How to Sell Annuities to Fee-Based Advisors
A fee-based advisor such as a financial planner has a fiduciary responsibility to his client to recommend financial instruments that fit his client's risk profile and investment horizon. Annuities, which offer a fixed payment stream over their life, may work for a financial planner's client, but you must sell him on the idea and merits of including an annuity in his client's portfolio. The information that you provide to the advisor must be clear and concise.
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Instructions
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Locate fee-based advisors in your area. A good place to start is a local business directory. You may also use a trade organization such as the National Association of Insurance and Financial Advisors. Avoid advisors that work for a larger brokerage or financial services firm because chances are, the advisor already has access through his employer or third party to annuity-type products. Your focus should be independent fee-based advisors, which often go by the designation of financial planner. Some financial planners have designations such as chartered financial planner and chartered financial counselor.
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Gather a list of financial planners, segmenting them based on criteria of your choosing, such as location, years of experience or client base. Understanding the financial planner's client base allows you to tailor your sales approach. For instance, a financial planner with a large client base of near-retirees or older investors may be more apt to sell the idea of an annuity to his clients.
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Develop your sales pitch, providing information about yourself and the type of annuities you are licensed to sell, such as fixed and variable annuities. Your presentation should include reasons why annuities make sense for the financial planner's client. The pitch should provide figures such as investment returns, payments, time horizon and other pertinent financial information for an informed investor to make an investment decision. Because a financial planner earns his pay based on fees, you must work out a shared arrangement where the financial planner also benefits from a sale of an annuity to his client.
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Provide the financial planner with your contact details if she requires any additional information. Having a business card is a plus, as it speaks to your level of professionalism and dedication to your business. Follow up with financial planners who show an interest.
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Tips & Warnings
You should maintain an active database of financial planners categorizing them based on level of interest and other criteria you deem fit to grow your advisor clientele.
Unfortunately, a few bad apples have spoiled the bunch. Be prepared for rejection, as there may be a negative stigma surrounding annuity sales because of improprieties committed by some unscrupulous annuity salespeople. Don't be discouraged, though. It means that you must work that much harder to represent your credentials.
