Annuity Co-Op Marketing Idea ?

[myinsurebiz]

Now - y'all don't steal, I mean Clone our idea as we have done - LOL . . .

Tom

 

[Crabcake Johnny]

This much I'll tell you Tom and it'll be the best advice you'll get. Business owners with a great concept or idea don't go posting on internet forums for "approval." If you have an idea you think is solid and ethical go do it. It doesn't really matter if it's a 20 page thread about how fantastic is it or how stupid it is.

If you're actually going to base you decision on how to proceed with a business plan based on internet feedback you'll never be a successful small business owner.

If I have an idea for a new business that LAST think I'm gonna do it post it all over internet forums. That's all lose/no win. If the idea isn't popular you'll just get bashed. If the idea actually has merit someone with 50X your capital will do it first.

 

[moonlightandmargaritas]

My guess would be that ole Tom is doing some prospecting...

 

[insuranceexec]

Yes - it's expensive - but - also very rewarding.

If we use the competitors success numbers - this would be the break down:

3 Ads @ $400 each for the week = $1,200

Direct Mail Expense - (none - we utilize my 0 cost program) - p.s. - the competitor doesn't use direct mail.

CD Difference %. We will be getting the bank to do 1.75% - which leaves us with 2.75%.

If they put in $10k - our 2.75% cost would be approx $137.50 for each of the 4 projected CD sales.

Executive Office Space is $200 for that week.

Receptionist is $500 for that week.

Telecommunications System is $20 for that week.

So - total cost to us to sell 2 - $50k annuities is approx $2470.

Annuity Commissions - 2 - $50k Annuities:

Using one of our middle insurance carriers - they pay us a 6.5% commission.

Our Gross Income would be - $6,500

Minus the $2470 in expenses - leaves us a net profit of - $4030.

The selling agent gets 50%, the Funder gets 25%, the Marketing Team gets 20% and the Bank gets 5% (if licensed).

The selling agent can also be the Funder and now receive 75%.

All splits are after expenses.

Tom

Tom,



I again appreciate your enthusiasm, but again this is assuming that you can average 6.5% per annuity transaction.

Annuities do not follow a cookie cutter mold, every client will and should have different needs.

Last year I sold between 19-20 million in annuity premium personally. I only averaged in the neighborhood of 4.5%, and that is with IMO level contracts.

I had a mixture of MYGA's, SPIA's, EIA's, and FA's. I only say this so that you may be aware that averaging 6.5% will not happen; unless you sell all EIA's.

If you do sell all EIA's I can promise you that you are not putting every client in the best possible position.

There are so many variables here. Give me a call sometime; I will try to point you in the right direction. I hope this helps.

 

[myinsurebiz]

This much I'll tell you Tom and it'll be the best advice you'll get. Business owners with a great concept or idea don't go posting on internet forums for "approval." If you have an idea you think is solid and ethical go do it. It doesn't really matter if it's a 20 page thread about how fantastic is it or how stupid it is.

If you're actually going to base you decision on how to proceed with a business plan based on internet feedback you'll never be a successful small business owner.

John,

You couldn't be more wrong. I have succeeded with many of businesses and most were built via the internet.

My two most successful were a Pager / Cell Phone operation that had 5 stores in Georgia and South Carolina and then my Travel MLM. Both were in the early 90's or Mid 90's - before the internet really started to develop

This forum is an EXCELLENT way to get feedback.

I've gotten several phone calls and pm's already.

In addition - this forum tells it like it is - good or bad. I listen to each and everyone.

Where better to bounce off ideas about agents marketing annuities than in a insurance forum - duh . . .

Plus - we aren't worried about competition. If some arises - we'll feed off it and utilize the money they spend on marketing to help people recognize the "concept" when they see our promos.

Case in point - 6 months ago you started seeing a lot of tv ads for auto warranty coverage from USFidelis. Now - 6 months later - I bet you see constant tv ads from a 1/2 dozen different companies.

They are feeding off one anothers marketing efforts. Perception and recognition are important when trying to get people to pick up their phone and call for info.

I say BRING IT ON . . .

My guess would be that ole Tom is doing some prospecting...

Not yet Paul. Just wanting to get feedback and reaction.

We will be testing this concept in the next few weeks in either Knoxville, TN or here in Savannah, GA

Should it work - then you can expect an all out blitz in the offers section. But for right now - just getting feedback.

Tom

 

[GreenSky]

Once again, Tom has proven himself to be a jackoff of all trades, master of none.

Rick

 

[myinsurebiz]

God Bless You Ricky . . .

I'm still doing my other things. Actually started a new venture that isn't even related to insurance as well.

This one will be easy to do ONCE we successfully launch the first one. Who knows - it may flop - but ole Abe Lincoln failed many times before he became President . . .

Luv ya Ricky . . .

Once again, Tom has proven himself to be a jackoff of all trades, master of none.

Rick

 

[Crabcake Johnny]

Tom I can't disagree more. There is not a single legitimate agency or business that has ever used this forum for the purpose of bouncing ideas or business concepts.

You're better affiliating yourself with industry experts and hold round table sessions if you have a new idea.

 

[padthaiforlunch]

I think the downfall on your math is the 6.5% commission you expect to receive. CD holders are likely to me more comfortable in an MYGA. Highest commission I have seen on those is 5%.

Yes - it's expensive - but - also very rewarding.

If we use the competitors success numbers - this would be the break down:

3 Ads @ $400 each for the week = $1,200

Direct Mail Expense - (none - we utilize my 0 cost program) - p.s. - the competitor doesn't use direct mail.

CD Difference %. We will be getting the bank to do 1.75% - which leaves us with 2.75%.

If they put in $10k - our 2.75% cost would be approx $137.50 for each of the 4 projected CD sales.

Executive Office Space is $200 for that week.

Receptionist is $500 for that week.

Telecommunications System is $20 for that week.

So - total cost to us to sell 2 - $50k annuities is approx $2470.

Annuity Commissions - 2 - $50k Annuities:

Using one of our middle insurance carriers - they pay us a 6.5% commission.

Our Gross Income would be - $6,500

Minus the $2470 in expenses - leaves us a net profit of - $4030.

The selling agent gets 50%, the Funder gets 25%, the Marketing Team gets 20% and the Bank gets 5% (if licensed).

The selling agent can also be the Funder and now receive 75%.

All splits are after expenses.

Tom

 

[annuityseller]

I know an FMO in AK. had a plan like this advertise high CD rates and the do the discussion about annuities. the IRvin group was the name .I never did it and don't know anyone who did.to much bait and switch for me also didn't want the DOI of maine looking at me!!!!!