Leads with credibility

May 24, 2007

  1. Frank Stastny
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    Frank Stastny Guru

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    Two years ago I had lunch with another agent I know and we were talking about the no call list and all of the other things that have made this job increasingly more difficult.

    We had run into each other from time to time for a couple of years but weren't "good drinking buddies". We had a similar approach to selling and were comfortable with each others ethics.

    He only sold annuities and high dollar life insurance. He said he gets requests for med supp and LTC but didn't know anything about it and didn't want to learn. The bulk of the business I do is med supps. I don't know anything about annuities.

    We decided we would "go to work with each other". We each sent out a letter introducing the other one to our clients as our new "partner" and telling them we had expanded the services we provide. We swapped client databases. Now neither one of us had to worry about the no call list and already had "credibility" when calling the others clients.

    For about the first eight months it was a kick ass program for both of us. We each did quite well. However, it did slow down as each of us had pretty much run through the others clients.

    I wrote quite a bit of business during that time and so did he. Now we swap new clients and when on an appointment we mention that we have expanded services in the others speciality.

    This is kind of a unique relationship that takes a special trust. In this case it has worked beautifully. However, I don't know too many agents I would enter into this kind of agreement with.

    There was no sharing of commissions. We buy each other lunch from time to time and have become pretty good friends.

    I'm sure it isn't something that one could do with any agent, but it is another way, if the opportunity ever arises, that can be explored.

    I'm in the process of talking to a P&C agent I know about a similar arrangement. She doesn't like working with life and health and I have no desire to learn the P&C business.
     
  2. wilkin
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    wilkin Guru

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    Frank,
    This sounds like an absolutely terrific arrangement. Congratulations on finding just the right "partner". I too do a great deal of med supps and have had several other agents refer clients to me because of my knowledge in this area. I have not been able to reciprocate as much as I would like to because I don't seem to have many of my clients ask me about life insurance or investment advice. I must say I would be reluctant to hand over my account list to another agent yet.
    -Bill
     
    wilkin, May 24, 2007
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  3. Frank Stastny
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    That is the only time I have ever done that. However, you could strike an agreement with another agent that each of you will send a "letter of introduction" telling each ones clients that your services have been expanded. Give your clients the name and phone number of the other agent saying you highly recommend and trust him/her. (That is risky so you better really trust the other agent. You definitely don't want them slamming your clients.)

    This way you can let your clients decide if they are interested in learning more about the other agents products. You could both agree to carry each others business cards and mention the other agent at the end of an appointment even if you didn't make a sale.

    That can be done in such a way as offering additional services without trying to sell anything. You are just there to help and educate them, not to sell them anything. A vote of trust in another agent can go a long way in making them feel warm and fuzzy.

    Just another service provided by their friendly insurance agent. haha
     
  4. Newby
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    That's great Frank. Sounds like a good partnership.

    Any of you guys working health (and actually life too) would be smart to strike up friendships with the local funeral preplanners. I've beem a preplanner for many years and I am just now starting to see the light of what a great resource our client base is.

    In my typical day, I am meeting with not only families who reply to my advertising that they want preplanning quotes but family members of recently deceased people (spouses usually between 65 to 85) children usually between 35 to 65 and brothers and sisters of all ages.

    Preplanners always focus on only one thing (the funeral preplan) but are OFTEN asked questions about health insurance, wills, trusts, cemetery spaces and monuments, term life insurance, annuities, final expense insurance (most people who have worked in a funeral home very long consider final expense/burial policies to be garbage though.)

    Anyone who deals with ANY of these services would be wise to become business associates with one or two good quality funeral preplanners. But do not expect them to exchange databases because their database is actually the funeral home's clients and if they are ethical, they will NOT pass that out. However they can be a VERY good source of constant referrals.
     
    Newby, May 24, 2007
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  5. midwestbroker
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    midwestbroker Guru

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    Humana has a program for brokers out there. I have a number of agents who participate.

    For every person you refer that buys a MA plan, Humana will give you a referral bonus of $175. Great for P&C agents, health / life agents who do not go past 65, financial planners, etc.

    The kicker is that only captive agents can sell the HMO / PPO in the Kansas City area. So, I do have some brokers who sell Coventry (our competition) doing this.

    There are some who refer me supplement business, and I tell them that for those, I owe them lunch.

    It is always great to have lunch or meet people you can talk shop with. My wife has a 3 minute span of insurance talk then she leaves the room!
     
  6. senior-advisor-indiana
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    Frank, why would you give up so much money? Don't you htink it would have been better to sell those products yourself? I double my income last year by selling 3 annuities.

    I would love to team up with a P&C agent though because I have no desire to get that license. I do believe in specializing, but I specialize in senior Life and Health.
     
  7. Frank Stastny
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    Wow, they must have been awesome annuities. I have thought about that but I really am not that well versed in investments. I have a guy who does that for me. I know Med Supps and they are a pretty easy sale. They are usually a fast sale, decent renewals and good referrals.

    If I was prospecting as hard as I was 6 or 8 years ago I would probably enter that market also. Right now between selling Supps and YIO I'm kept pretty busy. I'm also starting a new business next month and need time to devote to it also.

    I don't want to get into an area where I'm messing with peoples money without knowing everything about it, not just annuities, investments in general. I don't think I'd make a very good investment councilor. I'd probably tell them at their age to go ahead and spend it. Why save it and let someone else piss it away. :D

    Are you going to concentrate more on annuities this year? It sounds like you have a real good handle on them.
     
  8. senior-advisor-indiana
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    Well Frank I said it doubled my income. I didn't tell you what my income was. Actually I only made 50k last year. They were nice annuities, I only sold 3. I only worked part time last year too.

    I am trying to focus more on annuiteis this year. I think it is hard to find people to buy them. I pretty much just fall into them every now and then. I actually would rather sell single premium life. It pays more and I think it is more beneficial to the client. I had a client that had 35K in a CD that was going to be inherited by her grandchildren. She dropped that 35K in a SPLI and the death benefit jumped to 51k( tax free) and gauranteed. 9% commission too. I felt really good about that sale.
     
  9. senior-advisor-indiana
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    Well Frank I said it doubled my income. I didn't tell you what my income was. Actually I only made 50k last year. They were nice annuities, I only sold 3. I only worked part time last year too.

    I am trying to focus more on annuiteis this year. I think it is hard to find people to buy them. I pretty much just fall into them every now and then. I actually would rather sell single premium life. It pays more and I think it is more beneficial to the client. I had a client that had 35K in a CD that was going to be inherited by her grandchildren. She dropped that 35K in a SPLI and the death benefit jumped to 51k( tax free) and gauranteed. 9% commission too. I felt really good about that sale. She was 79 yrs old so it would take a long time to earn that much in a CD.
     
  10. midwestbroker
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    I agree senior. I have been focusing on SPLI. I have a lot of clients who have CD's just sitting there waiting to be passed on.

    I have a very soft approach to it, and most people will open up to me when I tell them what I have to offer.

    The annuity is a great second choice if they cannot pass underwriting. I usually split those with another agent who is much more versed in the Annuity market.
     
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