Apr 3, 2007 11:58 pm

I had a rookie ask me recently about what they should do to survive/prosper in their first two years. No connections, just sweat equity. Here is a portion of what I passed along:

- Consider your first 2 years a "500 day war." Embrace the grunt mentality. Rid yourself of ego and get the job done.

- Assemble a list of 15000 names: business owners, corporate directories, business cards, etc. Do not call any residences. Period.

- Your goal is to contact a minimum of 30 new people a day. More in the early months as you will not be bothered with callbacks, appointments, clients, etc. Call on a specific portfolio strategy/fund/whatever that has an excellent long-term track record. Qualify everyone for an absolute minimum of 100k.

- Here is how the #'s are likely to play out: 15000 contacts (over 2 years) will lead to 1000 prospects (1 out of 15); you will make approx. 4000 callbacks (4 callbacks/prospect or average or 8/day PLUS a ton of messages) and you will open 100 new accounts. Average new household will be 250k if you have qualified properly. After 2 years you will have gathered approx. 25 million in fee-based/mutual fund assets paying you approx. 1 % a year. Talk about a splendid base to build from.

Apr 4, 2007 12:39 am

Excellent post Judge. <!–
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Apr 4, 2007 2:39 pm

Agreed…

Apr 4, 2007 11:38 pm

Good post “Your Honor”.

Apr 4, 2007 11:59 pm

Judge,good stuff!

With a minimum use of bandwidth you've given every rookie here an outline for their business plan. Every rookie should copy your post and then fill out the plan. Truly, well done!

Apr 15, 2007 7:17 pm

Judge:

I wish someone would have given me that advice when I began cold-calling a few months ago. I am now adjusting my marketing away from predominantly calling homes and am already seeing improved results.

Apr 16, 2007 12:08 am

[quote=The Judge]

I had a rookie ask me recently about what they

should do to survive/prosper in their first two years. No connections, just

sweat equity. Here is a portion of what I passed along:

- Consider your first 2 years a “500 day war.” Embrace the grunt

mentality. Rid yourself of ego and get the job done.

- Assemble a list of 15000 names: business owners, corporate

directories, business cards, etc. Do not call any residences. Period.

- Your goal is to contact a minimum of 30 new people a day. More in

the early months as you will not be bothered with callbacks,

appointments, clients, etc. Call on a specific portfolio strategy/fund/

whatever that has an excellent long-term track record. Qualify everyone

for an absolute minimum of 100k.

- Here is how the #'s are likely to play out: 15000 contacts (over 2

years) will lead to 1000 prospects (1 out of 15); you will make approx.

4000 callbacks (4 callbacks/prospect or average or 8/day PLUS a ton of

messages) and you will open 100 new accounts. Average new household

will be 250k if you have qualified properly. After 2 years you will have

gathered approx. 25 million in fee-based/mutual fund assets paying you

approx. 1 % a year. Talk about a splendid base to build from.

[/quote]

Judge, can you expand on the strategy for WHO to call. Why do you (did

you) avoid the residential cold-calls?

Apr 16, 2007 12:21 am

Good question. There is no "magical" list. For the most part, it's all about the numbers. Allow me to elaborate:

- I almost never called people at home for the simple reason that I don't care to be called at home. At work is another story. And this is way before the DNC era (90's). The residential #'s have/were pounded for years and you are (like) the 5th broker to call them this week. Find a better list. One exception (and the only residences I called after my first year) was a new homeowner list. These people were often new to the area and were looking for new sources of professionals. In addition, they hadn't been at that same # for years (i.e. pounded). In addition, the new home price/mortgage amount gave you a good idea of who you were calling. I tossed many leads that were under a $ minimum that I had set up.

Call business owners; officers; etc. pitch them an idea (w/ a proven track record) that you sincerely believe in. Ask for the order.

Call corporate directories. Pitch them the same idea. Ask EVERYONE of them if they are looking to retire or change jobs in the near future- rollovers. This works especially well with long/established companies.

It's not rocket science. It's part of the "grunt mentality" that I've referred to before. Make the calls and make it happen!

Other questions? Please ask away.

[/quote]

Judge, good insight. I have worked on trying to get two specific directories for big biz in my area, but to no avail yet. I am working on asking one of my clients from these companies, but I am scratching my head for a good way to ask. I found some creative ways to mine the names off the internet, but not quite there yet. Any other thoughts on how to obtain them would be much appreciated.

Thanks again.

[/quote]

take your client out to lunch. tell him how much you enjoy working with him and would like to help more people from his company. ask him for his "advice" on how to do that. after he responds...ask him if he could get you a company directory. make it happen!

Jun 1, 2007 7:32 pm

[quote=LEAP]

This is an excellent thread - Thank you Judge.

I have been calling business owners with a fund that prioritizes dividend yield, div. growth and valuation because it has done very well over the past few years and should be safe during periods of market weakness.

#1 - Is this a good type of product to pitch?

#2 - When you call a business owner, what script or language would you hit him with prior to pitching the fund?

[/quote]

go to http://www.ftportfolios.com/ and get a username/password. play around with the target strategy portfolios by doing some hypotheticals. find a combination of 2 or 3 of them that produced a high return that lost less than 10-12% in 2002. fall in love with it.

tell the business owner that you own a small business and that you are looking for new business, to open the call. while you're talking, email him the hypo and walk him trhough it. remember...you just told him that you are a business owner. you are on equal footing and should speak to him like you are.

Jun 1, 2007 8:16 pm

What do you do when there are fewer than 100 businesses within 20 miles of your town? Many of these business owners are low net worth clients with not much potential. I have my office in a working class community of commuters, most work at plants in the city miles away. I’ve had some success through rollovers but am almost forced to work exclusively residentially. Any suggestions Judge?

Jun 1, 2007 8:28 pm

[quote=BteamBomber]What do you do when there are fewer than 100 businesses within 20 miles of your town? Many of these business owners are low net worth clients with not much potential. I have my office in a working class community of commuters, most work at plants in the city miles away. I've had some success through rollovers but am almost forced to work exclusively residentially. Any suggestions Judge?[/quote]

cold call business outside your area. focus on a niche market or large company.

Jun 1, 2007 8:44 pm

[quote=Vin Diesel]

cold call business outside your area. focus on a niche market or large company.

[/quote]

How do you know anything about this? I thought bank brokers didn’t have to prospect??? Maybe you are an expert at knowing about things you have never done. You and Parachute are 6 or 8 of a kind.

Jun 1, 2007 9:24 pm

[quote=Oldproducer] [quote=Vin Diesel]

cold call business outside your area. focus on a niche market or large company.

[/quote]

How do you know anything about this? I thought bank brokers didn't have to prospect??? Maybe you are an expert at knowing about things you have never done. You and Parachute are 6 or 8 of a kind.[/quote]

i worked at a wirehouse for 5yrs. built a big book, then blew-up a book. so i know what it takes to raise assets at a wirehouse. i just don't have the energy to build a book all over again. and ive become accustomed to an expensive lifestyle.

Jun 1, 2007 9:24 pm

[quote=Vin Diesel]

[quote=BteamBomber]What do you do when there are fewer than 100 businesses within 20 miles of your town? Many of these business owners are low net worth clients with not much potential. I have my office in a working class community of commuters, most work at plants in the city miles away. I've had some success through rollovers but am almost forced to work exclusively residentially. Any suggestions Judge?[/quote]

cold call business outside your area. focus on a niche market or large company.

[/quote]

Don't you mean "wait for one of the tellers to give you a nod because someone deposited over $2,000 in their checking account then approach them and ask them why they're keeping such a high balance in their checking account and would they like to look at some other options"?

Jun 1, 2007 9:35 pm

[quote=Bobby Hull][quote=Vin Diesel]

[quote=BteamBomber]What do you do when there are fewer than 100 businesses within 20 miles of your town? Many of these business owners are low net worth clients with not much potential. I have my office in a working class community of commuters, most work at plants in the city miles away. I've had some success through rollovers but am almost forced to work exclusively residentially. Any suggestions Judge?[/quote]

cold call business outside your area. focus on a niche market or large company.

[/quote]

Don't you mean "wait for one of the tellers to give you a nod because someone deposited over $2,000 in their checking account then approach them and ask them why they're keeping such a high balance in their checking account and would they like to look at some other options"?

[/quote]

lol!

Jun 1, 2007 9:58 pm

[quote=Vin Diesel][quote=Bobby Hull][quote=Vin Diesel]

[quote=BteamBomber]What do you do when there are fewer than 100 businesses within 20 miles of your town? Many of these business owners are low net worth clients with not much potential. I have my office in a working class community of commuters, most work at plants in the city miles away. I've had some success through rollovers but am almost forced to work exclusively residentially. Any suggestions Judge?[/quote]

cold call business outside your area. focus on a niche market or large company.

[/quote]

Don't you mean "wait for one of the tellers to give you a nod because someone deposited over $2,000 in their checking account then approach them and ask them why they're keeping such a high balance in their checking account and would they like to look at some other options"?

[/quote]

lol!

[/quote]

I didn't know you bank kids knew how to laugh.

Jun 1, 2007 10:27 pm

[quote=Bobby Hull][quote=Vin Diesel][quote=Bobby Hull][quote=Vin Diesel]

[quote=BteamBomber]What do you do when there are fewer than 100 businesses within 20 miles of your town? Many of these business owners are low net worth clients with not much potential. I have my office in a working class community of commuters, most work at plants in the city miles away. I've had some success through rollovers but am almost forced to work exclusively residentially. Any suggestions Judge?[/quote]

cold call business outside your area. focus on a niche market or large company.

[/quote]

Don't you mean "wait for one of the tellers to give you a nod because someone deposited over $2,000 in their checking account then approach them and ask them why they're keeping such a high balance in their checking account and would they like to look at some other options"?

[/quote]

lol!

[/quote]

I didn't know you bank kids knew how to laugh.

[/quote]

what can i say, it's friday and im leaving for happy hour

Jun 1, 2007 10:33 pm

[quote=Vin Diesel][quote=Bobby Hull][quote=Vin Diesel][quote=Bobby Hull][quote=Vin Diesel]

[quote=BteamBomber]What do you do when there are fewer than 100 businesses within 20 miles of your town? Many of these business owners are low net worth clients with not much potential. I have my office in a working class community of commuters, most work at plants in the city miles away. I've had some success through rollovers but am almost forced to work exclusively residentially. Any suggestions Judge?[/quote]

cold call business outside your area. focus on a niche market or large company.

[/quote]

Don't you mean "wait for one of the tellers to give you a nod because someone deposited over $2,000 in their checking account then approach them and ask them why they're keeping such a high balance in their checking account and would they like to look at some other options"?

[/quote]

lol!

[/quote]

I didn't know you bank kids knew how to laugh.

[/quote]

what can i say, it's friday and im leaving for happy hour

[/quote]

Don't drink and drive. You might hit a bump and spill your drink.

Jun 2, 2007 4:08 pm

Alot of these companies have automated directories now, btw. So you call the main line, go to the "Search by [first/last] name" option and just tap #.

Happy dialing!

Jun 3, 2007 4:31 am

Judge,

Great post and thanks for the direction. For you or any of the vets who may have an opinion I have this question.
If the company you are calling is a small to medium company, and there is no corporate directory available online or in general - how do you go about getting to the head honchos? When you dial in, how do you know who to ask for?

Jun 3, 2007 4:59 am

Another question to Judge or other vets on the board.

When Judge says: "You should be looking to speak with a minimum of 50 new people a day..." are these people that I should consider real prospects or are they just people that pickup on the many dials I make? I don't want to cheat myself on these calls and consider someone apart of this 50 minimum when in reality they are junk.

Jun 3, 2007 11:25 am

Before you make (any) calls, you should have a list of people that includes their name/number/address/company at the very least. If you are utilizing the yellow pages and asking to "speak with the owner" the book should be thrown at you. When I say corporate directories, I mean large established companies that have thousands' of employess. If you are cold calling small businesses, you should really be looking to speak with the owner. They should be in the best position to invest and they can always refer you to some of their interested employees after they become a client of yours'.

With regard to your other question, a "contact" is considered completed when you actually speak to the intended person. Doesn't matter how long the call lasted.

Jun 3, 2007 11:39 pm

If you prospect properly, you will have the following infomration prior to making a call: name, direct dial (to get past gatekeepers), firm, and address. If you get it done properly you should also have age and approximate income. Think about all that stuff Al Granum taught to the life insurance industry in his book Building a Financial Services Clientleavailable at nationalunderwriter.com

Jun 4, 2007 3:37 pm

Go to your library and tell the reference librarian that you would like a list of local businesses with the owner's name and phone number.

My local library has a book that lists all the businesses in the state, subdivided by city. Not all the listings have an owners name so I skip those because there are probably 80% that do have it.

Also, your local library might have a membership with referenceusa.com. Ask the reference librarian if she is familiar with it and whether or not you can access it from your office computer. You may need a library card.

Jun 9, 2007 5:04 pm

Questions regarding how to acquire corporate directories of large companies without paying a service has been asked several times on this thread…

Jun 9, 2007 8:32 pm

If the judge says you want to speak with 50 people a day, does he mean actually speak with them or dial 50 people a day? Because the law of numbers basically says taht to talk to 50 people per day would require you dial 500 people per day.

Jun 9, 2007 9:15 pm

BigRed, you are incorrect. This is a good approximation of my phoning numbers:

40 cold calls = 6 reached = 2 set
4 calls to referrals =3 reached = 2 set

Moral of the story: Learn to prospect and phoning won't have to be a big part of your day.

Jun 10, 2007 2:55 am

Those numbers are very high. I haven’t began cold calling yet, but some of my-coworkers say it never works. One guy did a couple hundred with no success. I would project the numbers of cold call to client as less than 1%. But then again, I wouldn’t know…

Jun 10, 2007 3:11 am

Closer, of course, it is less than 1%. Otherwise, you could make 500 calls a day and pick up 5 new clients. After a week, you'd have 25 new clients and after a year have 1,250. That would be one hell of a year!

I call to get an appointment, not to get a client.

Jun 10, 2007 3:25 am

[quote=Closer]One guy did a couple hundred with no success.[/quote]

Someone who is truly successful at cold calling with probably be making a couple hundred calls A DAY when they are starting out…not just making that first 200 and then deciding it doesn’t work.

Jun 10, 2007 4:39 am

Good point Joe.

Anonymous. So you get 2 appts out of 40 cold calls, but not even 1 client out of 100 cold calls. That means your appt to client rate is less than 20%. True?

Jun 10, 2007 11:20 am

True. This is a tough business. It's not as if I call on someone and they say, "Thank you for calling. I really need to start working with a new financial advisor. Please come over and handle my $300,000 ACAT and while you're at it, please sell me a $2,000,000 life insurance policy."

The challenge is going from appointment to fact finder. If I take a fact finder, there is a very good chance that I'll have a client.

When you hear about someone who tells that everyone becomes a client or some high percentage, the first thought in mind is something along the lines, "Why isn't this person meeting with more prospects. They'd make a killing."

Jun 10, 2007 10:12 pm

[quote=Closer]Those numbers are very high. I haven't began cold calling yet, but some of my-coworkers say it never works. One guy did a couple hundred with no success. I would project the numbers of cold call to client as less than 1%. But then again, I wouldn't know... [/quote]

The poeple who say cold calling never works, are the people who dont have the drive and discipline to do it.

Jun 10, 2007 10:20 pm

Your Alter Ego, Bobby, is busy with his socks right now but wanted me to give you this quote. He realizes you wish the same for him and said thanks.

[quote=Bobby Hull

Please put your used sock in your mouth and then handcuff yourself to your inflatable doll, then shove her off a cliff.

[/quote]

A little reverse psychology therapy works wonders!

Doc Barron

Jun 11, 2007 2:03 am

Cold call prospecting just like every other aspect of prospecting and selling is a skill. I could see someone making 1,000’s of calls w/ very little/no success if they do not have the right approach/skill.

Jun 11, 2007 3:47 am

I am working on developing the right tone of voice. In my very limited experience I find that if your voice is to regimented, that is too recited, you sound like a telemarketer. Well, which you are I guess. But I think some spontaneity brings a personal aspect to the conversation.

Jun 11, 2007 10:15 am

Closer, You want to be so well scripted that is sounds spontaneous.

Jun 11, 2007 5:35 pm

[quote=pratoman]

[quote=Closer]Those numbers are very high. I haven't began cold calling yet, but some of my-coworkers say it never works. One guy did a couple hundred with no success. I would project the numbers of cold call to client as less than 1%. But then again, I wouldn't know... [/quote]

The poeple who say cold calling never works, are the people who dont have the drive and discipline to do it.

[/quote]

What kind of accounts have you brought in by cold calling?

Jun 11, 2007 7:14 pm

$750K, $1.4MM, $600K, $2.8MM- YTD 2007

Go back to the full year 2006 and there is a $800K, $900K, and a couple $500K's in there...

Point is- it can work....

Jun 11, 2007 7:24 pm

Blarm, are these individual investors, or 401k plans for small businesses or what?

Jun 11, 2007 9:21 pm

"Blarm, are these individual investors, or 401k plans for small businesses or what?

All individual investors... The $2.8MM came from a cold call about 14 months to a professor at an area university. Turns out he had about 700K but his wife (corp exec) had over 2 large.

I began 2007 by modifying who I was targeting... Looking back at '06 and '05 I realized I wasted WAY too much time chasing Mom and Pop's who would stroke me along, never really had much money, and were never going to do anything... Instead, I have been targeting exec's and business owners, with a sprinkling of targeted residential calling.... And, I still DRIP on those old propsects who are qualified and will eventually 'see the light'...

For full discolsure, those assets were placed in a joint number with my partners, but they have added several 'dead' accounts that I have mined for production and other assets. Win win in my book.

Jun 11, 2007 9:30 pm

No question, you have what it takes to succeed in this business. Keep up the good work…

Jun 12, 2007 3:31 pm

Usually university professors are “know it all” tough customers.

Jun 12, 2007 4:31 pm

"Usually university professors are "know it all" tough customers."

Give me a 'know it all" professor with 600K in their TIAA Cref 403B and I will have them signing ACAT's by the end of the second meeting...

Most educators I work with know that they may be specialists in their given field, but also are intelligent enough to outsource to professionals once they see the wekanesses in their strategy (example- going it alone through TIAA or having 7 TSA's all over the place that they have 'bought' over the years....).

Jun 12, 2007 9:00 pm

[quote=Closer]I am working on developing the right tone of voice. In my very limited experience I find that if your voice is to regimented, that is too recited, you sound like a telemarketer. Well, which you are I guess. But I think some spontaneity brings a personal aspect to the conversation. [/quote]

Go to:

www.billgood.com

He has scripts online. Find one you like and practice it until you can repeat it word for word without looking at it. Then start making calls with the script in front of you. if the callee interupts you a quick peek at the script will put back on course. Don't make it harder than it has to be. Don't listen to the snoots who believe cold calling doesn't work or is beneath our professional image. The biggest producers in our industry built it by cold calling. Expect to make 300 to 400 dials per day. 200 dials would be a bare minimum.

I work in an office that embraces cold calling. We also embrace referrals, and networking. Still it was and is cold calling that brought us to the dance. I'm not saying cold calling is better than other marketing channels, only that it works.

Jun 15, 2007 3:38 am

To what degree do you document your calls? That is, if you call a number and a gatekeeper answers, then kick out with no message or voice mail left, do you make a note on your list? Also, what format are your lists (paper-based, or electronic)? thx

Jun 15, 2007 3:47 pm

Every call gets a notation:

6/15- L/M w/ assistant.

6/15- S/W, N/I, has an FA. Send firm info and follow up in 10 days.

6/15- N/H at 10am. N/H at 430pm.

6/15- S/W, interested, has FA at XYZ Firm, big position in cash, 401K at old company. Send info and follow up in week to set meeting.

I try to be as detailed as possible because I want to know the content of my calls. Right now I have some leads I keep in a huge binder and then I also use my CRM software for newer leads I develop....

First 2 years