College Funding Solutions
- Thread starter cbyrd
- Start date
- 11,284
Larry Tew has mentioned them saying that if he were to focus on that market, then John Belles's organization would be the one he'd choose.
http://www.insurance-forums.net/for...sions/college-planning-t60917.html#post791475
http://www.insurance-forums.net/for...sions/college-planning-t60917.html#post791475
Damnaged
Expert
My mother actually got into this for a while. We set up workshops at colleges and invited high school students to come in.
Good program, lots of good information. For us, it was really hard to sell.
Good program, lots of good information. For us, it was really hard to sell.
- 672
Will you expand on that, please?
Damnaged
Expert
So the program itself basically guides them through the process. There are various strategies that can be employed to make you look more competitive to higher end colleges, financial things that can be done with the FAFSA for more financial aid, etc.
Getting them to sign on the dotted line was the difficult part. The program isn't cheap (though the difference in the money they'll save vs writing a check to a college is phenomenal). We never could seem to close a deal with a client and could never figure out why.
Having learned more about sales since then (we did this years ago), I think the problem was a lack of urgency and impulse. We went through the program and how it would work in our presentation, and I think we may have oversimplified it so when they got home instead of "this is complicated, let's pay these people to do it for us" they thought "this is simple, we can do it ourselves."
It's one of the trickier products I've seen. Mostly because your prime demographic is middle/upper-middle freshman/sophomore HS students. They're parents aren't usually close enough to the prime income years to just drop $1k on something they've never heard of.
So, my advice: As much pre-exposure as you can manage so the idea isn't unfamiliar to them, then figure out the impulse/urgency at the end of the presentation.
Getting them to sign on the dotted line was the difficult part. The program isn't cheap (though the difference in the money they'll save vs writing a check to a college is phenomenal). We never could seem to close a deal with a client and could never figure out why.
Having learned more about sales since then (we did this years ago), I think the problem was a lack of urgency and impulse. We went through the program and how it would work in our presentation, and I think we may have oversimplified it so when they got home instead of "this is complicated, let's pay these people to do it for us" they thought "this is simple, we can do it ourselves."
It's one of the trickier products I've seen. Mostly because your prime demographic is middle/upper-middle freshman/sophomore HS students. They're parents aren't usually close enough to the prime income years to just drop $1k on something they've never heard of.
So, my advice: As much pre-exposure as you can manage so the idea isn't unfamiliar to them, then figure out the impulse/urgency at the end of the presentation.
I looked at a college funding gig years ago when I was trying to decide my next big insurance venture. Can't recall the organization but it involved in home sales (something I detest), going over the FAFSA and pointing out exempt assets (which as I recall include CV life insurance).
The pitch was for an overpriced insurance product (think it was WL, not UL) and a lot of over the top promises about ROI.
I may have stuck around for a week. Never contracted. Took a hot shower and burned my clothes.
The pitch was for an overpriced insurance product (think it was WL, not UL) and a lot of over the top promises about ROI.
I may have stuck around for a week. Never contracted. Took a hot shower and burned my clothes.
I've done college planning for a few years and agree, its not an easy sell. And it can be very time consuming and tedious and you need to know alot of info - which I agree you should, if you plan to do it. Seems that topic is a hot niche over the past couple years. So many companies are now pushing something along that line as the "best way to get qualified prospects in front of you". I will agree, you can get in front of folks fairly easily....its after the initial meeting or presentation where the work starts and its definitely not as easy as all the marketers make it out to be.
Part of the real issue is that many parents are procrastinators or have unrealistic expectations as to what it will cost for college, or they think their kids will get sports or other scholarships, or they aren't willing to actually pay for help. As a result, they often don't do anything or wait until its too late to get any real help that can make a difference for them.
I have a good friend that specializes in college planning/funding for the past 7yrs. She is very knowledgeable on the entire process, every single aspect. Not just the parts where you can write business and get paid. That is what all the marketing companies focus on...the commissionable products that "could" fit. They make it sound like people will line up to do business with you. Some even sell a "specialized product or planning software" for a fee, that will "help" clients with the planning process.
I believe that most folks want all the details of the whole process, not just the financial side. The fafsa, scholarships, essay writing, SAT/ACT info, school selection, etc...and on and on. Most advisors that offer college planning/funding products or services don't know (or care to know) all that detailed info, and are only doing it to try and get sales of a special product, or maybe of insurance or other financial product. While those certainly may be a good fit in some cases, I've found that the clients don't care so much about that.
What I found was that most folks want to kick the tires, get as much free info as they can - and try to go it alone. So did my friend, thus she has raised her consulting fee substantially over the years, just to be a client of hers. Once you pay the fee, she'll begin to work with you.
If you know the info, you CAN help folks... but the avg person doesn't want to pay a fee to get the help. They pay accountants, attorneys, etc.... but balk at paying someone that can actually help them with college planning, which is likely one of the biggest expenses they will ever have.
I believe its a good niche, but only if you plan to be very committed to learning everything you can, so you can truly be a valuable asset to the parents you are working with in all areas. I still do a little of it - more of a sideline now with the clients I work with on other planning, but I backed off of marketing it. I couldn't take the constant babysitting of people that were sucking me dry of my time, for very little $ in the end. Most marketing gig's I've seen label it in quite the opposite manor... very little time & knowledge needed, lots of $ earned. My .02 fwiw.
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That's exactly how most marketers push it. Like every square peg will fit in a round hole of whatever you are selling. While in some cases you can do some great things for folks using life insurance for example, and potentially save them a ton of $.... that doesn't mean its right for everyone, often its not.
Part of the real issue is that many parents are procrastinators or have unrealistic expectations as to what it will cost for college, or they think their kids will get sports or other scholarships, or they aren't willing to actually pay for help. As a result, they often don't do anything or wait until its too late to get any real help that can make a difference for them.
I have a good friend that specializes in college planning/funding for the past 7yrs. She is very knowledgeable on the entire process, every single aspect. Not just the parts where you can write business and get paid. That is what all the marketing companies focus on...the commissionable products that "could" fit. They make it sound like people will line up to do business with you. Some even sell a "specialized product or planning software" for a fee, that will "help" clients with the planning process.
I believe that most folks want all the details of the whole process, not just the financial side. The fafsa, scholarships, essay writing, SAT/ACT info, school selection, etc...and on and on. Most advisors that offer college planning/funding products or services don't know (or care to know) all that detailed info, and are only doing it to try and get sales of a special product, or maybe of insurance or other financial product. While those certainly may be a good fit in some cases, I've found that the clients don't care so much about that.
What I found was that most folks want to kick the tires, get as much free info as they can - and try to go it alone. So did my friend, thus she has raised her consulting fee substantially over the years, just to be a client of hers. Once you pay the fee, she'll begin to work with you.
If you know the info, you CAN help folks... but the avg person doesn't want to pay a fee to get the help. They pay accountants, attorneys, etc.... but balk at paying someone that can actually help them with college planning, which is likely one of the biggest expenses they will ever have.
I believe its a good niche, but only if you plan to be very committed to learning everything you can, so you can truly be a valuable asset to the parents you are working with in all areas. I still do a little of it - more of a sideline now with the clients I work with on other planning, but I backed off of marketing it. I couldn't take the constant babysitting of people that were sucking me dry of my time, for very little $ in the end. Most marketing gig's I've seen label it in quite the opposite manor... very little time & knowledge needed, lots of $ earned. My .02 fwiw.
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That's exactly how most marketers push it. Like every square peg will fit in a round hole of whatever you are selling. While in some cases you can do some great things for folks using life insurance for example, and potentially save them a ton of $.... that doesn't mean its right for everyone, often its not.
- 11,284
Agreed. I've been looking into this off and on over the years. Understanding the FAFSA and financial aid maximizing eligibility isn't hard.
But offering a FULL SERVICE solution and charging a consultation/planning fee for filing the FAFSA, college search, and everything else? Much tougher and a lot higher overhead expense.
You'd want to hire your own "specialist" on staff to help people file the fafsa (so you don't have to do it all yourself). You'll need an office with a couple of computer stations. You'll have to know how (or hire a 3rd party) to do the college search, etc.
All of that stuff is what the fees are supposed to pay for... because you don't need all that if you're only focusing on repositioning assets to maximize aid awards.
But offering a FULL SERVICE solution and charging a consultation/planning fee for filing the FAFSA, college search, and everything else? Much tougher and a lot higher overhead expense.
You'd want to hire your own "specialist" on staff to help people file the fafsa (so you don't have to do it all yourself). You'll need an office with a couple of computer stations. You'll have to know how (or hire a 3rd party) to do the college search, etc.
All of that stuff is what the fees are supposed to pay for... because you don't need all that if you're only focusing on repositioning assets to maximize aid awards.
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