Give Up?

Dude, there are guys on this forum who will bust you. I am here to tell you…nobody likes the phone or face to face prospecting. Your reaction is perfectly normal! You can do one of two things. Suck it up, and do it! OR  Get out now before you waste the next 3 years of your life being miserable. There are a lot of ways to make money in this world, not just in this biz.

I know I’ll more than likely get busted for this post but there are not a lot of places to turn for advise as no one truly knows what this business is like until you are actually in it.



I’m coming to understand that my reaction is normal, and at first I was able to overcome it, but now I’m starting to “find” paperwork and other things to do that prevent my from making the calls.

NYSE

If you're not willing to give this biz your all for the next 2-3 yrs, you'll never make it.

Take MA's advise... either suck it up and do it, or cut bait before you really get in over your head.

(It really is normal to have the feelings you're having, you are outside of your comfort zone.  What makes or breaks people in this biz, is the willingness to continually push and stretch their comfort zones.)

I think you need to like selling and you need to want to make a lot of money.  Do you want to make a lot of money?  If not, this is not the right profession.  I frankly did not enjoy my first four years very much and the first two years were total hell for me.  I know guys who thought it was all fun.  I was very average though and had to make up for it with the number of contacts I made.  I was out six days a week doorknocking and for much of that time I lived in fear of not making it. It sucked.  I don't have any regrets though 12 years later. 

You cant be jerking around AT ALL if you want this.  You HAVE to be out there every single working day.  Hell, I even doorknocked on the 4th of July my 1st year.  Believe me though, nearly everyone is in misery when they first get started.  You are not alone.   Get networked with others.  THat's what saved me.    Best of luck.

If you do decide to stick it out...

Concentrate only on what you can control.

You can't control if someone buys, but you can control how many people you ask to buy.  You can't control if someone is home, but you can control how many doors you knock on.  In the beginning you can't control your commissions, but you can control your activity level.

And most important, you CAN control your attitude!

NYSE2005:

If you will permit me to tell you a story about a new broker who was in training in small town Indiana.  He was sent to an adjacent town to prospect.  He took brochures, business cards and a note pad with him as he started to go door-to-door on the town square.

The first business he visited was a hardware store on a Monday morning.  Walking in with papers and sales material in hand, the owner of the store immediately recognized the visitor as a "salesman".  He gave a gruff, "Can I help you?".  It wasn't what he asked as much as how he asked it that scared the new broker.  The new broker stammered, "I need to buy a hammer."  He purchased the hammer and left the store.

He went to his car which was parked nearby and fetched his copy of the Wall Street Journal.  He walked to the corner coffee shop and sat down to have a cup of coffee and read the Journal.  He drank lots and lots of coffee.  He read the entire Journal. 

Two hours later, he put the paper down and took a quick inventory.  He had a new born baby.  He had just left a high paying job that everyone said he was crazy for leaving.  He had $15,000 equity in his home and $3,000 in his former employer's profit sharing plan.  He reviewed his options:

1.  Go back to his former employer, hat in hand.

2.  Look for another job.

3.  Go back to the hardware store and prospect the owner.

He threw away his Journal.  He left all of his brochures and sales literature in his car.  Armed only with a yellow legal pad and a pen, he returned to the hardware store owner.

He introduced himself, forgot that he was a salesman and focused on what the owner was actually saying and then moved on to the next business.  After about two weeks of this cold-walking, he got used to it.  In fact, he discovered that he enjoyed meeting new people.  As long as he wasn't forced to sell them something, he actually liked it.  What he didn't know was that he was really selling himself.

August, 1982.  That new broker was me.  $125 million AUM.  Big house.  Nice cars.  Four children.  Great colleges.  Super vacations.  A true luxury lifestyle.

It all started with the purchase of a hammer!

[quote=dashampersand]

NYSE2005:

If you will permit me to tell you a story about a new broker who was in training in small town Indiana.  He was sent to an adjacent town to prospect.  He took brochures, business cards and a note pad with him as he started to go door-to-door on the town square.

The first business he visited was a hardware store on a Monday morning.  Walking in with papers and sales material in hand, the owner of the store immediately recognized the visitor as a "salesman".  He gave a gruff, "Can I help you?".  It wasn't what he asked as much as how he asked it that scared the new broker.  The new broker stammered, "I need to buy a hammer."  He purchased the hammer and left the store.

***************************

It all started with the purchase of a hammer!

[/quote]

Dash...

...that is the proverbial "golden hammer".

[quote=dashampersand]

NYSE2005:

If you will permit me to tell you a story about a new broker who was in training in small town Indiana.  He was sent to an adjacent town to prospect.  He took brochures, business cards and a note pad with him as he started to go door-to-door on the town square.

The first business he visited was a hardware store on a Monday morning.  Walking in with papers and sales material in hand, the owner of the store immediately recognized the visitor as a "salesman".  He gave a gruff, "Can I help you?".  It wasn't what he asked as much as how he asked it that scared the new broker.  The new broker stammered, "I need to buy a hammer."  He purchased the hammer and left the store.

He went to his car which was parked nearby and fetched his copy of the Wall Street Journal.  He walked to the corner coffee shop and sat down to have a cup of coffee and read the Journal.  He drank lots and lots of coffee.  He read the entire Journal. 

Two hours later, he put the paper down and took a quick inventory.  He had a new born baby.  He had just left a high paying job that everyone said he was crazy for leaving.  He had $15,000 equity in his home and $3,000 in his former employer's profit sharing plan.  He reviewed his options:

1.  Go back to his former employer, hat in hand.

2.  Look for another job.

3.  Go back to the hardware store and prospect the owner.

He threw away his Journal.  He left all of his brochures and sales literature in his car.  Armed only with a yellow legal pad and a pen, he returned to the hardware store owner.

He introduced himself, forgot that he was a salesman and focused on what the owner was actually saying and then moved on to the next business.  After about two weeks of this cold-walking, he got used to it.  In fact, he discovered that he enjoyed meeting new people.  As long as he wasn't forced to sell them something, he actually liked it.  What he didn't know was that he was really selling himself.

August, 1982.  That new broker was me.  $125 million AUM.  Big house.  Nice cars.  Four children.  Great colleges.  Super vacations.  A true luxury lifestyle.

It all started with the purchase of a hammer!

[/quote]

Dear Dash:

As always, you are so wonderful...  This story made me cry....

BlueOpaqueGlass

Thank you very much for the encouraging posts. Here’s what I’m thinking about doing and I’m up for suggestions on this. I’m thinking about completely scrapping “calls” for 2-3 weeks and focus 100% of my effort on building my pipeline with quality first contacts. I can survive just fine on my salary for now and I’m thinking this might help me have more success in the future.

Whoa, don't completely scrap "calls."   Also, what is your definition of "focus 100% on building my pipeline with quality first contacts?" 

You need to talk to as many people when starting out because it is a numbers game.  The more you contact, call etc... the  more accounts you open. 

Kill a bunch of squirrels and rabbits and you will kill one elephant which takes much more time.  I have seen many brokers starve themself out of the business by hunting only elephants.

What I mean by “scrapping” calls for a couple weeks is that I would focus all my time and effort on making first contacts in order to have more prospects to call than what I currently have which would allow me to have greater success when I go back to doing business the “normal” way.

I would still be getting the same number of contacts, but I would be doing them face to face instead of over the phone.

Wow great story about the hammer. Sounds a lot like where I am and will be!

NYSE

1. Did you go into this with a plan? I dont say this to be rude, but a clear and defined plan drastically increases your probability of success.

2. Did you have an established network that you are utilizing? 

Now when I talk about a plan I say this since I am a few months from becoming a broker. I have a detailed plan and point system that I am going to use. Also one needs a complete list of contacts, target customers and organizatons. Maybe someone may look at this as over kill, but like a business plan if you dont have it you will fail..

Secondly you have been in the thick of the fire for a month... YOu have to make a clear decision to win. You need to sleep, drink and focus on success. Take every small success and reward your self with something small. Post "I am a winner and I can do this" on your mirror. Do what ever it takes to get doubt out of your head.

Executive… No I did not come in with a solid plan, as I should have. My “plan” was to make as many contacts per day as possible, and that carried me very well at first, but now the mind games have started, and I can’t seem to get the negative thoughts out of my head, as bad as I want to.



As far as an established network I do have a small network but not one that will bring me even close to enough accounts. I had to move to a new town so that has been an extra thing to deal with, but I am starting to get to know some professionals in town through Friday morning coffee meetings that I follow up with by talking to the people individually at their business.



Just so you guys know, this thread is helping me a little already, by letting me vent a little and recognize what I need to work on to re-focus and make this work.

Make $200,000 per year, set your own hours. Of course there is a catch,
you have to do some hard things to make it! Come on, in a world of
finite resources you expect the wealth to flow to you? How would that
work?

You get what your work product provides you.

Justaguy…where did I say that I expect the wealth to flow to me? Heck, I don’t even need $200,000/year to be happy. Half that would have me doing backflips in the parking lot.

Prospect like you got a pair!

Nyse2005, It can be done! this is true, there are just softer stones to bang your head against, other than growing a book.  With the exception of Dash - aka “Mr. Wonderful”, most guys (starting from scratch) not to be confused with those who are given large opportunities, just simply cannot withstand the torture!!!

"Mr. Wonderful" here:

I just thought I would tell a true story to illustrate how frightening being a new broker can be.  So many new brokers come to the edge and stare into the abyss, not knowing what to do.  Thought maybe NYSE2005 might benefit from my experience. 

Looking back, did I enjoy my prospecting time?  Yes.  Would I do it again?  No friggin way.

I came out of a large corporation where you couldn't take a dump without calling a meeting to discuss it.  By the time a decision was made, you forgot why the meeting was called or you had shat in your britches.  I was driven to do the difficult by hunger, fear of failure and a hate for a return to corporate bureaucracy.

The business is very different today than it was when I started.  Some things are better and some things are worse.  Let us all be eternally grateful that this is a very difficult business to become successful in, lest we have a financial consultant on every corner.

Dash - there.....are advisors on every corner nowadays. (not that they are all great, by any means). I think all you can do, after you have committed to the career, is build any way you can. I know if I bring in my 5-7 million a year, and don't lose good accounts, get some gains from the market, In 10 years I will have 80 - 100 million in assetts. I think this is why figuring a way to survive is so important, because slowly over time ( or quicker based on your effort) maybe I too wil become one of the viable producers in my firm and community.

Dash - In your view, what’s changed for the better?  What’s changed for the worse?

Changes For The Better:

1. Availability of Independent Contractor Firms.

2. Technology (More information and quicker access)

3. Technology (execution of trades)

4. Technology (Database management)

5. Diversity of product.

6. Little better financially educated public.

Changes For Worse:

1.  Reduction of commissions on mutual funds, stocks and bonds. (My first year in business I sold 8 1/2% load funds, 4 point bonds and the typical 100 share trade was $150.

2. Increase in paperwork.  We could open an account with name, address, telephone number and TIN.

3. Attorneys (or fear of) dominate our business.

4. Regulators have become media darlings.

5. 24 hour news and business programs and their talking heads.

6. NASD has almost become the enemy of the average broker.

7. Commoditization of financial products.

8. Availability of information to our clients through the internet.

9. Increased number of brokers.

10. Banks selling securities.

11. Insurance agents who have added Series 6 licenses.

12. Suse Orman, Jane Bryant Quinn and The Dolans (Pablum for the masses)

Dash - evey thing you mentioned for "the better" works against us as advisors. Technology has given a transparency to the business, that makes our job harder. I know I can come off as negative, but don't you see things today as much harder?? A better educated investing public, does not help us as advisors. (I'm sure an argument could be made for why it should, in reality I don't think it helps us).

In todays world, we have:

tranparency of the business

technology as competition

media coverage and opinions = confusion + false expectations

Glass Stegal repeal, bank insurance companies competition

COMPLIANCE (zero creativity on behalf of advisors)

Post tech bubble, still fresh wound

The investing public has been hammered for the last 20 years, by telemarketers (stockbrokers), and are more cautious than ever!

And oh, because accounts are harder to come by, let's annuitize at 1%, to smooth out the ride. Yes, you can take the upfront.....but unless you have a steady in flow of assetts, is this a good idea???

You have do 5X as much work, for a third the money in todays world. The new guys on this forum wonder why the failure rate is so high......sometimes I think the insurance guys have it figured out....here's your product, you get 8% on every dollar that goes in....now go sell it!!

Moneyadvisor:

I know I will run the risk of irritating you with my story telling but I'm so used to using it as part of my business, I'll take the risk.

In 1990, in the month of August, my father died.  Iraq invaded Kuwait.  Two weeks after my father died, my wife committed suicide because of severe depression.  A rumor quickly circulated that my wife killed herself because I was fooling around with my new female broker (not true). To put it bluntly, my life came screeching to a halt.  I had to deal with the grief of my father's and wife's death.  I had to deal with my children's grief.  I had to deal with declining financial markets and a total drying up of new business.

One of my clients, a nice elderly lady, gave me a very surprising book, "Neo-Linguistic Reprogramming For Achieving Your Potential".  The book starts with a story set in China, with an old Chinese man telling the story.

It seems that two Chinese warlords had decided to go to war.  The warlord sent troops to his little village.  His friend who was listening to the story said, "That is good, your village was protected." The elderly man said, "No, that was bad, they came to force men into the army."

His friend said, "That is bad." The elderly man said, "No, that is good.  They took my son and when the opposing army came through the village, they killed all of the young men.  My son's life was saved."

The elderly man then said his son was put in the cavalry.  His friend said, "That is good."  The elderly man said, "No, that is bad.  His horse threw him off and he broke is arm."  The friend said, "That is bad." The elderly man said, "No, that is good. He was in the hospital recovering when the army went into battle and was slaughtered."

The friend said, "That is good."  The elderly man said, "Perhaps."

The point of the book is that situations in life and business are not inherently good or bad.  It all depends on how you choose to view them and to approach them.  It advocates reframing the things in your life and business that seem negative and determining how you can turn them into positives.  I realize that this seems simplistic, but it helped me deal with a very difficult time and it helps me deal with this wild business today.

Dash:

I'll take a risk as well to make me look like a fool who is always praising you.

You are not only Mr. Wonderful but also a very brave man to reveal your life story .... most people wouldn't go this extent.

Trying to make negative situations positive ones.  I can't agree more.

Thank you for your post for other's encouragement sake.

You will be so blessed...

BlueOpaqueGlass

Dash, I'll second the motion on Suze Orman.  I wonder how she feels after telling everyone that annuities were bad and then watching them show their worth during the 2000-2002 bear market?  When people start quoting her, I pretty much rule them out as prospects.

I'm also reminded of a speaker that I listened to at a national sales conference a couple of years ago.  He said "CNBC is financial pornography and should not be seen by the investing public!"

Amen, Brother.

The correct URL is www.nevercoldcall.com