For the first time since I came to work here nearly 12 years ago, I have the privilege of writing this month’s newsletter article.
My business partner and father-in-law, Tipton W. Huffman (TWH), is moving his work focus more toward the securities business and the assets he manages for clients. This will afford him a bit more free time to expand his retirement interests, like; traveling, golf, and spending time with family. But, he will still be an integral part of TWH Annuities, so please continue to utilize his knowledge and skills when you have a need for something annuity related.
How to Start Off the New Year Right
Here are some tips we know have been effective for some of our top producers. Try these to get your sales year off to a great start.
Tip#1: Give them an advance notice about their annual account reviews. Just a note that says something like, “Happy New Year John & Sally. This is just a reminder that we will need to meet in March to review your policies well in advance of their contract anniversaries. I will follow up with you next week to set a tentative date we can put on our calendars. Talk to you soon, Greg.”
This is not only a great way to refresh your clients’ memories about you, it also gets them thinking about their investments, and taxes, and retirement, etc., but it also helps YOU to start planning out your annual review meetings. Annual reviews are absolutely crucial for two main reasons. First; 20% of annual review meetings lead to more sales. It is simply natural that the client is looking at the marvelous performance of the annuity—or other asset—that you sold them, and they start to think about other funds that they would like to move as well. Or, they refer you to a friend, neighbor, or family member. Second; it keeps you in your clients’ minds as THEIR financial professional. Studies show that 50% of people who buy an annuity will buy another one…and 75% of those will be sold by a different agent than the one that sold the first annuity. We need to get back in front of our clients at least once each year, and the annual review is the perfect way to make it happen.
So, get started right now and plan out your annual reviews for the entire year. You will be surprised what a difference this makes. I promise!
Tip#2: It’s tax time, so take advantage of it. Every client is starting to think about tax time again, and wondering if they have all of their ducks in a row with the IRS. In the very near future they will be reviewing all of their investments, assets, and income sources, and they will focus heavily on the tax impact of each. This is where annuities and life insurance investments REALLY shine in comparison to taxable growth assets. Use this to your advantage with existing clients and reach out to them to see if they have any other taxable accounts they would like to get off of next year’s taxes. And, with potential new clients, simply ask them if they would like to eliminate losses and annual taxation from their investable assets. But you must strike while the iron is hot. Start right now with a preliminary contact, and then follow up two or three times as tax time gets closer. Agents that do this usually see sales from 15% to 30% of those they approach and follow up with.