Annuity Brokerage, is it Worth It?

Anyone who is lucky enough to have extra cash would love to see that money grow rapidly until it doubles, triples or even triples. It is worth the effort of annuity marketing firms or agents to try to convince clients to invest. There are both pitfalls as well as rewards.

Competition: ANNUITY VS OTHER INVESTORS Today’s prospect has many options for financial investments to choose from. Bank CDs are certificates of deposits, stocks, mutual funds, bonds, life insurance value building policies, and stock options. It is almost impossible to determine the exact amount of risk that the client must accept in order to realize the potential gains. This is especially true now when the national economy can swing in any direction.

Competition: ANNUITY SELLER VS ANNUITY SELLERInsurance agencies sell annuities and many other variations of annuity agreements. Clients with larger accounts are mildly urged by banks to consider annuities. One to more than 13,000 representatives can push annuity products, while also looking at the client’s future. Everyone who calls themselves a financial planner is also a financial planner. The biggest competition are annuity companies. Annuity sellers are often unaware that insurance companies sell more annuities directly than all other annuity sellers.

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As a career agent, I was constantly pressured to explain all the reasons my clients should buy annuities. As a belief career agent, I received a $1500 IRA premium after presenting numerous times. I received a staggering $45.00 total commission.

Is selling an annuity plan worth it to an agent? The answer depends on the size of the annuity. If the commission on each sale is between $45.00 and $60.00, a sales rep can’t survive by selling annuities to clients. If the financial needs of an existing customer were examined and the annuity purchase was at least $25,000 the answer would be different. If the commission was 4%, the payout to career agents would be increased to $1,000.

Annuity Brokerage: There are many Annuity Brokerage Companies, Annuity Wholesalers and Annuity Specialty Marketing Businesses that can benefit semi-independent brokers and agents. Check out the differences if the same sales rep had contracted with one of these companies. The compensation ranges from 6% to 10%. A $1,500 to $2,500 commission is paid to an insurance representative for selling an identical annuity contract. A significant difference. It is advantageous to use annuity brokerage services because you are likely to sell annuities.

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Sign Annuity marketer sign Take a look at all the different types of annuity, life, and health insurance brokerage types. These products are more difficult for recruiters and marketers to get enough product than any other. This is a large margin. They must be recognized as the King annuity marketer. They are constantly recruiting brokers to sell an assortment of annuity products. Here are some other reasons small brokers should think twice before trying to compete.

King Annuity Marketers It is rare to find an army-sized group of king-annuity-marketing companies. In reality, less than 50 dominate the national market during any 6-month period. Insurance companies are looking for them because of their large production capacities. To get the king bee’s production, you may need to spend a lot of money and honey. They wisely give out more lucrative contracts to greedy brokers because their total points (commission percentages) are higher than others. Annuity brokerage is offered to most of the major insurance companies. The insurer will pay for full-page financial magazine and insurance magazine ads in full color promoting hot annuities. They are also rewarded with co-op recruitment funds in either 50/50 or full compensation by the insurer.

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Notice to insurance brokers with Integrity This is a secret, hush-hush look behind the scenes. Annuities can be marketed as being fiery hot and top-notch. But are they really that fiery hot? It doesn’t make something true. Wonder why jumbo annuity marketing companies promote only one plan so strongly? GREED. Both the insurance company and the marketing agency share the blame. Some annuities are designed so that both the insurer and marketer receive higher cash rewards. Brokers are not aware of this. The record companies were once accused of “payola”, which is a very similar concept to pay to play.

These firms may be able to offer you a better product. These annuities are often reliable and have a better track record than the top 50. A professional sales representative sells the client annuities that are backed by the company they endorse. Annuity brokers need to be careful about their clients and themselves. For a career as a life insurance agent, the company may be the winner in the short and long term. Annuity marketing tip – Annuity products get a lower response rate than other insurance products from potential agents and brokers. You can lure brokers into your annuity program by introducing them to other plans.

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