| PROSPECT SEARCH STRATEGIES | back |
Following are some creative strategies proven effective by many investment and insurance professionals. These sample searches will get you started and give you an idea of the power and versatility of DataMaster Pro:
Target retirement plan sponsors who have no 401(k) plan!
One of the unique features of your Larkspur Data CD is the ability to pinpoint companies with existing retirement plans but no 401(k). These are excellent prospects!
401(k) is the fastest growing segment of the retirement plan market. Every employee will tell you their company should have a 401(k). By implementing a 401(k), an employer promotes retirement security, loyalty, and reduced turnover. The employer may also save on retirement plan contributions (since employees can now contribute on their own) and reduce their fiduciary liability (since employees are now making investment choices).
How: First, select companies with an existing Defined Contribution and / or Defined Benefit plan using the Plan Type pop-up menu. Next, narrow your list to plans of the desired size (Total Plan Assets and / or Total Active Participants) in the desired geographical area (City, State, Zip Code range or Telephone area code). Then, select "Sponsor did not file form 5500 for a 401(k) plan" from the Plan Features pop-up menu.
You've now found all existing retirement plans of your chosen size and location where the plan sponsor does not have a 401(k) plan!
Target employers with a group benefit plan, but no retirement plan!
With DataMaster Pro, you can also isolate companies who have shown a willingness to provide employee benefits, but have yet to establish a retirement plan. If you are targeting start-up business, we strongly recommend this approach. These are super prospects for SIMPLE 401(k)s, SIMPLE IRAs and other payroll deduction plans!
How: Search for plan sponsors in the desired geographical area (City, State, Zip Code range or Telephone area code). Then, select No Retirement Plan Indicated from the Welfare Benefit Plan Type pop-up menu and click the Distinct Only button.
You now have a list of group benefit plan sponsors who have no retirement plan. Many are just waiting for your call!
Target high net worth individuals!
Find wealthy individuals by searching for qualified plans with few participants but large assets. If a plan has less than 10 participants but over $1,000,000 in assets, chances are the contact listed is the business owner who has most of that money in his / her personal account. This individual is an excellent prospect for your insurance or investment services.
How: First select your desired geographical area. Next, enter 1..10 in the Total Active Participants field and >1000000 under Total Plan Assets. You may wish to play with the numbers depending on the quantity and wealth of prospects you desire. For example, you will find many more prospects if you change your criteria to 1..20 and >750000.
For information on thousands more high net worth individuals in your area, please consider our product Prospects of Wealth , the Premier Database of High Net Worth Individuals.
Find retirement plans with poor financial performance!
Earnings, income and assets have been analyzed to help you identify prospects with poorly performing plans.
Plans have been given an "Investment Performance" rating based on plan assets and income. Contributions, payments to participants and expenses have been accounted for in this calculation. The entire "universe" of plans is divided into five parts. Each quintile has roughly the same number of plans. The actual performance percentages for each group are recalulated each time we update the data. For example:
This searchable field is found on the "Financial" tab.
Target your competition!
Search by Insurance Carrier, Broker, Actuary, Trustee or other Service Provider. If you compete favorably on price, product, or service, find their plans and offer alternatives.
How: First, narrow your search to the type, size, and location of plans you are interested in. Then type the name of your competitor in the appropriate search field. To find all plans where an insurance carrier, trustee, or other service provider is identified, enter All in the appropriate search field. You can also search for specific service provider types (e.g., Investment Management or Recordkeeper) using the Description of Services Provided pop-up menu; or find plans where reported fees exceeded a certain amount (e.g., >5000) using the Insurance Commission / Fees or Service Provider Fees search fields.
Target a specific industry!
If you've had success in a particular industry, search for similar plan sponsors.
How: Select from over 300 Sponsor's Business Codes listed in the pop-up menu. Refer to the Help menu on screen for IRS Business Codes by industry grouping. You may wish to print the Business Code list in Help for easy reference.
Find business next door!
How many times have you looked at the names of all the companies in the buildings you're visiting, and wondered how to locate the decision-maker?
How: Before visiting a prospect or client, search by street Address or Zip Code for plan sponsors in that same building or neighborhood who would also be good prospects and worth a visit.
Increase your referral business!
Find prospects in the same buildings or industry groups as your best customers, then ask your customers for referrals. "Lynn, I would like to meet Dr. Smith down the hall. Can you introduce me or can I tell him we are working together?" Now you have a warm approach instead of a cold call.
How: Search by street Address for prospects in your client's location or search by Sponsor's Business Code for prospects in the same industry.
Target prospects for non-qualified benefits or executive comp!
Many retirement plan sponsors would be interested in adopting non-qualified benefits to reward and retain key executives. Here are three ways to find good prospects:
How: Search for plans in your desired geographical area, then enter >10 (for example) in the Highly Comp'd Individuals field. Many of these individuals are not able to contribute as much as they would like to their 401(k) plan.
Employers with overfunded defined benefit plans may have extra cash to spend on executive comp. Select Defined Benefit plans from the Plan Type pop-up window and enter 0 (zero) in the Total Plan Contributions field.
You can also find Age-Weighted plans through the Plan Features pop-up window.
The above are a sample of the targeted searches you can perform. Using combinations of criteria and the Search Terms (in the Help menu), you can find the best qualified prospects for your products and services. DataMaster Pro is designed to save you time and increase your success in targeting new business.