Annuity Co-Op Marketing Idea ?

[myinsurebiz]

This isn't an offer (yet) - but an idea me and another guy are chewing on.

Marketing is my forte' - but I've come to hate selling since I started selling insurance. But - that's ok - since I've got other income streams.

The idea isn't new - we actually just cloned it from another group successfully doing it.

We may partner with small community banks in mid-size cities and have them offer a high yield 6 month CD @ 4.5% interest to residents in the targeted cities via print ads and direct mail efforts.

When the person calls to inquire - we set the appointment for them to drop by the office or if necessary - to visit their home or office.

At the appointment - we'll ask the prospect how much they were looking to drop into the CD. When they say $50,000 - we'll tell them that the CD program is only good for up to $10k - BUT - let us show you how you can get a better return on the rest by dropping the other $40k into various fixed or fixed indexed annuities . . .

This concept is working HUGE for the group we cloned the idea from - very huge . . .

Out of 10 prospects a week - they are averaging 4 CD's and 2 Annuities. They are going it slow at first.

The Annuities are averaging around $50k.

The only costs are the ads and the % difference between the 4.5% and what the banks going rate is - which seems to be around 1.75%.

Upside potential seems to be HUGE.

The bank gets a new customer. The bank would also share in the commissions by becoming a licensed agent / agency themselves.

Any thoughts?

Tom

 

[moonlightandmargaritas]

We may partner with small community banks in mid-size cities and have them offer a high yield 6 month CD @ 4.5% interest to residents in the targeted cities via print ads and direct mail efforts.

At the appointment - we'll ask the prospect how much they were looking to drop into the CD. When they say $50,000 - we'll tell them that the CD program is only good for up to $10k - BUT - let us show you how you can get a better return on the rest by dropping the other $40k into various fixed or fixed indexed annuities . . .

Any thoughts?

Yeah, tricking them is always a great strategy Mr. Integrity.

 

[myinsurebiz]

Is that trickery Paul?

I mean - should we tell them upfront that $10k is the max?

If they ask how much they can put in PRIOR to coming for the appointment - granted it should be disclosed. But - is it trickery to not state a max?

Just curious . . .

Tom

 

[Crabcake Johnny]

If the mailers and print ads make no mention of annuities and only promote the CD yet the sole intent is to sell annuities to seniors who answer the ad it's unethical at best and likely an insurance marketing violation.

I'd run that kind of marketing past the annuity carriers and the DOI.

 

[moonlightandmargaritas]

Is that trickery Paul?

I mean - should we tell them upfront that $10k is the max?

If they ask how much they can put in PRIOR to coming for the appointment - granted it should be disclosed. But - is it trickery to not state a max?

Tom, there's some TV commercials running right now here in the Tampa Bay TV market for something called "Ally Bank". I believe (but don't take it to the bank) that they are the "reincarnation" of GMAC Bank.

In the commeicial, a "TV announcer-type", along with two about 6 or 7 year old little girls asks one of the girls if she would like to have a pony.

Naturally she says, "yes", and he gives her a little plastic pony. He asks the second little girl if she would like a pony, and of course she says "yes" too.

This time a real, honest to god pony comes trotting out.

The first little girl says, "hey, you didn't say I could get a real pony!" The "TV announcer" guy says, "you didn't ask."

If you are quoting a rate and a term, if you don't state the max it IS trickery.

All this kind of stuff does is get the relationship off to a start of distrust.

What's wrong with this? "We currently have a maximum CD investment of X dollars. If you have more than that you'd like to invest, we have some additional ideas you may want to consider when we talk. No obligation of course."

Quick-hit, one shot sales are built on tricks. Long-term (and much more profitable) long term relationships are built on trust.

 

[Crabcake Johnny]

Swanson Automotive was all about the sale. How many sales did we get today! There was zero focus on building relationships and the entire place was about money.

Towson BMW was all about building releationships with clients and not about "how many cars did we sell today."

If you drive through Towson today you'll see the BMW dealership thriving. If you drive through Glen Burnie you'll see the Royal Farm, which is where Swanson Automotive used to be before the bulldozed the place after they went BK.

 

[insuranceexec]

Tom,


While I appreciate your enthusiasm for marketing; let me ask you, How many annuities have you sold?

The main problem with marketing is that one can not do it effectively unless they themselves have actually sold the product in mention.

Most "marketers" have never been in the trenches and do not understand the actual "art" of selling.

I personally never looked at what I did as selling. I was merely finding the client the best possible solution for their problem.

As Moon mentioned; this is the difference between a long term relationship, and a quick buck. What are you truly after?

I personally think it is appalling, but then again; what do I know? (Rhetorical Question) LOL

As it was discussed; contact your DOI and see what they have to say about it. I hope this helps.

 

[Charpress]

Are there seriously any banks that would buy into this?

Virtually all the banks we have locally are the big operations, like Chase. I can't imagine them touching this with a very long pole. They never do squat before running everything past the lawyers (off in some mysterious place) and everyone else up the food chain.

Before taking any more time, see if you get a bank involved. I bet you don't.

 

[insuranceexec]

Are there seriously any banks that would buy into this?

Virtually all the banks we have locally are the big operations, like Chase. I can't imagine them touching this with a very long pole. They never do squat before running everything past the lawyers (off in some mysterious place) and everyone else up the food chain.

Before taking any more time, see if you get a bank involved. I bet you don't.

Even if the bank would buy into it; what about the DOI allowing it?

 

[arnguy]

Sounds like a "smoke and mirrors" marketing tactic to me, Tom.