In today’s competitive business world, how can annuity producers build their book of business?
To answer this important question, Jim Komoszewski, vice president of strategic business consulting for National Planning Holdings, offered expert practice management advice: “Position yourself as the client’s primary financial advisor.”
This seemingly simple tip is worth repeating because as powerful insight: A $1 million dollar client can have $5 million in total assets, and as the client relies more and more upon their primary advisor, the assets will follow. And the best way to do this is by educating your clients’ and prospects’ existing advisors about the benefits of annuities, both for the consumer and your partner.
Steps to success
Komoszewski outlined concrete steps for becoming the primary advisor, which is really an umbrella category that serves different client needs. For one, he encourages producers to think “outside the portfolio.” There are many ways to do this – defined contribution plans, for example, allow participants to withdraw assets early without penalty.
Client surveys are also often overlooked, yet can identify opportunities for the advisor to address the client’s underserved needs. For instance, surveys may reveal such assets the insurance advisor wasn’t aware of, such as variable annuities. Another effective positioning technique is offering to provide consolidated reporting for clients.
When you become your client’s primary advisor using these types of strategies, it will ultimately do more than increase business – it will benefit clients. An advisor who understands the entire portfolio will be the one who can make the most informed asset allocation decisions.
Products that protect
Another area where advisors can expand their reach is in educating clients about insured income products.