Tuesday, July 03, 2007

Low cost product

COMMENT POSTED IN MY BLOG:

Agents who sell low-cost product obviously won’t earn much. They’re honest, but, definitely not Million-Dollar-Round-Table stuff. Smart, ambitious advisors won’t go around selling term insurance for long. The best protection for a client is still to educate himself.

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REPLY:

An adviser (agent) who sell low cost product can still earn a modest rate of commission. By increasing the volume of sales, the adviser can earn an adequate leve of earnings. If the adviser sells good products (ie good value for customers), the future customers will come to them (usually referred by existing customers).

This is a better business model. Many other businesses are successful in applying this model. It can work for financial services as well.

I agree that the best protection is an eduated customer.
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6 comments:

Anonymous said...

Mr Tan, can you tell me how many Incomeshields I’ve to sell as an advisor in order to earn a living wage of say $2000?

July 03, 2007 3:39 PM
Khiat Han Hwee Adrian said...

It is very sad to see if the public see an Insurance Advisor as greedy, dishonest and unethical.

It is not right to say that an advisor is bad just by selling Traditional Policies like Life insurances or Endowment plans.

There are reasons people choose Traditional Policies other than just term. Some may wants a mixture of both.

July 03, 2007 11:51 PM
Anonymous said...

In Singapore it is happening. In US insurance agents are most despised. Why? They sell products that are not needed. They created imaginary needs for the customers and sell them making them believe that they are helping them to meet these needs.Agents only have one thing in mind; sell anything and make a commission. One example: selling a young man a whole life plan making him believe that it is his duty to repay his parents in case he dies.
Is this a financial need? This is playing on the young man's guilt.

July 04, 2007 12:04 AM
Thomas Phua's Blog said...

Agent who remain long in this industry are those who meet the needs of their clients.

The other way to guage how good the product is, will be to ask the agent to show what products, the agent himself/herself took from their own company.

Why would an IA represent the same insurer for more than 5 to 20 years?

- Thomas Phua

July 04, 2007 7:16 PM
Anonymous said...

There are host of reasons that you are around after 20 years. They are as below although not limited to.
1. die die won't run9 (pak see boey chow)
2. cannot run ( chow boey kee)
3. afraid to run ( kia see chow)
4. run not as fast (chow soo lang)

July 04, 2007 10:34 PM
Anonymous said...

If the agent is blur and the client is blur the result is they get more blur.
How could one conclude that it is the right product to the client when the product bought by agent is wrong?
The blind leading the blind .

July 06, 2007 10:22 PM

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