$20,000 Average Commission for Annuity Salesperson

I have said on this blog that the Wealth Management Industry want a slice of the $40B they believe we Baby Boomers have. We will become their primary source of income if we don’t watch out.

Once again I will qualify this by saying that not all wealth managerFoxnChickenBdrs are like this.

It’s still a Free Country though and so Baby Boomers can still say ‘No’ to the expensive hyped-up investments they sell. However their marketing machine is built on fear and greed and they play on our fear and greed with their sales pitches not only to us but to people they want to recruit to sell their products.

The Tsunami of Wealth Mangers wanting to help us invest our Nest Egg in Retirement has begun. The first wave is to recruit an army of sales people attracted by greed and teach them how to put fear in Seniors and Baby Boomers so they will hand over their money to them for “investing”.

I came across this one Prospect to Profits whilst researching this post.

This is what the sales page is telling prospective annuity/insurance sales people.

  • Increase Your Average Commission to over $20,000 per client.
  • Use Highly Responsive Postcards and Free Reports on Seniors who never attend Seminars.
  • Don’t waste time increasing the number of clients, but increase your average commission.
  • How to get prospects begging him to put money into fixed annuities.
  • How to make REAL money.
  • You will have more equity index annuity sales and insurance leads than you can imagine.
  • These ingenious marketing ideas have been successfully tested in a rural area in the Deep South.
  • You can earn 8% Commission – that’s $80,000 on a $1,000,000 sale.

Right now with all the uncertainty in the stock market and the credit crunch I’m sure Seniors and Baby Boomers are very worried about having enough money to last them. So using that fear and despite the negative view of annuities they may be an easy target.

I actually believe there is a place for annuities in a retirement portfolio in some circumstances. But at no stage does this sales page mention anything about providing a service to the client and making sure that annuities are right for them. No wonder annuities have a bad name.

In contrast Glenn Daily of Glendaily.com is someone that seems to take a responsible approach to Annuities and as far as I can tell wants to be of service to his clients – not rip them off. Glenn Daily is a fee-only consultant. The site is full of good information and is well worth a visit.

He has several publications on a range of topics that are well worth reading too. I’d recommend downloading Annuities: Beyond the Sales Pitch and reading it to put annuities in focus. Knowledge is the key to knowing if they are for you.

One Response to “$20,000 Average Commission for Annuity Salesperson”

  1. […] SEC is getting involved because all is not what it seems with these annuities. High fees and commissions, complex ways of calculating returns, and pre-set caps to limit returns are some of the […]

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