Insurance Agent Forum

[myinsurebiz]

Now - y'all don't steal, I mean Clone our idea as we have done - LOL . . .

Tom

[healthagent]

This much I'll tell you Tom and it'll be the best advice you'll get. Business owners with a great concept or idea don't go posting on internet forums for "approval." If you have an idea you think is solid and ethical go do it. It doesn't really matter if it's a 20 page thread about how fantastic is it or how stupid it is.

If you're actually going to base you decision on how to proceed with a business plan based on internet feedback you'll never be a successful small business owner.

If I have an idea for a new business that LAST think I'm gonna do it post it all over internet forums. That's all lose/no win. If the idea isn't popular you'll just get bashed. If the idea actually has merit someone with 50X your capital will do it first.

[moonlightandmargaritas]

My guess would be that ole Tom is doing some prospecting...

[insuranceexec]

Originally Posted by myinsurebiz

Yes - it's expensive - but - also very rewarding.

If we use the competitors success numbers - this would be the break down:

3 Ads @ $400 each for the week = $1,200

Direct Mail Expense - (none - we utilize my 0 cost program) - p.s. - the competitor doesn't use direct mail.

CD Difference %. We will be getting the bank to do 1.75% - which leaves us with 2.75%.

If they put in $10k - our 2.75% cost would be approx $137.50 for each of the 4 projected CD sales.

Executive Office Space is $200 for that week.

Receptionist is $500 for that week.

Telecommunications System is $20 for that week.

So - total cost to us to sell 2 - $50k annuities is approx $2470.

Annuity Commissions - 2 - $50k Annuities:

Using one of our middle insurance carriers - they pay us a 6.5% commission.

Our Gross Income would be - $6,500

Minus the $2470 in expenses - leaves us a net profit of - $4030.

The selling agent gets 50%, the Funder gets 25%, the Marketing Team gets 20% and the Bank gets 5% (if licensed).

The selling agent can also be the Funder and now receive 75%.

All splits are after expenses.

Tom

Tom,



I again appreciate your enthusiasm, but again this is assuming that you can average 6.5% per annuity transaction.

Annuities do not follow a cookie cutter mold, every client will and should have different needs.

Last year I sold between 19-20 million in annuity premium personally. I only averaged in the neighborhood of 4.5%, and that is with IMO level contracts.

I had a mixture of MYGA's, SPIA's, EIA's, and FA's. I only say this so that you may be aware that averaging 6.5% will not happen; unless you sell all EIA's.

If you do sell all EIA's I can promise you that you are not putting every client in the best possible position.

There are so many variables here. Give me a call sometime; I will try to point you in the right direction. I hope this helps.

[myinsurebiz]

Originally Posted by healthagent

This much I'll tell you Tom and it'll be the best advice you'll get. Business owners with a great concept or idea don't go posting on internet forums for "approval." If you have an idea you think is solid and ethical go do it. It doesn't really matter if it's a 20 page thread about how fantastic is it or how stupid it is.

If you're actually going to base you decision on how to proceed with a business plan based on internet feedback you'll never be a successful small business owner.

John,

You couldn't be more wrong. I have succeeded with many of businesses and most were built via the internet.

My two most successful were a Pager / Cell Phone operation that had 5 stores in Georgia and South Carolina and then my Travel MLM. Both were in the early 90's or Mid 90's - before the internet really started to develop

This forum is an EXCELLENT way to get feedback.

I've gotten several phone calls and pm's already.

In addition - this forum tells it like it is - good or bad. I listen to each and everyone.

Where better to bounce off ideas about agents marketing annuities than in a insurance forum - duh . . .

Plus - we aren't worried about competition. If some arises - we'll feed off it and utilize the money they spend on marketing to help people recognize the "concept" when they see our promos.

Case in point - 6 months ago you started seeing a lot of tv ads for auto warranty coverage from USFidelis. Now - 6 months later - I bet you see constant tv ads from a 1/2 dozen different companies.

They are feeding off one anothers marketing efforts. Perception and recognition are important when trying to get people to pick up their phone and call for info.

I say BRING IT ON . . .

Originally Posted by moonlightandmargaritas

My guess would be that ole Tom is doing some prospecting...

Not yet Paul. Just wanting to get feedback and reaction.

We will be testing this concept in the next few weeks in either Knoxville, TN or here in Savannah, GA

Should it work - then you can expect an all out blitz in the offers section. But for right now - just getting feedback.

Tom

[GreenSky]

Once again, Tom has proven himself to be a jackoff of all trades, master of none.

Rick

[myinsurebiz]

God Bless You Ricky . . .

I'm still doing my other things. Actually started a new venture that isn't even related to insurance as well.

This one will be easy to do ONCE we successfully launch the first one. Who knows - it may flop - but ole Abe Lincoln failed many times before he became President . . .

Luv ya Ricky . . .

Originally Posted by GreenSky

Once again, Tom has proven himself to be a jackoff of all trades, master of none.

Rick

[healthagent]

Tom I can't disagree more. There is not a single legitimate agency or business that has ever used this forum for the purpose of bouncing ideas or business concepts.

You're better affiliating yourself with industry experts and hold round table sessions if you have a new idea.

[padthaiforlunch]

I think the downfall on your math is the 6.5% commission you expect to receive. CD holders are likely to me more comfortable in an MYGA. Highest commission I have seen on those is 5%.

Originally Posted by myinsurebiz

Yes - it's expensive - but - also very rewarding.

If we use the competitors success numbers - this would be the break down:

3 Ads @ $400 each for the week = $1,200

Direct Mail Expense - (none - we utilize my 0 cost program) - p.s. - the competitor doesn't use direct mail.

CD Difference %. We will be getting the bank to do 1.75% - which leaves us with 2.75%.

If they put in $10k - our 2.75% cost would be approx $137.50 for each of the 4 projected CD sales.

Executive Office Space is $200 for that week.

Receptionist is $500 for that week.

Telecommunications System is $20 for that week.

So - total cost to us to sell 2 - $50k annuities is approx $2470.

Annuity Commissions - 2 - $50k Annuities:

Using one of our middle insurance carriers - they pay us a 6.5% commission.

Our Gross Income would be - $6,500

Minus the $2470 in expenses - leaves us a net profit of - $4030.

The selling agent gets 50%, the Funder gets 25%, the Marketing Team gets 20% and the Bank gets 5% (if licensed).

The selling agent can also be the Funder and now receive 75%.

All splits are after expenses.

Tom

[annuityseller]

I know an FMO in AK. had a plan like this advertise high CD rates and the do the discussion about annuities. the IRvin group was the name .I never did it and don't know anyone who did.to much bait and switch for me also didn't want the DOI of maine looking at me!!!!!

[insuranceexec]

Originally Posted by annuityseller

I know an FMO in AK. had a plan like this advertise high CD rates and the do the discussion about annuities. the IRvin group was the name .I never did it and don't know anyone who did.to much bait and switch for me also didn't want the DOI of maine looking at me!!!!!

Irwin financial is the name of the group, and I agree with your assessment.

[myinsurebiz]

True - the concept isn't new.

We are going to stress "Safe Money Alternatives" in the advertising without mentioning much more than 4.5% CD's and a few points about Annuities.

We'll tweak it as we go until we find the "magic ad" that makes the phone ring more than others.

We are going to trial run it in Savannah in this coming Sunday's newspaper, then again on Wednesday as an insert along with the Grocery Store ad inserts to see what type of result will occur.

Those seniors love the Sunday paper and their grocery ads . . .

Tom

[myinsurebiz]

Update:

Like taking candy from a baby . . .

Results:

Ran a print and direct mail campaign targeting consumers looking to find a safe money alternative.

Offered a 1 year CD @ 4.44% - up to $20,000 Face.

When the client visited the Service Center (just a nice office building with business suites) - or - requested an in-home appointment - they were offered the CD and were also given the opportunity to learn about additional alternatives to getting a greater return on a relatively safe money alternative - a Fixed or Indexed Annuity.

Man - it went through the roof . . .

2 week trial:

Ran 4" x 10" ads in local paper on Sunday and Wednesday. Also - used our Co-Op Mailer to 25,000 homes.

Had 600 people call our Hotline. We set up 60 live appointments and 33 in-home appointments.

93 total leads.

We placed 30 CD's with a cumulative Face Value of $425,000.

We also wrote 20 Annuities - with over $1.25 million in Face Value.

Huge profits created.

Haven't even started the cross selling yet.

We are going to perfect this system and launch it Nationwide in 2010.

A handful of agents will be allowed to join us in the various cities.

Testing Jacksonville, FL in November and Atlanta, GA in December.

Amazing results. People are truly looking for a safe alternative to preserving their wealth while safely growing it at a modest, no risk return . . .

Tom