Trail Fee Commission FIAs: More Revenue and Long-Term Financial Security

To learn more about the best trail fee commission FIAs, click on the following button:

COVID-19 Struggles-advisors who make a living from “new” commission sales are really hurting right now. I’ve been advocating that advisors use trail fee commission products since 2011 when I did my first newsletter on them. Unfortunately, not many advisors listened. The ones that did have their trail fee commissions to lean back on at a time when new sales are tougher than ever.

Also, it’s amazing how many insurance advisors still don’t know that FIAs (Fixed Indexed Annuities) offer a trail fee commission option instead of an up-front commission option.

Why don’t advisors sell trail fee commission FIAs?

1) Many “insurance agents” don’t budget for trail fee commissions (they need the up-front commissions to pay bills).

2) Most “securities licensed advisors” still don’t sell FIAs and most don’t know that FIAs can pay upwards of a 1% annual trail commission.

The math of up-front commissions vs. trail commissions
Example: $1,000,000 FIA premium

1% trail commission vs. 6% up-front commission

Only a 3.5% ROR is assumed on the growth inside the FIA

Which do you prefer?

$60,000 up-front or $107,314 after ten years with the potential of over $280,000 over 20-years?

Most advisors like the long-term payoff of using trail fee commission products. But yet, not many advisors use them.

Hopefully, the light bulb will have gone on during this COVID-19 period when it comes to trail fee commission FIAs and advisors will do what they need to do in order to allocate at least 25% (if not 50% or more) of their sales to trail fee products.

Last a lifetime-some FIA products will pay the trail commission to your estate when you die. So advisors can create a lasting income stream for their heirs (pretty cool).

Getting your Series 65 license

I’ve also been advocating nearly 10 years now that insurance agents should get a 65 license.


1) So you can give more comprehensive advice to clients

2) So you can avoid regulatory issues

3) So you can create an annual income stream from Assets Under Management

Peace of Mind Planning 

An RIA that embraces the proper use of fixed products

                If you want to check out an RIA that offers a platform that is a perfect fit for advisors who liked fixed products (FIAs/IULs) and offers an AUM platform that manages risk first (vs. a reach for high returns/with a high risk platform), click on the following link:

Roccy DeFrancesco, JD