A lot of agents out in the field ask us about Michael's annuity production, and more specifically how he does it. In 2018, his annuity production was $2,830,000 dollars. So far this year – halfway through 2019 – his annuity production is over $3 million.
So... how does he do it?
Transcript:
A lot of agents out in the field ask me about annuities, because I’ve had a lot of success with them. In 2018, my annuity production was $2,830,000. So far this year – halfway through 2019 – my annuity production is over $3M.
Some ask me what my secret is, and honestly it’s two things:
- It’s asking the right questions, and
- being comfortable talking about money.
I used to be afraid of the rules and screwing something up, and it got the point where I just educated myself on it, and the more I do it, the more I’m like “Oh my gosh, I’m doing my client a disservice by not bringing it up.”
The biggest intimidation factor for agents not currently offering annuities is bringing up the conversation. I always start with Question number 9 on the Client Needs Assessment by asking if they’re satisfied with the present rate of return on their investments.
Most of the time, people will say “Yes, I’m satisfied.” It’s natural to be guarded, but I just want to know if they have any investments. Then, I want to find out if the money is in the bank or the stock market.
Generally, if it’s in the bank, they’re too scared of the risk of the stock market. And if it’s in the market, they don’t want to earn nothing in the bank. We have a happy medium, and when a client realizes that this is an option, they’re pleasantly surprised.
I have to put a tremendous emphasis on the fact that educating the client is the most important part of the entire presentation. You especially want to point out the different types of annuities. The word annuity has a bad reputation from negative press about variable annuities, which is not the type of annuity we recommend.
I don’t even use the word annuity in my presentation until the client has had the opportunity to hear all of the features of the product. I first explain that they still have access to the money, it’s safe, the interest is guaranteed, and there are no fees.
Most of the time, the larger annuity sales are going to come from retirement accounts. My largest annuity to date was an $850,000 401k. Believe it or not, it started with a free Part D comparison.
People with retirement accounts know they need to do something with that money and they just aren’t sure where to put it. There’s a sense of relief when you’re doing their Medicare Supplement or Part D and they realize you can take care of that, too.
Ultimately, when you relay the facts and educate your client, there is no sales pitch. They can feel the passion in your presentation, and that builds your credibility.
I hope this insight into my own process helps. If you’re interested in additional training, please ask us about our All-Star Training Program, and if you’re interested in getting contracted to sell annuities, reach out to us and ask for Ginny Dunker. Thank you.
