403(b) Sales Process Is Different from 401(k) Process

If you want to try to enter the hot 403(b) marketplace, you will need a certain level of patience.

403(b) prospects are not like a 401(k) prospects.

The corporate sponsor of a 401(k) can make a quicker decisions regarding changing their program.
You are usually presenting to one of two people or a small committee in the 401(k) corporate environment and if you show them a better widget, they can make the decision relatively quickly (after a little due diligence).

On the positive side, you will have less competition in the ERISA 403(b) space.  Fewer financial advisors understand 403(b) plans.  On the negative side, here is how the sales process usually goes:  (1) you gather data and then present to an HR director and perhaps a Controller; (2) if they like what they see, they then ask you come back and present to the Executive Director;  (3)  if he or she likes it, you are then asked to come back and present to the Finance Committee; and finally if they all like it, you might have to appear in front of the Board of Directors.

After all of this, you may run into a Board Member who has a close friend who is in this business and they might give him or her a shot at the business before saying yes to your offering.  Whew!  That is a lot different from presenting to the real decision makers at a corporation and getting an immediate "Yes".

Moral of the story - if you want to be successful in the 403(b) space, be patient during the sales process. However, once you get the plan, you could have it for a very long time (if you serve it well) because it is just as hard for someone new to get through this process.

Plan Design Consultants, Inc., understands 403(b)'s, can help you through the presentation process and help you select a good program to present in the first place.

"If you do not see yourself as a winner, then you cannot perform as a winner!"  Zig Ziglar