Nearly all great ideas are rooted in simplicity, not complexity. As such, you may find it interesting that so few annuity agents look upon property and casualty (P&C) agents as centers of influence who can help them make more sales more easily -- however, in fact, as far as annuity lead generators go, such agents may be, hands down, your best bet for building your book.
P&C agents tend to enjoy unique client relationships, which should put them at the top of your list of partners. So why don't more producers tap into this relationship? Annuity wholesalers have, for a long time, been asked that very question -- and generally give the same answer again and again -- while they do see the potential in such a partnership, and although they may have tried to tap into this enormous market in the past, for the most part, their efforts have been fruitless. Nearly all of them say that, for whatever reason, the vast majority of P&C agents either won't or can't help them sell annuities.
The opposite, however, is true. Of course P&C agents can help you sell annuities. After all, the most successful of those agents are running profitable operations, which requires sales skills, organizational, and management skills. Add to this the tremendous amount of competition they face in the P&C industry, and you're left with the realization that their sales skills are often at least equal to, if not better than, those of an annuity agent.
So just how can you tap into the vast quantity of qualified prospects locked behind those P&C office doors? Like most things in this industry, the answer is easier said than done, but it is, nonetheless, simple: You do what you do best (sell) and pay the P&C agents a portion of your proceeds for their assistance. The key here is to make it both easy and advantageous for P&C agents to partner with you in the annuity sales process.
There are two parts to this equation.The first is the P&C agent who is bringing their clients and their reputation to the table. As such, they are putting their relationship with those clients on the line by handing them to you. The second part is your professionalism and expertise in the annuity field and your willingness to reward your P&C partner with products that will benefit their clients while putting money into their pocket.
Beginning the relationship
The first thing you need to remember is that smaller is better. The relationship between an annuity and a P&C agent tends to work better, at least initially, when you deal with independent agents.
There are numerous reasons for this. One is that independent agents can benefit the most because they compete with agents who represent large, nationally known companies with extended product lines. The second is that the larger the P&C company that employs these agents, the less likely it is that they will be able and willing to dedicate the time and resources to join up with you.
On the other hand, you can offer the independent P&C agent a huge advantage with your access to a more diversified product line than they are currently offering. For the most part, those P&C agents who sell through a large firm are often restricted to selling that company's proprietary products.
Having said that, it is important to remember that although we all like offering a wide variety of products, it is typically better to limit the number of products you offer your P&C agents' clients. It's also helpful to keep in mind that you cannot be too conservative with your products. This doesn't mean that you should carry every product by every company, but you should offer the top two or three most competitive products in their respective areas.
Garner more clients
One of the best ways to market to the clients of a P&C agent is by hosting a small seminar where you present your offerings to those prospects your partner advisor has identified as having the resources to purchase your products and who are also retired or nearing that phase of their life. You can then follow up with individual client appointments at the P&C agent's office. You may also want to offer a very short and simple prospect profile sheet, which can yield much better results than long and often invasive fact-finders.
As you learn this business, you'll find that opportunities will soon arise in larger regional agencies. You should first, however, develop a base of independent agents in rural areas with whom you can work and hone your skills. Remember: There are people in these small towns who own businesses, and, generally speaking, the independent P&C agent has been there for many years and is a highly visible and respected member of the community. Adding a P&C partner to your marketing and prospecting roster, therefore, can yield great results in addition to your other techniques.
Jonathan Neal is the senior partner at CCG-Capital Consulting Group LLC, an Atlanta, GA-based sales and training consulting company. He can be reached at jneal@ccgcap.com.
