3 Ways To Increase Your Annuity Production | 7 Figure Annuity Sales Podcast | Ep. 161

Hey, everyone. Today we are going to talk about three ways you can increase your annuity production.

Hey, everyone. I am Chad Owen, the annuity sales coach. And here is boy wonder here himself. And actually, you know what? I want to address something real quick. I didn't know we had caterpillars in Texas.

And we do have caterpillars.

One crawled up on your lip and died. I mean, what is going on with her?

And that's. It makes a good point. If all you're doing is listening to the podcast, you really should go to the YouTube channel, the Annuity sales. Yeah.

Because you will never watch it. Forget this. And you will never bring your kids into our office because you'll be like, there's some creeper here. By the way, I am going to buy you a white van with no windows just to match your mustache.

I like to think I'm a younger. A little bit more.

You were not even close to that. Not that I ever had a crush on him or anything, because I didn't. But there were some people I knew that thought he was handsome.

Yeah, my grandmother thought he was handsome.

I know. That's where I was thinking, that tells you how old he is. Yeah. Anyway, wait a second. If your grandmother. Okay, yeah, that's actually.

That's about right.

Okay.

Three ways you can increase your annuity production.

Number one, shave the mustache.

Do not go into appointment with the.

Mustache unless you are tom seller. Okay.

So go for it.

All right. There's really three ways you can increase your annuity production.

How hard it is for us to get going sometimes.

Oh, I know. But I think that's the fun part of it.

You give me so much ammo. That's the problem.

Well, it's, you know, keep it light. Keep it light hearted and fun.

We will. It is true. Actually, you know what? That's a really good point. That's a really good point to address. Even during appointments. Because a lot of times we're talking about really heavy things. And when it gets real heavy, it's okay to make it a little light.

Yeah, you do. And you do a good job.

I do it all the time. Because once again, when. Especially when you're talking to someone who doesn't have enough money.

Right.

It's very serious. It gets very somber really quick. So you kind of have to keep it a little light. I mean, how light can you make someone that. Or make a situation where you're saying, well, I'm sorry, you're not retiring until you're 75, or, you know what you're not retiring at all.

Right.

That gets pretty tough. Absolutely. Okay, let's get back into teaching.

Yeah. Well, three ways you can increase your annuity production. Because you're right, everybody wants to do that. It's something that's, I mean, that's what we specialize in.

Yes.

Helping people increase their annuity production. Then I always say there's three ways. The first way is really, it's kind.

Of three major ways.

Three major ways. That's true.

That's.

That's very fair. Three major ways. The first way that I'm going to talk about, just cast some vision. The first way is very linear. It's almost the way I like to think of it is like simple interest. Okay. The other two actually work together to create what is in essence like compounded interest. And I've got numbers to back it up.

Remember, we don't talk about this beforehand. So I'm curious to see what, what, where, where he's going with this.

So the first way, and what's interesting is this is the way that I would say this is like simple interest. But it's typically the area that most agents and advisors think I need to just do this thing to increase my annuity production. Yes.

Guess I need more leads.

That's it.

Yep.

Most people, they just think I need.

To buy more leads all the time. It's not about the leads.

Right.

Okay, go ahead.

Well, think about it though. If it, if, if all it is is your process stays the exact same and you just buy more leads, all you're going to do is scale proportionately with the number of leads that you buy.

Good point.

Right.

Good point.

The other two ways you can increase your closing rate, which, your appointment rate, your sit rate, your appointment process, all of that is going to go into play with the closing rate. But you're increasing your closing rate. And then the second way that pairs with that to create a compounded effect is increasing your average case size.

I like that. Very true.

The second two, we need to keep you around the second two, though. They may require a little bit more effort, but they will inevitably be more economical.

You know what I find interesting about that statement you just made initially? More effort. Because once you get it down, it's more effortless.

Right.

Because if you're getting your system and your process down and you're doing full fact finders, you're doing these, the trying to. Exploring what the problem is and then finding the solution, it becomes effortless. I'll tell you, I have agents that run appointments with me. At times. And I'll have a one set, one close. And they're like, oh, my gosh. That was like, no problem.

Right.

But it seemed super smooth because I found the problem. I addressed it. I met a need that they really had.

Right.

And they're going. I've met with many people. I mean, I had one lady meet with 17, met with 17 agents, and finally with me and said, you know what? I need to go with you. And it's very smooth, very consistent process. I like that. I like where you're going with this.

Well, and they do compound on each other, because if you increase your average case size, you can increase your production with the same number of closings.

Yes.

But if you simultaneously increase your closing rate and your average case size, that's where you get that compounded effect. That's where your increased production actually starts to look more like a curve rather than just a line.

Yeah, that's really good.

So I want to offer this real quick, too. If you're in the mindset that you just need to buy more leads, but now you're realizing, wait, you know what? I actually want to see what it would take to increase my average case size and increase my closing rate, go to the annuitysalescoach.com and sign up for a business strategy session. I will literally break that down for you, show you the points in your process that you can improve so that you can experience this compounding effect.

Yes.

So I want to get into some numbers as to why increased closing rate. Excuse me? Increased closing rate and increased average case size actually increase the overall annuity production.

Okay.

You like to say, Chad, that if you. You need to spend about 1% of your desired production on leads and marketing. Right.

So you want to do 20 million, you need 200,000. You want to do 5 million, you need 50,000.

Yeah, there you go. And I. I'm gonna break this down.

We're talking about math going in my head. Gotta make sure this is right.

I will break this down. Let's say somebody wants to get to 2 million. They need to spend approximately 20,000 on leads. Okay. And we're gonna go with some pretty frequent numbers here, some general metrics. You spend $20,000 on leads. Let's say you're paying $300 per lead. You get 66 leads over the course of the year, if that's what you're spending.

Wow.

Okay. Not a ton of leads.

Actually, that's still not bad.

It's not bad.

66 leads. I mean, you could still close some really good deals with 66.

Absolutely. And since you're paying 300 a piece, we're going to assume that they're scrubbed or 350.

Yeah, they're all going up to three, and there's nothing you can do to stop that. And don't try and complain, because it's.

The nature of it.

It's across the board now. And it's because AdWords are getting super expensive. I mean, it's. Yeah, that's a fact.

But let's assume they're scrubbed. Let's assume they're qualified. You know, buy the lead company. So let's say you get a 75% contact rate because realistically, you don't get in contact with everybody from any lead company, period. Okay. So you get 75% contact rate. And let's say of those 75%, you actually book half of them as appointments. That's actually a pretty good process.

Okay, That's.

That's a pretty decent process. Most agents would fall lower than that. That gets you to 25 appointments over the course of the year. And let's say you close 50% of those, which, again, most are falling under that threshold as well. With $130,000 average case size, that puts you at an annual production of $1.7 million on $20,000 in marketing and leads.

See how easy it is to do $2 million a year in annuity production?

Yeah. And those are. Those are rather. I say that most fall under that. But still, 50% appointment rate. 50% closing rate is. Is relatively low. Context. You, of the people you contact, you're between 65 and 70% appointments, and you're between 65 and 70% closing rate of when people you meet.

But remember, if they don't have 50,000 emergency funds and savings, 50,000 vegetable amounts. I don't. Because it's emergency funds. Right. So I have a lot of leads that I get from these vendors that they're not even qualified for me. Qualified for them, but I won't do it.

Yeah. So let's take the same leads batch here. Okay. They drop 20,000 on leads. They get 66 leads over the course of the year. And it's the same lead company, so their contact rate stays the same, say 75%. But they increased their process or they bettered their process by 20%. They had a 20% improvement upon their process, which means that now they have a 60% appointment rate.

Okay.

Okay. So they have 30 appointments over the course of the year. They have a 60% close rate. Right. And a $200,000 average case size. Still context here. You're closing a higher percentage than 60. You're booking a higher percentage of your contacts than 60. And your average case size is over 340,000 this year.

Is that what that last big deal I had?

Yeah, I was hoping to jump up a little more than 348 with the last big deal.

Yeah.

But if you do all those things, you increase your process, you better your process by 20%. Okay. Same lead spend, you end up riding over the course of that year, 3.6 million in annuity premium, which is $200,000 more than if you were to have just doubled your lead cost, paid 40,000 for leads, doubled your leads with the same process, you would have ended up at 3.4 million. Now you only improved your process by 20%. But you've, you've more than doubled your production.

I mean, if you think so, you're talking what, another million, 1.5 million approximately. In business.

Yeah, it would be 1 point. I guess it'd be 1.9.

And if you're making 6%. Oh my God. On the same lead spend, that's 90,000 extra dollars a year. That's you're spending the same amount on leads.

That's why when I get on the phone with agents Chad, it's like, okay, what do you, what do you think is the biggest problem? What do you think is the most important thing? Well, I need more leads right now. Yeah, it's like, well, let's look at the process that you've got and see if that's actually the case. Because on 66 leads a year, there's no reason not to be riding almost $4 million in annuity premium.

Wow.

Yeah.

See that's the beauty of numbers, man. They have no emotions.

They don't.

And that's only a 20 increase.

That's only improving your process by 20%. Which context here, okay. Can a 24 million dollar producer, on average, which quite frankly, it's actually Last year almost 27 million in the midst of COVID year before that was almost 27 million.

Yeah.

So you're consistently producing over 25 million a year. If you're writing one to even five to 10 million a year, can somebody like Chad, who is riding consistently over the 25 million per year mark, doing every bit of the process himself, just like you are, can he help you? Increase by 20% was funny.

I was just talking to one of our inner circle agents and by the way, we're going to run a promo for our Inner circle, to get into the inner circle. So if you want to be a part of it, we have very limited spots for that, but we had two people that have graduated out of that. And so now we have a couple openings, a few openings that we're gonna open up, and we will give a really good deal. So type in the comments, notes, send an email, and we'll let you know what that is. It's not common that I'm adding more. He even asked me, goes, are you sure you can handle more? I'm like, yes, because we have another program we're doing that is gonna be for elite producers. And I can't remember how you phrased it, but the point is Champions Club. Yeah, Champions Club. So this person that is in my inner circle, he's been with me for three years, did 4.7 million. I just talked to him last week. 4.7 million in 2018. He now has 9.7 million on. He's taken more time off, and he still has the biggest part of the year, which is the last quarter.

Come on.

And I'm so. I'm going, even if you did what you have the past three quarters, that means you're going to be over 12 million. That's a triple fold on his production. Guess what? Same leads he had in 2018.

The power of the process.

See, I like where you're going with this. This is good.

It's. I mean, it all comes back to improving your process, not just dumping more. Because the reality is, if you improve your process, then when you do spend more on leads, they're already going to be more lucrative for you, and you don't need to spend nearly as much to get even to the next level. So you want to double from 3.6 million to, you know, whatever. That would be 7.8.

Yeah, easy. But, you know, the funny thing is, is even I look at myself as always being able to improve. You know, there's things I've done this year that I didn't do last year. Things I did last year that I didn't do the year before. It's constant improvement.

Yeah, you're absolutely right. And here's the other thing that I'll add to the improved process. If you want to even write the same production with less time, maybe somebody's getting to that point where they actually. They're like, you know what? I don't mind writing my two to three million dollars a year. I'm comfortable there. I just don't want to be spending 40 to 50 hours a week again, improve the process and work 20 hours a week doing the same amount of production and take the rest.

Yeah. If I just did annuities, I was figuring this out. If I just did annuities. No other thing. I would probably be working less than 40 hours a week.

You're writing over 25 million a year.

Yep. I have no doubt about it.

Power of.

I worked one day a week. I could probably be close to seven. Seven million. Eight million. Yeah. So with. With. I would be cutting leads back, obviously, if I was only run appointments one day a week. But I was trying to do the numbers, and It'd be about 7 million lead with about a third of the leads.

Right. Bottom line, we help agents increase their annuity production. It's really not hard to do when you know what you're doing to actually do it. Give us a call, shoot us an email. We'd love to chat with you.

Yep.

That's a wrap for today.

That's it?

That's it.

Wow. I guess that's enough to just do the mic drop.

Yeah, I think that's what happened.

We just do not drop these mics.

I won't drop these. These are. These are the real deal.

I'm the one that has to replace them, so. Okay, guys, you have a great day. And of course, happy selling.