Financial Services Sales Handbook: A Professionals Guide to Becoming a Top Producer

Introduction

Did you know that everyone is a salesperson in some way? We all must persuade others that what we offer—whether products, services, or ideas—will improve their lives. This applies to anyone earning a living, from carpenters and doctors to teachers and engineers.

Selling is an honorable and respectable profession, vital to both our economy and daily life. Without it, many of the luxuries we take for granted wouldn’t exist.

The art of selling has been practiced for centuries. The Phoenicians and Greeks, for example, sailed the Mediterranean, seeking buyers for their oils and perfumes.

I often see leaders of financial services firms searching for a born salesperson to improve their sales teams. Over time, they discover this is a fruitless pursuit—no such person exists. The simple truth is that effective salespeople are made, developed, and molded, regardless of background or formal qualifications.

Selling is an acquired skill that can be developed by anyone. When professionals excel, they’re often called natural salespeople. But their success stems from training, not innate talent.

Skilled sales professionals are no more born into their field than top athletes, doctors, or lawyers. They acquire their skills through study, seminars, reading, and most importantly, on-the-job experience. The best way to learn is through practice, guided by a professional who turns fear into confidence and inaction into action.

Top Sales Professionals Consistently Practice the Fundamentals

Finding prospects

Qualifying and securing appointments

Identifying needs and providing solutions

Persuading prospects to buy

Generating referrals from clients

I’m often asked to conduct training programs that will quickly develop top professionals. While the idea sounds appealing, it’s simply not realistic—becoming a top salesperson takes time, just as it does to become a doctor, lawyer, or dentist.

Selling is a learned skill that improves through consistent practice of the fundamentals. Naturally, some professionals will excel more than others, but with effort, anyone can improve.

Top financial services professionals are made, not born. And anyone can sharpen their abilities through practice. This book contains dozens of practical ideas to help you:

Generate high-quality leads

Build market awareness

Convert leads into clients

Sell more to existing clients

Develop and implement a sales plan

And much more

However, reading this book won’t turn you into a top professional overnight. What it will do is help you understand the skills needed to become one. If you accept that no one is born a salesperson and that it takes years of practice to reach the top, you’ll realize that anyone can improve their sales skills. Even if you’ve never considered yourself a salesperson, you can sharpen your abilities and, over time, become one of those so-called born salespeople.

This I believe!

PART 1

Laying the Foundation

CHAPTER 1

Creating the Pathway

Where Are You Heading?

Always have a plan and believe in it. Nothing happens by accident.

—Chuck Knox

Top professionals do not reach the top by accident; they know the key elements driving their business success. This insight allows them to set the right goals and invest their time and resources wisely to achieve the highest payoff.

Most sales plans fail due to poor execution or are not aligned with the current time and place. A major reason is a lack of understanding of your business’s direction and overall health. Many plans are based solely on results from previous years without considering current realities.

Understanding your growth position and using it as the foundation for developing your growth plans is more effective. Use Figure 1.1 to help figure out your direction.

Figure 1.1Growth position

Category 1: Vertical Growth

Firms in this category achieve high profitability and superior annual organic growth and outperform peers in client retention and new business generation.

Category 2: Horizontal Growth

These firms experience inconsistent results, often acquiring growth through higher expenses and lower profits.

Category 3: Flat Growth

With a mature client base, these firms struggle to generate new business and develop existing clients, leading to a majority of part-time clients and little prospect for growth. If this continues, they risk moving into Category 4.

Category 4: Negative Growth

Firms here experience poor client retention and are losing business faster than it can be replaced. Weak sales capabilities threaten their survival.

The performance, direction, and overall health of your business depend on these key elements:

Existing client mix

Market mix

Marketing and sales capabilities

Targets of opportunities

Evaluating Your Client Mix

Not all clients are equal. Professionals often find themselves stretched thin trying to provide A level service to C level clients. Figure 1.3 helps you prioritize clients to meet their needs and expectations better.

Figure 1.2Positioning

Figure 1.3Existing client evaluation worksheet

Steps to Complete the Worksheet

Gross Revenue Income: Enter the total gross revenue your business earned.

Number of Clients: Record the total number of clients your business serves.

Revenue per Relationship: Divide total gross revenue by the number of clients.

Number of Top 5 Percent Accounts: Multiply the total number of clients by 5 percent.

Gross Revenue Income From Top 5 Percent: Enter total revenue from the top 5 percent of clients.

Revenue per Relationship for Top 5 Percent: Divide total revenue from the top 5 percent by the number of top 5 percent accounts.

Number of Middle 15 Percent Accounts: Multiply the total number of clients by 15 percent.

Gross Revenue Income From Middle 15 Percent: Enter total revenue from the middle 15 percent of clients.

Revenue per Relationship for Middle 15 Percent: Divide total revenue from the middle 15 percent by the number of middle 15 percent accounts.

Number of Bottom 80 Percent of Accounts: Multiply the total number of clients by 80 percent.

Gross Revenue Income From Bottom 80 Percent: Enter total revenue from the bottom 80 percent of clients.

Revenue per Relationship for Bottom 80 Percent: Divide total revenue from the bottom 80 percent by the number of bottom 80 percent accounts.

Number of Bottom 50 Percent of Accounts: Multiply the total number of clients by 50 percent.

Gross Revenue Income From Bottom 50 Percent: Enter total revenue from the bottom 50 percent of clients.

Revenue per Relationship for Bottom 50 Percent: Divide total revenue from the bottom 50 percent by the number of bottom 50 percent accounts.

Use Figure 1.4 to summarize your results.

Figure 1.4Client evaluation summary

Questions to Consider

How many clients are you serving?

How many clients generate 70 to 80 percent of your total revenue?

What percentage of clients does this represent?

How many clients are in each category?

Do you have too many C clients?

Are any of your C clients receiving A or B level service?

Evaluating Your Market Mix

Use Figure 1.5 to assess the markets you serve and seek clients from.

Figure 1.5Specialty market evaluation worksheet

Questions to Consider

How many different markets do you serve?

Which markets have the most clients and prospects?

What are the strategic implications of your market mix?

Evaluating Your Sales Capabilities

To achieve superior growth, focus on the core areas that will drive your business forward. Master a few areas well rather than spreading yourself thin across many.

Top producers excel in four key areas:

Selling: Acquiring, developing, and retaining clients

Sales Management: Pipeline management, mentoring, and coaching

Sales Service: Client experience, workflow, and teamwork

Sales Leadership: Execution of sales strategies, culture management, and perpetuation

Selling

Use Figure 1.6 to evaluate your effectiveness in acquiring, developing, and retaining clients.

Figure 1.6Sales capabilities worksheet

Sales Management

Use Figure 1.7 to review your effectiveness in pipeline management and professional development.

Figure 1.7Sales management evaluation worksheet

Sales Service

Use Figure 1.8 to assess your client relationships, referral strategies, and niche market effectiveness.

Figure 1.8Sales service evaluation worksheet

Sales Leadership

Use Figure 1.9 to evaluate your marketing strategies, client experience, and accountability practices.

Figure 1.9Sales leadership evaluation worksheet

Instructions for Completing the Worksheets

Rate your sales performance on a scale from 1 to 5:

1 = Low: This area needs significant improvement.

5 = High: This area is a major strength.

Scoring Interpretation

Score 84 to 100: Strong Performance. Maintain and refine strengths; address lower-scoring areas.

Score 64 to 83: Good Performance. Solid foundation with room for improvement. Prioritize areas with the lowest scores.

Score 44 to 63: Moderate Performance. Significant areas need attention. Focus on improvement.

Score 24 to 43: Needs Improvement. Underperforming in key areas. Implement targeted strategies.

Score 1 to 23: Critical Attention Needed. Immediate action required to improve sales and marketing.

Figure 1.10Niche market evaluation worksheet

Additional Evaluations

Sales Pipeline

Ensure your pipeline is filled with ideal clients and continually generating new business.

Warning Signs

Not following up on new leads.

Inactive referral sources.

Unhappy Category A and B clients.

Decreased client receptiveness to additional services.

Evaluating Your Niche Markets

Pinpoint and assess the industries of your top clients to ensure ongoing demand.

Evaluating Your Referral Sources

Top performers generate 80 percent of new business from referrals. Use Figure 1.11 to assess referral quality.

Figure 1.11Referral evaluation worksheet

Figure 1.12Network evaluation worksheet

Questions to Consider

Who makes referrals on your behalf?

Who refers upon request?

What actions are needed to ensure continued referrals?

Evaluating Your Networks

Assess the quality of your networks and determine necessary enhancements.

Questions to Consider

What improvements are needed for your networks?

What types of networks do you need more of?

What networks should you drop?

Reviewing the Momentum of Your Business

Use Figure 1.13 to evaluate client churn and identify opportunities.

Figure 1.13Client retention worksheet

Figure 1.14Targets of opportunity worksheet

Questions to Consider

How many clients were acquired and lost over the past 12 months?

What were the reasons for client losses?

What was the dollar value of lost clients?

Determining the Nature of Your Business

Understand whether your client base is a volume, cluster, or diverse base to determine strategic implications.

Now that you understand where you are, let us turn to pinpoint your natural market of prospects and clients.

Summary

Top professionals succeed not by accident but by setting clear goals, understanding their business’s growth position, and executing well-aligned plans. The key elements affecting your business’s trajectory include the client mix, market mix, sales capabilities, and growth opportunities. To maintain strong business momentum, conduct