appointments Made Dialing Time W Workbook

81 Name: Date: 10. Each of the following statements concerning an elevator speech is correct EXCEPT It spotlights your uniqueness, focuses on the benefits you provide, and should be delivered effortlessly. It is a talk of at least 30 seconds in length and 150 words or more that introduces you and helps you to connect with someone you have just met. It is designed to create interest and give the prospect a quick synopsis of what you do and how you can help people. You should use it whenever you want to introduce yourself to a new contact. 200 Workbook W-81

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83 HANDOUT 5-1 Sample Script A. Your greeting Good morning. B. Your name This is Jim Doe. C. Your company affiliation I'm a financial advisor with ABC Company. D. Connector (memory job, referral/orphan, credential/specialty) We recently met at the retirement planning seminar I conducted last week at the Marriott Hotel. I wanted to thank you for attending. While we were talking after the seminar, you indicated an interest in achieving financial security during retirement. E. Your offer of information via a face-to-face appointment I would like to get together with you to share some information and options regarding how you can do that. F. The benefit of the appointment to the prospect I find it is more productive to share this information on a face-to-face basis so that I get a better understanding of your specific needs and personalize my information for your situation. G. Alternative-choice close 200 Workbook W-83

84 With that in mind, what is better for you earlier in the evening before dinner, or after dinner when things have settled down? * See sections 1 and 4 of appendix A for sample phone scripts and alternative-choice closes. W Workbook

85 HANDOUT 5-2 Use this easy-to-follow format for each phone script: A. Your greeting B. Your name C. Your company affiliation D. Connector (memory job, referral/orphan, credential/specialty) E. Your offer of information via a face-to-face appointment F. The benefit of the appointment to the prospect G. Alternative-choice close 200 Workbook W-85

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87 ACTION PROJECT 3 Approaching Prospects by Phone (Assigned Class 5; Due Class 7) Purpose Completing this action project allows you to compare the responsiveness of prospects from two different target market segments in meeting with you and to calculate your effectiveness in using the telephone to approach them. Assignment Select two of the target markets to work with that you identified in Action Project 1 Selecting Target Markets. Approach prospects in each of these market segments using the telephone. Approach as many prospects in each target market as necessary for you to obtain a total of six conversations (three from each target market) to report on. Suggested Procedure 1. Select 10 prospects from each target market (for a total of 20 prospects). You will need 10 prospects in case a few prospects are unavailable. 2. On Report Form 1 identify which two target markets you have chosen to approach. 3. If you have enough time, you may want to send a preapproach letter to each of the prospects. Summarize any preapproaches you use or attach them to the report form. This is optional. 4. Use a compliance-approved phone script provided by your company or the phone script that you wrote during the classroom exercise in Class 6 for each target market that you chose to approach. Always get scripts approved before using them to approach prospects. Write the script in the space provided on or attach them to the report form. 5. Approach prospects from each market until you have had conversations with three from each market (for a total of six prospects). 6. Prequalify your prospects (if appropriate) on the phone by asking them qualifying questions after you have secured appointments with them. It is optional for this exercise. 7. On Report Forms 2 and 3 record the results of your conversations with prospects. 8. Use the accompanying telephone counting sheet (Report Form 4) to record your dialing time, number of dials, contacts, presentations, and appointments made in approaching your prospects. If you are doing this project in more than one telephoning session, use a sheet for each session and summarize your results on one form. 9. On Report Form 5 calculate your telephone effectiveness ratios during the phone session(s). 10. Summarize your results and impressions on Report Form Workbook W-87

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95 BREAKOUT CLASS List three common moments of choice that advisors commonly face. Then, identify two strategies for making your decision before the moment of choice has arrived. Moment of Choice Strategies 6-2. Pippi Longbond is a new advisor for XYZ Financial. She is married with one child, age 3. Her husband is a truck driver and is gone overnight three days per week. Spending time with her husband and child is very important to Pippi. Prior to joining the financial services industry, Pippi was a document management consultant for Xerox with a territory that included three states, including the one in which she lived. A. List the structural elements of Pippi Longbond's professional life. Begin with elements you observe in the fact pattern and include others that are common for new advisors. B. What are the probable effects of these elements, individually and as a whole, on Pippi's professional career? C. Which elements are probably not going to change? 200 Workbook W-95

96 D. Describe how you would advise Pippi to create a structure that will support her goals for becoming a successful financial advisor What are your major and minor time wasters? What actions can you take to effectively control them? Major Time Waster How You Control It Minor Time Waster How You Control It 6 4 What tools and techniques do you use to optimize your time? W Workbook

97 Name: Date: QUIZ CLASS 6 (Due Class 6) Instructions: Study the reading assignment for Class 6; then circle the correct answer for each of the following questions. Each question is worth 10 points (100 points total). 1. Which of the following statements regarding fit goals is correct? Fit goals are the result of using a creating approach to goal setting. Fit goals are incremental goals that often bring out the highest and best in us. The reference point of a fit goal is the desired future. A problem-solving approach produces fit goals that were made to fit within the bounds of the existing situation. 2. Which of the following is classified as a major time waster? extended telephone calls procrastination lengthy meetings of minor importance reading through excessive s 3. Which of the following statements regarding the problem-solving approach to goal setting is (are) correct? I. The problem-solving approach to setting and achieving goals makes use of creative tension. II. The strength of a problem-solving approach for setting and achieving goals is that it incorporates the stretch and leverage strategy. I only II only Both I and II Neither I nor II 4. Which of the following statements concerning structure is (are) correct? I. Structure inevitably leads people toward what they want. II. Structure determines behavior. I only II only Both I and II Neither I nor II 200 Workbook W-97

98 5. Which of the following statements concerning creative tension is (are) correct? I. The key to success is maintaining creative tension, not just a vision. II. It is a feeling of disequilibrium between where you are presently (reality) and where you want to be (vision). I only II only Both I and II Neither I nor II READ THE FOLLOWING DIRECTIONS BEFORE CONTINUING The questions below differ from the preceding questions in that they all contain the word EXCEPT. So you understand fully the basis used in selecting each answer, be sure to read each question carefully. 6. All the following statements concerning perseverance are correct EXCEPT To persevere you have to have a real, meaningful goal. Perseverance is a lot easier when it is the standard operating procedure for the people with whom you spend your time. To persevere, divide each goal into manageable parts. Perseverance and vacillation go hand-in-hand in goal attainment. 7. All the following advice concerning time analysis and planning are correct EXCEPT Taking a time inventory can help you separate and examine the various categories of time and how you use them. After you have analyzed how you spend your time, you need to decide how to use it most effectively. To effectively analyze your time, you should make a chart of the day broken into one-hour segments. The best way to work effectively toward your goals and high priority activities is to plan your day successfully. 8. All the following statements concerning goals are correct EXCEPT Goals can have short-, intermediate-, and long-term time periods associated with their targeted completion. To be most effective goals should be tangible, specific, realistic, and open-ended. Goals can also encompass many areas of a person's life, not just financial or career success. Goals should be written to act as a motivating reminder to the goal-setter, and to represent an explicit commitment to their completion. W Workbook

99 Name: Date: 9. Within the Green, Red, and Yellow Time Management Zones system of scheduling your time, all the following activities are offense activities within the Green Zone EXCEPT case preparation selling/planning presentations prospecting fact-finding interviews 10. All the following statements concerning "to-do lists" are correct EXCEPT They should include the five to 10 most important tasks that you want to accomplish during the next day. Never carry over any unfinished tasks from one day to the next. Rate each item on the list as an Offense or Defense activity item. This list should be composed during quiet time in the last half hour of your workday, or after your last appointment of the day. 200 Workbook W-99

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101 HANDOUT 6-1 Imagine you are looking to buy a house. You want to spend $250,000. You drive up to the house pictured below, which is listed at $240,000. The picture you see is the entry way of the house. Would you be interested in this property? What is your gut reaction? What do you see? 200 Workbook W-101

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103 HANDOUT 6-2 Green, Red, and Yellow Time Management Zones Time Mon Tues Wed Thurs Fri Sat Sun 6:00 am 7:00 am 8:00 am 9:00 am 10:00 am 11:00 am Noon 1:00 pm 2:00 pm 3:00 pm 4:00 pm 5:00 pm 6:00 pm 7:00 pm 8:00 pm 9:00 pm 10:00 pm Sort the zones in your calendar in the proportions that work best for you. 200 Workbook W-103

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105 SALES PLANNING PROJECT 4 Goal Setting (Assigned Class 6; Due Class 8) Purpose This sales planning project will help you to establish an annualized first-year commission (FYC) objective and determine the quantities of prospecting and sales activities required to achieve it. It will also give you practice in setting goals and quantifying some important aspects of an annual business plan. Assignment Estimate your monthly and annualized personal and business expenses and savings requirements. Based on these figures, ascertain your annualized FYC objective. Then, evaluate the effectiveness of your past prospecting and sales activities and determine the future required levels of prospecting and sales activities needed to reach your FYC goal. Procedure 1. Use Report Form 1 (optional) to calculate your total monthly fixed and variable living, business, and miscellaneous expenses, as well as your savings accumulation goals. Then multiply each monthly total by 12 to determine the annualized figures for each area of cash outflow. Add these figures to determine your total annual income objective. Deduct anticipated renewal commissions and other income to calculate your annual FYC objective. 2. For Report Form 2, use the numbers you have gathered over the past year or since the beginning of your career, if shorter. Otherwise, to complete Report Form 2 you will need the sums of the prospecting and sales activities (excluding referred leads) from Sales Planning Project 3, Report Form 1. From that form, take the total number of phone/face contacts and appointments seen, qualified prospects obtained, fact-finding and closing interviews conducted, and sales completed for the 4 weeks recorded and multiply them by 12. This will give you annualized totals in each category of activity based on a 48-week working year. Transfer the resulting annualized figures to the respective lines in the Activity Annualized Activity Evaluation section (top half) of Report Form 2. Next, calculate your prospecting and sales effectiveness ratios on the bottom half of Report Form 2 by dividing the respective numbers of total annualized activities into each other. Begin by dividing phone (face) contacts by appointments seen to determine how many total contacts it takes to produce one appointment. Continue this process to determine how many appointments you need to produce one qualified prospect (in an initial interview) qualified prospects you need to produce one fact-finding interview fact-finding interviews you need to produce one closing interview closing interviews to produce one completed sale 200 Workbook W-105

106 In addition, calculate your average size case by dividing your annualized FYCs by number of sales. Note: If you are calculating prospecting and sales effectiveness ratios based on numbers gathered over a period of less than one year, be advised that your ratios may overstate or understate your effectiveness. 3. Insert your annual FYC objective from Report Form 1 on Report Form 3, Income and Activity Objectives. Complete the remaining seven boxes using the numbers derived from Report Form 2. Start by filling in the average FYC per sale, which is taken from the bottom line of Report Form 2. Then, divide your FYC income goal by your average FYC per sale to calculate the number of sales you must make to achieve your goal. Next, working backwards using the effectiveness ratios you calculated on Report Form 2, calculate how many closing interviews, fact-finding interviews, qualified prospects, appointments seen, and total contacts (phone and face) it will take for you to achieve the number of sales needed to meet your FYC goal. Note: The following example shows a completed Income and Activity Objectives form. Income and Activity Objectives Objectives/Results/Activities (Time Frame: 1 Year) Amount FYC income goal $75,000 Average FYC per sale $1,000 Required Prospecting and Sales Activity Objectives Sales required to reach your goal Based on dividing your FYC goal of $75,000 by your average FYC of $1,000 per sale. Closing interviews required Using your ratio of closing interviews to sales: 2 to 1, multiply sales required by the number of closing interviews per sale. Fact-finding interviews required Using your ratio of fact-finding interviews to closing interviews: 2 to 1, multiply closing interviews required by the number of fact-finding interviews needed to get one closing interview. Qualified prospects required Using your ratio of qualified prospects to fact-finding interviews: 1.20 to 1, multiply fact-finding interviews required by the number of qualified prospects to get one fact-finding interview. Appointments required Using your ratio of appointments to qualified prospects: 1.25 to 1, multiply qualified prospects required by the number of appointments necessary to generate one qualified prospect. Total contacts required Using your ratio of total contacts to appointments: 4 to 1, multiply appointments required by the number of total contacts (phone and face) needed to see one appointment W Workbook

107 4. Make copies of all the completed forms for your records and turn in the originals of Report Forms 2 and 3 to your moderator at the beginning of Class 8 to receive credit for completing this project. 200 Workbook W-107

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113 BREAKOUT CLASS Describe your basic services. What services do you offer all of your clients? 7-2. In words you would use with a prospect, what would you say during the initial interview to set the stage for periodic financial reviews? 200 Workbook W-113

114 7-3. What are some customized discretionary services you offer or could offer your best clients? Describe them and how they are or could be implemented You are an advisor whose target market is the parents of children in elementary school, specifically from the local public and private schools. Based on this information and your skills and interests as well as the expense involved, create a client service strategy by completing the following: Quantify the number of classes of clients you will create. Explain each class. For example, what constitutes an A client? Identify and describe the different service packages you will offer to each level of client. Explain what customized discretionary services you could offer your best clients, the ones who provide quality referrals. W Workbook

115 Name: Date: QUIZ CLASS 7 (Due Class 7) Instructions: Study the reading assignment for Class 7; then circle the correct answer for each of the following questions. Each question is worth 10 points (100 points total). 1. Which of the following statements describes the main difference between satisfied clients and loyal clients? Satisfied clients tend to tell more people about their satisfaction than loyal clients. Loyal clients typically will refer you to others at every opportunity while satisfied clients will refer you only if asked. Satisfied clients will buy again always and forever but loyal clients will only buy if convenient. Loyal clients will provide you with reverse referrals, whereas satisfied clients will not. 2. If a client is upset, angry, or has a complaint, what is your best response? You can become defensive and offer excuses. You can empathize and seek greater understanding. Protect yourself and state that you are not responsible for the problem. Shift the blame for mistakes to others so you do not lose your client's loyalty. 3. Which of the following statements regarding the periodic financial review is correct? One important task completed during a financial review is evaluating the client's plan in relation to the client's needs and goals. It is important not to discuss the periodic financial review at all during the initial sale. Record keeping has no real impact on the periodic financial review process. Advisors should focus on the client's needs only during a financial review and thus, should not ask for referrals. 4. Advisors should assess their current service by asking questions that include which of the following? I. How profitable is my service work? II. Is the client service I provide convenient for me? I only II only Both I and II Neither I nor II 200 Workbook W-115

116 5. Which of the following statements regarding discretionary services is (are) correct? I. Many discretionary services will be enhancements to the basic services you offer. II. For your best clients, especially those who provide quality referrals, you will want to consider customized discretionary services. I only II only Both I and II Neither I nor II 6. Which of the following is an example of a discretionary service? I. Providing tickets to a basketball game to a fan of the local professional basketball team II. Sending a client a greeting card congratulating her on a promotion I only II only Both I and II Neither I nor II READ THE FOLLOWING DIRECTIONS BEFORE CONTINUING The questions below differ from the preceding questions in that they all contain the word EXCEPT. So you understand fully the basis used in selecting each answer, be sure to read each question carefully. 7. All of the following are possible steps in a service recovery strategy EXCEPT Always contact the home office to find out what can and cannot be said. Express empathy, even if it's the client's fault. Clarify what the client expected, what happened, and what the client expects to be done to correct the situation. Consider something extra such as a remembrance item the client would appreciate. 8. Rendering extraordinary client service will lead to greater client loyalty, resulting in all of the following EXCEPT higher client persistency repeat sales and referrals stronger personal brand fewer compliance hassles W Workbook

117 Name: Date: 9. All of the following statements regarding the laws of extraordinary service are correct EXCEPT You should serve for the joy of it; it is not just something you do for the money. A complaint, problem, or concern is a request for service. Avoid moments of truth as they are time consuming and distract you from your job. The inverted pyramid model puts the needs of the customer first. 10. All of the following are factors to consider when classifying clients into different categories EXCEPT direct revenue streams potential indirect revenue streams client intangibles discretionary services available to offer 200 Workbook W-117

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119 SALES PLANNING PROJECT 5 Segmenting Clients into A-B-C Service Groups (Assigned Class 7; Due Class 8) Purpose As discussed in Chapter 7, you must have a service plan because (1) your clients are paying for service, (2) you need to build rapport and relationships with clients to increase client retention, repeat sales, and increase referrals, and (3) you need to protect your clients from your competition. As your business grows, you cannot give all of your clients the same service attention. It is not practical, nor desirable from a business standpoint, since some clients are more valuable to you than others. Typically, advisors segment clients into three groups as described in the text. The purpose of this project is to develop a plan for delivering service to your A-B-C service groupings. Assignment Identify your "A," "B," and "C" clients according to their profitability to your business. Determine what basic services you will provide to all clients, and those discretionary services you will provide to "A" and "B" clients. Complete the report form to identify what specific services will be included in your service package in these three categories and how you will communicate and deliver these services to your clients. Procedure Complete the report form for this project, answering the following: 1. Use the Client Service Action Project Worksheet to identify activities you are currently doing and those you are not doing that you plan to implement. This activity is to help you organize your service plan and is not to be handed in as part of this project. 2. On the report form: a. Define your service package for each of the three groups. What services will be included to each client group? b. Explain how you will communicate these services to your clients. c. Determine how you (and your staff) will deliver the services on a consistent and regular basis. d. List the service activities you plan to deliver to each service group. 200 Workbook W-119

120 Client Service Action Project The objective of this project is to develop interpersonal relationships with every buyer so that he or she will become a client. The following checklist is not all-inclusive but lists many of the standard procedures that contribute to this mission. Identify the things that you are doing consistently and also determine what you are not doing that you should implement. Doing Not Doing Implement 1. Prospect and client file system to trigger contacting and service scheduling 2. At least annual, or more frequent reviews 3. Occasional non-sale related visits 4. Regular newsletter 5. Holiday greeting card 6. Client gifts 7. Calendars 8. Social visits 9. Product and service update bulletins 10. Client relationships established with your assistant or associate for comfort and service when you are not available 11. Community presence and visibility to be a center of influence for clientele 12. Ongoing public relations program 13. Targeted advertising 14. Active in clubs or organizations that have a good nest of clients 15. Share your success and awards with your clients so they know you are the best. 16. Schedule phone calls just to touch base with key prospects and clients at least quarterly. 17. Make sure all promises made at point of sale are kept or exceeded ahead of time (have a system to assure completion). Source: Norman G. Levine, A Passion for Compassion, (San Diego: Legesse Stevens Publishing Co., 2000). Reprinted with permission. W Workbook

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123 BREAKOUT CLASS What characteristics and personal qualities would you look for in a mentor? List them and explain the reasons why those attributes are important to you. Mentor Characteristic Why It Is Important 200 Workbook W-123

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125 Name: Date: QUIZ CLASS 8 (Due Class 8) Instructions: Read Chapter 8, then answer the following questions to test your knowledge. There are 10 questions worth 10 points each. 1. The person on a board of directors who is more focused on the present, helping an advisor confront immediate challenges so that he or she can achieve his or her goals holds the job of the mentor strategist problem solver motivator 2. Which of the following most accurately describes how securities products are regulated? There is very little regulation. They are primarily regulated by the individual states. They are regulated by the states and the federal government under the direction of the National Association of Insurance Commissioners (NAIC). They are primarily regulated by the federal government through the Financial Industry Regulatory Authority (FINRA). 3. Which of the following statements best describes ethical conduct in your everyday business dealings with prospects and clients? It is doing what is right and putting the prospect's best interests before your own. It is doing solely what is best for your company. It means doing what is best for your own business interest regardless of the impact on the client. It means merely complying with the laws and regulations that apply to you. 4. Which of the following professional advisors would typically know more about their client's net worth, cash flow, dreams, and financial goals than any member of the financial planning team? accountant financial planner banker attorney 200 Workbook W-125

126 5. Which of the following statements represents a common theme found in most ethical codes within the financial services industry? I. Professionals are asked to conduct themselves with fairness, honesty, and integrity. II. Professionals are required to continue the learning process throughout their careers. I only II only Both I and II Neither I nor II 6. Which of the following statements regarding unauthorized entities is (are) correct? I. It is an insurance company that has not gained approval to place insurance in the jurisdiction where it or a producer wants to sell insurance. II. In most cases, they have characterized themselves as one of several types that are exempt from state regulation. I only II only Both I and II Neither I nor II 7. Which of the following actions occurs as a part of monthly planning. I. preparing next month's business planner II. establish career achievement objectives I only II only Both I and II Neither I nor II READ THE FOLLOWING DIRECTIONS BEFORE CONTINUING The questions below differ from the preceding questions in that they all contain the word EXCEPT. So you understand fully the basis used in selecting each answer, be sure to read each question carefully. 8. All the following statements concerning scheduling meetings with your personal board of advisors are correct EXCEPT Schedule your meeting at least 2 to 3 months in advance. Once the time and place is set, confirm by . Choose a business setting for your meeting. Give your participants at least three times to choose from. W Workbook

127 Name: Date: 9. All the following are business planning levels EXCEPT strategic organizational tactical operational 10. All the following are basic business-organization and planning tools EXCEPT contact management system annual business planner monthly business planner mentoring contractual agreement 200 Workbook W-127

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129 HANDOUT 8-1 Instructions for Strategic Alliances Class Activity 1. Use the worksheet attached to develop the list of potential professionals to contact to determine if an alliance is possible and practical. 2. Describe the relationship you want to have with the members of your team. Explain what you can do for them. In what ways will you be an asset to each particular advisor? Some ideas include providing financial products to fund clients' business agreements, estate and gift planning needs, and children's college education. Record these items on the worksheet. 3. What do you expect from the members of your team in terms of expertise, services, and how they will work with your clients? What are your expectations for referrals? List all of your expectations below. 200 Workbook W-129

130 1. Type of Advisor/Name Strategic Alliance Worksheet What I Can Do for Them What I Expect Them to Do for Me W Workbook

131 1. Obtaining an appointment is the primary objective of which step of the selling/planning process? Identify the Prospect Approach the Prospect Meet the Prospect Gather Information and Establish Goals 2. For prospecting purposes, your friends, relatives, and acquaintances are considered a Natural market Target market Qualified market General market 3. Which of the following best describes the prospecting method of personal observation? It revolves around mastering the art of listening, watching and engaging in small talk. It refers to the old fashioned knocking-on-doors method of prospecting. It is the process of sharing ideas and prospect names with others. Salespersons meet to share expertise, business connections, and social contacts. 4. Which of the following statements best reflects the relationship between service and prospecting? A financial advisor's job is to sell products and services, not to service them. As a financial advisor it is your job to service as well as sell products. Most financial advisors focus on servicing rather than selling. Client service takes time away from an advisor's selling activities. 5. Which of the following is a guiding principle for involvement in community organizations? You should avoid joining organizations you support to prevent the impression that your efforts are self-serving. You should promote yourself and make sure everyone knows what good you are doing. You should become heavily involved to maximize your return on your investment. You should evaluate your capacity for involvement and know your time limitations. 200 Workbook W-131

132 6. Which of the following statements best describes an elevator speech? Because of its content, it should only be used on an elevator. It should be fairly long to give a prospect a thorough idea of what you do. It is short and is designed to create interest in what you do. To be effective your speech should be spontaneous, so you should not rehearse it. 7. Which of the following is an effective strategy to combat procrastination? Perform inconsequential tasks to lessen your anxiety. Keep the importance of completing your goals in the forefront of your mind. Try to tackle the tough and important tasks last, not first. Delegate all of the tasks you do not enjoy doing. 8. Which of the following statements regarding daily business planning is correct? The purpose of daily planning is to organize your activities for the month ahead. Daily planning involves the execution of your prospecting plans. You should set income, activity, and career-achievement objectives for that day. You should determine the amount of prospecting activity needed to achieve your FYC goals. 9. Which of the following statements best describes prospecting? It is the continual activity of identifying, approaching, and prequalifying new people to talk to concerning your business. It is the process of motivating, guiding, and asking the prospect to buy. It is the natural result of successfully completed marketing. It is the process of creating, communicating, and delivering value to the customer. 10. Which of the following statements is correct regarding the client-focused selling philosophy? I. The objective of this approach is to cultivate a mutually beneficial, long-term relationship with the client. II. It utilizes client-centered, consultative, and financial planning strategies. I only II only Both I and II Neither I nor II W Workbook

133 11. Your personal brand should accomplish which of the following tasks? I. Identify your unique position. II. Differentiate you from the competition. I only II only Both I and II Neither I nor II 12. Which of the following statements is (are) correct regarding social mobility? I. Social mobility refers to a person's ability to move within and impact a community. II. Social mobility refers to an advisor's ability to move up in social status, thereby appealing to a higher-net-worth clientele. I only II only Both I and II Neither I nor II 13. Which of the following statements is (are) correct regarding goal prioritization? I. It is the process of ranking goals according to their importance to determine the order for their achievement. II. Plans for long-term goals should be rigid because they may not be accomplished if they are blocked or become incompatible with other priorities. I only II only Both I and II Neither I nor II 14. Which of the following statements regarding a contact management system (CMS) is (are) correct? I. It is designed to improve your work habits and time control. II. It should automatically generate sales and service opportunities. I only II only Both I and II Neither I nor II 200 Workbook W-133

134 15. Which of the following is (are) principles of successful phoning? I. When you are on the phone, do not sell. II. Not all leads are created equal, so you should cultivate easy leads. I only II only Both I and II Neither I nor II 16. Which of the following statements regarding the A-B-C method of segmenting your book of business is correct? I. "C" clients will never be "A" clients, so you should ignore them. II. "B" Clients are those you want to move up to "A" or down to "C" status. I only II only Both I and II Neither I nor II 17. Which of the following statements is (are) correct regarding centers of influence (COI)? I. The relationship will develop properly if you think first of the center's interest and what you can do for him or her. II. Approach the center of influence for help when you feel that he or she respects and trusts you. I only II only Both I and II Neither I nor II W Workbook

135 READ THE FOLLOWING DIRECTIONS BEFORE CONTINUING The questions below differ from the preceding questions in that they all contain the word EXCEPT. So you understand fully the basis used in selecting each answer, be sure to read each question carefully. 18. All of the following are advantages of seminar prospecting EXCEPT Seminars minimize the amount of time needed to meet many prospects. Seminars build your credibility as an expert and allow trust to develop with prospects. Seminars are a preapproach technique designed to stimulate the prospect's interest. If you are not the main speaker at a seminar it is best to avoid active participation. 19. All of the following statements about business planning are correct EXCEPT Daily and weekly activity and performance are a focus of strategic planning. Strategic planning involves forming a business plan, mission statement, and annual plan. Tactical planning involves organizing, scheduling, monitoring, and evaluating your production on a weekly and monthly basis. Operational planning involves controlling and regulating your activity and production on a daily and weekly basis. 20. Regarding time and productivity, all of the following statements are correct EXCEPT Productivity can increase as you expend more time and energy, but only up to a point. There is a critical point of diminishing returns beyond which increasing time, energy, and stress lead to decreasing productivity. Successful time management will give you control over your life and enable you to find solutions to various time wasters. Productivity will always increase as you spend more time and energy on a task. 21. All of the following are restrictions placed on telemarketing under the do-not-call regulations EXCEPT Telemarketers must have written permission to call every household they call. Sales callers must at the beginning of each sales call identify themselves, the company they represent, and the purpose of the call. Sellers must maintain an in-house do-not-call list of existing customers who do not want to receive sales calls. Calls cannot be made before 8 a.m. or after 9 p.m. 200 Workbook W-135

136 22. All of the following statements are correct regarding the laws of extraordinary service EXCEPT In the inverted pyramid model of work and service environments, the client is on top; the needs of the customer come first. Serving should never be an inconvenience. Your commitment and character are best revealed in difficult times, not easy ones. Avoid moments of truth because they are time-consuming and distract you from your job. 23. All of the following are sources of prospects that know you favorably EXCEPT People who have bought from you and current clients Friends and family members Communities or organizations in which you are a member in good standing Directories and membership lists 24. When defining your product in the target market process, you should do all of the following EXCEPT Define your products in terms of the needs they meet. Select a natural market with prospects that have values different from yours. You should examine your personal traits (personality, life experiences, past employment and Interests). Assess your strengths and weaknesses and select the target markets matching your strengths. 25. All of the following are steps in the buying process EXCEPT Problem recognition Information search Evaluation of alternatives Regret W Workbook

137 Name: Date: MOST VALUABLE CONCEPTS Reflection is an important part of the learning process that is often overlooked. Take a minute to think about what you have learned and write the most valuable concept, sales idea, marketing strategy, and so forth that you learned in class. Class 1 Class 2 Class 3 Class 4 Class 5 Class 6 Class 7 Class Workbook W-137