Raising AUM - vets only
This is a question for the vets who still cold call.
I am trying to add more AUM this year as the area I am in has been dominated by the wirehouses. I am seeing a ton of money leave them and I want to make sure I get some of it.
I have hired a full time assistant (to go along with the part time assistant I have) to free up time to prospect more.
I am taking the free time I am gaining and hitting the phone again.
My question for the vets who are still cold calling - what is a good target for new aum for the next 12 months. I am trying to set up some realistic goals to stay focused, as I find it is too easy to goof off being indy.
This is in addition to everything else I do, so I am trying to get a number for cold calls only. I have used a 250,000 min for the past couple of years, and I am trying to stick with that number in this new campaign.
Thanks for any input.
$6,000,000.
Here's how I came to that. I assume you can dedicate a minimum of 1hour a day for at least 4 days out of a week to purely cold call. At 50 dials/hour that equals about 800 dials a month. Then: 800 dials x 20% = 160 contacts. 160 contacts x 20% = 32 interested & qualifed prospects. 32 prospects x 20% = 6.4 new prospect meetings 6.4 x 40% (your closing rate may be better or worse than this) = 2.56 new clients/month 2.56 x $300,000 (again this is variable) = $768,000 new AUM per month. 8 months left in the year gets you to just over $6,000,000. This math has always worked for me whenever in my career I have gone into a cold calling prospect mode. Which I am now. Like you I see tremendous opportunity and so few FAs that are new to the biz have learned these skills that it creates an even bigger opening for vets that have succesfully cc in the past. Good luck!I think(based on my experience) you would need to make more calls than that because of the assets size you are looking for($300K to day was probably $375-425 last year) and would depend who you are calling… But the numbers are typical… 20% contacts, 20% prospects, 20% appts and then close 40% of those…
Maybe you don’t want my opinion here but i’m at a loss why so many want to attempt to build a business via cold calls. I remember starting in the business back in 1993, cold calling was really the only method at the time and i really really hated it. In 2000, myself and a few co-advisors started perfecting the art of seminars. What a relief! I know the press and many others have jumped on the annuity seminar bandwagon and trust me that’s not what i’m talking about. You can do High Networth Seminars, gather millions under managent, if done correctly. Any thoughts or ideas let me know.
Maybe you don’t want my opinion here but i’m at a loss why so many want to attempt to build a business via cold calls. I remember starting in the business back in 1993, cold calling was really the only method at the time and i really really hated it. In 2000, myself and a few co-advisors started perfecting the art of seminars. What a relief! I know the press and many others have jumped on the annuity seminar bandwagon and trust me that’s not what i’m talking about. You can do High Networth Seminars, gather millions under managent, if done correctly. Any thoughts or ideas let me know.
Yeah you and everyone else... Anything useful besides advertising your website??
When you fail as a broker, start a website.
So since I have the flu and took today off… I checked out his website… nothing… a bunch of music videos… kinda strange
This guy is a hack… same people who peddle that Advisor Marketing Systems crap… they are not even smart enough to change the address.
A friend of mine purchased their system and spent $1K(told him not to)… and all he got was a poor presentation and garbage direct mail pieces(word files)…
Stay away…
I can tell you, this guy is not a hack. FWIW, I have verified some of what they have talked about on their websites (I found it interesting, so I did some research). I won’t say much more, but his ideas and practices are worth looking at.
[quote=B24] I can tell you, this guy is not a hack. FWIW, I have verified some of what they have talked about on their websites (I found it interesting, so I did some research). I won’t say much more, but his ideas and practices are worth looking at.
I have only been able to verify his assets… Though according to my friend he went straight from a wirehouse to ria… However he made a stop off at woodbury for quite some time…
What about what he does is worth looking at? from what I understand is that they give you a bunch of word files. And his money management is taken straight from First Trust UITs…
I’m not going to write a narrative on the guy. If people are interested, they can do their own due dilligence. Unlike many on this site, I would not take what I, or anyone else on this site says at face value. Gotta check it out for yourselves. All I am saying is that there is a whole lot more to the story than the Advisor Marketing site (which is not even his) and whatever you are saying about FT UIT’s.
[quote=B24]I’m not going to write a narrative on the guy. If people are interested, they can do their own due dilligence. Unlike many on this site, I would not take what I, or anyone else on this site says at face value. Gotta check it out for yourselves. All I am saying is that there is a whole lot more to the story than the Advisor Marketing site (which is not even his) and whatever you are saying about FT UIT’s.[/quote]
What?! You want us to do research all by ourselves?! You are so mean! Like we have time to do anything for ourselves! As if!
What kind of sicko are you? BiLo and Harley are definitely not going to like that! You’re in trouble now!!
I could give you a fish and you could eat for a day, or I could TEACH you to fish....
[quote=Northfield]$6,000,000.
Here's how I came to that. I assume you can dedicate a minimum of 1hour a day for at least 4 days out of a week to purely cold call. At 50 dials/hour that equals about 800 dials a month. Then: 800 dials x 20% = 160 contacts. 160 contacts x 20% = 32 interested & qualifed prospects. 32 prospects x 20% = 6.4 new prospect meetings 6.4 x 40% (your closing rate may be better or worse than this) = 2.56 new clients/month 2.56 x $300,000 (again this is variable) = $768,000 new AUM per month. 8 months left in the year gets you to just over $6,000,000. This math has always worked for me whenever in my career I have gone into a cold calling prospect mode. Which I am now. Like you I see tremendous opportunity and so few FAs that are new to the biz have learned these skills that it creates an even bigger opening for vets that have succesfully cc in the past. Good luck![/quote]this sounds like a lot of work - i think i'll allocate a few hours to some other marketing activities and then ef off the rest of the summer and bring in 8 mil
but the math is very good and i do think that would be a realistic goal - if you're pretty good at cc. most aren't so i'd plan on a much lower meetings per dials if you're a rook reading this. more like 1 per 1,000 dials. in which case you'd be looking at 1 new client per month and 2.4 mil in new aum.
in any event - knock em dead, all the wirey brokers i know are bailing, going indy, and scrambling to keep their clients.
I’m not going to write a narrative on the guy. If people are interested, they can do their own due dilligence. Unlike many on this site, I would not take what I, or anyone else on this site says at face value. Gotta check it out for yourselves. All I am saying is that there is a whole lot more to the story than the Advisor Marketing site (which is not even his) and whatever you are saying about FT UIT’s.
I will give him the benefit of the doubt.. however his name and firm are all that the Advisor Marketing site talks about, so he is involved somehow.
Hello All,
This post is pretty hilarious from my view - so maybe I can clear some things up.
My name is Jason and I just started a new site called AdvisorControl.com. It’s actually not even close to being done, but since some people already registered and this is likely where they cam from I figured I’d better set the record straight. The last post was not from me, but from a partner in the venture named Len (hence the L after the site address). He’ll probably post here from time to time and we’ll both try to be constructive without being pushy.
So a couple of things:
I’ve been around this board for long enough and read enough posts to know I’ll likely get slammed for posting. But wth. Now when I post everyone will know exactly who it’s from and can take my input at face value.
On the flip side, I am really interested in knowing what things fellow advisors would like to know more about. I can’t write/speak too inteligently about cold calling as I just didn’t like it. But if there is anything else anyone on this board thinks would be helpful - I’ll be trying my best to make video blog posts covering those items. So pm me or use the contact form on the advisorcontrol.com site and I’ll see what I can do.
Now the fun part - I can sit back and watch people I don’t know make as a** of me.
Cheers,
Jason
See that is what I was looking for…
I got the my information from a trusted friend and have seen the info…
I appreciate the clarification and won’t bash your posts anymore.
P.S. congrats on the assets, regardless of what else you do that is a lot of assets to gather in a very short time…
Northfield - Are you telling us that you're gathering $6,000,000 per year in new assets ($500,000 per month) with four hours of cold calling per week? <?: prefix = o ns = "urn:schemas-microsoft-com:office:office" />
There's no f_ing way those numbers are right. The day I start believing that is the day I'm sending $1,000 checks to a TV preacher for holy water.
Who are you calling? What’s pitch?
I’ve been cold calling for years. It works but you need to crank out massive numbers. One hour per day is not going to do it unless you’re calling your wealthy family.
[quote=Northfield] $6,000,000.
I assume you can dedicate a minimum of 1hour a day for at least 4 days out of a week to purely cold call. At 50 dials/hour that equals about 800 dials a month. Then:
800 dials x 20% = 160 contacts.
160 contacts x 20% = 32 interested & qualifed prospects.
32 prospects x 20% = 6.4 new prospect meetings
6.4 x 40% (your closing rate may be better or worse than this) = 2.56 new clients/month
2.56 x $300,000 (again this is variable) = $768,000 new AUM per month.
8 months left in the year gets you to just over $6,000,000.
This math has always worked for me whenever in my career I have gone into a cold calling prospect mode. Which I am now. Like you I see tremendous opportunity and so few FAs that are new to the biz have learned these skills that it creates an even bigger opening for vets that have succesfully cc in the past.
Good luck![/quote]
His assumptions are dead on… in terms of percentages. the only variable is that each new account is worth $300,000.00.
But you can figure it out if it is less. $150K accounts would be $3 million… you get the idea…
Chief:
B.S. - why not call 8 hours per week and bring in 1,000,000 per month. How about 12 hours for $1,500,000 per month. It might work for you but these are not average numbers. If you can show the average idiot how to raise $6,000,000 per year for 1 hour of cold calling per day you should sell videos on how to raise assets. You'll make more money.The only number that will always be variable is the assets of the account. Typically it take me 94 dials to set an appt. and 426 dials to open an account(though some of those accounts are no where near $300,000…) There are others on this forum that will tell you the same(I started tracking once I saw TAKINGNAMES numbers to see if i could beat it).
But some accounts are $25k (bond orders,fixed annuity…etc). so it would take quite a bit more calls to get to $6 million for the year…
Ok - First thing Tuesday morning I'll be cold calling. What's the pitch to make these numbers work?
Who are you calling? What time of the day etc. I'm calling business owners with a muni pitch and the numbers are ok but not as good as yours. Your assistance would be appreciated. It just seems to me that if those numbers where true there would be no brokers failing.The problem is most brokers don’t get to the second day of calling, nevermind the second week or month.
I had a friend call for 2 days and tell me it didn’t work…
Keep in mind my numbers are average… so even though I average an apppt every 94 dials, sometimes i go for 200-300 with nothing, then bang, bang , bang…so being an average skews the numbers on a day to day basis…
I don’t call business owners(yeah I know I should, but not a lot in my area). I call corporate directories and residential…
My residential pitch, is as basic as Bill Goods, I call on a shorter maturity with a rate that is double the current 3 year rate and is insured…
[quote=Herman Munster]
Northfield - Are you telling us that you're gathering $6,000,000 per year in new assets ($500,000 per month) with four hours of cold calling per week? <?: prefix = o ns = "urn:schemas-microsoft-com:office:office" />
There's no f_ing way those numbers are right. The day I start believing that is the day I'm sending $1,000 checks to a TV preacher for holy water.
Who are you calling? What’s pitch?
I’ve been cold calling for years. It works but you need to crank out massive numbers. One hour per day is not going to do it unless you’re calling your wealthy family.
[/quote] Yes, these numbers are accurate and time tested. The caveat is the variability of the average account size. $300k is the average I use because that is what my average clients gained from cold calling turns into. Not always immediately, sometimes after 2-3 years of developing, sometimes after 6 months. If your just selling an initial product (ie muni, preferred, CD, etc) and don't go back almost immediately to develop the relationship, then your average account size is maybe $50k. Also, cold calling is almost never going to bear fruit unless you do it consistently, religiously for 2-3 months. Most folks simply give up long before then. The original poster was looking for advice to jump start his biz and generate asset flow between now and the end of the year. Cold calling is the best route to get this accomplished imo.[quote=chief123]The problem is most brokers don’t get to the second day of calling, nevermind the second week or month.
I had a friend call for 2 days and tell me it didn’t work…
Keep in mind my numbers are average… so even though I average an apppt every 94 dials, sometimes i go for 200-300 with nothing, then bang, bang , bang…so being an average skews the numbers on a day to day basis…
I don’t call business owners(yeah I know I should, but not a lot in my area). I call corporate directories and residential…
My residential pitch, is as basic as Bill Goods, I call on a shorter maturity with a rate that is double the current 3 year rate and is insured…
[/quote]
+1… over the past few years I have hired 98 people, more than once I have had them get up to go to the bathroom with in an hour or two only to disappear… maybe they are still in there… this isn’t even accounting for what Chief is talking about, 1 or 2 days or a week and then giving it up…
we did a little experiment in the office earlier in the year, anytime a guy hung up on one of us or blew one of us off (without saying never call back) we traded those names at the end of the day and with in a week one of us would call that number again (always businesses)…
more than 60% of the time the guy was qualified on that call and/or listened to an idea… I was talking w/ one of my guys, who calls them back now himself, and he claims he has over 5 accounts of guys who originally, or at one point, hung up on him…
persistence does pay but so does not getting offended if someone is too busy to talk… be persistent, and reasonable, and I can assure you will see what I am saying is true…
I assume that you’re going to keep your market focus the same, if so
the cold calling does work but Chief is right. You have to do it long
enough for it to bear fruit. (And A+ to him for keeping stats!) If
you want to change your market focus, figure out a way to adapt Sam
Richter’s Book to recruiting clients instead of businesses- it’s “Take
the Cold out of Cold Calling”.
If your focus remains the same, I offer some perspective from the other side of your office. Many moons ago I was a sales assistant to a rep who was only making $1.5M a year with two assistants. (He’s up to $6M a year and 5 assistants in two states, but that is another story.) I’ve also worked on the sales desks at product providers.
Assistants will make or break you getting to the next level. The fact that you’re even hired them is a great move, but take a long, cold brutal look at what you have them doing. This is provided that they’re no wasting their entire day on forum boards… Can’t tell you how many seriously bad assistants I’ve wasted my time with or ones that were little more than monkeys. You might believe how many reps I’ve dealt with that claimed that they’re not making enough or no AUM rolling in the door only to give their assistants no real responsibility or worse, micromanage them to death. Do they only answer the phone and file? Can they communicate clearly, in writing and aloud? Do you find yourself taking over their tasks? Are they licensed/registered? Paid peanuts? Do they know what AUM even is? Do they know how to reinforce the sale every time they talk to the client? Are they aware that they should be?
Dave didn’t get to where he is by accident. When I worked for him, the division of labor was clear and was spelled out to the client. He was the brain trust, developed their plan and presented it for the sale. (The planning department created the physical plan based on his specs.) That’s all he did. The assistants did literally everything else, and were paid accordingly. He would get involved if there was a problem we couldn’t handle, but that was rare. He NEVER filled out paperwork, we did it all in advance of the close. Once the client had bought, we walked them through singing paperwork and what it all meant. We followed up on the business and communicated status to the clients. Leveraged resources to fix issues and communicated that too. We were the experts. He even told the client this. Our knowledge level rose accordingly, and so did his comp and AUM.
The best asssistants are the ones that have the sales skills to be reps but can’t handle the pressure of a commission only income. They should have the potential to take your low level activities off your plate but tailor it to your focus. Have them do some of the calling and qualifying of your prospects. Have one become a paraplanner. Get one registered so you don’t have to take the unsolicted trades calls.
Let the bashing begin…
Who is Dave?
Dave is the producer I worked for.
Katherine Vessness offers more detail here on the same office set up. http://www.producersweb.com/r/VA/d/contentFocus/?adcID=bb9a030313a881b2f02b1bba7251406f
Was he part of ECA?
Who is ECA?
That’s who Waywrd1 works for.
is that some code?
Anyone else read “Take the cold out of cold calling”… looks interesting(as all those books do).
Uh, no. Waywrd1 is her screen name (I’m guessing an Alter Bridge fan!). ECA is just the name of the company. Not sure what it stands for.
yeah how did you know about ECA?
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