First 10-20

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Aug 19, 2005 1:38 pm

How did you bring in your first 1-20 clients, regardless of size? 


I'm just curious how some people cut their teeth in developing a book.


Thanks!


Aug 19, 2005 2:38 pm

Most would be family and close friends.


And your own account of course.

Aug 19, 2005 3:03 pm

I got some of mine through referrals, walk-ins, and just asking people to do small business with me.

Aug 19, 2005 4:49 pm

I don't recommend starting with family & friends.  If something goes wrong with those accts, it makes for tense family gatherings, etc.

Aug 22, 2005 12:38 am

jas1032


Advertise in the local paper.  Run a couple of seminars.  Work the phones. Join every club in your area.  I would hesitate to learn on your family.  Not a good situation when things go wrong.



Aug 24, 2005 11:26 am

Don't listen to exEJIR.  Go for your family and friends.  If you don't have confidence and can't ask for help when  you need it, don't take ANYONE's money.  I have asked all family and friends.  Just take it slow and do what is right.  For these accounts, just ask yourself if you would do the same thing with your own money.

Aug 25, 2005 9:33 am

Just curious Kargon, how long have you been in the business?

Aug 25, 2005 2:43 pm

jas1032


Confidence is great and if that all it took to be a good financial advisor everyone would be successful!  Most people understand that with experience comes knowledge.  There isnt a book you can read to give you the knowledge you will obtain after doing this for several years.  All im trying to point out is that you do not want to piss off family members because you made a rookie mistake.  After a few years your family will see that your doing fine and they will want to deal with you. 

Aug 25, 2005 5:07 pm

jas1032


Until you've been in this biz a few years, I wouldn't take on family and friends.  Lots of chances for mistakes due to lack of experience. 


I know it is a long cycle, but if you could wait until you have seen a complete market cycle, you'll understand what I mean.  Time in this biz is the key.

Aug 26, 2005 3:50 pm
exEJIR:

Just curious Kargon, how long have you been in the business?


This biz, almost a year, so not long.  I have been sales prior for 10 years.  I have accounts with all of my friends and family.  Why wouldn't they trust me over a stranger?  I know them better than anyone else in the biz and I talk to them more than their current or some other advisor.  Plus, I am confident in what I recommend to my clients.  I am upfront about everything, including that my firm may be more expensive than their online account, but I tell them what they get for their money.  Does that online brokerage firm call you when there's a problem or when a stock is upgraded?  Well, I do.


If you are nervous about going after friends and family, at least get an account open and have them transfer a small portion of their assets so you can show them what you can do for them.


If you don't have confidence with friends and family, then how can you be confident with strangers.

Aug 26, 2005 4:52 pm

Believe me, I don't have a problem with confidence.  But, typically what you do have is an unrealistic expectation that they are your best clients simply because they are friends/family.


If it's working for you that's great.  I just wouldn't recommend it to everyone.  Just like you wouldn't recommend every investment to EVERYONE.

Aug 26, 2005 4:55 pm

P.S.  Don't confuse confidence with arrogance.

Aug 28, 2005 1:46 pm

I was just wondering if you were going to place an ad in the paper, what does yours usually say? How many responses on average do you get in return?

Aug 28, 2005 11:09 pm

I started out doing tax work for a few years first.  When I reached a decent level of tax work I started to bring the investment options.  I now have over 400 tax clients I am working with and they all trust me with their other investments.  It was easy to get them to sign a change of broker form for most of their investments to get a good base started.


It might be something to look at (My BD caters to reps that do tax work), that way their was no problem with other business.

Aug 31, 2005 3:02 pm
exEJIR:

Believe me, I don't have a problem with confidence.  But, typically what you do have is an unrealistic expectation that they are your best clients simply because they are friends/family.


If it's working for you that's great.  I just wouldn't recommend it to everyone.  Just like you wouldn't recommend every investment to EVERYONE.



My friends/family are in no way my best clients, I would just say that I talk to them the most.  My best clients are actually those who have been referred to me so far.


And, no, I don't recommend the same investment to everyone.

Aug 31, 2005 5:43 pm

I typically try to dissuade family and friends from doing business with me. I have a few but typically their expectations are unrealistic and they are more difficult to get them to listen. A prophet has no regard in his own country...

Aug 31, 2005 6:29 pm

I would be a great candidate to handle everyone's friend and family that they are not up to advising. Of course a commision split would be worked out .....

Aug 31, 2005 7:55 pm

noggin: I typically try to dissuade family and friends from doing business with me. I have a few but typically their expectations are unrealistic and they are more difficult to get them to listen. A prophet has no regard in his own country...


----------------------------------------


Amen, noggin. Amen. 

Sep 21, 2005 5:21 pm

I knew a couple of guys who really stuck it to thier families. 


1. was a bet-the-ranch recommendation on CBS Sportsline during the dot-com bubble


2. other shafted his father in law in Russian G-bonds when they collapsed in the hedge fund meltdown


#1 is now divorced and is selling Lexus.


Sep 22, 2005 12:28 am

Don't kid yourself, family money can be hard to get.  A guy in my office has been in the business for 2 years and hasn't been able to get his family's money yet.


I know several others who brough over all of their family members and then they didn't make it in the business.


I didn't actively solicit family accounts until my 4th year in the business, when I knew I was going to make it.  I didn't want to anger my in-laws.  Now if the family comes to you, that's fair game.