As I travel around the country on business, I enjoy talking with advisors from different channels – banks, broker-dealers, independent agents, registered investment advisors. Regardless of business model or channel, one consistent topic always comes up:
“I need to find more clients. Can you help me with a seminar or dinner so I can find new clients?”
But, I like to think of the question in a different way and ask:
“Are you interested in finding more clients? Or more revenue for your practice?”
Usually, the answer is revenue. But advisors tend to think that new clients are the source of new sales and revenue. Which is partly true. However, there’s a goldmine of existing opportunities with your existing clients.
According to LIMRA’s 2016 Fact Book (its most recent edition), there are $486 billion of assets in nonqualified annuities – both variable and fixed – on carriers’ books right now. Some facts to consider:
To make a difference with the people you’re already working with, I suggest that you dig deeper. Look at those older contracts and find a better use than just tax-deferred accumulation. Here are three suggestions:
I think if you were to talk to your prospective clients about these ideas, they would find more benefit to working with you. You might even speed up the sales process. More importantly, you provide a valuable benefit for those clients.
Dig deep into your client base. Ask more questions about assets held outside of your firm. Provide solutions that defer taxes and put your clients and their beneficiaries first.
Mike McGlothlin is a tireless advocate for the retirement planning industry. As executive vice president of retirement at Ash Brokerage, he heads a team providing income planning solutions focused on longevity and efficiency. He’s also a thought leader who provides guidance and assistance for advisors and broker-dealers navigating marketplace and regulatory changes. You can find a collection of his blog posts in his book, “Above the Clouds … Winning Strategies from 30,000 Feet.”
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