The worst recruiting methods for independent broker-dealers are in the industry. They are focused on top independent brokers who want to sell their products. Learn why they are so obsessed with their products and how you can reverse this strategy.
These independent Broker-Dealer’s shy away from trying to recruit insurance producers who already hold a series 6 or 63 license. They believe those who are not contracted will find them. Wow! Wow! Their success in recruiting turns upside down.
Independent Broker-Dealer’s marketing and recruitment directors have little or no experience in recruiting. Insurance and financial publications are their first avenue to bringing in new producers. Full page ads allow them to promote their products and get name recognition from peers. Ineffective because there is not much inquiry interest from agents of quality vc-variable contact insurance,
Another method is to use a myth and not contact the insurance agents that they need. The great myth is that all of the valuable variable contract life agents have signed up with other independent or captive broker-dealers. Their logic says that any recruiting effort and expense would not prove profitable. It is possible to pursue agents without a current vc licence. These agents would have to be licensed by the NASD before they could write a case. It is difficult to convince an agent to get into new waters.
COMPETITION ISN’T GREAT
100 independent broker-dealers currently hold 90-95% market share. The top 50 independent brokers are actually more than 80%, according to me. If 900 representatives firms were to do some recruiting, it would still be less than 1,000. There are just slightly more than 15,000 brokerage and marketing firms that compete for semi-independent brokers and agents’ life, health and annuity business.
A SMALL PIE TO FIGHT.
Each year, around 1,500 wirehouse broker (not 15,000 nor 100,000) leave their wirehouse. About 1,200 of them join an independent broker dealer. These few brokers are worth a lot of money. Many independent broker-dealers offer cash incentives for joining their company. This is a stupid idea.
MISSING OPPORTUNITY
Never assume! Independent Broker-Dealers Assume. They assume that all variable contract agents licensed are taken. This is a bad assumption. It is a bad assumption to assume that the pool is full of Stockbrokers, Captive Agents, and other brokers-dealers licensed agents. I have found that they are correct about 40% about the number of eligible variable contract agents. My analysis and calculations show that 60% of these agents are still eligible for variable contract agents.
105,000 VC AGENTS STOCKLOOK
There are approximately 250,000 insurance brokers with variable contract licensure qualifications. These could be considered independent or semi-independent brokers. After subtracting the 100,000 independent broker-dealers, there are 150,000. Nearly half of the 150,000 agents are semi-independent with a company connection. My calculations show that more than 20% will become completely independent within the next 24 month. This totals to 30,000. Add to that the 75,000 independent agents currently operating without broker-dealer affiliation and you have 105,000 production independent candidates. This also means that 105,000 agents are not using their variable licensures.
15,000 DISCONTENT VICE AGENTS
It’s time to be realistic. Not all of the 100,000 current insurance agents are happy. While some agents aren’t producing vc business right now, others will in the next 12 month be looking for new opportunities. This is how you get the 130,000 figure. This is more than half of the base possible! !
Head hunters are hired by independent broker-dealers to find these four groups. Low Range production brokers can sell many insurance products. They are capable of selling up to $99,000. Because the compliance risk is significantly reduced, they are very profitable and have a wide profit margin. A low compliance risk is also offered by production brokers, which can range from $100,000 to $299,000 in the United States. These brokers are often on the rise, but not all firms want to spend the extra time and training required for these brokers. The highest level of competition is at the production level, which can range from $300,000. to 749,000. Compliance risks are minimal even at this level. Broker-dealers make up the difference in volume for what they lose in profit spread. $750,000%2B production broker can practically call their shots. Although they are great for their “image”, the quality of service and technology provided must be top-notch.
PROVEN CAPTURE TECHNIQUE
Don’t rely too heavily on financial magazine advertisements. They may not be inspired enough by the advertisements, don’t read them, or don’t subscribe to the magazines. You should only find a targeted list of insurance agents that is composed entirely of licensed variable contract agents. You can do five times more and get a specialized list that is almost exclusively composed of semi-independent brokers and agents with variable contract licenses. This list should be mailed at least twice. You are selling huge investment products, but you don’t know how to market or recruit ready-made producers.
Your results are just plain terrible. You have no excuses. Either you believe me, check my numbers, or continue to get dismal results.