What if you could isolate the people most likely to buy an annuity?
You can. Research by Gallup done for the Committee of Annuity Insurers isolates the best annuity leads by detailing which prospects are most likely to buy annuities.
Here are three findings of the research which can help you focus on the right annuity prospects:
Retention of First Annuity.
Almost all non-qualified annuity owners (88%) still own the first annuity they purchased. This means that many people have old annuities with old features and possibly under market interest rates. There is a huge pool of existing annuity owners for whom you may be able to do much better. These annuity leads already know how annuities work and are locked in to their current annuity or doing an exchange because they won't want to pay the tax. The way you find existing annuity owners is by running an ad that attracts them. We run an ad for an annuity booklet called "Annuity Owner Mistakes." Obviously, the person who would order such a booklet is an annuity owner! Marketing in this way produces annuity leads that are the perfect target market. (Before recommending an exchange, please be sure that the annuity owner will be better off and that you make all disclosures for an annuity exchange).
The average age of non-qualified annuity owners is 66.
Non-qualified annuity owners are more likely to be female than male (56% vs. 44%). So if you were buying a list, your best list that would encompass the best annuity leads would be a list of females between age 60 and 70. Gallup has already done the research so it's easy to target the market that is most likely to own annuities based on their work.
Non-qualified annuity owners have moderate incomes.
Two-thirds (66%) have annual household incomes below $75,000. Only 18% have annual household incomes of $100,000 or more. This tells us that the best annuity leads are not rich people and that you don't want to build your business based on selling $1 million dollar annuities. You will do better with an annuity marketing strategy to sell a lot of annuities ranging in value from $50,000 to $200,000 as your buyers are middle income people.
While too many annuity agents don't focus their marketing efforts, you know now how to target the annuity prospects that make the best annuity leads.