Prospecting idea

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Nov 12, 2006 4:30 pm

I have a friend who only sells cash value UL product.  He is not even securities licensed. All he does is invite people to lunch, drinks, BBQs, networking functions, clubs, and coffee shops.  All he does is ask them have they considered saving money in a life insurance product.  Half of the become clients.  He doesn't do a fact finder.  Clients tell him how much they can save per month in a UL after he shows them the advantages.  Interesting is that he sells about 6 or 7 UL products a month bringing in a decent chunk of change. It's interesting meeting agents who do so well with one product.  I've seen others who just do LTC and they bank it as much as registered reps.  Interesting that not everyone cares to be a one stop shop for all the products out there.

Nov 12, 2006 4:43 pm

Yep. 90% of my business is variable annuities. Gives me laser focus. When I quit trying to be everything to all people my income went up dramatically.

Nov 12, 2006 6:06 pm

If I was  only as good as my buddy selling one thing, my practice would be much more simplified.

Nov 12, 2006 6:49 pm
My Inner Child:

Yep. 90% of my business is variable annuities. Gives me laser focus. When I quit trying to be everything to all people my income went up dramatically.





Your soon to be a target of our friends at the NASD, selling one product in the securities business is a no no.

Nov 12, 2006 9:17 pm
JimmytheRocker:

I have a friend who only sells cash value UL product.  He is not even securities licensed. All he does is invite people to lunch, drinks, BBQs, networking functions, clubs, and coffee shops.  All he does is ask them have they considered saving money in a life insurance product.  Half of the become clients.  He doesn't do a fact finder.  Clients tell him how much they can save per month in a UL after he shows them the advantages.  Interesting is that he sells about 6 or 7 UL products a month bringing in a decent chunk of change. It's interesting meeting agents who do so well with one product.  I've seen others who just do LTC and they bank it as much as registered reps.  Interesting that not everyone cares to be a one stop shop for all the products out there.



Do tell, then, what ARE the advantages?

Nov 12, 2006 10:35 pm

Your soon to be a target of our friends at the NASD, selling one product in the securities business is a no no.


It's not an issue at all.   The standard in securities sales is suitability.  As long he doesn't sell an unsuitable product, he's fine.  Registered reps are paid to sell.  They are not paid to sell the best product for the client.  They simply have to sell suitable products. 


Whole life insurance is a great long term savings vehicle.   UL blows for long term savings and it blows as a long term insurance vehicle.

Nov 14, 2006 8:50 pm

Inner Child



What do you tell your clients that come to you with literature about all the negatives on VAs?

Nov 14, 2006 10:19 pm
rook4123:

Inner Child

What do you tell your clients that come to you with literature about all the negatives on VAs?


It's never happened.

Nov 15, 2006 8:26 pm
anonymous:

Your soon to be a target of our friends at the NASD, selling one product in the securities business is a no no.



It's not an issue at all. The standard in securities sales is suitability. As long he doesn't sell an unsuitable product, he's fine. Registered reps are paid to sell. They are not paid to sell the best product for the client. They simply have to sell suitable products.



Whole life insurance is a great long term savings vehicle. UL blows for long term savings and it blows as a long term insurance vehicle.







You all have it wrong...UL policies are not registered w/the NASD. It is not a securities product. Your typical car insurance agent that has a life policy can sell those suckers just like those throw your money in a Hole Life Polices. Sell away...NASD has no jurisdiction over them.

Nov 15, 2006 8:28 pm

I still find the idea of selling only one type of investment or insurance product intriguing.

Nov 15, 2006 8:38 pm

Negative information on VA's is rampant here. Not saying that you are
b/c I would never dream that you do, but so many people are getting
screwed over in my town or I should say have been screwed over here
that very little CPAs endorse it and only the little
insurance/investment guys here mess with them b/c they are only getting
20k accounts, and I consider them product specialist. They probably
have 5mm AUM and produce 300k, no joke. The other firms here like Ray
Jay and Smith Barney practice what I call "yield to broker." They stick
there client in a managed account with C shares, getting 300bps. What I
would like to know is how many brokers use breakpoints?

Nov 16, 2006 11:18 am

Rook,


I don't like to stick up for the practices of a wirehouse, and I don't specifically know how RJ and SB managed accounts are structured but a lot of BDs refund the 12b-1s back into the clients funds.  If A-shares are used in the MA then they are being sold at NAV.  I've talked to a lot of FAs that don't sell managed accounts that assume the client is getting screwed without knowing the facts.


In response to breakpoints, I have to believe most everyone is using them if the assets are held in house (again, the BDs have to police this or risk fines).  If the assets are held somewhere else, well I'm sure many FAs claim ignorance. 

Nov 16, 2006 11:24 am

"The other firms here like Ray Jay and Smith Barney practice what I call "yield to broker." They stick there client in a managed account with C shares, getting 300bps."


Why dont you try getting to know the business before you run your mouth. You cant put C shares in a managed, advisory account. More like A shares at NAV in a MF Wrap program.


Now Fiduciary Services or a Separately Managed Account program charging 3% is common.


Just get the facts straight when you are trashing the competition.

Nov 16, 2006 9:33 pm

I didn't feel like I was trashing the competition, but I don't care one
way or the other. Point taken, I intend on learning the business
better. As, for running my mouth, I didn't. I just typed.