- 14,809
Not a shot any bank would buy into this. If Tom wants to test it out, go hit around 10 banks tomorrow, let me know how it goes.
Annuity Co-Op Marketing Idea ?
- Thread starter myinsurebiz
- Start date
- 15,319
Well I think it's a great idea. Especially when the first lawsuit hits and Tom loses the trailer.
Rick
Rick
- 235
i ran a concept just like this past 10 banks "well known". 7 out of 10 approved and participated. DOI's in 4 states had no legal objections as it was not federally regulated like senior medicare supp apmt issues
I HAVE SEEN many genius ideas regarding medd supps and seniors to get in the door....then pre-targeting LTC and annuities sales also. MOST ALL GOT APPLAUSE ON THIS SITE.
BOTTOM LINE.....Did you ultimately do a LEGAL service for the client that leaves them better than they were when you met them WITHOUT lyiing to them or using high pressure closes on the weak and old.
THE HIGH PRESSURE closes on the meak and old is common practice and praised by many that makes comments on this and other sites....SOME EVEN SELL THEIR TACTICS ON THIS SITE!!!!
- 1,641
Nothing new about this. Some internet banks will give you overrides on the CD and offer a high rate since they have no front office. You sell it out of your place.
I believe there is already an FMO out there who uses this as their special marketing tool to get you more annuity sales. Forget how much they want for it.
If you have to ask "is it ethical" it probably is not.
That being said, I think if you had more disclosure about your true intent on the ad/mail piece then you might be ok. I have seen ads in our local paper offering higher CD rates than most, but when you read the ad you see that they also deal in annuities. That type of ad in my opinion is ok because the customer knows what they are getting when they set the appointment.
Matt
That being said, I think if you had more disclosure about your true intent on the ad/mail piece then you might be ok. I have seen ads in our local paper offering higher CD rates than most, but when you read the ad you see that they also deal in annuities. That type of ad in my opinion is ok because the customer knows what they are getting when they set the appointment.
Matt
- Thread starter
- #17
- 5,956
I'm not the selling agent. We have agents in our group OR those that partner with us for our marketing program are the selling agents.
I'm just going to set up the program and handle the marketing and administration.
I have deals ready to go with small community banks in several mid-size cities.
We focus on these because there is less red tape and they are eager to get new customers.
We aren't scamming or bait and switching. We offer a 4.5% 6 month CD and that's what they get. Should a prospect "inquire" about a maximum, etc - certainly full disclosure would be made.
We aren't out to hurt anyone - just get in front of people who have resources that would be a great fit for our fixed / indexed annuities.
Why?
They will get the 4.5% CD - we just limit the amount they can out in. Then - being a good citizen - show them how a high yield fixed or indexed annuity may be a good fit for them to safe keep their money.
Should we decide to move forward and make the concept work ethically and morally - you know I'll shout it from the roof tops.
Exactly . . .
Yes - there are a few. We just took the best components from all of them and are compiling them into one concept.
We are going to start small - in a mid-size city in Tennessee. Work out the kinks, then offer our "System" to others that market annuities and have a need to meet with quality clients that are seeking methods to safe keep their money.
Tom
- 1,802
Tom,
Assuming all is exactly like you said, and is above board.
The average cost per lead would still be greater than $137 each
That is applying the percent difference of 1.75%; which is actually being paid by the bank.
And the 4.5% that the banks have agreed to allow you to advertise at.
(Mathematicians please note: 6 month CD; so the APY is 1/2)
Then you throw in the cost of the ad. I can see $145-$150 easily, per lead.
That is a pretty expensive lead. Do you agree?
Assuming all is exactly like you said, and is above board.
The average cost per lead would still be greater than $137 each
That is applying the percent difference of 1.75%; which is actually being paid by the bank.
And the 4.5% that the banks have agreed to allow you to advertise at.
(Mathematicians please note: 6 month CD; so the APY is 1/2)
Then you throw in the cost of the ad. I can see $145-$150 easily, per lead.
That is a pretty expensive lead. Do you agree?
- Thread starter
- #19
- 5,956
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
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
- 924
Local bank ad for 4% CD, the fine print (extemely fine print):
"You must have an account with us and must apply for and be approved for our credit card. You must charge at least five times per month on our card. You must, etc etc. If in any month you do not meet these requirements, then your CD rate will be .5% retroactive to the date of investment."
Sounds good to me.
Seriously, this has been running here lately in a very large ad with 4% and CD in about 72 pt type and the fine print in about 6 pt type. I bet they bring in quite a few people.
"You must have an account with us and must apply for and be approved for our credit card. You must charge at least five times per month on our card. You must, etc etc. If in any month you do not meet these requirements, then your CD rate will be .5% retroactive to the date of investment."
Sounds good to me.
Seriously, this has been running here lately in a very large ad with 4% and CD in about 72 pt type and the fine print in about 6 pt type. I bet they bring in quite a few people.
