Dealing with Let Downs

[Norwayguy]

Im coming to this forum in addition to my mentor for some outside perspective. I dont have to do anything anyone tells me. But since I am new Im trying to soak up as much as I can from as many different places and formulate my own way of doing things. My mentor has been an awesome teacher. But he is only one person so I humbly come to you, to maybe pick up a tip or two, or help pull me out of a rut.

One thing I am good at is making friends. I will keep this in mind.

All of our dinner appointments are booked 2 weeks out.

I will take any business that comes my way. I am too new to be picky. If for nothing else, I want to learn how to do things and practice. This one just happened to fall in my lap.

1.7% M&E
0.95% for 6% annual bonus
Where are you getting 5%? Not arguing, just curious.
This particular annuity only has a 4 year surrender period. That is more flexible than a 5 year FA, no?

Holy **** did you just totally forget about the subaccount fees?

 

[Baconfat]

Holy **** did you just totally forget about the subaccount fees?

No but I did forget to type them. Still does not equal 5%

 

[LGilmore]

Bacon?

After catching up a bit on this thread, as a professional I have to tell you that your are suffering from premature-solutionlation. In other words you blew your wad before she finished and nice guys always finish last.

It sounds like you had a solution before you let her finish from her end. Let me put it this way, How would you feel a couple words into your life story and the person you were talking to already spit out the "answer".

Some cases, especially big ones, ARE NOT ONE CALL CLOSES! They're not even two or three. I would bet this client wanted to spend the first couple meetings with her telling you about her situation and expected the appearance of deep analytical thought about her situation. She wanted to see you sweat over her stuff. She wanted to feel that you racked your brain to find a solution for her. Instead, it sounds like you finished before she got her shoes off.

AT NYL we had a trainer who for some cases produced a two pound document for bigger case of which 5 pages were relevant. The sheer bulk of the binder would sway the client to buy off only seeing 5 pages. It just "looked" like the agent worked really hard, which made the client think the agent did. While most of it was actually boilerplate that didn't matter to the case.

In reviewing, I think maybe you pushed too fast and soured her. I would get back to her apologize for seeming to be pushy and ask again for the information and space the work out, even if you know the answer right now.

Remember this isn't a game show, the fastest answer doesn't always win. In this business the thoughtful answer usually wins.

 

[Guest]

I didnt read everything, but I did read where you described what products you offered her, and you seem fairly new to the business.....I think what you offered her, you confused her and probally made it sound like you didnt know what you were talking about or was something she wasnt interested in......

 

[Norwayguy]

No but I did forget to type them. Still does not equal 5%

First I didn't say 5% but I'm betting he is closer to the mark than you. We also get back to being accurate about our communications with the public.

You never stated which VA this was so I can't pull up thier Prospectus but this is what you said about fees

1.7% M&E
0.95% for 6% annual bonus
Where are you getting 5%? Not arguing, just curious.
This particular annuity only has a 4 year surrender period. That is more flexible than a 5 year FA, no?

First thing first your last statement about flexibility. I can Guarantee after 5 years in a fixed annuity the client can walk away with Principal plus interest, can we say that about the VA? No we can't. The great thing about a plain jane fixed annuity is you can look the client in the eye and say you now know with absolute certainty what your clients worse case scenario is at any point in time in the future because of that Guaranteed Minimum Interest Rate. End lesson on Fixed

M&E 1.70 does this include an admin fee you mentioned death benefit does this include the cost of an enhanced death benefit? .95% for 6 percent bonus? That could mean the policy provides a bonus on incoming dollar of 6% and has a .95% fee for life ( I have seen this exact thing before) however based on your previous statements I'm guessing this is your living benefit rider and saying 6% bonus is vague and misleading (not saying you are being that to the client just thats what your written statement says also I am assuming that is the current charge whats the max in the contract. Yes most times the client can stay at current charges but they give up forever rollups etc.)

As stated we haven't discussed Sub Account fees which include the Expense ratio most people are familiar with that you get in the prospectus I opened another 4 year VA expense ratio was min 39 basis points max 159 basis points so say the industry average is 100 basis points or 1%. Then you need to realize that beyond the management expense of a fund there is the transaction cost of the fund which is not included in the expense ratio....according to forbes the average US stock mutual fund is 1.49% but lets call it 1%.

M&E 1.70
LBR .95
Sub Acct Exp Ratio 1.00
Sub Account Trans 1.00

I've got over 4.5% in expenses.

 

[Baconfat]

First I didn't say 5% but I'm betting he is closer to the mark than you. We also get back to being accurate about our communications with the public.


First thing first your last statement about flexibility. I can Guarantee after 5 years in a fixed annuity the client can walk away with Principal plus interest, can we say that about the VA? No we can't. The great thing about a plain jane fixed annuity is you can look the client in the eye and say you now know with absolute certainty what your clients worse case scenario is at any point in time in the future because of that Guaranteed Minimum Interest Rate. End lesson on Fixed

Yes true. But her objective was retirement income
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First I didn't say 5% but I'm betting he is closer to the mark than you. We also get back to being accurate about our communications with the public.


M&E 1.70 does this include an admin fee you mentioned death benefit does this include the cost of an enhanced death benefit? .95% for 6 percent bonus? That could mean the policy provides a bonus on incoming dollar of 6% and has a .95% fee for life ( I have seen this exact thing before) however based on your previous statements I'm guessing this is your living benefit rider and saying 6% bonus is vague and misleading (not saying you are being that to the client just thats what your written statement says also I am assuming that is the current charge whats the max in the contract. Yes most times the client can stay at current charges but they give up forever rollups etc.)

Yes included administration charge in the 1.7%. 6% bonus or step up which is greater is on the protected the balance, the income base, for 0.95% annual.

Annual fund operating expense of 0.57-2.30%

 

[Cornelius]

This link was posted in another thread but it applys here also.
Give a few of the videos a look see. LIFE Foundation #

Art Williams once said "All you can do is all you can do, but all you can do is enough" Just keep pushing forward and talk to many people..

 

[JohnKeane]

The thing is, try not to think of commissions till long after you've received them. Even then chargebacks can kill you. While it's hard to do, focus on the situation rather than the pay out. If you're counting percentage payouts, it kind of creates a vibe the customer can pick up on.
Thank you

 

[scagnt83]

Bacon,
First, you have been given some excellent advice in regards to the lose of the sale.

Just remember an old NYL saying "No, just means "not now"".

Keep in touch with her. Send her a postcard thanking her for her time and saying you "look forward to helping her with her retirement needs in the near future".
Call her quarterly just to check in and say hey.


One piece of advice that I never took to heart when I started (and still struggle with):
- Shut the hell up and listen to your client.

What I mean by that is dont over-talk. Say what you need to, then shut and listen to the client.
Then talk about what the client brings up.

If the client is silent, say so ("your pretty quite... what are your thoughts about what I just went over?").

"What are your thoughts" is less intimidating than "any questions?'".
Some people are afraid to ask questions... but they will tell you their "thoughts" all day long...

 

[Norwayguy]

Yes true. But her objective was retirement income
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Yes included administration charge in the 1.7%. 6% bonus or step up which is greater is on the protected the balance, the income base, for 0.95% annual.

Annual fund operating expense of 0.57-2.30%

There are other ways of creating income that without the risk and strings of the VA w/lbr combo. Having said that your approach would solve her problem but it all depends on what she meant by secure.

Also just to point out that the fees you just listed depending on subaccounts selected hit 5% and your still leaving out the subaccounts transaction costs which are not disclosed in the expense ratio.