Facebook Marketing

[mafrumkin]

Hello. I have been in the insurance business since 1979 and 99% exclusively in the 403b market in California since 1985. I have prospected using seminars, direct mail, email and purchased appointments. Recently I was approached by a FMO that is creating Facebook pages and advertising for agents. The catch is the buy in cost, 4-5K to get set up and they want all of my business. They claim their agents are getting 40 clean appointments a month.

A friend of mine in another field told me that was nuts and that I could find any number of companies that specialized in FB marketing for a fraction of the cost. Now I don't mind spending the $$ if I get a reasonable ROI, but this is unknown territory to me.

Is there anyone out there using FB for 403b marketing or retirement marketing? Any input would be greatly appreciated.

 

[Markthebroker]

If you have been in the business 39 years, why do you want to advertise? I've been in the business for 7 and stopped advertising a few years ago. Half the business that comes in is from word-of-mouth. The other half are for me proactively asking for referrals, but that's less and less each year because the phone just rings more and more. Everybody I know that's been selling for over 20 years basically just sits and waits for the phone to ring.

If are doing right by your clients and and doing everything you can to help them, why are they not telling their friends and families to call you like me and the other agents I know?

I feel like I'm missing something here. And I may be.

 

[mafrumkin]

Your reply is why I typically keep off boards like this. You don't want to advertise and are happy and complacent with what you earn? Good for you. I'm not. If I do $300K I want to do $500K and when I do $500K I set my sights on a million.

Do you know what I call agents who sit around and wait for their phones to ring? Lazy. Do you know what I call agents who are proactive? Successful. I don't know how much business you write and I don't really care, but I'm willing to bet I would be unimpressed if I did know your numbers. And even if your numbers look good now I bet they've flat lined or will. So I would advise you to get off your lazy ass and do some pro active marketing.

Why do Apple, Google, Lexus, or any big company advertise? If you don't know the answer then shame on you.

However, you are correct. You are missing something. It's called drive and ambition.

 

[DHK]

Okay, you've been in business 39 years... and you want to advertise to grow from $300k to whatever.

I'm going to help you: Your skills need to be upgraded. But don't take advice from me. Take it from Van Mueller. Per his own admission, he's been in the business 43 years and he doesn't spend a dime on marketing. Good luck finding him on social media. He has almost no online presence, except for his newsletters and CD/DVD training for agents. He hit MDRT Top of the Table by February 28th of this year. (That's $570,000+ in two months.)

You might find this helpful, or you may not... but watching a YouTube video will be far cheaper than spending tens of thousands of dollars and/or getting locked into an IMO for their help.

EDIT: had to take the other video down, but this one is great!

 

[Markthebroker]

Mafrumkin, thank you for the response. You made it very clear why people aren't sending their families and friends to you.

The reason I stopped advertising is because I can barely keep up with the amount of referrals I have. I have referral leads sitting on my desk I haven't even had a chance to get to. Many of those are referrals I proactively asked for, which I was hoping you would key in on when I mentioned it before. But you completely missed it. Referrals I proactively asked for. As in free leads with a higher close rate than marketing. Hint, hint, hint. That means you can keep more of this big money you want to make.

 

[somarco]

The 403b market is generally a very tight niche. Mostly schools, hospitals and non-profits. Cracking into that market is tough for outsiders . . . especially when you are selling insurance.

It is not a see it, buy it market.

People buy because they trust you.

The institutions that offer 403b plans usually have a preferred provider list set up in their payroll system. Employee contributions = salary reduction. Unless you have some kind of magic where they can buy your product outside of PRD seems like you need to work your existing base.

Also some 403b plans have employer contributions. Once again, that pretty much limits access to a product that is not employer sponsored.

You mention purchased appointments.

You will probably blow me off as you did broker Mark. I am reasonably ambitious but also don't want or need to spend all my time chasing prospects. If you have been marketing the same products in the same geographic area since 1985 you should already have a presence and name that also makes it hard for anyone else to squeeze you out.

That's 33 years to build your brand.

I doubt you can do anything on FB that will improve on what you are doing now and any $$$ spent on FB advertising is most likely money wasted.

 

[mafrumkin]

You are correct that the 403b market is a niche market. It is also a finite market in many ways. I have school districts that I have been going to for years, same place, same time every year. And every year I pick up clients that for whatever reason did not sit down with me in previous years. BUT, it is a finite set of prospects/clients. I know agents that make a good living rolling their existing book over and over. I consider this unethical. I know agents who are stopping 403b contributions and redirecting into IUL, "oh look, Mr. Smith, you can take tax-free income at retirement." Of course when it all blows up the agent is long gone. (And if you don't think it is a flawed concept with the potential to blow up I encourage you to google Executive Life or Kentucky Central Life or State Mutual Life Assurance. The 90's were a nightmare for many of us.)

I do get referrals. I do have my own book of business to work with and maintain.

So I prospect. I always have and I always will. I find it disconcerting that so many people find prospecting anathema to them. I like meeting new people, (especially teachers), and educating them on their STRS and what a 403b can do for them. I like going to a new school district where they have not seen anyone other than the AFA agent in years. I like having the Principal of a school thank me for coming out and doing a seminar to educate his/her employees. It strokes my ego, and as a salesman I need my ego stroked.

So when someone comes along and says, "I will provide you with solid leads in the Educator market for less than you spend now." it gets me curious. Is this something that really works or just more smoke? Is this something I can pass on to a new agent who is struggling? So I figured what better place to ask but here. But instead of getting an answer I get chastised for even thinking of doing something outside the box.

somarco, I really appreciate your educating me on how the 403b market works.

Markthebroker, I see you are in California. Why don't you PM me your real name and I can see how successful you really are. It's EASY to be on a board like this and talk a good game.

 

[Markthebroker]

Mafrumkin just pm'd me challenging me, asking my personal info and how much money I make. He's like a little child. Amazing.

Mafrumkin, you came on here for advice. Focus on getting your own house in order first.

 

[VolAgent]

So, you do realize there are people that can help you who are reading this thread. Is this really the first impression you want to make?

Whether your critics are right or wrong is immaterial, you are being judged in how you respond. Its not pretty.

 

[DHK]

It's a strange phenomenon. He's closed-minded EXCEPT for the person asking for THOUSANDS of dollars for his program. I'd expect something a little better for someone with 40 years experience.

John Savage said "Can you imagine being 60 years of age and wanting a plaque? I'm convinced that three people founded our company: A paper mill, a printing press, and a plaque factory."

But anyway, the forum still delivers on its cost/value proposition again: