More on LPS:
I had a very long conversation with Robert Needham, who is the national marketing director for LPS. He explained that they are currently selling Life Planning in PA, NV, MD, NY, and AL. Sales are going well in all states particularly well in Reno, Nevada. They have had a slower start than anticipated due to the sales force needing more training than they had originally anticipated. This training issue has been addressed and training materials have been developed that are now working well.
There is a pilot program with the International Benefits Association in Maryland, that sells through their insurance agents, and they have been the ones that needed the training program in particular. Robert is the author of the program and is working on a version that will work interactively on a CD. IBA is particularly interested in this product and that may be what the announcement we are waiting for is concerning (my speculation). They plan to do a large direct mail program that is due to begin in June. He is also authoring a new course that will be aimed at the senior market for legacy planning. What ever this announcement is it sounds like it could be a major one. There is a very large organization involved, but at this point, all the t's are not yet crossed.
When the CD is finished and the product works interactively, and payments are more accepted on the web, LPS will use its web site for more than just an introduction to the product. It will be able to sell directly on the web.
Robert has a law degree and has been working in this field for over 14 years. The President, David Beynon is from England and was the president of Rothchild Insurance, and the CEO of a large bank (he mentioned it, but I didn't write fast enough) David is currently residing in Pennsylvania, where LPG is very active. He has a lot of senior management experience with financial concerns, and is currently on the board of Coconino.
Besides the training issue, another gum in the works has been the 125 mortgages. Since the rates have dropped again recently, mortgage lenders have been swamped with 1st mortgages and refinances, and have not had the bandwidth to write seconds. This side of things will pick up as their primary business subsides a little, or when rates rise.
Life Planning is a concept that is will accepted in Canada and the UK. As it takes off in the US, LPG is positioned to become the leading provider here.
My feeling is that these guys are out there working their tails off for this to work, and have the background and connections to make things happen. It's had a couple of minor snags, but things are lining up for the earnings to start rolling in very soon.
I feel much better about my CSMA than I did yesterday.
Carol |
