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Jan 13, 2005 10:04 pm

...of an investment club? Does anyone think this is a good way to prospect/market?

Jan 13, 2005 10:56 pm

Horrible horrible way to prospect.



Think about it.



Those people are getting together to bounce ideas off each other and
then do their own investing!  Steer clear of any investment club
that invites you to speak to them.  They just want free advice and
then will do everything themselves.  Classic do-it-yourselfers.

Jan 14, 2005 10:35 am

I can't believe it, I'm in total agreement with geebers. An "investment club" is little more than a meeting of the exact demographic you should avoid like poison. A complete and total waste of time.

Jan 15, 2005 9:22 am

do it yourselfers who are adverse to fees

Jan 15, 2005 11:55 pm

every member has an opinion, rarely well informed(at least with good info, that is) and the really think they dont' need a professional....big waste of time...

Jan 17, 2005 11:12 am

In all our towns and all our cities there are no statues to committees. Or investment clubs!

Jan 19, 2005 12:32 pm

Cache,


Some of my best clients have come from investment clubs.  Sure, they'll use TD Waterhouse or Scottrade to play with the club's money, but their "serious" funds are with advisors.  As an example, I am an advisor to a club in town with twenty members.  Five of the members are clients, with average assets of $400,000/ea.  By the way, that number is not skewed by one client - all have at least 200k.  Of the 15 other members, nearly all are good prospects.  I would recommend you look for women's clubs, as women seem to be more open to new investment ideas (not to mention that they also seem to be hungrier, faster learners).  Good luck.

Jan 19, 2005 12:51 pm

Why would someone inclined to "do it yourself" by spending time looking for investment ideas with a club, examining fees in great detail, ever use a full service advisor? Wouldn't they often, eventually take whatever funds they might have with advisors and move them to a "do it yourself" account?


I'm not doubting your word, I'm interested as to what makes someone like that tick. In my early years in the business that many, many investment club members I encountered never wanted anything from me but my time, and they wanted that for free.


Jan 19, 2005 3:25 pm

Stan,


I would agree that guppies are mostly concerned with free advice.  However, the whales out there know they need help, and as long as you're transparent with the fees you charge, they're usually more than willing to pay.  Maybe I've lucked out with my club, and I am all too aware of the DIYers out there who will waste a broker's time.  But, I'm sure there are clubs that are well worth the energy. 

Jan 22, 2005 12:10 am

Most of the clubs have members especially the female clubs that are good prospects. What's the harm in getting in front of 20-25 HNW prospects for an hour? I can't see a downside to it as long as the perspective is right.

Jan 22, 2005 12:41 am
noggin:

Most of the clubs have members especially the female clubs that are good prospects. What's the harm in getting in front of 20-25 HNW prospects for an hour? I can't see a downside to it as long as the perspective is right.


er.....maybe you just have too much time on your hands???

Jan 23, 2005 12:59 am

If you landed a client from an investment club, they're going to let
you set things up for them, then move over to their discount
broker.  They're in an investment club because they get ideas from
each other.  They will not stand for the commissions real brokers
charge. 



I don't believe you have the clients you do from that club at all. 

Jan 31, 2005 11:07 pm

Jodabroker- Speaking once to a club for face time is hardly a waste of time. I like yourself don't have a lot of extra time. I perceive that you feel that it is a waste of time. When you are building your book you certainly do things that once you have an established book you wouldn't want to do.

Sep 1, 2005 11:59 pm

I have had great success with my One and only Investment club.  There are 8 women in the club and they all have big $$$$.  I have gained several large accounts from helping them.  I have two that are on the fence right now.  I believe they will move my way shortly.


So i guess you need to know the clubs demographics before you offer to help!

Sep 2, 2005 9:39 am

I've never done it only because I'm not interested in doing so, but I know of people who've had Indytwo's positive experience.  And, those I know won't agree to work with clubs that do their trading through discounters, so it's not a "do it yourself" mentality; trades are placed through the rep, but usually with a generous discount.  While the clubs by themselves aren't normally meaningful revenue generators (they're essentially loss leaders), the reps still expect to get paid something.  Also, by mandating the club work through the rep's firm, the members get used to the b/d, the statements, the "full service" available, and the service level & capabilities of the b/d, the rep, & his/her assistant.  As such, individual relationships are built together with a comfort level of working with the rep & his b/d.  The end result is the ability to attract assets from the members & their spouses.


I found this quote from my b/d's marketing site from a rep who's had positive experiences w/ clubs:


The best prospecting tool for me has been investment clubs. I started by holding an informational meeting with a prospect and client list for anyone who is interested in an investment club.  I have been working with two clubs for five years. I have 6-7 clubs I visit on a rotating basis since clubs change members it is a source of new prospects on an ongoing basis. Reflecting back I have gotten 75% of my largest accounts through my contacts with investment clubs. I used to hold an investment club picnic every summer for all the clubs with games, food and prizes. It was an opportunity for clubs to share ideas. Since everyone is so busy we have decided to hold it every other year.<?:NAMESPACE PREFIX = O />

Sep 2, 2005 9:53 am
indytwo:

I have had great success with my One and only Investment club.  There are 8 women in the club and they all have big $$$$.  I have gained several large accounts from helping them.  I have two that are on the fence right now.  I believe they will move my way shortly.


So i guess you need to know the clubs demographics before you offer to help!



SO........are any of them hot?!?

Sep 7, 2005 12:52 am

Santee


You are so far off.  Most investment clubs are social events.  People get together to socialize and use the club as the excuse to do that. 


Very few investment clubs are formed to recieve institutional treatment. 

Sep 7, 2005 2:18 pm

I took over an investment club for a broker who died in our office - it
was a pain in the neck.  The cool thing was talking to 15
millionares each week.  After 6 years one of them finally invested
but is a rather poor client.



On the other hand a women in our office handles 3 different clubs made
up of women and probably has a dozen clients from them. 

Sep 7, 2005 11:53 pm

moneyadvisor


Yes most of them are very hot! 

Sep 12, 2005 2:21 pm

Nice!