What Should I Look For When I Choose a Wholesale Fixed Annuity Brokerage Company? Marketing Tips Part Two
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The first question you need to ask yourself is “Why do I need to use a Wholesale Fixed Annuity Brokerage Company?”
Well, you actually don’t necessarily need to work with an FMO. Some carriers will work directly with the Agents and Brokers. Most don’t.
Obviously, those of you who are regular readers of this blog know that I am a Fixed Annuity Marketing Specialist and work for a Wholesale Fixed Annuity Brokerage Organization. If you want to know more about me you can check out my About Me page. This is just one of the reasons that I encourage Insurance Agents and Brokers to work with FMO’s. I equate using an FMO to using a Real Estate agent when looking for a home. I can best explain this by telling you a quick story.
Looking for our first home, my husband and I had been using a Real Estate agent for about a year. We ended up finding our first home through a friend of a friend without an agents involvement. We did feel bad about all the work our original agent had done but we were happy about the savings on the commission that we would have by going direct through the homeowner. To make a long story short, the transaction was a nightmare. We depended on our RE lawyer to guide us–guess what? Not his job. I spent hours researching closings on the Internet, our mortgage broker gave us bad advice and we ended up dishing out more money then we would have if we had just let the RE agent do her job.
I learned a lesson. It’s pretty simple. Strengthen your strengths. Hire your weaknesses. Translated…know your insurance business, know it well. Know your clients, know them well. “Hire” an FMO to know annuities and know them well so that they can make you shine for your clients. (the “hire” part is via the commissions earned by the FMO not paid out of pocket by you)
Here are some 7 Tips that I would suggest you look for when you choose an FMO or a Wholesale Fixed Annuity Brokerage Company:
1. Ask questions. You want to work with an organization or individual that is a good fit for you personally. You want to work with like minded people so that you can maintain your own credibility and peace of mind. Keep in mind, building relationships with your clients is priority but building relationships with those that help you achieve success is important also.
2. Don’t be afraid to ask for references. Ask to speak to successful annuity agents that can verify the information that you were given. It is important, if you chose to ask for references, that you remember that relationships are individual. Take the information you receive into consideration but the final determining factor is the relationship you have with the marketer. Trust is earned.
3. Does the organization assign a ‘one on one’ contact person. Having a ‘point person’ or a ‘go-to’ person that can supply you with the support and product information that you need to satisfy the needs of your clients leads to consistency, trust and success. I find that having a ‘one on one’ relationship with an agent helps me to know their style and anticipate their needs. The more I get to know the agent, the better I can service them and respond to their needs. Personally, I ask a lot of questions about the agent’s business so I know that I can provide the best quality service I can.
4. Does the FMO provide you with marketing materials and free leads? This is a criteria that I find questionable but I know it is important to some agents. I will clarify my position. We DO NOT promote a marketing program nor do we provide free leads. Some FMO’s do. Take it for what it is worth. “Free” doesn’t always mean good. Marketing programs should be something that fits an agent’s personal philosophies. Developing a marketing strategy that focuses on developing relationships and a know-like-trust often takes more that information on a CD can provide. If “free leads” and marketing programs are what you need, there certainly are FMO’s out there that provide them. You may want to choose who you work with according to a complete package and quality service not just what you get for free.
5. Does the FMO have additional support tools and resources that are easily accessible to help facilitate smooth transactions? As an example, we provide online access to calculators, rates quotes, forms engines, etc. so an agent can have everything he or she needs via email before they hang up the phone. Also, information can be obtained independently after an agent signs up for secured access. Check out the websites of various different FMOs to determine how much information is automated and easily accessible the information is. Remember, you do business with a real person, not just their website so use this a just one point of consideration.
6. Where does the service end? This is something that I have found to be one of the biggest determining factors in choosing an FMO. Many agents find that once the information is out, they are contracted and the transactions are completed the service stops there until the next transaction. If your relationship with your client stopped after the first product they bought would you have an opportunity to present additional products to that client? Probable not. Relationship building is about follow through. Dotting the ‘i’s’ and crossing the ‘t’s’. Does the organization provide any back office type support to verify paperwork has been completed, commissions received, etc? A good question to ask directly or to a reference.
7. Is the FMO independent? You want to check if the group work directly for a particular carrier or a variety of carriers. Ultimately you want to be able to provide your client with the best product for them so you want to be able to have choices. An FMO that represents just one carrier may not be able to provide you with that opportunity.
The bottom line is that relationships are built on mutual respect and the KLT Factor. Your success is our success and visa versa ultimately resulting in a satisfied consumer. Client retention and referrals are just a benefit from providing quality service.
The Annuity Shoppe is a truly independent fixed annuity marketing organization dedicated to quality service and building long lasting relationships. We are a “on stop shop” for fixed annuity products. Check us out as you review and explore different FMOs to work and feel free to sign up for our free tools, resources and newsletter!
Stop back in the next day or so for Part 3 of our 5 Part Marketing Fixed Annuities Series.
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