10 Steps to prepare prospects to say "Yes"

"Confidence allows you to adapt to the environment you enter. Each sales meeting might seem similar on the surface. Don't be fooled. It is often the ?little' or subtle differences where money is made. For example, don't become dependent on a ?one concept' sales track. Your dependency on a script might keep you from getting the right information at the right moment. Dependency prohibits you from being confident."

4. Make your recommendations simple and understandable.
Guzman reminds us of an old saying in sales: "?Don't try to tell them how the watch works. Just tell them that it keeps impeccable time.' This doesn't mean you fail to disclose. Proper disclosure is not only the law; it is the right thing to do. You must perfect your disclosure so product complexities can become understandable for someone hearing them for the first time. You may need more than one way to explain an idea or concept. This requires constant attention to each meeting you have and constant learning from each experience."

5. Choose to give your prospect ownership of your recommendation.
Guzman's final step helps lead your way to a recommendation that is accepted, rather than you attempting to "close" someone. "Each of these steps is critical to moving your prospect from the place they are to the place you want them to be. Your final step is one of finesse. Using carefully structured words you can choose to create the idea of ownership in your customer's mind. For example, when speaking about a future income planning approach using an annuity, you should use terms like, ?You need to think about things such as safety of your resources. Is the money going to be there when you need it? Are you planning to have ready money available for emergencies? What are your income needs in the future and what can you do to guarantee it will all happen according to your desires? That's why this recommendation was designed for you. By implementing this strategy we have designed together, you can have that assurance of protection and a future lifetime of income.'

"Let's think of another example using life insurance. ?This can be your plan to maximize the wealth you leave to your heirs; the people you care about the most in your life.'

"In each instance I have avoided the use of the word ?I.' The purpose of my words is to allow the customer to visualize owning the recommendation I am making because I have taken the correct steps in advance of my recommendation to know the customer's needs and their current financial position. I can act with complete confidence that I am, indeed, improving their situation and meeting their personal needs and achieving their personal goals. This is the essence of being a professional making suitable recommendations to the people I meet."

6. Always discuss the No. 1 concern: Running out of money.
Zmistowski says it's a huge boomer concern. "You know the reasons, including lack of accumulation, longevity, inflation and over-spending. It's going to be extremely unpleasant. They and their adult children are going to be looking to blame you in any way they can.

"Be proactive. Write about it in their financial plans and retirement income plans. Write big warnings like ?Do Not Retire Now' with simple-to-understand explanations such as, ?Based on your current spending, you will run out of money.' Use software with quality Monte Carlo simulation to support your warning.

"With suitability in mind, give more consideration to the newest income (and other living) benefits in annuity contracts because guaranteed income for your client can protect you. Plus, you'll be providing better chances to sleep at night. Using spending plans, determine their essential expenses and match with guaranteed income to be certain that at least their required income comes to them for a lifetime."

7. Communicate!
"This may seem like nothing new," Zmistowski says, "but the degree to which this is required must be more than ever before. Speaking with Judge Paul Elliott, attorney, NASD/FINRA arbitrator and CFP, he told me this is his ?one word' rule to all of us. Often today, the articles we read about communications with our clients are geared to customer satisfaction, client loyalty and building trust. Nothing wrong there, but go farther by keeping in mind your communications are the foundation upon which your future business is built."

8. Put it in writing
"You may be thinking this isn't new either but many of us are taught by compliance and experience to put as little in writing as possible for our protection," Zmistowski says. "That's not true and not safe. Follow FINRA's lead. Follow our states' departments of insurance regulation. They want more and more forms signed and initialed by clients and by those being regulated. It's more work. It's an energy drain. But if you want to experience a real energy drain, try talking your way out of complaints and lawsuits which will only be increasing. Protect yourself."

9. Have the client sign off on rejections
"Lawyers have financial advisors in their sights again," Zmistowski warns, "and this time it may be about long term care insurance, which many of us don't want to address when dealing with seniors. Financial columnist David Drucker reports seeing an attorney's billboard which asked, ?Do you have long term care insurance? If not, call this number.' When the curious client calls the number, he is asked, ?Do you have LTCI?' If he answers ?No,' then he is asked if he has a financial advisor. If he answers ?Yes,' then the lawyer says, ?You have grounds for a lawsuit against the financial advisor.'

"When you communicate a recommendation, put it in writing on any paper (a plan, a mini-plan, a letter, a review). If the client rejects your recommendation, have them initial a big ?no' that they write on the paper. Have the client sign off on or initial their objections. Besides covering details, this often makes people think more, emote less, which helps them overcome self-doubt.
"Later, when their adult children, probably boomers, see that billboard and sue you because their elderly parents aren't protected (and their inheritance is being destroyed by LTC expenses), you have proof that will protect you."

10. Always be extremely cautious of new or alternative investments.
"Think about the complexity to seniors of reverse mortgages, life settlements, hedge funds and any non-marketable security," Zmistowski says. "Their memories of the details are short. Remember, going forward, even life insurance must be considered as an asset that can be bought or sold and is, therefore, subject to fiduciary standards. In publications, FINRA warns consumers that a reverse mortgage can jeopardize their financial futures. Pay attention. Show your clients your thoughtful awareness. They'll have first-hand evidence of your expertise."

Marty Guzman is president of Arizona Estate Planners, Inc. Guzman, who specializes in the area of annuities, has more than 16 years of experience serving the needs of retirees. He can be reached at (623) 776-1100.

Michael Zmistowski, RFC, is president of First Gulf Advisors, where his specialty is retirement income planning. Zmistowski has been in private practice for 27 years, designing and implementing financial plans for his clients. He can be reached at [email protected].