Re: Re: Why does the FNA always show a shortfall?

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Posted by Setting it straight (207.141.1.34) on July 27, 2001 at 14:36:13:

In Reply to: Re: Why does the FNA always show a shortfall? posted by Hmmm... on July 27, 2001 at 14:17:13:

AMEN

: : The FNA: How come it always shows a shortfall of income?

: It doesn't. In fact, less than 10% of my clients show a short fall on their FNA. When there is a shortfall, it's generally due to high debt, or in some cases a lack of retirement planning.

: : PFAs are taught to encourage the prospect to imagine what it would be like to have unlimited income. They are taught to ask questions like "If money was no object, what kind of car would you drive? What kind of house would you own? Would you take more vacations? Would you choose private schools for your kids?"

: Are you a PFA? Have you been a PFA? How do you know what PFA's are, or are not taught? Is there anything inherently wrong with a family wanting to send their children to private school? Go on vacation? Have an emergency fund? Your convoluted logic goes something like this...PFS is evil because they encourage people to think about bettering their circumstances...hmmm...
: Makes total sense.

: : To earn a $477 commission at the time my FNA was done would require a face amount sale of $465,157.36. In middle income familes? Not likely. But the fine print reads that this sale which earns you $477 is based on the following: $150,000 face amount; $100,000 spouse rider; $10,000 child rider per child remaining in force for one year; $10,000 mutual fund investment; and a $15,000 $mart Loan. What are the chances of finding a client who needs or wants all this? Slim to none. This projection is NOT representative of an average sale. Oh, and by the way, why would encourage a family to get another $15,000 dollars in debt?

: Actually, it's not only plausible, but common to do a refi loan, insurance, and a mutual fund the majority of the time. For instance, it would be insanity to take someone out of a CV policy, give them term, and then no investment. Likewise, if Travellers can shave a bunch of money off of existing interest payments that a client makes, it only makes sense to go ahead with that as well. Let's not forget LTHC, or PPL, or any of the new products that are going to be availible this year.
: OTOH, sometimes it doesn't make sense for a client to change a particular aspect of their financial house. In that event, I simply tell them to keep what they have. I find that my clients enjoy that sort of honesty and happily refer many people my way.

: : So, not only is the FNA designed to create a shortfall, it is also designed to entice you into the business by misleading you. Primerica is not "a business of your own." It is a contractual agreement. Big difference. Also, they show no average incomes, no average sales, and no average levels of participants in this recruiting section of the FNA, and they do not mention that it is MLM. This is a violation of MLM law in Canada.

: Wow, you really do have the wrong idea of Primerica. In PFS you do build a book of business, and ultimately own your own income stream. Whether or not you agree, that income stream is an asset. It can be sold, left as an inheritance, and so forth. Of course average sales are disclosed right up front. For every 8 appointments in a qualified market, you'll garner 5 new clients and a minimum of 5 new referals per client so that a rep has someone to go see next.
: Interesting point about Canadian business considering that PFS has been rated # 1 in Canada. I'll leave you to look up the details however.

: : It's easy to see why people get drawn into this scheme. The FNA is a deliberate attempt to give the impression of easy money.

:
: Nope, it ain't easy. Myself and my associates never tell someone that it is. There is a learning curve, and yeah, you may even be disapointed, told no, or made fun of in ridiculous newsgroup threads like this one. However, there's big money to be made. It ain't for everyone, but I let people make their own choice about whether they want to give it a try or not.

: : By the way, the one client I mentioned who DIDN'T have a shortfall? He skipped the dreams and goals section because he said he was happy with what he had. He also did not become a client.

: My, my, my, you really do like honoring yourself. You're so cheeky and clever! I'm sure your mother must be proud.

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Subject: Re: Re: Re: Why does the FNA always show a shortfall?

Comments:
: AMEN : : . : : : The FNA: How come it always shows a shortfall of income? : : It doesn't. In fact, less than 10% of my clients show a short fall on their FNA. When there is a shortfall, it's generally due to high debt, or in some cases a lack of retirement planning. : : : PFAs are taught to encourage the prospect to imagine what it would be like to have unlimited income. They are taught to ask questions like "If money was no object, what kind of car would you drive? What kind of house would you own? Would you take more vacations? Would you choose private schools for your kids?" : : Are you a PFA? Have you been a PFA? How do you know what PFA's are, or are not taught? Is there anything inherently wrong with a family wanting to send their children to private school? Go on vacation? Have an emergency fund? Your convoluted logic goes something like this...PFS is evil because they encourage people to think about bettering their circumstances...hmmm... : : Makes total sense. : : : : To earn a $477 commission at the time my FNA was done would require a face amount sale of $465,157.36. In middle income familes? Not likely. But the fine print reads that this sale which earns you $477 is based on the following: $150,000 face amount; $100,000 spouse rider; $10,000 child rider per child remaining in force for one year; $10,000 mutual fund investment; and a $15,000 $mart Loan. What are the chances of finding a client who needs or wants all this? Slim to none. This projection is NOT representative of an average sale. Oh, and by the way, why would encourage a family to get another $15,000 dollars in debt? : : Actually, it's not only plausible, but common to do a refi loan, insurance, and a mutual fund the majority of the time. For instance, it would be insanity to take someone out of a CV policy, give them term, and then no investment. Likewise, if Travellers can shave a bunch of money off of existing interest payments that a client makes, it only makes sense to go ahead with that as well. Let's not forget LTHC, or PPL, or any of the new products that are going to be availible this year. : : OTOH, sometimes it doesn't make sense for a client to change a particular aspect of their financial house. In that event, I simply tell them to keep what they have. I find that my clients enjoy that sort of honesty and happily refer many people my way. : : : So, not only is the FNA designed to create a shortfall, it is also designed to entice you into the business by misleading you. Primerica is not "a business of your own." It is a contractual agreement. Big difference. Also, they show no average incomes, no average sales, and no average levels of participants in this recruiting section of the FNA, and they do not mention that it is MLM. This is a violation of MLM law in Canada. : : Wow, you really do have the wrong idea of Primerica. In PFS you do build a book of business, and ultimately own your own income stream. Whether or not you agree, that income stream is an asset. It can be sold, left as an inheritance, and so forth. Of course average sales are disclosed right up front. For every 8 appointments in a qualified market, you'll garner 5 new clients and a minimum of 5 new referals per client so that a rep has someone to go see next. : : Interesting point about Canadian business considering that PFS has been rated # 1 in Canada. I'll leave you to look up the details however. : : : It's easy to see why people get drawn into this scheme. The FNA is a deliberate attempt to give the impression of easy money. : : : : Nope, it ain't easy. Myself and my associates never tell someone that it is. There is a learning curve, and yeah, you may even be disapointed, told no, or made fun of in ridiculous newsgroup threads like this one. However, there's big money to be made. It ain't for everyone, but I let people make their own choice about whether they want to give it a try or not. : : : By the way, the one client I mentioned who DIDN'T have a shortfall? He skipped the dreams and goals section because he said he was happy with what he had. He also did not become a client. : : My, my, my, you really do like honoring yourself. You're so cheeky and clever! I'm sure your mother must be proud.

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