Cold Walking Businesses

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Aug 5, 2008 12:00 pm

After reading the posts, it seems to be the concensus that it is best to try to sell a product you fall in love with for this market.  I was thinking of using a Muni Bond fund, perhaps FRHIX and maybe a Dividend focused fund.   Dropping "important tax info" might help me get past gate keepers. 


What funds does everyone else use?  What literature do you bring to the businesses?  Is a  prospectus required at this time?  I was told by reps at my firm that suitability is required before pushing a fund.  If that is the case, how do you cold walk with a product?  Do you just drop stuff off then call to follow up a few days later?
 
I guess I understand a lot of the theory of cold walking businesses, but not the nuts and bolts.  Any help, posts or PM's, would be appreciated. 
Aug 5, 2008 4:06 pm

i have never cold walked with a product.  i simply introduce myself, give them an overview of my business, ie sell your model and yourself (they can buy the fund you are selling anywhere most likely), follow up 3-5 days later and ask if they would listen to you further, and go from there.  qualify them early if possible and sell your business model.

don't take it too personally, but if pushing FRHIX is your differentiator, look again at how you sell yourself.  business owners talk to each other. 
Aug 5, 2008 4:14 pm

Raticus, I do a lot of cold walking business, but I couldn't imagine that it would be very productive use of time for investments.

Aug 5, 2008 6:02 pm

I would say you're on the right track with the Franklin High Yield Tax Free fund. Good way to shorten the sales cycle by going in with a conservative product that's easy to understand that can compete directly with other conservative investments- bank cd's etc.

 
I keep city directories in my vehicle so that when I'm out on an appointment and I pass a business that intrigues me, I reference it in the directory to get the owner/presidents name.
 
I stop in and  say" I had a little time between appointments and thought I'd stop by and introduce myself - I provide business owners with strategies that grow and preserve assets while minimize taxes. Here's info on my company and an idea we've been adding to client accounts that can improve your bottom line. Do you have a minute or should we set something up for next week? Bring your account statements, tax returns ,and anything else you'd like reviewed."
 
Or, if I don't want to bring product in yet I'll say" Just wanted to drop off a brochure on my firms financial planning capabilities, Anything particularly bothering you financially? and getem talking.
 
As far as a dividend focused fund, American Funds Washington Mutual has increased income every year for 50 years. Use the Washington Mutual Story brochure- Well laid out and easy to understand. Good for going after conservative money, as long as you disclose the risk.
 
Bottom line is just to get them talking. The more they talk, the more they trust you, and they'll tell you what they want to buy. (Notice I didn't say the more YOU talk)
 
Stok
Aug 5, 2008 7:31 pm

" Just wanted to drop off a brochure on my firms financial planning capabilities, Anything particularly bothering you financially?" 


I keep a word doc of dialogue and ideas that I like from this site on my computer.  That's been added and I'll be using it on the phone as well as cold walking. 
 
Any more thoughts on the compliance piece.  Do I have to use a prospectus and/or disclose information while I'm using a fund as a sample while coldwalking.  Stokwiz, what do you bring with you?
 
Thanks to everyone for their thoughts.
Aug 5, 2008 8:10 pm

Let me add that although I think widescale cold walking for someone focusing on investments is not a good use of time, I also agree with Stokwiz that if something intrigues you, why not stop in?...or if you just have a few minutes between appointments.  You have nothing to lose.  Like he said, just get them talking. 


The reason why I tend to be anti-coldwalking for wirehouse reps is that most won't be good enough prospects, but most are excellent prospects for the insurance guys.

Aug 22, 2008 2:37 pm
Raticus99:

" Just wanted to drop off a brochure on my firms financial planning capabilities, Anything particularly bothering you financially?" 


I keep a word doc of dialogue and ideas that I like from this site on my computer.  That's been added and I'll be using it on the phone as well as cold walking. 
 
Any more thoughts on the compliance piece.  Do I have to use a prospectus and/or disclose information while I'm using a fund as a sample while coldwalking.  Stokwiz, what do you bring with you?
 
Thanks to everyone for their thoughts.
 
 
I second that!