What are YOUR "Birddogs"?

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May 25, 2007 7:51 pm

I am reading the book " How to Sell Anything to Anybody" by Joe Girard, who holds the Guiness Book of World Records on Most Car Sales. A few members on this forum had recommended it in past postings.


In the book, he talks about "birddogs", which is compensating people for referrals. Joe Girard is a car salesman, so his birddogs are tow truck drivers who may pick up drivers who's cars are crashed or mechanics who know that the client would rather buy a new car than pay for a major repair. The birddogs all get $50.00


Does anyone have any great birddog ideas?

May 25, 2007 8:05 pm

If you're a Registered Rep you can't compensate other people who are not securities licensed.  Some RIAs may have some birddogs.

May 25, 2007 8:33 pm
OldLady:

If you're a Registered Rep you can't compensate other people who are not securities licensed.  Some RIAs may have some birddogs.



I think if an RIA compensates someone they would have to be registered as an IAR, no?

May 25, 2007 9:47 pm

If you don't compensate, do you have an arrangement with a CPA or do you give trinkets to tellers....or provide some sort of reward if someone refers you.


If so, what is your strategy?

May 25, 2007 10:05 pm

I know an indy in town that hires college girls to go to local businesses and get appointments.  He said he pays them $10/hr and $25 per appointment she sets.  She doesn't have to be licensed because all she does is set the appointments, she doesn't sell product or "advice".  He said he should have done it 15 years ago, his "new money %" has gone up 300%.  I don't think you would be able to do this at a wirehouse or bank setup, only through the indy channel. 

May 25, 2007 11:31 pm

Joe, I'm not sure about the SEC rules for RIAs on this issue.  I would guess an RIA could do it as a business expense -- the birddog wouldn't be receiving compensation for advice.  So it would be more like a marketing expense.


Personally, I send a nice thank letter for a referral. 

May 26, 2007 12:01 am
BullBroker:

I know an indy in town that hires college girls to go to local businesses and get appointments.  He said he pays them $10/hr and $25 per appointment she sets.  She doesn't have to be licensed because all she does is set the appointments, she doesn't sell product or "advice".  He said he should have done it 15 years ago, his "new money %" has gone up 300%.  I don't think you would be able to do this at a wirehouse or bank setup, only through the indy channel. 


is that $25 per prospect appointment set, or per prospect appointment that shows?

May 26, 2007 12:23 am
OldLady:

Joe, I'm not sure about the SEC rules for RIAs on
this issue.  I would guess an RIA could do it as a business
expense -- the birddog wouldn't be receiving compensation for
advice.  So it would be more like a marketing expense.


Personally, I send a nice thank letter for a referral. 





You would want to run that by your compliance officer. AFAIK people who directly promote you must be IAR's.



Joe Girards book is about transactional selling, which is not the RIA
business model. Maybe if you were an annuity salesman it could work.

May 26, 2007 8:51 am
AllREIT:
OldLady:

Joe, I'm not sure about the SEC rules for RIAs on this issue.  I would guess an RIA could do it as a business expense -- the birddog wouldn't be receiving compensation for advice.  So it would be more like a marketing expense.


Personally, I send a nice thank letter for a referral. 




You would want to run that by your compliance officer. AFAIK people who directly promote you must be IAR's.

Joe Girards book is about transactional selling, which is not the RIA business model. Maybe if you were an annuity salesman it could work.


You've lost a lot of business to annuity salesmen, haven't you? It shows.

May 26, 2007 4:48 pm
Big Taco:
BullBroker:

I know an indy in town that hires college girls to go to local businesses and get appointments.  He said he pays them $10/hr and $25 per appointment she sets.  She doesn't have to be licensed because all she does is set the appointments, she doesn't sell product or "advice".  He said he should have done it 15 years ago, his "new money %" has gone up 300%.  I don't think you would be able to do this at a wirehouse or bank setup, only through the indy channel. 


is that $25 per prospect appointment set, or per prospect appointment that shows?



Only the prospects that showup interested in doing business.  I think the key is to hire the right "person" for the job, someone who is good at getting attention, qualifying prospects, and setting appointments.  I have thought strongly about doing this, but I don't think "mother Merrill" would approve, and I question the ethics behind this tactic. 

May 26, 2007 6:27 pm

My bird dog is my husband.  He has a lot of good clients who move into our area and hands out my cards to everyone    Don't have to worry about NASD rules either.