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How do you handle a client asking about the commission you're making from selling the client an annuity?
Whether it's a SPIA or DIA with a 2-4% commission or a FIA with a 5-7% commission.
How about countering with this:
Mr Client, do you ask that question of your auto insurance agent? Your homeowners insurance agent? When you buy goods and services do you ask the providers how much profit they are making off the sales? Or how much the salary is of the individual you are dealing with? Mr Client, you work for the XYZ Widget Company. When you sell widgets do you tell your customers how much profit you make from the sales or what your salary is? Mr Client, I make a living selling these products and you are getting good value for your money. My commission is not really something you need to know.
OTOH, Leveena has a good idea, too.
How about countering with this:
Mr Client, do you ask that question of your auto insurance agent? Your homeowners insurance agent? When you buy goods and services do you ask the providers how much profit they are making off the sales? Or how much the salary is of the individual you are dealing with? Mr Client, you work for the XYZ Widget Company. When you sell widgets do you tell your customers how much profit you make from the sales or what your salary is? Mr Client, I make a living selling these products and you are getting good value for your money. My commission is not really something you need to know.
OTOH, Leveena has a good idea, too.
In the age of transparency and "fiduciary standards" with money management matters... it's very much an issue and people want to know. They want and feel a need to know why you're selling a particular policy.
I would talk about my own due diligence process as to how you pick the policies you offer.
There are other factors, but it takes a fiduciary mindset to do your due diligence before you offer a policy to the client. Then after doing all that, the compensation is based on the premiums paid to the contract and how long the money is promised to the insurance company.
Anyway, I'm just saying it can be a challenge discussing commissions with clients who want to know.