Successful Annuity Selling by Becoming a Barber

Have you ever considered the experience in getting a haircut to the marketing of annuities? They are very similar in the process.

Many agents call me and want me to help a specific case with all sorts of contingency issues. The agent wants to make the sale and if he could get some help on a certain point then the prospect will surely buy. Generally this is a situation where the issues are not as clear and the agent thinks. My experience has shown that resistance to buying is based on one thing?a lousy fact finder.

When I encounter this issue in my own practice and a prospect I think should buy will not then I just use the ?barber syndrome.?

NEXT!

It is so much easier to move on to another sales situation than to beat a dead horse to death. Put your energies to work in marketing and finding new prospects than worrying about one prospect. If they haven?t bought after you presented the solution developed in the fact finder?they are never going to buy from you.

The idea of firing the prospect and moving to the next one is totally liberating. It puts you as the salesperson in control and makes the business model work so much better. Our products are not for everyone and our prospects situation can never be put into a prefabricated mold. By retaining control over who you do business with gives you an attitude of control and professionalism. Do not be afraid to fire a prospect and move on. There is always someone else to see and someone else to tell our story too.

Next!

Bill Broich is a 30 year annuity salesman who helps agents generate annuity leads. Visit his website to learn more - Annuity.com

A Professional Buyer of Structured Settlement Payments Can Pay You The Most For Your Annuity

A reputable, qualified buyer of structured settlement payments can offer you top dollar for your annuity. Taking several factors into account, he or she will come up with a fair value for your settlement, often referred to as a "note". You can then decide which of several options works best for your particular financial situation.

Structured settlements are set up as a resolution to an injury claim, whereby the victim receives a set monthly payment in the form of a tax-free annuity as compensation. The arrangement usually favors both parties, as the victim gets money every month to cover the costs of medications, rehabilitation and other bills and the defendant, or payor, issues easy to swallow smaller monthly installments rather than a large sum of money up front.

However, many people decide to look for a structured settlement buyer rather than opt to receive small monthly payments. Although it's nice to have an ongoing stream of income, you may want or need to have a large some of money for a new investment, a large purchase or to pay off a high interest debt.

In this case, selling your note makes a lot of financial sense, and a reputable buyer of structured settlement payments will be able to provide the cash you need, usually within a couple of weeks. It is a fast and easy way to get your hands on a lump sum of money, especially compared to getting a loan from your bank or another financial institution.

How much will a structured settlement buyer pay you for your note?

That's a good question. It will depend on a variety of factors: the balance on the annuity, the time left before it is paid off, timeliness of payments to date, stability of the payor, and various other criteria. Remember, the buyer of structured settlement payments is assuming a risk by purchasing your note, so it has to make sense for them financially to do so.

To ensure that you receive top dollar try to have all of your paperwork in order, and keep careful records of everything that has transpired since the annuity was set up. This will be very helpful to the structured settlement buyer, and enable them to come up with a fair and competitive quote.

Also, keep in mind you can sell just a portion of the annuity; you don't have to sell the entire thing. So if you only need a certain amount of cash, you can sell "x" number of months of payments and retain the annuity after that time period. An experienced buyer of structured settlement payments will outline all of your available options so that you can make the right decision.

Jamie has been working in the finance industry for many years and is a contributing editor to Selling Your Notes. Find a top structured settlement buyer and find more information on seller financing on our site.

Ramp Up Annuity Sales Using Secret Tool

Lots of annuity sales with this Tool. Most of our competitors hammer us and our prospects about the surrender penalties in annuities.

7 years, 10 years, 17 years - YIKES!

I look at it differently. I love surrender penalties because they provide me with lots of future prospects and clients. How can that be?

It is the exclusion ratio. The exclusion ratio has made more annuity sales for me that anything I can ever think of. The exclusion ratio is a benefit we should all make certain our clients and prospects are aware of. Explain it this way:

If you convert accumulated funds in an annuity to an income stream you can access the exclusion ratio. The exclusion ratio is the percentage of income that is excluded from tax liability.

I like this example

? A $50,000 deposit has grown to a value of $100,000.

If the annuitant takes any funds from this account it is 100% taxable at ordinary income tax rates.

In our example let?s pretend that the annuitant selects a 10 year payout and we will round off the calculations for the sake of illustration.

? $100,000 will provide an annual payment of $10,000 for 10 years.
? $5,000 basis and not taxable, $5,000 interest and taxable.

The $5,000 basis is the exclusion ratio.

Because we have accessed the exclusion ratio we can ?spread out? the tax liability over the selected time period which in our example is 10 years. This means that only 50% of the income received is taxable. By spreading out the payment we have spread out the tax liability!

An annual payment of $10,000 will only have 50% tax liability. Mrs. Prospect, this allows you to completely manage your annual tax liability and to take advantage of the ?Exclusion Ratio.? How about selling the exclusion ratio to the client for the beneficiary?

Mrs. Prospect did you know that when your daughter receives these funds as your beneficiary she can also access the exclusion ratio??

Your beneficiary can accept the funds out over a fixed period of time and spread the tax liability over the payout period.

When a prospect asks me about surrender period I always say this:

?Mrs. Prospect, you cannot enjoy the benefits of this contract unless you allow the insurance company to hold your funds. There are many benefits you can enjoy with this product, have you ever heard of the exclusion ratio??

I use the power of the contract and the exclusion ratio to explain the need for surrender period. Easy to explain and makes for very happy clients. This is especially good when someone comes to me with an existing annuity. Often times they are not happy and did not understand the time period for the surrender penalties. I would say this..

?Mrs. Prospect, unfortunately your agent did not really understand your contract well enough. It is really not his fault; he probably did not have access to the training that I have had. Let me explain a terrific benefit of your contract, the exclusion ratio.?

Once I am able to explain this powerful benefit it is easy to sell another annuity to her. The benefits of the contact sell the annuity for me.

Bill Broich is a 30 year annuity salesman who helps agents increase their annuity sales. Visit his website to learn more. Annuity.com.

The Other Problem with the Equity Indexed Annuity

Okay, so here is the other problem with the index annuity. Many agents try to sell it as the 'answer to all problems.' The fact of the matter is, it is not that at all. An indexed annuity is designed to have the potential to capture a little more upside than a traditional fixed annuity can.

Again, many agents claim it is a way to beat the markets...they will severely underperform in a good bull market. Furthermore, they are not designed to capture all the upside. They are designed to give a lower floor and a higher ceiling than traditional fixed annuities. They are by no means a stock market alternative.

So the bottom line is that the equity indexed annuity can be something desinged particularly to fit in someone's portfolio. It has advantages that other annuities cannot offer. It gives the protection of a fixed annuity. And it gives a little more upside than traditional safety vehicles.

All in all, it can be a good thing but it depends on an investor's situation. For someone looking for all the upside and who doesn't care about taking risk and losing money, the index annuity is far from the right choice. For someone who has a small risk tolerance but cares to have a little more upside potential, it can be a good choice.

The most important thing is to understand, any investment is part of a bigger equation. That is the bottom line. And furthermore, research is key. It is important to know what you are getting into. The further side of the spectrum is agents saying that EIA's are a scam. Those guys just don't understand how the EIA works.

Ignorance is Not Bliss.Tony Bahu is a licensed annuity agent who has helped many men and women own the annuity that is right for them and their family.