I mean it, selling annuities is the easiest sale in the insurance industry. It is all a matter of positioning and having a focus. The focus is simple: numbers. Having lots of people to see and tell the annuity story to is the secret. Leads and lots of them is all that it takes.
Insurance agents all have one thing in common, who can I see today? Many agents even have such a fear of not having anyone to talk to that it makes them almost paranoid. The solution is very simple, do more marketing. Remember, it is all about numbers.
Here is how to do it. Decide on a target market such as seniors age 65 and above as an example. Your target market can be almost anything such as any age group, any income and any asset level. Once you have located your target market then place your marketing plan in motion.
The marketing plan can be built around many different approaches so for the sake of simplicity let’s use direct contact (direct mail.) With your selected target market decide on a subject that will be of interest to this group. A sample topic may topics like this:
o Reduce your social security taxable income
o Protect your assets from nursing home expenses
o New rules regarding your IRA and how to reduce taxes
o Avoid probate cost for your heirs
o Etc. Etc. Etc.
Next select a service to do the marketing so the actual work is outsourced. Numerous choices are available and trying several will help you select one which fits your geographical area and personal approach. A simple Google Search will locate several choices but my personal favorites are (America’s Recommended Mailers, Kramer Mailing Services and Russ Jones)
Next do this, mail 5,000 mailers a month for a solid year. Do not stop and do not evaluate the program for the whole year. Be focused and do not quit. The cost will be approximately $1,300 a month and you should expect a return of about 2%.
Take the expected returns of 100 leads and have a professional telemarketer set your appointments (cost should be about $10 and a little spiff to her/him will go a long way, start small and bonus). If averages hold, you can expect approximately 40 quality leads a month or an average of 10 a week. The leads that you are unable to see place in a drip system and have your telemarketer recall every 2 months for a year. Working 10 quality leads a week for the work year will provide you with 1 (one) sale and the drip system will provide ½ sale every other month.
The total sales you should make is 52 plus 6 from the drip system for a total of 58 a year. Next calculate your average premium per sale and for this you may use the industry average of $37,000. Multiply the $37,000 times the 58 sales and your total premium will be $2,146,000.
Multiply the premium ($2,146,000) times the average commission of 7% (varies and should be higher) and your gross income will be $152,220. Now subtract your cost of leads (12 months times $1,300 = $15,600) from the gross income and that will leave you a net income after sales cost of $136,620. You also need to average in the cost of the telemarketer and that will depend on your personal situation but a good rule of thumb should be $500 or so a month.
An annual income of $136,620 will place you in the top.6% of income earners in the United States. And it is all done with a simple process based on numbers. One important type is this; throw away the leads that you cannot reach and those who want to be contacted later. By throwing away the leads will set you free, truly.
There it is, simple, easy and totally manageable. Oh, one other thing, it is very profitable.