Replacement.....What Do You Think About This?

[sman]

That's why you won't make it in this business. This business is not about transactions as much is it's about relationships. The first post actually shows this. This woman was willing to go with anyone that came to her door step because she didn't have a relationship with the original planner.

While I agree with your assessment that this is a relationship business, I don't think the fact that someone chooses all commissions up front as opposed to trails is doomed to failure in this business. You can still build relationships even if you choose to get all the commissions up front.

Personally, I like the trial option (and I'm speaking mostly of variable annuities, mutual funds, etc.). I like the idea of a steady income. I've worked hard to build my trail and renewal business to where it is today. It's nice knowing all the bills are paid whether I sell anything or not. Also, I think the commission difference between up front and trail with most of the index annuity products has a wider gap and thus takes longer to recoup those lost up front commissions. It may make more sense to sell the index annuities that way.

I will say this, when choosing the trail option you had better service your client. Otherwise you are definitely risking losing out on some commissions.

 

[VolAgent]

Personally, I like the trial option (and I'm speaking mostly of variable annuities, mutual funds, etc.). I like the idea of a steady income. I've worked hard to build my trail and renewal business to where it is today. It's nice knowing all the bills are paid whether I sell anything or not. Also, I think the commission difference between up front and trail with most of the index annuity products has a wider gap and thus takes longer to recoup those lost up front commissions. It may make more sense to sell the index annuities that way.

If you are selling VAs with living benefit riders, definitely take as much trail as possible. Odds are, you'll never be able to move the money.

 

[briko3]

While I agree with your assessment that this is a relationship business, I don't think the fact that someone chooses all commissions up front as opposed to trails is doomed to failure in this business. You can still build relationships even if you choose to get all the commissions up front.

Personally, I like the trial option (and I'm speaking mostly of variable annuities, mutual funds, etc.). I like the idea of a steady income. I've worked hard to build my trail and renewal business to where it is today. It's nice knowing all the bills are paid whether I sell anything or not. Also, I think the commission difference between up front and trail with most of the index annuity products has a wider gap and thus takes longer to recoup those lost up front commissions. It may make more sense to sell the index annuities that way.

I will say this, when choosing the trail option you had better service your client. Otherwise you are definitely risking losing out on some commissions.

If you'll read what I responded to, you'll see that's not what I was saying.

 

[0b1kanobee]

This woman was willing to go with anyone that came to her door step because she didn't have a relationship with the original planner.

This is 100% correct. No relationship ongoing with her. I should of called and followed up before the one year mark but I missed it along with any ancillary sales (if any) or referrals.