Closing techniques, part 2

The first option we can utilize is a 529 plan for college, diversifying your portfolio in a more aggressive growth position and using fixed investments for the cash you will need in three years.

The second alternative is to overfund a life insurance policy and take the cash value out or, better yet, borrow from it tax free. The third approach we could take is borrowing $30,000 from a low-interest-rate program for college, putting 50 percent of the portfolio into a more stable value fund and contributing $5,000 a month into outside investments using a ‘dollar cost averaging’ strategy. Which seems like a better plan to you?”

This close works very well because 64 percent of the HNW are business owners. They are used to making their own decisions. If you suggest only one solution, they may become suspicious. This close also works well because it closely involves the prospect in the formulation of the plan.

When using this technique, you are effectively planting an idea in the mind of the client that the solution they’ve chosen is the one that is best for him.

In addition, this sales method establishes less dependency on the level of trust the client may need in case the solution goes awry.

All of these closes are effective with the right kind of client. But you need to size up your prospect/client, determine their level of sophistication and then close the way they want to buy instead of the way you want to sell.

“All of these closes are effective with the right kind of client.”

Kerry Johnson, MBA, Ph.D., is a best-selling author and frequent speaker at financial planning and insurance conferences around the world. He has a new coaching program at www.iCoach360.com or call 800-883-8787 for more information. Responses and questions can be sent to [email protected].