- 5,778
True, but as you gain more experience in your presentations... it should always be alluded to before your asked... it's like answering objections before hey surface.
Client asking about commission
- Thread starter JJ2713
- Start date
True, but as you gain more experience in your presentations... it should always be alluded to before your asked... it's like answering objections before hey surface.
jasperjohns
Super Genius
- 198
I simply tell them the commission BUT then explain that the comp. is for 10 years worth of service, or whatever the period is that they hold the contract for. Also be sure to show them the part of the disclosure page that states that none of the commission comes out of the clients funds. I also reference that if the money was in Mutual Funds they would pay an average of 1 to 1.5% in fees annually and perhaps still be paying a management fee on top of that to the advisor.
Until recently this was actually part of the DOL ruling and all qualified sales had a commission disclosure where the agent had to disclose comp and have the client sign off. I have never personally lost a sale over this.
Usually the client will say that they are glad you are paid for helping them. One final note is to find out why they are asking that. There is so much misinformation out there and anti annuity stuff that tells consumers that annuities are a ripoff. So find out why they are asking and answer the concern.
Until recently this was actually part of the DOL ruling and all qualified sales had a commission disclosure where the agent had to disclose comp and have the client sign off. I have never personally lost a sale over this.
Usually the client will say that they are glad you are paid for helping them. One final note is to find out why they are asking that. There is so much misinformation out there and anti annuity stuff that tells consumers that annuities are a ripoff. So find out why they are asking and answer the concern.
- Thread starter
- #23
Isn't that only for Index annuities, not SPIAs and DIAs?
- 5,778
Just tell them you do it for free... and it's part of your community service hours. 
jasperjohns
Super Genius
- 198
Hmmm I haven't written a SPIA or DIA in so long that I don't even know the answer to that BUT all the larger carriers will have the form in the app kit if it is required for the case. Or one could call and ask as it is not usually required to be submitted but we were supposed to simply keep them on file. All irrelevant now but just referenced it as support for the fact that it should never be an issue for the sale.
Unless you are selling a product where your comp is REQUIRED to be disclosed, either up front or on a govt form, you are probably doing something wrong in your presentation.
Sometimes people will ask how I get paid.
Can't think of the last time someone asked point blank how much I make on a sale. If it does come up my response is the same as how I get paid.
"Carriers pay me a service fee when I place business with them. The fee is baked into the premium, not an add-on. You pay the same rate whether you buy direct from the carrier, through a national agency that called you from out of state, or you go through me. The difference is this.
When you buy from the carrier they will only tell you about their products. They won't tell you anything about all 50 of their competitors. You will never talk to the same person twice. When you call you press 1 for English, leave a voice mail. They will call back while you are in the shower.
If you buy from a national broker, once the sale is concluded you will never talk to that person again. When you call for service they will tell you to call the carrier.
Or you can deal with me. No middle man. You get me or my voice mail. No press 1 for English and I call you back within 1 business day . . . often the same day.
You can reach me by email any day of the week.
Does that answer your question?"
They never again ask how much I am paid.
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If you're hearing this question a lot there's something broken at the front end of your process. The client should understand the different ways that you are compensated. If someone asked me that question, I would answer truthfully, but I'd also want to understand the real reason for the question before placing the business.
