Annuity Marketing

Annuity Marketing Resources for Financial Advisors from Javelin Marketing

Annuity Leads

 Pursue CD Buyers'
 Where to Get CDs to Sell
 Pursue Seniors
 Pursue Existing Annuity Owners
 Host Beneficiary Relationships
 Direct Mail and Ads to Existing Annuity Owners
 Annuity Seminars

Pursue CD Buyers
This market seems obvious in that conservative investors buy CDs and they would also buy fixed annuities or variable annuities with principal guarantees. However, this is a "back door" method of marketing or "bait and switch" marketing. With this method, you advertise attractively yielding CDs and then attempt to switch the callers to annuities. Can you make some money doing this? Yes. Will it be easy money? No. Can you be a big producer doing this? No. The biggest producers are "front door" marketers. They do not attempt to bait people and then pull a switch. They advertise for annuities and then the people who call do not need to be switched. They make better prospects because they are calling for what interests them. The result is less time wasting calls, and your close percentage is higher. In the beginning of one's career, this CD method of marketing works and it gives you people to talk to. But we know of no large producers who use this method.

Where to Get CDs to Sell
There is no license required to sell CDs but there are regulations for advertising. Also, even though there is no license requirement, the only way to place these trades is through a broker dealer. So you will need a securities license to join a broker dealer. Then, your broker dealer will have a listing of CDs available or you can
log onto:
http://www.bergencapital.com/clientservices/inventory/cd_inventory_secondary.htm and look at their CD inventory. Bergen can also provide you ads that meet regulations and a good disclosure document to provide the CD buyers. Of course, you have no interest in selling CDs (they typically pay you a 1% commission) but some prospects will not want annuities.

Pursue Mature Investors
You will make your largest sales to people over 60 as they are most attracted by the principal guarantee of most annuities and the tax aspect. They like to be conservative and annuities fit their desires. Additionally, mature investors have more money than younger people and many already have annuities, which they may exchange for a new annuity. Because they already own annuities, there is no need to present something new. People tend to invest in items that are already familiar to them so selling a second, third or fourth annuity to one person is common.

To meet cd buyers or annuity buyers

Pursue Existing Annuity Owners
Some mailing list companies claim to have lists of annuity owners. Often, they advertise in the classified section of industry magazines. Or, you can visit the library and look in Standard Research and Data Service, which is a list of virtually every list that exists. Cloick to find out more about marketing systems to meet existing annuity owners. Or find an annuity agent that's retiring and offer to pay them 25% of annuity annuities you sell to their list. Check with www.agentmediacorp.com and they may be able to supply you a list of agents in your area by age or estimated age by the initial date they were insurance licensed. Then just send a letter to them and call them.

Pursue Host-Beneficiary
Relationships Hosts are people who can bring you business. The beneficiary is you. Many financial planners think that the only host-beneficiary relationships are with attorneys and CPAs. But the hosts are any person or organization that has existing relationships with the people you want to meet-people over age 60. Many hosts fit this description: Hospitals, Estate attorneys, Elder Law Attorneys, Assisted Living Facilities, Retirement clubs and associations (e.g. the retired teachers association, the association of retired federal employees, the garden club, AARP local chapter, etc) Pharmacies, Home care agencies, The bus driver of the senior bus shuttle, The senior center. Contact each of these possible hosts and tell them that you help seniors to secure their financial future. How can you: Give a talk to their senior clients. Have your business card distributed. Notify them of a public talk you are giving. Help them fulfill their mission

Direct Mail
Mentioned above is obtaining a list of annuity owners. Mail them an offer to receive a free booklet about "Annuity Owner Mistakes" (see information about these booklets).

For direct mail to work, you must make a non-intimidating offer such as:

Call a voice mail line for a free booklet
Call to reserve a seat at a seminar
Send back the form for a free-safety analysis of your annuity

Intimidating offers do not work, such as:

Call for an appointment (they don't even know you and there's not a chance they'll call)
Call to speak to a consultant (they know they'll get a sales pitch)

Annuity Seminars
These work great for the over 60 crowd because they have time to attend and they like to learn more about managing their money. And seminars are non-intimidating where they can remain anonymous. There are many annuity seminar systems on the market. Here's what to look for:

1. Is there a clear process to fill up the room (filling the room is the most important aspect of a seminar)?
2. Is there a process to close appointments right at the seminar?
3. Is the system more than just some nice slides that discuss tax deferral (every senior who's not been asleep already knows about that)?
4. Do you need to feed the attendees (in a good system, feeding people is not necessary)?
   

Be careful as many annuity marketing firms may provide a seminar system for free but then require you to write your annuity business with them. So you may save $1500 up front and then lose an extra ½% every time you write an annuity. Do the math.