Annuity Marketing

Jun 14, 2007

  1. joshril
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    joshril Guru

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    I have been some work with annuities and I have been trying to get a good marketing system in place. I wanted to see what y'alls opinion of a direct mail campaign would be? One of the companies I work with has provided me some averages and I wanted to see how realistic these results appear to be. Keep in mind a moderate to high closing ability and product knowledge.

    5000 mailers per month to a target market (affluent seniors 65+)
    1% response=50 quality leads per month
    50 leads=3 sales per month
    36 sales per year at industry average of $37,000 per sale=$1,332,000 in premium
    Average commission of 7%=$93,240 gross
    Marketing costs of $1200 monthly so total net income of $78,840 from annuity sales.

    How realistic are these numbers? A good marketing piece could return close to 1% on a mailer. This company is not offering to do this mailing for me so that is not their catch, they just want you to sell their product.

    What do y'all think?
     
    joshril, Jun 14, 2007
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  2. Mr. Bill
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    Well, I for one, would be really curious to learn whether this works. What "company" are you talking about?
     
    Mr. Bill, Jun 14, 2007
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  3. joshril
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    joshril Guru

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    It's basically an FMO that is giving this advice. I am appointed through them with most of the top annuity companies. I am seriously thinking about dumping some money in this. Although the average annuity case is in the high 30's, if you ran across a big one, it would pay for itself pretty quickly.
     
    joshril, Jun 14, 2007
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  4. Mr. Bill
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    Back to the numbers - I have yet to find a mailhouse that is willing to mail 5,000 pieces at less than their cost to mail - what's going on here? Is there a subsidy somewhere?
     
    Mr. Bill, Jun 14, 2007
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  5. senior-advisor-indiana
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    senior-advisor-indiana Guru

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    Yeah $1200 seems like a pretty good discount. But anyway, I think that you should do better than 3 sales out of 50 leads if they are in fact annuity leads (and they are good leads since they are so cheap). My average annuity case is about 60K so I think it would definetly work in my favor. Then again the average might drop since it is basically a cold call. Most of my sales come through current clients. I would definetly like to know how it turns out.

    I recieved like 7 leads from a 200 piece mailing from life sales. None of them turned out to be much of anything. Some of the people were broke.
     
  6. joshril
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    joshril Guru

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    Sorry... It looks to be closer to $1500 and they are postcards. I am thinking it was an old bit of info I was looking over. I am very seriously looking to try the direct mail campaign for a year and see how it works... Nice tax write off worst case scenario.

    I'm thinking it's at least a break even thing. Out of 60,000 mailers over the course of a year, you would think something would hit.
     
    joshril, Jun 14, 2007
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  7. senior-advisor-indiana
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    Yeah you should at worst make your money back. All you need is maybe 3 big annuities.
     
  8. Newby
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    I find most direct mail gets about 1/2% response and that is if there is a postage paid reply card. How will yours respond? Phone call? Web Site?

    I think seminars are the best way to sell annuities. I am not speaking from annuity sales experience. But I have done seminars for funeral preplanning/final expense and have been AMAZED at the response and sales from it. I have also sat in on a Naylor Annuity seminar and it had very good response.

    Can you just commit to 90-days worth of mailers to measure the success?
     
    Newby, Jun 14, 2007
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  9. maxreferrals
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    Above is the key component in this when it comes to seminars.

    ++ Key: Work on strategies to schedule more appointments AT the seminar.
     
  10. joshril
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    joshril Guru

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    What type of cost would you anticipate for an annuity seminar? Do you think people will actually come?
     
    joshril, Jun 15, 2007
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