Newspaper ad for Annuities

[Vaughn Siller]

Was wondering if anyone has experience with print ads for annuities? I have some capital I would like to put towards print ads and I'm interested in feedback from people that have used this method of advertising.

What can you say? What can't you say? Do I have to get approval from my DOI, which happens to be Michigan? What will get the phones to ring?

Any help would be appreciated.

 

[CHUMPS FROM OXFORD]

It's been a few years, but I placed some ads in the Dayton (Oh) paper. Actually, it was advertising the fixed interest rate, which was blowing the CD rates away. Not the case any more.

"CD Alternative" is always a catchy phrase.

 

[senior-advisor-indiana]

My marketing organization just contacted me last week about this. They are basically doing the bait and switch..kind of. They want me to offer the highest CD rate anyone can get, the prospects call in for the high CD rate, I go out and explain it to them, sell them the CD if thats really what they want and then 6 months later when it comes due try to sell them the annuity. There is no commission on the CD so it would take a couple months to get a decent return. They said it has been working for a some agents. The cost, they said would be between $500-$1500 per month depending on the newspaper.

 

[somarco]

This is not my market, and I may be way off base. Seems like some of the trade stuff that comes thru mentioned an annuity that paid 6 month competitive rates and a commission. Looked just like a bank CD but paid maybe 25 or 50 basis points in comp.

Is this for real or only something I dreamed up?

 

[Newby]

My marketing organization just contacted me last week about this. They are basically doing the bait and switch..kind of. They want me to offer the highest CD rate anyone can get, the prospects call in for the high CD rate, I go out and explain it to them, sell them the CD if thats really what they want and then 6 months later when it comes due try to sell them the annuity. There is no commission on the CD so it would take a couple months to get a decent return. They said it has been working for a some agents. The cost, they said would be between $500-$1500 per month depending on the newspaper.

Who do you sell the CD's through?

 

[senior-advisor-indiana]

I am not sure who the CD's are through. I have not done the program yet. From what i know they search for the highest CD rate at that time. It could be through any bank I assume. It could be one bank this week and a different bank the next week.

Once I get more moarketing dollars I am going to do this. They told me that one agent has been doing this for about 6 months. He really didnt make much the first couple months but in one month he sold 400k in annuities. That is defintely worth trying. $400k in annuites should make you about $30k. Not a bad month.

 

[somarco]

Folks I know that are consistently writing annuities needed a buttload of $$$ to float for 4 - 6 months. A minimum of $5k in seed money.

Given the bad press on annuities and several DOI's taking a hard look at any kind of sale to seniors (target market for annuities), I don't know that I would go that route.

JMHO

 

[Vaughn Siller]

Thanks for the info. If anyone knows the wording used in any successful ad, let me know and I'll try it out and report back. There are about 5 Senoir news publications that come out once a month in my general geographic area. I was going to put a 1/2 page ad in each one for three months and see what happens.

 

[Crabcake Johnny]

I think compliance will be an issue and any ad you run that actually passes compliance will be designed so it won't pull results.

 

[Winter_123]

I think compliance will be an issue and any ad you run that actually passes compliance will be designed so it won't pull results.

Depends on whether you are just insurance licensed or securities licensed as well. If you are securities licensed then your broker dealer has to approve everything and you are right- they will kill any ad that will work. If you are independant and just insurance licensed and you place a generic annuity ad then (in most states) you don't need approval from anyone except that your ad still needs to be truthful, not misleading etc. Also, in my state if you place an ad and you use your company name then that name must also be licensed as an agency name rather than just you using a DBA.

This assumes that you are offering several annuities or other options. It gets dicey if you place a general ad but the only annuity you offer is with just one company. You have then attached your ad to just one company and that probably requires their approval. Also if your ad mentions a specific feature that only one company has then you need to mention the company name in the ad and if you mention a company name in an ad then you need their approval so you have to navigate the turf a little.

This my understanding. If others disagree let me know because it is tricky turf and I am always looking for the best understanding. Things are a bit more wide open if you are not securities licensed though.

Winter