On Cold Calling

[quote=drewski803]

1. Very limited pre-dial qualifying (i.e., dialing down the phone book of affluent zip codes)

Of course.  My B/d has a great third-party dnc service.  I simplified my process, but basically what I do is reverse-lookup phone numbers for a zip and paste it into our scrubber.  Works well.  Of course business leads aren't subject to those restrictions.

drewski, excellent stuff! Don't change a thing, you're doing great.

Your search for qualified lists will become a major part of you job description in coming months. If the phone book you're using isn't a reverse street directory, get one. It will help you hone in on wealthy streets or blocks, as well as zip codes. But keep the book you're using until or unless it stops producing.

Take a drive and look at the houses in various neighborhoods. New McMansions, with 30 something owners, bad. Older established neighborhoods with 40ish and older residents, good. I pass on any street overrun with minivans.

Country clubs have rich members. Somewhere there is a list with phone numbers. People who own big boats have money, as do classic car owners. Where to find those names? I'd start with the directory of directories or the directory of associations in the ref section down at the local library. I'd bet that that directory has the name, address, and website info for just about yacht club, and classic car club in the country. Airplane owners have money. AOPA use to have a buyable list.

 And if all else fails you could try calling the classifieds:

" I 've got good news for you and bad news for you. The bad news is I'm not calling to buy your 55 300SL Gullwing Mercedes. The good news is I have a high yield tax free bond to offer you. Do you buy tax free bonds?"  

Yeah, it's ballsy, but the worse that can happen is the owner tells you to crawl into a dark wet cave with your dog and die. Of course, in that case you don't get the sale. Which is exactly the same result you get when you don't make the call. Hmm, same result? You have nothing to lose. And with any luck you can cross ref the phone number to come up with a name before you make the call.

Your credo "Find the M-U-N-Y!!!!"

Sorry to burst your balloon, but I am skeptical.

Personally, I don't answer the phone to let some one give me a quote for the roof on my house.  I would never let someone I don't know look over my investments, and I know few rich people who answer the phone.

If this works for you, great.  but I am skeptical of your numbers.

$20 million what in 8 months.

[quote=vbrainy]$20 million what in 8 months.[/quote]

He said $20M not $20 million.

[quote=vbrainy]

Sorry to burst your balloon, but I am skeptical.

Personally, I don't answer the phone to let some one give me a quote for the roof on my house.  I would never let someone I don't know look over my investments, and I know few rich people who answer the phone.

If this works for you, great.  but I am skeptical of your numbers.

$20 million what in 8 months.

[/quote]

Clear this up. Are you skeptical because you misread the numbers, or are you skeptical because you don't like cold calling as business channel?

I think cold calling with a product works best. Muni's & Preferreds are great account openers. If the prospect is looking for other products/services they will let you know, and you can go from there.

Isn’t there a better way to get into the business? Cold calling seems so outdated - it may have given some of us a start, but it seems folks today are just bombarded with solicitations - and if you could differentiate yourself, it might not be easier, but it could be more effective.

Frankly, I just can’t get enough people at home. Yes, I do it at night

sometimes, but I run into people not answering the phone because of

caller ID, and if I try the *67 route, a lot of people have that service that

won’t accept blocked ID’s. I have had limited success, but I just can’t

connect with enough people. I am trying to cold-call businesses, but I

can’t find a good directory for that.



Any thoughts?

I've done both vigorously over the past year.  Houses SUCK.  Though I've gotten a 250m, 100m, and a decent shot at a 750+m from a res. list.  My best accounts come from businesses, though. People with money really don't seem to mind being called at work.  I like what BondGuy (I think it was him) said about the harder the number is to find the better lead it is. 

Theres a kid in my office (you always hear this bs, but I've seen this one in real life) that has been there for roughly 3 years (+1 interning) that did 300m in production last year (LOS 2).  He swore to me that he never called a single residence and I know for a fact he isn't connected.  I think you've just got to use that kind of stuff as your driving force.  I asked my director the other day what he did that I'm not and he looked me square in the face and said "Nothing, Drew."  That is motivation.

Today I had two appointments: first one was a lady with 100m investible but with parents (hers and her hubbies) that had some real money.  Second was an attorney that oversaw an 850m profit-sharing plan.  Where I'm from thats called getting in front of real money.

Broker, I use Hoovers.com for business leads.  I’m sure there are alot of great ones.

oh yeah, vbrainy, I don't care if you are skeptical.  My numbers aren't stellar (20,000 in PC's on 2,500,000 of assets) but if you're a noob like myself, I'd recommend this method.  Especially for those of you who are young like me.

[quote=Broker24]Frankly, I just can't get enough people at home. Yes, I do it at night
sometimes, but I run into people not answering the phone because of
caller ID, and if I try the *67 route, a lot of people have that service that
won't accept blocked ID's. I have had limited success, but I just can't
connect with enough people. I am trying to cold-call businesses, but I
can't find a good directory for that.

Any thoughts?[/quote]

Here's some thoughts:

Start at your local library. Go to the reference section. We're looking for the Dunn and Bradstreet million dollar directory. Take some time with it and look at how it's organized. You'll note that there are thousands of business listed with thousands of names of officers and top managers. Take special note of the page that lists ordering info for the book. Also take some quarters along and make lots of copies. That should hold you until your copy of the book arrives. Next look for the local Chamber of Commerce directory. Most libraries have these stasted somewhere. it too is a wealth of names. better yet call your local chamber and become a member. Call all the Chambers in your state and ask for membership lists. Last stop at the library is a regional business directory like the Mark directory. Most areas have this type of book. It costs about $250 and has all the info you'll ever need. Most of largest clients have come from this type of book. Next stop is your company's investment banking dept. Get the prospectus of some of the recent new issues. it will list all the officers and directors of whatever firms have recently been brought ot market. You don't even have to guess at how much money these people make. It's right there in the prospectus.These people have new found money to invest. Next on the list are the publicly traded companies with offices or operations in your home town. Everything from the electric company to the big box store. Become an expert in their company and then start calling top managers.

Or, you could just call a list broker like CIS and buy all the names you need.

Thanks for the info, Bondguy.

get the glen-gary leads

Judging by your screen name, Vin Diesel, and your post, it appears that you are also a fan of amped up, commission pumping sales movies.

Coffee is for closers!

So does cold calling still work in the day of the DNC list?  After a 4 year hiatus, I’m thinking about doing it again.  I don’t need to, but I loved doing it.

In reference to DNC not applying to businesses...that's not true.  You should know from the third party DNC administrator (I get the feeling you use the same one as me) that businesses frequently come up as DNC. 

The National Do Not Call Registry is only for personal phone numbers. Business-to-business calls and faxes are not covered by the National Do Not Call Registry.

Thus, it is not illegal to call businesses that may have their number on the DNC.

In reference to DNC not applying to businesses...that's not true.  You should know from the third party DNC administrator (I get the feeling you use the same one as me) that businesses frequently come up as DNC. "

Businesses that come up as DNC are already clients of your firm. That's why you are discouraged from calling them.

Yeppers.

anybody try going after physicians.  I have tried calling them and have actually started getting some success.



You have to get in with the G/K’s and just catch the doc at the right
time.  They are open to you seeing them because they always have
people come into there office. (pharm reps).



Also regin and drewski what gets you guys “amped up” to hit the
phones.  For me its usually the numbers.  Each dial = $$ in
production if you crunch the numbers.

Some of the wealth management studies show physicians are fairly penetrated (no pun intended). Obviously they have $$$ and are a targeted center of influence group, if I was cold calling, it would be business owners, and I would get them away from the office for coffee or a quick lunch, after prequalifying for $$ and interest. Everyone needs to eat and get some perspective on their options.

Who has clients that are Physicians?  



How did you get guys get this group?

Careful what you wish for. I had a couple of MDs, hated them, and am

finally rid of them. I wouldn’t take on another doctor as a client to win a

large bet.

younggunz and old-timers:

We have a very large producer in my office that swears by the motto, "when performance is measured, performance improves."  I have really found that to be true in my personal business.  Correspondingly, I have setup a system that holds me accountable to myself throughout the day.  I think the formula these days is: cold calls=prospects identified=follow-up calls=appointments set=assets in=production *more on that later.*  With that formula in mind, what I do is grab a coffee, sit down and write some tallies on a piece of paper:

ST (cold contacts)

FU & ST (follow-up calls and contacts)

PI (prospects identified)

APP & SET (appointments attended and set)

and the mothers: AI (assets in) and PC's (production credits)

I don't think this method amps you up as much as it breaks the occassional funk.  When you look at the sheet at 9:50 AM and its blank, your mind seems to race into action (I have actually found myself to overcompensate on these days and blow the doors off).  If you find yourself funking occassionally, try it.

On another note, I want to get back to my original formula. 

The conventional wisdom is that you start with cold-contacts, identify prospects through qualification, make follow-up calls and setup the appointment.  I have employed a new strategy in the last 2 weeks that I believe might be a short-cut.  Try qualifying the prospect significantly before picking up the phone (IE, build your own list that you are absolutely certain 25% of your targets would be good clients.)  Call that list, tell them all you are already going to be near them and want to drop by and give them a card.  I've seen my cc/app-set ratio hit the ceiling.  You get stood up alot, but it seems that you get infront of some real money. 

Oldbies, what do you think about this method?

Who has clients that are Physicians?  

How did you get guys get this group?

I work with some guys who have over 2000 physician clients.  The vast majority were gotten when they were in their medical residencies.  The hook was discounted disability insurance.  They typically make no money when they acquire the client...maybe $400 on the DI and a few dollars from opening a Roth.

It took them a long time to build their practice, but they are now poised to make major bank.

[quote=blarmston]

In reference to DNC not applying to businesses...that's not true.  You should know from the third party DNC administrator (I get the feeling you use the same one as me) that businesses frequently come up as DNC. "

Businesses that come up as DNC are already clients of your firm. That's why you are discouraged from calling them.

[/quote]

No, there is a seperate designation for current clients in my firm's DNC search. 

Let me pose this question to you...Joe and Jane Smith run a business out of their house.  You decide to cold call them at 7:00 a.m. because they are business owners and thus, should be working early.  You call, not realizing that their business line is also their home phone.  Are you telling me you aren't going to get fined for that? 

If the number is advertised as a business line, I don’t see that you’ve done

anything wrong.

Do a reverse number lookup on whitepages.com before you make the dial.  It will tell you whether it is a home listing or a work listing.

[quote=entrylevelFA][quote=blarmston]

In reference to DNC not applying to businesses...that's not true.  You should know from the third party DNC administrator (I get the feeling you use the same one as me) that businesses frequently come up as DNC. "

Businesses that come up as DNC are already clients of your firm. That's why you are discouraged from calling them.

[/quote]

No, there is a seperate designation for current clients in my firm's DNC search. 

Let me pose this question to you...Joe and Jane Smith run a business out of their house.  You decide to cold call them at 7:00 a.m. because they are business owners and thus, should be working early.  You call, not realizing that their business line is also their home phone.  Are you telling me you aren't going to get fined for that? 

Do wahtever it takes to get two face to face appointments per day.  If that takes 200, 300, 400 calls per day,then so be it.

If its their business number and they advertise it as such, and it turns out to be at their residence, I dont beleive you are in the wrong....

It goes a long way that if they get perturbed, you politely apologize for the confusion, tell them you will immediately remove their name, and thank them for your time... MOST people are pretty understanding about that... Of course, you may also get the occasional A$$ who has nothing better to do than file a complaint...

[quote=blarmston]

If its their business number and they advertise it as such, and it turns out to be at their residence, I dont beleive you are in the wrong…

It goes a long way that if they get perturbed, you politely apologize for the confusion, tell them you will immediately remove their name, and thank them for your time... MOST people are pretty understanding about that... Of course, you may also get the occasional A$$ who has nothing better to do than file a complaint...

[quote=entrylevelFA][quote=blarmston]

In reference to DNC not applying to businesses...that's not true.  You should know from the third party DNC administrator (I get the feeling you use the same one as me) that businesses frequently come up as DNC. "

Businesses that come up as DNC are already clients of your firm. That's why you are discouraged from calling them.

[/quote]

No, there is a seperate designation for current clients in my firm's DNC search. 

Let me pose this question to you...Joe and Jane Smith run a business out of their house.  You decide to cold call them at 7:00 a.m. because they are business owners and thus, should be working early.  You call, not realizing that their business line is also their home phone.  Are you telling me you aren't going to get fined for that? 

[/quote]

I stand corrected.  I checked the FTC website and if it is a business line, advertised as a business number in a business directory they can be called.  Pardon my ignorance, no excuse me while I go call the half of my list that I thought I couldn't call.

Great Thread. I started cold calling today. At my firm we have an 800 number that we use to place cold calls through. I am calling business owners from a local business directory. I’ve noticed that a significant amount are on the DNC or asked our firm to place them on their do not call list internally. When I dial the number I hear a recorded message saying “this number is on the do not call registry” and it blocks the dial from going through. I am a bit confused with the rules for the DNC lists to business numbers. It seems like some of you call businesses without regard for the DNC lists. I am not trying to say that anyone is doing it the right or wrong way, I am just looking for some clarification. Is there a way around the DNC lists for businesses? Do the DNC rules change if you are soliciting the business versus the business owner for their personal investment needs? I am also not trying to complain about this, there are still many business numbers not on the DNC. There is still plenty of opportunity. I just don’t want to blocked from calling numbers if I don’t have to be.

If you have to use the 800#, then you don't have a way around it.  Also, if they are on your firm's DNC list you can't call them regardless.

Some DNC software defaults numbers to the DNC. Many new numbers, cell phones ,and small businesses end up on the DNC for this reason.

When I asked one IT guy why my cell phone was blocked by the firm's DNC system he told me someone must have put the number on the DNC. He wouldn't accept that that wasn't the case. The number isn't on the DNC and never has been, yet, it's blocked.

[quote=BondGuy]

Some DNC software defaults numbers to the DNC. Many new numbers, cell phones ,and small businesses end up on the DNC for this reason.

When I asked one IT guy why my cell phone was blocked by the firm's DNC system he told me someone must have put the number on the DNC. He wouldn't accept that that wasn't the case. The number isn't on the DNC and never has been, yet, it's blocked.

[quote=joedabrkr] [quote=BondGuy]

Some DNC software defaults numbers to the DNC. Many new numbers, cell phones ,and small businesses end up on the DNC for this reason.

When I asked one IT guy why my cell phone was blocked by the firm's DNC system he told me someone must have put the number on the DNC. He wouldn't accept that that wasn't the case. The number isn't on the DNC and never has been, yet, it's blocked.

[/quote]

Just bothered that I can't call myself at dinner time and pitch myself a good TF bond.

Are you sad because you aren't getting any cold calls on your celphone?
[/quote]

[quote=BondGuy][quote=joedabrkr] [quote=BondGuy]

Some DNC software defaults numbers to the DNC. Many new numbers, cell phones ,and small businesses end up on the DNC for this reason.

When I asked one IT guy why my cell phone was blocked by the firm's DNC system he told me someone must have put the number on the DNC. He wouldn't accept that that wasn't the case. The number isn't on the DNC and never has been, yet, it's blocked.

[/quote]

Just bothered that I can't call myself at dinner time and pitch myself a good TF bond.

Are you sad because you aren't getting any cold calls on your celphone?
[/quote]

[quote=DMAN]Great Thread. I started cold calling today. At my firm we have an 800 number that we use to place cold calls through. I am calling business owners from a local business directory. I've noticed that a significant amount are on the DNC or asked our firm to place them on their do not call list internally. When I dial the number I hear a recorded message saying "this number is on the do not call registry" and it blocks the dial from going through. I am a bit confused with the rules for the DNC lists to business numbers. It seems like some of you call businesses without regard for the DNC lists. I am not trying to say that anyone is doing it the right or wrong way, I am just looking for some clarification. Is there a way around the DNC lists for businesses? Do the DNC rules change if you are soliciting the business versus the business owner for their personal investment needs? I am also not trying to complain about this, there are still many business numbers not on the DNC. There is still plenty of opportunity. I just don't want to blocked from calling numbers if I don't have to be.[/quote]

If you're using Gryphon, it blocks businesses.  Just write DNC next to their name on your list and go back and call without the 800 number.

I received some clarification from my compliance coordinator today. I don't have to use the 800 scrubbing number to call businesses. I dialed the numbers directly today and no one told me there number was on DNC so I think there are errors with the system.

Based on the advice I received on this forum I am using Bill Good's approach to cold calling. I am using a local business directory. The best results I am getting from this list would be what Bill Good would call an "info lead", a prospect who is interested in offer but not ready to buy now. I have been calling with a new issue prefered yielding 6.25%. I usually ask how that yield sounds to them. I often get a good response from this question. I then go on to ask the question, Why don't we open an account and purchase some shares. I usually then get "Whats your minimum". I explain the minimum and then usually get two types of responses:

1. "I have everything tied up in my business, I dont have that kind of money right now"

2. "I have all my money tied up in real estate" 

I usually try different angles like "Will you have funds available in the future" "Any 401ks, IRA that you aren't happy with". My last effort is I offer to send market newsletters monthly to keep in contact with them and tell them that I will keep them in mind when new offers arise.

What have you guys used to get around response 1&2?

What type of requirements do the prospects have to meet to be put on a drip list?

Should I be concerned with not getting many "cherries", prospects who are ready to buy now versus "info leads", prospects who are interested but not willing to buy now?

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