Alternatives to Cold Calling

Whatever it takes to land clients. You have to talk to a helluva lot of people starting out, and the most efficient way of doing that is over the phone. Call with a concept, a solution to a problem, and sell the appointment.Don't sell product.It is a numbers game. Commit to 20 contacts per day. It will take you 2 hours max, and I average 2 appointments per day with new prospects.The ones who say it doesn't work usually haven't done it long enough to get good at it. I take a conversationalist approach and it becomes fun. The hardest call to make each day is the first, then you're on a roll. Referrals from cpa's, etc- I've found I send them alot a business with usually nothing in return. Most already have relationships with advisor's.Just be aware of that going in. In the time it takes you to mail out 100 marketing pieces, you could've set 4 appointments on the phone.Eliminate the hurdles- Call on business owners and corporate executives at work- No do not call worries. Forget cold walking- you can save your shoe leather and make 3times the contacts over the phone.

Just my 2 cents, that's about what it's worth.

Stok

I agree with stokwiz.  Cold calling still works.  Yes you may call from 8:30 am until 8 pm and get only two appointments.  But, if you can get two appointments a day and open an account from every four or five appointments, you will be doing well down the road.  (That's two or three accounts a week)  Those who say cold calling doesn't work, do not work hard or smart enough. 

After that, you will open up some accounts from your previous meetings and also get referrals.   DO NOT DO MASS MAILING!  YOU MAIL, YOU FAIL!

Networking does work, but not as effectively as calling.  When one networks, you must have been in the business for years.  I have been in the business going on ten years and I do not network.  I join groups, clubs, or organizations that I truly have a passion for.  I do many things in those groups and people will start to ask me about investing or will schedule an appointment with me to talk.  I do not ask them for an appointment unless they are driving me nuts and asking me financial questions.  I politely say, "I don't like talking about investments here so can you call me at my office and we will schedule an appointment."  Many people will want free advice.

Just my 3 cents, that's about what it's worth.

Networking works great... join a Rotary Club or something.  Also attend a lot of Chamber of Commerce Events.

Cold Walking works well if you are prospecting businesses for their 401(k).

Seminars work well, if you do it right.

Join anything that you can think of. If you like to sail and fish join the yatch club.. If you're religious join the Knights of Columbus or a church. If you like or dont like to speak in front of people join Toastmasters. If you like sports be an assistant coach (you dont want to get hurt ;). That would effect you walking around town. I also think it helps if you have a good reputation or no reputation at all. Help your friends and family do their IRA's and little things. Then they will hopefully help you..

Bottom line stay active like its your last minute on this earth.

If you stay focused and have a goal (show me the money) you will do well.

I do believe that a previously established network and strong communication skills help.

Smile and dial baby. My goal is to make 15 solid contacts a day from Monday- Thursday. By solid contacts, I mean people who I qualify and actually speak with. Not the " hello, I’m with…- Sorry, not interested" type. Even if the person eventually says they arent willing to meet, if they slip up and tell me they are actively working with Smith Barney, for example, I know they are probably qualified. Thats all it takes. From there, I tailor my follow up calls to competitive differences between us and SB. Then the DRIP camapgin begins- sending research reports, economic commentary, strategic notes, seminar invitations, etc, etc. It doesnt matter, my goal is to have something in their hands every month that reminds them of our services. After months ( hell, years) of systematically calling, you are building up your prospect base, constantly opening accounts, upgrading/downgrading prospects, etc. At some point, instead of cold calling fresh, you are spending more of your time following up with already qualified prospects. From there its just plucking them off one by one, gathering referrals, etc… Granted, this approach may sound simplistic, but it has been proven to work…

[quote=stokwiz]

Whatever it takes to land clients. You have to talk to a helluva lot of people starting out, and the most efficient way of doing that is over the phone. Call with a concept, a solution to a problem, and sell the appointment.Don't sell product.It is a numbers game. Commit to 20 contacts per day. It will take you 2 hours max, and I average 2 appointments per day with new prospects.The ones who say it doesn't work usually haven't done it long enough to get good at it. I take a conversationalist approach and it becomes fun. The hardest call to make each day is the first, then you're on a roll. Referrals from cpa's, etc- I've found I send them alot a business with usually nothing in return. Most already have relationships with advisor's.Just be aware of that going in. In the time it takes you to mail out 100 marketing pieces, you could've set 4 appointments on the phone.Eliminate the hurdles- Call on business owners and corporate executives at work- No do not call worries. Forget cold walking- you can save your shoe leather and make 3times the contacts over the phone.

Just my 2 cents, that's about what it's worth.

Stok

[/quote]

Stok, great approach! Could you post a sample of your call?

Thanks

TC

Great advice.  Thanks to everyone who answered here. 

I've been looking to try the "cold call" approach.  I know for a fact that if you act like you're selling something you get treated like you're selling something.  I am trying to be a financial advisor here offering free consulting, NOT trying to be a telemarketer. 

Are there any approaches someone could recommend that help "warm up" cold calls and make them more effective?  Maybe post a sample call? 

Hey James…how’s the series 7 coming?

"Mr./Ms. Doe, I am an analyst at XYZ Financial.  I am engaged in a
number of research projects here and I wonder if I could trouble you
for a few minutes of your time to complete a survey for one of our
studies?



I assure you that your answers will be held in the strictest of confidence."



If you don’t want it to sound like a sales call then don’t make it a
sales call.  Make it an intelligence gathering call.  On the
first call, do nothing more than gather data and then thank them for
participating in your study.  What do you need to know about your
customer before you can begin to render them investment advice? 
Here is an excellent time and place to gather some of that information



Call them again in 3 or 4 weeks.



"Mr./Ms. Doe, recently you participated in one of our surveys for a
previous research project.  Would you consider participating
again?"



Spread out your information gathering needs over two or three
calls.  In addition to prospecting with this approach, you can
also screen out candidates that won’t fit into your practice.  By
the third call, you should start having some investment ideas that you
can pitch to your survey participants.

[quote=executivejock]

Join anything that you can think of. If you like to sail and fish join the yatch club.. If you're religious join the Knights of Columbus or a church. If you like or dont like to speak in front of people join Toastmasters. If you like sports be an assistant coach (you dont want to get hurt ;). That would effect you walking around town. I also think it helps if you have a good reputation or no reputation at all. Help your friends and family do their IRA's and little things. Then they will hopefully help you..

Bottom line stay active like its your last minute on this earth.

If you stay focused and have a goal (show me the money) you will do well.

I do believe that a previously established network and strong communication skills help.

[/quote]

Exec I've been busy so haven't been on in a while....and I return to see that you're still dispensing advice without the benefit of any of your own experience.

Have you at least gotten licensed yet?

[quote=sarasotabound]"Mr./Ms. Doe, I am an analyst at XYZ Financial.  I am engaged in a number of research projects here and I wonder if I could trouble you for a few minutes of your time to complete a survey for one of our studies?

I assure you that your answers will be held in the strictest of confidence."

If you don't want it to sound like a sales call then don't make it a sales call.  Make it an intelligence gathering call.  On the first call, do nothing more than gather data and then thank them for participating in your study.  What do you need to know about your customer before you can begin to render them investment advice?  Here is an excellent time and place to gather some of that information

Call them again in 3 or 4 weeks.

"Mr./Ms. Doe, recently you participated in one of our surveys for a previous research project.  Would you consider participating again?"

Spread out your information gathering needs over two or three calls.  In addition to prospecting with this approach, you can also screen out candidates that won't fit into your practice.  By the third call, you should start having some investment ideas that you can pitch to your survey participants.

[/quote]

Does anyone else find this approach to be dishonest, car-salesman-like, and sleazy?  I think you're gonna have a hard time getting these people as clients after you misled them about doing research.

Then share the results of the research with the prospects you identify
as being the most desireable.  Drop them a note afterwards.



"Mr./Ms. Doe, You may recall that you recently participated in a
research project that was performed here at XYZ Financial.  In
that particular project, we were interested in determining investor
preparation for retirement.



In our survey, you may recall, participants were asked how large of a
lump sum they felt they would have to have for a comfortable
retirement, how many years they felt that lump sum would have to last,
and what kind of annual expenditures they expected to have
post-retirement."



Because so few people ever sit down and do an A=f(P,i,t), the results
of the survey are almost certain to have a rate of return requirement
that is unnaturally high or low.



"The survey concluded with the following responses:



Number of survey participants:  N

Average lump sum:  $x

Average number of years:  y

Average annual expenditures:  $z



Interestingly, the required rate of return to achieve these objectives was i%.



Thank you again for participating in our research project."



People are always interested in what other people are thinking. 
They become even more interested when they see a survey where mass
expectations are extremely unrealistic.  Imagine doing this survey
with 300 people and finding that the annual rate of return required to
achieve the objectives of the participants was some ridiculous number
like, say, 25%.



There is nothing dishonest about executing a project like this. 
If anything, it might show your prospects that you’re a little bit more
than a mere car-salesman peddling investment vehicles.

I've used a similar approach when I was primarily a stock jockey, though I would call the owners or presidents of distribution companies- ie: call the local carpet supercenter and tell the owner you are researching Shaw Industries (carpet manufacturer)for inclusion into clients portfolios, and wanted to get his take on the product, then ask if he'd like a research report on Shaw, then you might have a new client. As far as this "survey" stuff goes, if someone is naive enough to believe that, they probably don't have any $$$.Ask someone to buy a solution from you on calls, then you might have 5 new clients by the time you otherwise would've made your 2nd 'research" call.

Stok

Diversity is a great thing JOE. The fact that I am doing well out side the financial industry. Yes, I want to be a financial advisor, but I have a plan that takes a bit of time.

Hopefully there are others out side of finance who also can provide general insight into successful concepts and ideas.

In the end it does not matter what I do, but hopefully every so often I can state something that helps someone on this thread.

What script are you using offering a solution?  I've considering writing a script to offer to show customers how their life insurance fits into their retirement plan.

What are your ideas?

Right now, I use two scripts.  1) I just ask if they are investors looking for new ideas.  2) I ask if they would like to know the yields on new muni bonds.

I have stayed away from product scripts, for now.  But I am trying to get people to act quickly and may move to a product script pushing a closed-end with a high yield.

Thoughts?

My approach to cold calling is to offer a second opinion on what they may be currently doing. I focus on niche marketing to university professors/staff in regards to retirement planning. I call them “in regards to” their 403B program, give them a spiel about " how we specialize in their program", ask what types of strategies they have taken, and then ask if theyd like to learn more about our services and how we can better be able to help them. Its very general, it gets them talking, and its less pushy than flying in with muni bond yields or slinging the latest closed end fund. Just my experience and where I feel comfortable. But I share an office with a guy that calls small businesses and pitches VRDO’s as an alternative to money market accounts, and he is killing it right now.  It’s a crapshoot.

Sarasotabound- So you are going to do a survey when you are asking in effect only three questions of the potential interviewee? And you think that is intellectually honest? The problem is not drumming up clients but actually deciding which ones do I really want to work with…

Sarasotabound - You're not working for the research division.  You're here to make money for people.  Your survey's don't help your clients retire or put food on your table.

Try this...."I'm calling to follow up on an invitation that I sent you to my upcoming workshop where I will be explaining my team's planning approach to helping individuals reach their goals. This is a process, not a product."

You can talk to 300 people about NOTHING or you can talk to 300 people about ways to improve their situtation (and yours).  It's your call.

[quote=noggin]Sarasotabound- So you are going to do a survey when you
are asking in effect only three questions of the potential interviewee?
And you think that is intellectually honest? The problem is not
drumming up clients but actually deciding which ones do I really want
to work with…[/quote]



There are as many ways to approach your surveying as there are
prospects.  I never said you had to limit yourself to three
questions.  The retirement-oriented questionaire was just the
first thing that came to mind and you could surely expand upon it.



This type of an approach is very flexible and a creative advisor could
devise a number of approaches to tease important data out of telephone
contacts, whether or not they went on to become clients.  My point
is that there is no reason for you to see your telephone activities as
being a one-way street.



What is the industry success rate for cold calling?  1 to
2%?  There might be something to be gained from hearing what the
98 to 99% of people who don’t respond to cold calling have to say about
our investment environment.  (BTW, if you very carefully comply
with a surveying-only approach, you avoid DNC prohibitions.)



This thread began with a question about alternatives to cold
calling.  If you’re married to cold calling, then by all means,
have at it.  It works and I’m not saying that it doesn’t. 
For people who are adverse to standard cold calling tactics, there are
alternatives, and not only are they not intellectually dishonest, they
can provide some very useful feedback to investment professionals if
constructed properly.

What's everyone's take on this opener (or something along these lines): 

"Hi, my name is John Smith.  I'm affiliated with XYZ Financial and specialize in getting the financing and resources needed for small businesses to expand."

"I'd like to know more about what you do, how long you've been in business, what type of clients (or customers) you handle, and whether you'd be a qualified candidate for what I do.  Do you have a minute or two? "

----------------------------------------------------------

I thought about trying it.  Seems less misleading than a survey. And technically I'm in the full-service financial business and I can help clients out however I wish- not just trying to sell them a security, even if it means referring them to some other person. I figure this might be a way to entice a few of these people into making an appointment.  

[quote=iconsult100]

Sarasotabound - You’re not working for the
research division.  You’re here to make money for people. 
Your survey’s don’t help your clients retire or put food on your table.

Try this...."I'm calling to follow up on an invitation that I sent you to my upcoming workshop where I will be explaining my team's planning approach to helping individuals reach their goals. This is a process, not a product."

You can talk to 300 people about NOTHING or you can talk to 300 people about ways to improve their situtation (and yours).  It's your call.

[quote=james_newguy]

What’s everyone’s take on this opener (or something along these lines): 

"Hi, my name is John Smith.  I'm affiliated with XYZ Financial and specialize in getting the financing and resources needed for small businesses to expand."

"I'd like to know more about what you do, how long you've been in business, what type of clients (or customers) you handle, and whether you'd be a qualified candidate for what I do.  Do you have a minute or two? "

----------------------------------------------------------

I thought about trying it.  Seems less misleading than a survey. And technically I'm in the full-service financial business and I can help clients out however I wish- not just trying to sell them a security, even if it means referring them to some other person. I figure this might be a way to entice a few of these people into making an appointment.  

Doesn't the "Do Not Call List" cause problems for this type of prospecting.  I would much rather pick up the phone than door knock someone at random, but thought it would create problems.

What do you think calling and offering reviews?  I may just stick with my “would like to receive new investment ideas from time-to-time” or I may try something new like “I am calling to offer you a free second opinion on your portfolio and see if we can increase your return and save you some money on fees as well.” Something along those lines.  I am starting to get very aggressive with my follow-ups, because I am getting tired of wasting my time with people who say they are interested, but won’t commit to an appointment.  When I get face-to-face with people, I close them.

Responding to 2 postings:

Sarasota: "Do you see yourself working on the investment banking side of the house?"

- It was just a thought. Personally I've had recent success in sending a friendly email to prospects saying that I'm a consultant who works with small businesses and I'd like to talk with them, then making a phone call a day or two later.  Even if I get no response, I notice that the call isn't as cold as it normally would be. 

-----------------------------------------------------------

MediocreBroker: "Doesn't the "Do Not Call List" cause problems for this type of prospecting.  I would much rather pick up the phone than door knock someone at random, but thought it would create problems."

- Correct me if I'm wrong but I think it's still okay if you're calling a place of business or a business number.  The DNC list was meant to protect people from telemarketers who simply run through random names in a phone book- and (i think) only applies to non-work home telephones.  Plus, it's not like we are trying to sell something over the phone, we just want to offer a free appointment.

Sorry if I'm dead wrong and bring a ton of angry posters to this thread.

Business #'s are exempt from DNC laws, however, if a business number is on the DNC list, you better abide by it, just in case.  Not worth the fine.  Some people do run their business out of their home.

If you want specifics on DNC laws, PM me.  I use to work for a call center that did telemarketing for a lot of big companies and am very up-to-date on laws.

Also, for the person who said they were cold calling using a survey, you are NOT exempt from DNC laws.  Don't confuse your survey with a political survey.

[quote=james_newguy]

- Correct me if I’m wrong but I think it’s
still okay if you’re calling a place of business or a business
number.  The DNC list was meant to protect people from
telemarketers who simply run through random names in a phone book- and
(i think) only applies to non-work home telephones.  Plus, it’s
not like we are trying to sell something over the phone, we just want
to offer a free appointment.

Sorry if I'm dead wrong and bring a ton of angry posters to this thread.

[quote=executivejock]

Diversity is a great thing JOE. The fact that
I am doing well out side the financial industry. Yes, I want to be a
financial advisor, but I have a plan that takes a bit of time.

Hopefully there are others out side of finance who also can provide general insight into successful concepts and ideas.

In the end it does not matter what I do, but hopefully every so often I can state something that helps someone on this thread.

Anyone care to share a sample of their opening call?

[quote=Help] Those who say cold calling doesn't work, do not work hard or smart enough.  [/quote]

I CHALLENGE any of those who feel cold calling doesn’t work and or believe that HNW folks will not respond to it for whatever reason ….

 <?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

I Challenge YOU to break out your client list and watch just how fast I can reduce your AUM!!

AAAAAAAaaaaaaaaaaahahahahahahaha (Rubbing hands in a sinister fashion)

So please PM me the list and lets set a time I can begin. You can keep track of the ACAT’s.

[quote=Gaddock]

[quote=Help] Those who say cold calling doesn't work, do not work hard or smart enough.  [/quote]

I CHALLENGE any of those who feel cold calling doesn’t work and or believe that HNW folks will not respond to it for whatever reason ….

 <?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

I Challenge YOU to break out your client list and watch just how fast I can reduce your AUM!!

AAAAAAAaaaaaaaaaaahahahahahahaha (Rubbing hands in a sinister fashion)

So please PM me the list and lets set a time I can begin. You can keep track of the ACAT’s.

[/quote]

Gaddock is 100% correct. If you don't think it works it won't work. If you think it's tough it will be. If you call people and act scared or intimidated they'll eat you alive, I suggest you search for gaddock's most recent posts in the prospecting section. It should clarify things for you.

Agree with everyone that you have to call.  Some people do it for a short period or forever.  I cannot stand cold calling, but I know it has to be done.  Have fun with it and remember that the person on the other end has no idea who you are.  As long as you are not swearing or a downright jackass you should be fine with your boss.

Hey James,

While you’re out making up pretty seminar invitations and mailing them, I’ll be on the phone and make two appointments. Keep networking.

Farotech

Look, I don’t want to sound sarcastic.

Here is the bottom line: if you do not cold call, you will not survive. Some people who have known you for years won’t throw their money at you to manage. And even if they do, they won’t always give you referrals for a while. Therefore, I’m going to save you some pain by telling you the following:

Do not do this job if you are not willing to humble yourself and cold call. You will only hurt yourself financially if you enter this career and then leave after six months, or worse, a year or two.

[quote=farotech] Look, I don’t want to sound sarcastic.Here is the bottom line: if you do not cold call, you will not survive. Some people who have known you for years won’t throw their money at you to manage. And even if they do, they won’t always give you referrals for a while. Therefore, I’m going to save you some pain by telling you the following:Do not do this job if you are not willing to humble yourself and cold call. You will only hurt yourself financially if you enter this career and then leave after six months, or worse, a year or two.

[/quote]



It’s amazing how many people I see quit just before they hit the stride. Unless you are really tapped in, joined a team or got a book, or are just hitting it big time, it’s tough to make real money in the first few years. I have met many veterans producing 500-750K that said they almost failed out the first few years but persevered until they made it. It also takes a few years to really “get it”.

It’s amazing how many people I see quit just before they hit the stride. Unless you are really tapped in, joined a team or got a book, or are just hitting it big time, it’s tough to make real money in the first few years. I have met many veterans producing 500-750K that said they almost failed out the first few years but persevered until they made it. It also takes a few years to really “get it”.

I have found a straightforward approach that’s not using a script so to speak to be liberating. I’m not doing any fancy dancing on the calls but being right to the point. It’s amazing the response. I’m getting many requests that I don’t handle that has allowed me to make other alliances with those that can referral business back to me.

 <?: prefix = o ns = "urn:schemas-microsoft-com:office:office" />

ENTHUSIASM IS THE KEY

Mr. X this is X with AGE here in X.

Mr. X my firm just merged with WB and the combined products we have for companies like yours are NOTHING SHORT OF OUTSTANDING! (Notice I didn’t say what they are, yet)

Mr. X if you were to allow me compete for some of your business what would it be?

Mr X will ask what services are you offering?

Anything from commercial lines of credit to securities to checking accounts that bear a decent rate of interest.

Mr. X will then let you know more than you think he would. If his request is anything other than securities (more than 50% of the time it is) I refer that out to another in my network that’s in a position to refer others to myself. I then have a great reason to call back and make sure he received a prompt and professional response.

I then ask if there is one single thing he would like to improve his firm what would that be?  Typically it has nothing to do with what I do. NOW I try and search out another firm that can fulfill the need. Mr. X I’m bla bla with bla bla and I know of a firm that needs you services. Do you have a moment? I let him know that I’m trying to be a talent scout for my clients and I’ll try to help them in any way I can and I can probably be of assistance to you in the same way.

You know I really hate cold calling not because I am afraid to do it, but it is just so impersonal to me and outdated.  You should be well networked in the community or have good affinity group affiliation to help you out in the start up process.

My situation is a bit different. Since I am a corporate strategist focusing on small companies (often niche oriented manufacturing) I focus on getting them to sign on with me as their strategist. I demand a minimum one year contract. I wear several hats for them while working with them. My goal is to help their business grow. Sometimes I find myself actually working at their place of business one day a week marketing their own products. Setting up meetings with various buyers. This puts me in the lime light so to speak. I not only have the loyalty of my clients when it comes time to sit down and discuss setting up the 401K plans, health and life plans et al for themselves and their employees, but their customers have been added to my list of contacts and already are familiar with me. So I have to say that cold calling small companies to offer a premium service may be the long road approach, but it makes my days more eventful and doesn’t wear the gears down. It also increases my credibility given my roll as a “guru” for my clients. They have no problem soliciting my services to other business owners and individually to their friends and relatives.

Of course it helps if you have a graduate degree in Business and have 15 years of entrepreneurial experience.

When I cold call I actually create a list of about 50 small companies that I might find interesting. I will spend time doing DD on these businesses (I set aside a couple of hours three days a week). Once I understand what they do, how they do it, why and how long they have been doing it, I can call the owner and introduce myself and explain what I do. I will always be open about which companies are clients of mine (allowing me to refer to them publicly as my clients is a mandatory paragraph that all my clients must accept when they sign on with me or I will not execute the contract) and how they are doing.

I provide a two minute case study on what I have done for XYZ Corp. I then begin explaining certain macroeconomic aspects that hit a nerve with most any small business owner here in the US. I do it, because it is real and I am the answer to counter that pain so to speak. I offer them the opportunity for me to come down and check out their facility and see if we would be a good fit together free of charge. After the initial meeting, if it goes well I explain that I would like to set up two times where I can spend an hour discussing their business and how I can help them. Because I will be giving them great advice and pointing the direction they should be headed, I request a $500 retainer for my time. Worst case scenario is they have a refreshed vision of what it is they do, a clear direction of how to get where they want to be, and they are only out the $500 bucks. If after these meetings they are sold on the direction I would help them take their business, they sign a contract of 1 to 3 years and I become their strategist. After that having me take care of their financial services as just one part of everything else I do for them is cake.

Sure they are going to be getting calls from the competition to solicit their services as FA’s, but they won’t budge without asking me first, and when I tell them that while the caller might very well be all that as an FA, I am licensed as well and can take care of that for them when the time is right.

For those under 25 year old rookies in this business I say good luck, because honestly you are going to have days that really suck bad. I have to admit I admire rookies like this who preservere and end up making it. That is a tough road to hoe my friend.

What the hell happened to this place?  Corporate strategist?  I thought this forum was for registered reps, or, as someone put it a few months back, securities salespeople.

[quote=DJRoss]

My situation is a bit different. Since I am a corporate strategist focusing on small companies (often niche oriented manufacturing) I focus on getting them to sign on with me as their strategist. I demand a minimum one year contract. I wear several hats for them while working with them. My goal is to help their business grow. Sometimes I find myself actually working at their place of business one day a week marketing their own products. Setting up meetings with various buyers. This puts me in the lime light so to speak. I not only have the loyalty of my clients when it comes time to sit down and discuss setting up the 401K plans, health and life plans et al for themselves and their employees, but their customers have been added to my list of contacts and already are familiar with me. So I have to say that cold calling small companies to offer a premium service may be the long road approach, but it makes my days more eventful and doesn’t wear the gears down. It also increases my credibility given my roll as a “guru” for my clients. They have no problem soliciting my services to other business owners and individually to their friends and relatives.

Of course it helps if you have a graduate degree in Business and have 15 years of entrepreneurial experience.

When I cold call I actually create a list of about 50 small companies that I might find interesting. I will spend time doing DD on these businesses (I set aside a couple of hours three days a week). Once I understand what they do, how they do it, why and how long they have been doing it, I can call the owner and introduce myself and explain what I do. I will always be open about which companies are clients of mine (allowing me to refer to them publicly as my clients is a mandatory paragraph that all my clients must accept when they sign on with me or I will not execute the contract) and how they are doing.

I provide a two minute case study on what I have done for XYZ Corp. I then begin explaining certain macroeconomic aspects that hit a nerve with most any small business owner here in the US. I do it, because it is real and I am the answer to counter that pain so to speak. I offer them the opportunity for me to come down and check out their facility and see if we would be a good fit together free of charge. After the initial meeting, if it goes well I explain that I would like to set up two times where I can spend an hour discussing their business and how I can help them. Because I will be giving them great advice and pointing the direction they should be headed, I request a $500 retainer for my time. Worst case scenario is they have a refreshed vision of what it is they do, a clear direction of how to get where they want to be, and they are only out the $500 bucks. If after these meetings they are sold on the direction I would help them take their business, they sign a contract of 1 to 3 years and I become their strategist. After that having me take care of their financial services as just one part of everything else I do for them is cake.

Sure they are going to be getting calls from the competition to solicit their services as FA’s, but they won’t budge without asking me first, and when I tell them that while the caller might very well be all that as an FA, I am licensed as well and can take care of that for them when the time is right.

For those under 25 year old rookies in this business I say good luck, because honestly you are going to have days that really suck bad. I have to admit I admire rookies like this who preservere and end up making it. That is a tough road to hoe my friend.

[/quote]

For some reason I’m finding aspects of your story a little hard to believe…

I’m a little puzzeled myself…wouldn’t this be the kind of outside business activity that compliance would question?  Look at how much time is spent away from the office in such a scenario…

I think thats the way he’s ‘planning’ to do it…

This is why I signed on with a smaller regional company instead of one of the three wire house offers I had. Flexibility. What I am doing admittedly is rather unique, and outside the box.

However the issues of compliance are not in question. There are procedures already in place at any of the companies that each of you are working regarding income earned outside the firm. Most don’t like this, and it would be rather difficult to find an outfit that would welcome you as a registered rep while working for someone else (in this case for myself). However, given the nature of what I do and the strategy of implementation of financial services as a part of the total solution that I provide, they were more than happy to oblige.

You may not believe it, agree with it or even understand it, but if you do not believe me I would be glad to talk to any of you over the phone. Just go to this blog which is basically a business card I put up about 3 months ago, and give me a call. I will be glad to explain all the details. I will also give you at least 3 references including my manager at Beneficial Financial Group as the proof in the pudding.

Honestly once they heard how everything fit together the hiring manager had the sentience to see that this is the future. Sitting in a cubicle half the day cold calling may float other peoples boats, but my office goes with me. I can actually cold call while on site (which I have actually done). As long as I am bringing in business sufficient to meet the req’s per month, I am free to develop this long term revenue solution.

Lund is a great town.  I enjoyed some very good times there over about six months.  Somewhere I still have the membership card from my two favorite student nations that I saved as souvenirs.

Rode that purple Pagatagen into Malmo every day for work during the week, and partied on the weekends.

Oh…and on the last page of your blog, the reference is ‘brass TACKS’.

DJ - Are you an engineer by training? You seem extremely analytical. Not only from this thread but from the  others I’ve read here that you participate. Your posts are so long.

LOL, I knew that. Thanks for the edit. It has been corrected.

Yes Lund is a great place. My children still miss “home” . Pågatåg lines have been expanded over the past ten years. I don’t know when you were there, but since the bridge to Copenhagen was built, you could take the train from Lund all the way to Kastrup Airport. Nice 40 minute ride.

So since you had Nation cards, were you studying at Lund? I was a member of Göteborg although being married with children, I never really got involved in their activities.

You said you worked in Malmö. What did you do? I was a partner in a Media and Advertising firm off of Regementsgatan. Between the City Library and Gustav Adolfstorg across the canal. We were once building away from Göran Persson’s (Former Prime Minister) summer residence. My first job was actually at the Sparbanken in Gustav Adolfstorg way back in 89.

I must admit I do tend to get verbose. A disease I have battled my entire life 

Educated?–> Yes. Engineer?–>No.

Actually I am folding my business into my RR with the Financial Service Company’s blessing. While I will have some personal portfolios, my business will focus will be on corporate accounts. I know it sounds strange, but the comments above are based on a false dichotomy of either or between these two choices. Either RR or Corporate Strategist.

When there are actually quite a few options in between the two extremes. If as a strategist providing financial services is part of the total solution, than it is not an issue of having to decide what to prioritize.

I have two challenges which at least currently I am meeting:

1. Find a Financial Services company willing to allow me the freedom to do what I am doing.
2. Bring in enough business to meet the RR goals/quotas

So currently I am running a split schedule where regular business hours I am working with Business Clients, and I am currently running with about 5 evening appointments per week to cater to individual clients. I am in the office about 3 days a week while working out of my home two days a week which is nice since I can eat lunch with my wife who also has a home office and see the kids when they come home from school. Most days even when at the office I am actually on appointments with potential clients.

The business clients are classified in 3 categories:

1. CS Clients. These are my babies so to speak. This is where I work as I have explained previously.
2. Strictly RR Business Clients: No interest in strategic services, but have a need for Financial Services
3. Small Business that may not be ready for corporate FS, but who need to get their personal financial ducks in a row so to speak.

So far it is working, but who knows how things will be in a year.

Wow, that is cool. One of my best friends worked for Dresser Wayne. He was a programmer at that time for Gas Pump systems.

Well if you travel back there, give me a heads up and I can hook you up with some friends and family who can really show you around. My wife is taking our 3 youngest back this summer to visit her sister and father.

Nothing like a warm Skanian Summer evening sipping something refreshing while the smell of rapeseed flowers fill the air. My wife and I used to spend many a summer evening taking a dip at Lomma Strand. Ten P.M in the evening and the sun was still mostly above the horizon. Good Times

This thread is spiraling out of control… I think its needs a… Parachute!?

Please, ANYTHING but a “Parachute”!!!

[quote=DJRoss]

Wow, that is cool. One of my best friends worked for Dresser Wayne. He was a programmer at that time for Gas Pump systems.

Well if you travel back there, give me a heads up and I can hook you up with some friends and family who can really show you around. My wife is taking our 3 youngest back this summer to visit her sister and father.

Nothing like a warm Skanian Summer evening sipping something refreshing while the smell of rapeseed flowers fill the air. My wife and I used to spend many a summer evening taking a dip at Lomma Strand. Ten P.M in the evening and the sun was still mostly above the horizon. Good Times

[/quote]

Yah the fact that the beaches were(like most in Europe) topless didn’t suck either…

Alternatives to Cold Calling = Failure

LOL yeah ok. The office where I was hired has about 6 veterans that would disagree with you. Heck, my manager (sounds weird saying that since I still work pretty much on my own) has never once used cold calling.

Now do not get me wrong, I am not saying that cold calling is bad or is less than, I am saying that there are quite a few reps out there that have never needed or have been able to establish themselves successfully without cold calling.

CAVEATS:

1. How established is your existing network prior to jumping aboard?
2. What knowledge do you bring into the business from the get go?
3. What personality type are you? (some guys are amazing at closing cold calls)
4. How much experience do you have coming in dealing with people, their problems and resolving them?
5. Where are you working? Are we at a metropolitan wire house office that actually demands you cut your teeth cold calling, or are we situated in less urban climes at a regional financial services company that got its start in the insurance business?

Each situation combined with each individual rep determines whether cold calling is successful or not and whether it is even considered an option.

Anyone making blanket statements that alternatives to cold calling= failure or the opposite that cold calling = failure are enjoying a bit of hyperbole. Either that or that their ignorant. I choose to assume that others are not ignorant

Is it legal to cold call without a series 7? I know smaller firms will have “cold callers” prospect new clients for them. Once so many of their leads open up, they will give them the series 7 books to study. Is this illegal?

Lance Best – we DON’T DO LOANS—you guys are talking to Financial Advisors not Mortgage Brokers–get lost!

Is there a rule against advertising on this forum? This guy is cold calling us all on the topic of alternatives to cold calling. Is there a way to ban people like this?

Hello DJRoss,

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Two- IF you are blessed with a ready-made natural market the world is your Oyster. I don’t know one person that does. Age training requires, at the very least, 750 people in such a network to choose the networking tract. All of those in my class that selected that tract burned through it in short order and are now cold calling in one form or another.

Three – You wrote “The office where I was hired has about 6 veterans that would disagree with you.”

Four- You wrote “Anyone making blanket statements that alternatives to cold calling= failure or the opposite that cold calling = failure are enjoying a bit of hyperbole. Either that or that their ignorant”

As for the ignorant comment “Either that or that their ignorant”

A cold call to me is “meeting anyone that you do not know and would like to know more about with the primary mission of doing business with them”. Based on this you can “cold call” anywhere there are people you do not know.

"One
– I consider “Cold Calling” as a premeditated contact with a complete
stranger with no referral and asking for his/her business. There are
many ways one can “cold call” beyond dialing and smiling."

This definition changes the discussion completely.  Now I personally have yet to broker any form of cold calling according to your definition, however as you explained in your response, for those who possess a considerable network this is something that can be delayed and possibly avoided.

I  am working together with the office manager in setting up Business and Professional based seminars, just because this kind of contact floats my boat so to speak. So according to your definition this would be a form of cold calling. So in January I will be engaged in cold calling. I guess given my own experience and personal nature this kind of activity doesn’t produce feelings of “aversion” in me.

Now picking up the phone and drumming through a list of names of people I do not know, does produce such feelings in me. Of course calling a business to invite them to a seminar doesn’t feel the same either since B2B contact is not as invasive. Feigning that personal connection through the strategic use of language on a B2C level does in fact make me feel uncomfortable. When someone I do not know attempts to be my friend over the phone, I hang up.

I make a living having developed relationships of trust, and that has fortunately for me built an extensive network over the years. It has however also built a necessity for me to develop relationships sans the sales pitch prior to broaching the subject of (in this case) financial services. I would have made a terrible rookie if I had to pimp the phones all day. Now I like working with businesses, and I would not have been able to connect with them the way I do now if I came in straight out of college.

So understanding how you see cold calling, than sure you would be hard pressed to avoid all activities that require a solicited contact of someone sans a referral. Now if we are talking about cold calling in the traditional definition of picking up the phone and dialing strangers for solicitation, than yes, those in my office that I referred to all have avoided that particular activity.

Regarding your “Fear Buzz”, I can attest that there are several new guys starting in January, and I am most certain that for at least a couple this will end their careers rather quickly.

”I  am working together with the office manager in setting up Business and Professional based seminars, just because this kind of contact floats my boat so to speak. So according to your definition this would be a form of cold calling. So in January I will be engaged in cold calling. I guess given my own experience and personal nature this kind of activity doesn't produce feelings of "aversion" in me.”

 <?: prefix = o ns = "urn:schemas-microsoft-com:office:office" />

There you go make it happen.

”Now picking up the phone and drumming through a list of names of people I do not know, does produce such feelings in me. Of course calling a business to invite them to a seminar doesn't feel the same either since B2B contact is not as invasive. Feigning that personal connection through the strategic use of language on a B2C level does in fact make me feel uncomfortable. When someone I do not know attempts to be my friend over the phone, I hang up.”

The word “Feigning” is telling and is defined as “To give a false appearance of” Perhaps therein lays the problem and reason you’re not comfortable. When I call there is nothing false about it, it is direct and 100% on the up and up. I can only imagine if I felt I was doing something less than honest I would be uncomfortable as well. When I feel somebody is being less than honest I would also hang up.

“I would have made a terrible rookie if I had to pimp the phones all day”

Also telling is your negativity on the subject. Dude, I don’t “pimp” anything too or for anybody.

“So understanding how you see cold calling”

I think your concept on the subject dramatically varies from mine.

”Regarding your "Fear Buzz", I can attest that there are several new guys starting in January, and I am most certain that for at least a couple this will end their careers rather quickly.”

That’s unfortunate and I hope they overcome as I hope you do as well. If you can somehow change your perception on the subject you may just find it quite liberating and perhaps productive, IMHO.

James,

[quote=DJRoss] "One – I consider “Cold Calling” as a premeditated contact with a complete stranger with no referral and asking for his/her business. There are many ways one can “cold call” beyond dialing and smiling."


I  am working together with the office manager in setting up Business and Professional based seminars, just because this kind of contact floats my boat so to speak. So according to your definition this would be a form of cold calling. So in January I will be engaged in cold calling. I guess given my own experience and personal nature this kind of activity doesn’t produce feelings of “aversion” in me.

[quote=Gaddock]

<o:p></o:p>

The word “Feigning” is telling and is defined as “To give a false appearance of” Perhaps therein lays the problem and reason you’re not comfortable. When I call there is nothing false about it, it is direct and 100% on the up and up. I can only imagine if I felt I was doing something less than honest I would be uncomfortable as well. When I feel somebody is being less than honest I would also hang up.

[/quote]

I think we are talking about two different things. I am not concerned nor adverse to sharing information with others about a product or service that I can stand behind. No problems there. The issue for me regarding phone cold calls are the following:

"Best Buddy" routine. Someone I don't know calls me by my first name and begins talking to me like he knows me.

Ego Trippers. Guys that call and begin using flattering manipulative language to try and appeal to my ego (Mr Ross, I know you are a successful man...blah blah blah)

"card readers" Where they are obviously reading and leave me with the impression that they lack the depth to handle my business responsibly.

"Speed Mantras", guys who have been using the same script for so long that it has become a mantra. They work to speed through the sales pitch and lack a genuine feeling. Like the card readers, speed mantra types are attempting to keep the callee on the line hoping if they hear their entire cookie cutter spiel they will be able to work them towards a close.

None of these people have to be less than honest. The key is that they are feigning behaviors in order to close the sale. The product may be the greatest thing since peanut butter, but the lack of the "care" factor means that the sale and not the client is the most important thing.

[quote=Gaddock]Also telling is your negativity on the subject. Dude, I don’t “pimp” anything too or for anybody.[/quote]

I never said you did. I don't throw the baby out with the bathwater here. Cold Calling on phones is obviously a successful strategy otherwise so many would not engage in it. There are forms of calling that I am perfectly comfortable.

Looking to seal the deal over the phone without having prepared the client with information prior to the closing call such as through invites to an educational event, mailing information or setting up an appointment is IMO disingenuous.

[quote=Gaddock]That’s unfortunate and I hope they overcome as I hope you do as well. If you can somehow change your perception on the subject you may just find it quite liberating and perhaps productive, IMHO.[/quote]

It will be interesting to see how these recruits pan out. I doubt I will ever change my feelings on this subject. But to clarify:

I like to prepare people first. Educate them, allow time to develop a relationship of trust. I immediately began working with referrals almost from day one. Again I am not averse to calling potential clients, I will not however, be looking to close the deal so to speak without going through that process first.

[quote=12345]I am curious about what you do all day everyday if you are not cold calling or cold walking. Are you holding seminars everyday? I am not trying to insult you just curious.

[quote=DJRoss] [quote=12345]

I have my NASD Series 7, 66, 65, 63 + My State LA&Health & Med Supp insurance licensing.

[quote=Gaddock][quote=DJRoss] [quote=12345]

I have my NASD Series 7, 66, 65, 63 + My State LA&Health & Med Supp insurance licensing.

Wow…Chris Gardner makes this seem glamorous. Its kinda hard.