Annunity Marketing- Diners, Etc

[TonyC]

Hi all,

I went to a seminar sponsored by a High Level Annuity Producer. He basically targets Rich PPL and sends them a mailer and invites them to a free diner at a local fancy restaurant. He usually gets between 20-30 ppl showing up and probably has a fixed costs deal of (25-30 dollars per-plate).

During the diner...he first pitches annuities and the benefits vs. the stock market.

If it costs him....1k per event....and he lands one deal (100k annuity)....he's probably getting 7% or 7k comm.

Say he's putting out 500 mailers...at a costs of $1 each.

So...if the above is true...then why am i not seeing MORE AGENTS do this marketing?

Anyone....?

PS. I realize that it costs some bucks to do this on a consistent basis...but there are only 1-2 in my market doing this. And in a Metro Area of over 1 mil plus....i would expect more competition. What am i missing?

 

[moonlightandmargaritas]

Say he's putting out 500 mailers...at a costs of $1 each.

So...if the above is true...then why am i not seeing MORE AGENTS do this marketing?

No way he's doing 500 mailers and getting 20-30 people to show up. Ain't happening.

 

[RonRoberts]

No way he's doing 500 mailers and getting 20-30 people to show up. Ain't happening.

More like 3500 minimum. But that also depends on the restaurant . 500 for a Ruth's Chris type restaurant would produce a higher return.

 

[Tahoe Ray]

More like 3500 minimum. But that also depends on the restaurant . 500 for a Ruth's Chris type restaurant would produce a higher return.

True...but then he's definitely not getting away paying $25-30/head (like the OP guesses).

To the OP:

I guess it depends on your location but there are definitely geographic areas where you could go eat for free at a seminar every Tuesday, Wednesday, and Thursday if you wanted to...

Do a forum search as this topic has been discussed. With the right resources, presentation, and process, seminars can be great. They can also be a colossal failure and waste of money so you might want to hook up with someone who has done them (well) in the past to get your feet wet.

 

[billyg]

Hi all,

I went to a seminar sponsored by a High Level Annuity Producer. He basically targets Rich PPL and sends them a mailer and invites them to a free diner at a local fancy restaurant. He usually gets between 20-30 ppl showing up and probably has a fixed costs deal of (25-30 dollars per-plate).

During the diner...he first pitches annuities and the benefits vs. the stock market.

If it costs him....1k per event....and he lands one deal (100k annuity)....he's probably getting 7% or 7k comm.

Say he's putting out 500 mailers...at a costs of $1 each.

So...if the above is true...then why am i not seeing MORE AGENTS do this marketing?

Anyone....?

PS. I realize that it costs some bucks to do this on a consistent basis...but there are only 1-2 in my market doing this. And in a Metro Area of over 1 mil plus....i would expect more competition. What am i missing?

Your math and assumptions are off.

1. Average response rate for vancy (avg cost of $1 - $1.50) annuity mailers is 1% or less in most markets. So the mailing along will cost a few thousand dollars to fill 20-30 seats.

2. If it is a nice steak house the meals will cost more than $25-$30 a head. More like $50-$60/head including gratuity.

Finally, you better be closing more than 3%-5% of attendees. It should be 20%-30%. Then your making money.