WealthManagement Magazine

Freezing Cold Calling

Former Merrill Lynch managers and consultants Rich Capalbo and Rod Hagenbuch contend that brokers have too many small accounts that bring in little revenue. They say 60% of a broker's book results in 4% of his revenue. Where do these puny accounts come from? Mostly cold calling."At Merrill, we found that the 20% of the book that does 80% of the business all came from referrals. The bottom group came

Former Merrill Lynch managers and consultants Rich Capalbo and Rod Hagenbuch contend that brokers have too many small accounts that bring in little revenue. They say 60% of a broker's book results in 4% of his revenue. Where do these puny accounts come from? Mostly cold calling.

"At Merrill, we found that the 20% of the book that does 80% of the business all came from referrals. The bottom group came from cold calls," Capalbo says. "Out of hundreds of brokers, we only found a few top clients that came from cold calls."

The problem is a historical one, Capalbo says. "The guys running the businesses today grew up at a time when cold calling is what you did," he notes. "But there's been a paradigm shift."

TAGS: Archive
Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish