Please Help With Morningstar Sales Idea

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Mar 15, 2008 12:23 pm

So at work (New York Life) we're having to do sales presentations in front of the class/managers just so they can see our presentation/sales skills. The next topic we're doing it on is Morningstar, who works with our company to create 5 different asset allocation models that we use for our VAs. The presentation layout is somewhat like:


1. Funny/interesting story/analogy and how it ties in to Morningstar (can't think of one)
 
2. 3 quick points
    -Morningstar is unbiased, third party, widely known
    -True diversification, ensures that no securities overlap in portfolios
    -Creates suitable portfolios accordingly to client's objectives
     (growth vs value and small cap vs large cap grid)
 
3. Conclusion- (missing a few quick, strong lines)
 
I need help with a funny story/analogy because I'm having a lot of trouble thinking of one. One of the guys used an example of having Wolfgang Puck coming to his house to cook him and his date dinner. Wolfgang looks in the fridge and sees some whatever ingredients, and he'd probably make the food good still. But then he goes to the grocery store himself, buys better ingredients and makes the best dinner ever. I guess it ties in with Morningstar and how there's so many securities in the world, but Morningstar filters through the bad ones and works with New York Life to create a great portfolio (dinner).
 
If you guys can PLEASE PLEASE help me with a story/analogy and a strong conclusion, that would be the best. I would greatly appreciate everything, thanks! Public speaking is probably my biggest weakness.
Mar 15, 2008 1:16 pm

What a worthless waste of time they're asking you to do!!!

 
BTW, that "funny story/analogy" was stolen from Metlife because they also use Morningstar portfolio management in their VAs.
 
The problem that I see is that they are asking you to sell their process.
 
NO ONE CARES ABOUT THE PROCESS!!!  Talk about RESULTS with your clients.
 
However, since you're doing a presentation about "processes" (ugh), I suggest you start with something like this:
Point #1:  "Well, you know how (or "have you ever")..." (fill in the blank).  "Well, what morningstar helps us do is..." (fill in the blank)
 
You can use a building strategy.  You are hired to build a building for your client.  You then hire a general contractor (Morningstar).  Morningstar now hires sub-contractors (name miscellaneous sub-account managers) for each part of the project (plumbing, electrical, framing, etc.).  Translate that into whoever manages the small-cap world fund or whatever.
 
Now, be careful here, because once someone is in an annuity, you cannot fire the General Contractor (Morningstar).  BUT, Morningstar manages the each sub-contractor according to their standards.  Give examples of how Morningstar proactively manages their portfolios and made changes as necessary.
 
The conclusion is that 1) with portfolio insurance (annuity w/living benefit) and 2) with professional money manager of managers, your clients don't need to do much to manage their portfolio.  You help them determine a level of growth/volatility and we pick the portfolio to that standard.  We let them do the rest - so we can both have the peace of mind of not managing individual securities.
 
Hope this helps.
Mar 15, 2008 3:00 pm

Skippy - talking about results is great as long as your results are great. Can you always promise great results?

Mar 15, 2008 3:12 pm

I can always promise great guarantees when talking about VAs.

Mar 15, 2008 4:19 pm

Well, the point is not really to sell VAs by itself, the point is to sell WHY morningstar is good for VAs.

Mar 15, 2008 5:13 pm
JimYoung:

Well, the point is not really to sell VAs by itself, the point is to sell WHY morningstar is good for VAs.


How about this: "you know how most people drive a car by looking through the windshield?  Well using Morningstar to help you make investment decisions in your VA is like driving your car only looking out the REAR window, since Morningstar's ratings are based on history.  Now this doesn't usually work very well in terms of arriving at your destination, but it sure does give you a wonderful, warm, confident feeling right up until the time you crash.  Only WE do it inside a VA!"

Happy St. Patty's Day!

Mar 16, 2008 1:11 am
JimYoung:

Well, the point is not really to sell VAs by itself, the point is to sell WHY morningstar is good for VAs.

 
I've never been sold on that point... so why should I try to sell others on it?
 
Hopefully you'll either
1)  learn how to "sell" morningstar, or
2)  learn how to skip the BS that THEY tell you is important and learn how to really sell VA's with promises, protection and guarantees.
Mar 16, 2008 1:43 pm

Jim, I've got to echo the others.  Your clients don't care about Morningstar. 

Mar 16, 2008 3:37 pm

Right, I couldn't agree more. They don't teach us to sell VAs based on the Morningstar lineup, this is just a practice presentation to warm-up for our future presentations that include us selling on the guarantees and promises. However, I still would like to do very well on the presentation so any analogy/stories would be very helpful. Something that is real-life and compares to how Morningstar operates with NYL's VAs. Thanks.

Mar 16, 2008 9:20 pm

Jim - I've got to respectfully disagree with the others. While having Morningstar run it instead of Ibbotson(which is also Morningstar) or Thomson, or Russell or whoever doesn't make much difference - clients care that what they're getting isn't Putnam.



Like cars are for transportation and insurance protects the driver in the case of an accident. VA's are first investments & secondly investments with principal & income guarantees.



The way I'd do this is make an analogy to building a house.



Client - > Architect. The advisor is the architect & they help the client make the drawings for the house, but the architect doesn't actually build the house. The architect's skill is to help clients choose what they want their living experience to be like.



Architect -> General Contractor(where Morningstar is the GC). The GC doesn't build the house either. They maintain a network of subcontractors who do. They pick the best plumber, electrician, roofer, painter, etc for the job. They do the due diligence on each of the crews to make sure they are up to par & are in fact experts in their fields. You don't want a plumber doing an electricians job. They also follow up with the subcontractors work to ensure a quality product & work with the architect to honor the client's requests. Clients don't have the ability to do this on their own. They don't know who to trust, don't know how to value the work, and don't know when to fire an underperformer. This makes it easy for the client to have the house they want & the results are fantastic(talk about the 1st quartile results.)



Strong closing lines - Variable annuities create peace of mind because of the guarantees of principal & income they provide, but VA's have a critical weakness. We must remember that VA's are an investment & if the investment doesn't perform our clients will find themselves falling behind inflation & because of the contractual restrictions of the product, won't have the ability to change their minds. The rigor of Morningstar's process provides the returns & the peace of mind for the advisor & client to build the house - lifestyle - the client deserves.



Good luck!

Mar 17, 2008 7:57 pm
Ashland:

Jim - I've got to respectfully disagree with the others. While having Morningstar run it instead of Ibbotson(which is also Morningstar) or Thomson, or Russell or whoever doesn't make much difference - clients care that what they're getting isn't Putnam.

Like cars are for transportation and insurance protects the driver in the case of an accident. VA's are first investments & secondly investments with principal & income guarantees.

The way I'd do this is make an analogy to building a house.

Client - > Architect. The advisor is the architect & they help the client make the drawings for the house, but the architect doesn't actually build the house. The architect's skill is to help clients choose what they want their living experience to be like.

Architect -> General Contractor(where Morningstar is the GC). The GC doesn't build the house either. They maintain a network of subcontractors who do. They pick the best plumber, electrician, roofer, painter, etc for the job. They do the due diligence on each of the crews to make sure they are up to par & are in fact experts in their fields. You don't want a plumber doing an electricians job. They also follow up with the subcontractors work to ensure a quality product & work with the architect to honor the client's requests. Clients don't have the ability to do this on their own. They don't know who to trust, don't know how to value the work, and don't know when to fire an underperformer. This makes it easy for the client to have the house they want & the results are fantastic(talk about the 1st quartile results.)

Strong closing lines - Variable annuities create peace of mind because of the guarantees of principal & income they provide, but VA's have a critical weakness. We must remember that VA's are an investment & if the investment doesn't perform our clients will find themselves falling behind inflation & because of the contractual restrictions of the product, won't have the ability to change their minds. The rigor of Morningstar's process provides the returns & the peace of mind for the advisor & client to build the house - lifestyle - the client deserves.

Good luck!

 
Thanks Ashland! I really like your closing line, it's been very helpful, thank you for all your help buddy.
Mar 17, 2008 11:47 pm

Yeah, you're welcome.

Mar 18, 2008 7:48 am

The rigor of Morningstar's process provides the returns & the peace of mind for the advisor & client to build the house - lifestyle - the client deserves


The only problem with this line is that it's not true, it shouldn't be said, and compliance will kick your butt if they hear it.












 

Mar 18, 2008 8:10 am

Yeah - it's not true, but he's not a rep.