Annuity Marketing

[KRobby]

It's not a bait and switch game if you know how to present correctly. You should read Doug Warren's book on Annuity strategies, best annuity book imo. He shows how with the tax form you can educate them on not only social security taxes, but also if the government is taking 1 bite, 2 bite, or 3 bites outa their taxes. Combine that with social security taxes and you have a powerful presentation that will educate the senior about what annuities can do for them, even if they didn't originally send away for annuity info.

Exactly. I didn't read the book but saw the 15 pages from the excerpt.

It most certainly is bait and switch! It is almost the very definition of bait and switch...[/B]


I do realize that annuities can help alleviate some of those issues mentioned on the card. But not to the extent that the card states. It is misleading.


Instead of priming them with a bunch of half truths, why not just have it show the benefits you mentioned? Why mislead? That only puts you in more of a hole in trying to gain their trust.

Wrong. The E-3C card says 'To see if you qualify AND receive your free brochure 'Reduce or Eliminate the tax burden on your social security Retirement benefits' mail this postage-paid card.'

People mailing in the card want to know their options available to them. The agent helps them with that. If you think it's dishonest, then you must also think that cross selling an annuity after providing a different product solution is dishonest. It's ok to help someone without making a sale from time to time in certain situations.

 

[scagnt83]

the 2010 is the point where income limits were lifted for converting to roths, this could very well pertain to the prospect. But I have also seen mailers that don't talk about any recent legislation, just how to decrease social security taxes.

There's a whole presentation about the social security mailer strategy in the book mentioned above. And the way the guy goes through it, doesn't seem misleading at all. jmo....

I get what your saying.
I have mixed feelings about the true SS mailers... I guess I just feel that it would be better to be upfront and direct. Why not say "reduce SS taxes using guaranteed annuities"?


My biggest gripe with predone annuity mailers is that they think the word "annuity" is a bad word.
In my experience you have better luck telling them exactly what you are going to call them about. And that is Annuities.


And dont forget the NAIC annuity advertising guidelines.... which specifically state that "any advertising should specifically reference the fact that you are advertising an annuity product".

While this is not absolute law. Many states are already adopting the naic annuity training regs. You can bet that the advertising regs will follow.... not to mention the fact that the advertising guidelines were created based on state insurance laws and relevant litigation....

 

[KRobby]

Why not say "reduce SS taxes using guaranteed annuities"?

Lowers response rates. Less commission earned per dollars spent. We're here to make $.

On the other hand, by all means try it and let us know your numbers. I'll be in if impressed.

 

[Justin Bilyj]

I get what your saying.
I have mixed feelings about the true SS mailers... I guess I just feel that it would be better to be upfront and direct. Why not say "reduce SS taxes using guaranteed annuities"?


My biggest gripe with predone annuity mailers is that they think the word "annuity" is a bad word.
In my experience you have better luck telling them exactly what you are going to call them about. And that is Annuities.


And dont forget the NAIC annuity advertising guidelines.... which specifically state that "any advertising should specifically reference the fact that you are advertising an annuity product".

While this is not absolute law. Many states are already adopting the naic annuity training regs. You can bet that the advertising regs will follow.... not to mention the fact that the advertising guidelines were created based on state insurance laws and relevant litigation....

But the thing is you don't have to mention the annuity because they could accomplish the same thing by putting it into a life policy to lower their agi for social security taxes.

So really you are educating them on them on the bites of Uncle Sam taking out of them tax wise:
1. taxes on interest and dividends currently earned,
2. taxes on social security income,
3. taxes from capital gains,

And how you accomplish that is through one or both products, life insurance and/or an annuity.

The mailer is the hot button, its up to you to educate them. I would tell the woman who thought you were pulling a fast one that "if you put on a mailer information about life insurance and annuities do you think you would understand from that small piece of paper how they would lower your taxes? No. That is why we mail out these mailers about social security taxes because we find that people who respond to these have the motivation to want to learn how to minimize or eliminate these taxes, we just show them what they qualify for...."

 

[scagnt83]

But the thing is you don't have to mention the annuity because they could accomplish the same thing by putting it into a life policy to lower their agi for social security taxes.

So really you are educating them on them on the bites of Uncle Sam taking out of them tax wise:
1. taxes on interest and dividends currently earned,
2. taxes on social security income,
3. taxes from capital gains,

And how you accomplish that is through one or both products, life insurance and/or an annuity.

The mailer is the hot button, its up to you to educate them. I would tell the woman who thought you were pulling a fast one that "if you put on a mailer information about life insurance and annuities do you think you would understand from that small piece of paper how they would lower your taxes? No. That is why we mail out these mailers about social security taxes because we find that people who respond to these have the motivation to want to learn how to minimize or eliminate these taxes, we just show them what they qualify for...."

We will have to agree to disagree.

But none of that changes the advertising guidelines. And it doesnt matter if you pitch an annuity or life insurance... if you are pitching any insurance product based on advertising, that advertising is supposed to clearly state the product being advertised.

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Lowers response rates. Less commission earned per dollars spent. We're here to make $.

On the other hand, by all means try it and let us know your numbers. I'll be in if impressed.

That is what people claim.... I have my doubts about the accuracy of it. I have had response rates above 5% using the word annuity on the postcard.

And the flip side is that the upfront route gives you a more serious and qualified prospect.

I have never used the SS mailers. But I have done plenty of DM that clearly stated that it was an annuity I was selling.... and they all have been extremely profitable! .... so I see no reason to withhold the truth based on my experience.

 

[Justin Bilyj]

This reminds me of the FE lead threads....

 

[CHUMPS FROM OXFORD]

Empty...It looks like this guy has your content...Or vice verse.

Toni Genaro Insurance Services | What Is A Health Insurance Marketplace?

 

[Stephen]

There is a very wide legal ethical, moral intent etc.. middle ground that everyone on this thread in is most likely falling within.


If an agent is laser focused on making an annuity sale, there are going to be times that the client isn't getting the best advice.

I only do Social Security work on a referral basis from my referral sources. Since I don't have any lead cost , or marketing cost, I can afford to give away a small amount of my time for free. I will spend 10-15 minutes by phone to answer basic social security questions and do some of my own fact finding at no charge.

If we decide that a meeting is in order, I will invest another 45 minutes of my time in my office to assist in setting up a social security account, updating information, and applying for any SS or Medicare benefits.

Counting any misc. warm-up time, preparation,scheduling , databasing , and time spent fluffing the COI that referred the people in the first place, I have haven't spent any money, but have probably spent 2 hours of my time with these people.

My key is to make sure that I have plenty of ways to make this profitable for me and beneficial to the client, which may or not be an annuity sale.

If may be what I call a "breakeven" sale, like a med sup, or social security strategy planning session. It could be something that I have to play "quarterback" on and split with an advisor that specializes in that area, and enough cases become lucrative for me that I don't describe my marketing as "annuity leads" or "annuity" seminars.

Everyone has their own way of doing things, so if anyone is offended, that's just my way, not an invitation for a pissing contest.

 

[KRobby]

I have never used the SS mailers. But I have done plenty of DM that clearly stated that it was an annuity I was selling.... and they all have been extremely profitable! .... so I see no reason to withhold the truth based on my experience.

Good to hear. Have any of you you tried something like the Guggenheim MYGA rates postcard or a SPIA postcard campaign? Or design your own?

 

[pbbaseball]

I m getting ready to do the guggenheim flyer with the 3/5/7/10 yr myga rates and see what it pulls. Prob will drop them in the next week or two.