Getting ACATs

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May 26, 2007 12:18 pm

Hey guys, what do you guys do when you run across a wirehouse client?  I have typically asked them something to the effect of "well how has that worked out for you?" and I always get a "I'm satisfied and not looking to switch, etc" type answer.  In fact, I've never actually ACAT'd another broker (all my clients had either cash or rollovers).


What do you guys do to win these accounts?

May 26, 2007 2:17 pm

When's the last time you talked to your broker?

May 26, 2007 2:37 pm

I compliment the wirehouse.  I tell them that I have plenty of clients who previously had their portfolios with XYZ Wirehouse and they did a good job with handling the investments. 


I then completely switch gears and focus on protection issues.  I know that the wirehouse rep completely ignored these issues.  The client becomes an insurance client and only after that do we take care of ACATing the investments. 


May 26, 2007 5:30 pm
drewski803:

Hey guys, what do you guys do when you run across a wirehouse client?  I have typically asked them something to the effect of "well how has that worked out for you?" and I always get a "I'm satisfied and not looking to switch, etc" type answer.  In fact, I've never actually ACAT'd another broker (all my clients had either cash or rollovers).


What do you guys do to win these accounts?



"Do you pay your broker a fee, every single quarter, win or lose? I'll bet it wasn't YOUR idea, was it? I don't charge those extra fees and my clients have more than doubled their money over the last 4.5 years. Do you have an interest in taking a closer look?"


That's about it.

May 26, 2007 9:39 pm
Bobby Hull:
drewski803:

Hey guys, what do you guys do when you run across a wirehouse client?  I have typically asked them something to the effect of "well how has that worked out for you?" and I always get a "I'm satisfied and not looking to switch, etc" type answer.  In fact, I've never actually ACAT'd another broker (all my clients had either cash or rollovers).


What do you guys do to win these accounts?


"Do you pay your broker a fee, every single quarter, win or lose? I'll bet it wasn't YOUR idea, was it? I don't charge those extra fees and my clients have more than doubled their money over the last 4.5 years. Do you have an interest in taking a closer look?"


That's about it.



If I was the client, I would reply back and say, "it's not the frequency of fees that matter, it's the total amount of fees that matter....so tell me, what are the total fees that you charge, and how does that compare to what I'm being charged now?"

May 26, 2007 9:48 pm

ManagedMoney, if that is your response, then Bobby will have a giant smile on his face because he knows he is about to have a new client and earn 7.5% gross.   (I think that is what Bobby's VA pays him.) 

May 26, 2007 10:36 pm
ManagedMoney:
Bobby Hull:
drewski803:

Hey guys, what do you guys do when you run across a wirehouse client?  I have typically asked them something to the effect of "well how has that worked out for you?" and I always get a "I'm satisfied and not looking to switch, etc" type answer.  In fact, I've never actually ACAT'd another broker (all my clients had either cash or rollovers).


What do you guys do to win these accounts?



"Do you pay your broker a fee, every single quarter, win or lose? I'll bet it wasn't YOUR idea, was it? I don't charge those extra fees and my clients have more than doubled their money over the last 4.5 years. Do you have an interest in taking a closer look?"


That's about it.




If I was the client, I would reply back and say, "it's not the frequency of fees that matter, it's the total amount of fees that matter....so tell me, what are the total fees that you charge, and how does that compare to what I'm being charged now?"


Do you have any way of differentiating what you do besides tricking people about fees? My AFTER fee numbers are so high that you can't even sniff around the same neighborhood. Many of my new clients were jammed up in these fee accounts. I have to let you in on a little secret...even though they aren't talking to YOU about it, they aren't afraid to let ME know that they don't like the fee arrangments.


You can aske me all the rhetorical questions you want and make all teh assumptions you want. If you want to ingore what I'm telling you it's YOUR problem. The truth is that there are lots of guys me out there that have figured out how to come between you and your clients and there is NOTHING you can do to prevent it. I've got actual client statements that I can show people where they can see for themselves how people like you stand in comparison. People don't mind paying expenses when they get something TANGIBLE for it.

May 27, 2007 5:34 am
Bobby Hull:
ManagedMoney:
Bobby Hull:
drewski803:

Hey guys, what do you guys do when you run across a wirehouse client?  I have typically asked them something to the effect of "well how has that worked out for you?" and I always get a "I'm satisfied and not looking to switch, etc" type answer.  In fact, I've never actually ACAT'd another broker (all my clients had either cash or rollovers).


What do you guys do to win these accounts?


"Do you pay your broker a fee, every single quarter, win or lose? I'll bet it wasn't YOUR idea, was it? I don't charge those extra fees and my clients have more than doubled their money over the last 4.5 years. Do you have an interest in taking a closer look?"


That's about it.




If I was the client, I would reply back and say, "it's not the frequency of fees that matter, it's the total amount of fees that matter....so tell me, what are the total fees that you charge, and how does that compare to what I'm being charged now?"


Do you have any way of differentiating what you do besides tricking people about fees? My AFTER fee numbers are so high that you can't even sniff around the same neighborhood. Many of my new clients were jammed up in these fee accounts. I have to let you in on a little secret...even though they aren't talking to YOU about it, they aren't afraid to let ME know that they don't like the fee arrangments.


You can aske me all the rhetorical questions you want and make all teh assumptions you want. If you want to ingore what I'm telling you it's YOUR problem. The truth is that there are lots of guys me out there that have figured out how to come between you and your clients and there is NOTHING you can do to prevent it. I've got actual client statements that I can show people where they can see for themselves how people like you stand in comparison. People don't mind paying expenses when they get something TANGIBLE for it.



This is your response?  First you approach the client telling him that he should come to you because of fees, and then when he asks you for details about those fees, you get very defensive and say, "forget about the fees...just worry about net returns."

If I was the potential client, I would say to myself, "Mr. Hull just did a bait and switch on me."

May 27, 2007 9:01 am
ManagedMoney:
Bobby Hull:
ManagedMoney:
Bobby Hull:
drewski803:

Hey guys, what do you guys do when you run across a wirehouse client?  I have typically asked them something to the effect of "well how has that worked out for you?" and I always get a "I'm satisfied and not looking to switch, etc" type answer.  In fact, I've never actually ACAT'd another broker (all my clients had either cash or rollovers).


What do you guys do to win these accounts?



"Do you pay your broker a fee, every single quarter, win or lose? I'll bet it wasn't YOUR idea, was it? I don't charge those extra fees and my clients have more than doubled their money over the last 4.5 years. Do you have an interest in taking a closer look?"


That's about it.




If I was the client, I would reply back and say, "it's not the frequency of fees that matter, it's the total amount of fees that matter....so tell me, what are the total fees that you charge, and how does that compare to what I'm being charged now?"


Do you have any way of differentiating what you do besides tricking people about fees? My AFTER fee numbers are so high that you can't even sniff around the same neighborhood. Many of my new clients were jammed up in these fee accounts. I have to let you in on a little secret...even though they aren't talking to YOU about it, they aren't afraid to let ME know that they don't like the fee arrangments.


You can aske me all the rhetorical questions you want and make all teh assumptions you want. If you want to ingore what I'm telling you it's YOUR problem. The truth is that there are lots of guys me out there that have figured out how to come between you and your clients and there is NOTHING you can do to prevent it. I've got actual client statements that I can show people where they can see for themselves how people like you stand in comparison. People don't mind paying expenses when they get something TANGIBLE for it.




This is your response?  First you approach the client telling him that he should come to you because of fees, and then when he asks you for details about those fees, you get very defensive and say, "forget about the fees...just worry about net returns."

If I was the potential client, I would say to myself, "Mr. Hull just did a bait and switch on me."


My client statements speak so loudly that I don't have to spend much time talking about fees. When they SEE that my clients have made over 24% avg annual and they KNOW that guys like you can't come close to those numbers, even if you don't add the EXTRA fee, it's a slam dunk close. You can make all the snide comments you want, but the fact is that people ARE talking to your clients and prospects and this is how they are getting the business. And don't think that these are long conversations where I have to pull out a calculator to prove anything to them. All I say is "Let's put your statements next to mine and you can decide for yourself."


Visual presentations are very, very powerful. You better have something to show them that is more powerful than what I'm showing them.

May 27, 2007 12:52 pm

24% avg annual returns?

May 27, 2007 1:06 pm
Edward Pwns:

24% avg annual returns?


Yep. Since October, 2002.

May 27, 2007 3:10 pm
Bobby Hull:
ManagedMoney:
Bobby Hull:
ManagedMoney:
Bobby Hull:
drewski803:

Hey guys, what do you guys do when you run across a wirehouse client?  I have typically asked them something to the effect of "well how has that worked out for you?" and I always get a "I'm satisfied and not looking to switch, etc" type answer.  In fact, I've never actually ACAT'd another broker (all my clients had either cash or rollovers).


What do you guys do to win these accounts?


"Do you pay your broker a fee, every single quarter, win or lose? I'll bet it wasn't YOUR idea, was it? I don't charge those extra fees and my clients have more than doubled their money over the last 4.5 years. Do you have an interest in taking a closer look?"


That's about it.




If I was the client, I would reply back and say, "it's not the frequency of fees that matter, it's the total amount of fees that matter....so tell me, what are the total fees that you charge, and how does that compare to what I'm being charged now?"


Do you have any way of differentiating what you do besides tricking people about fees? My AFTER fee numbers are so high that you can't even sniff around the same neighborhood. Many of my new clients were jammed up in these fee accounts. I have to let you in on a little secret...even though they aren't talking to YOU about it, they aren't afraid to let ME know that they don't like the fee arrangments.


You can aske me all the rhetorical questions you want and make all teh assumptions you want. If you want to ingore what I'm telling you it's YOUR problem. The truth is that there are lots of guys me out there that have figured out how to come between you and your clients and there is NOTHING you can do to prevent it. I've got actual client statements that I can show people where they can see for themselves how people like you stand in comparison. People don't mind paying expenses when they get something TANGIBLE for it.




This is your response?  First you approach the client telling him that he should come to you because of fees, and then when he asks you for details about those fees, you get very defensive and say, "forget about the fees...just worry about net returns."

If I was the potential client, I would say to myself, "Mr. Hull just did a bait and switch on me."


My client statements speak so loudly that I don't have to spend much time talking about fees. When they SEE that my clients have made over 24% avg annual and they KNOW that guys like you can't come close to those numbers, even if you don't add the EXTRA fee, it's a slam dunk close. You can make all the snide comments you want, but the fact is that people ARE talking to your clients and prospects and this is how they are getting the business. And don't think that these are long conversations where I have to pull out a calculator to prove anything to them. All I say is "Let's put your statements next to mine and you can decide for yourself."


Visual presentations are very, very powerful. You better have something to show them that is more powerful than what I'm showing them.



Sorry, Mr. Hull.  You lost me as a potential client the instant I discovered that you were a scam artist who tried to pull a bait and switch on me.

You can scream net returns as loud as you want for as long as you want, but the moment you are exposed as a lying con man...you have lost everything in this business.


May 27, 2007 5:08 pm
ManagedMoney:
Bobby Hull:
ManagedMoney:
Bobby Hull:
ManagedMoney:
Bobby Hull:
drewski803:

Hey guys, what do you guys do when you run across a wirehouse client?  I have typically asked them something to the effect of "well how has that worked out for you?" and I always get a "I'm satisfied and not looking to switch, etc" type answer.  In fact, I've never actually ACAT'd another broker (all my clients had either cash or rollovers).


What do you guys do to win these accounts?



"Do you pay your broker a fee, every single quarter, win or lose? I'll bet it wasn't YOUR idea, was it? I don't charge those extra fees and my clients have more than doubled their money over the last 4.5 years. Do you have an interest in taking a closer look?"


That's about it.




If I was the client, I would reply back and say, "it's not the frequency of fees that matter, it's the total amount of fees that matter....so tell me, what are the total fees that you charge, and how does that compare to what I'm being charged now?"


Do you have any way of differentiating what you do besides tricking people about fees? My AFTER fee numbers are so high that you can't even sniff around the same neighborhood. Many of my new clients were jammed up in these fee accounts. I have to let you in on a little secret...even though they aren't talking to YOU about it, they aren't afraid to let ME know that they don't like the fee arrangments.


You can aske me all the rhetorical questions you want and make all teh assumptions you want. If you want to ingore what I'm telling you it's YOUR problem. The truth is that there are lots of guys me out there that have figured out how to come between you and your clients and there is NOTHING you can do to prevent it. I've got actual client statements that I can show people where they can see for themselves how people like you stand in comparison. People don't mind paying expenses when they get something TANGIBLE for it.




This is your response?  First you approach the client telling him that he should come to you because of fees, and then when he asks you for details about those fees, you get very defensive and say, "forget about the fees...just worry about net returns."

If I was the potential client, I would say to myself, "Mr. Hull just did a bait and switch on me."


My client statements speak so loudly that I don't have to spend much time talking about fees. When they SEE that my clients have made over 24% avg annual and they KNOW that guys like you can't come close to those numbers, even if you don't add the EXTRA fee, it's a slam dunk close. You can make all the snide comments you want, but the fact is that people ARE talking to your clients and prospects and this is how they are getting the business. And don't think that these are long conversations where I have to pull out a calculator to prove anything to them. All I say is "Let's put your statements next to mine and you can decide for yourself."


Visual presentations are very, very powerful. You better have something to show them that is more powerful than what I'm showing them.




Sorry, Mr. Hull.  You lost me as a potential client the instant I discovered that you were a scam artist who tried to pull a bait and switch on me.

You can scream net returns as loud as you want for as long as you want, but the moment you are exposed as a lying con man...you have lost everything in this business.



Yawn...

May 27, 2007 8:48 pm

Ladies, please. Stop the clawing and scratching and go back to your cubicles.


The OP had a great question and I'd like some intelligent opinions as to what you vets do to secure these acats.


I'm a new guy and I just asked for an acat. It was a guy I'd known b/c I'd asked him to do some work on my house a few months back. At that time I was talking to him about his business (i.e. how long he's been at it, does he have a crew/team, does his business have a retirement plan in place, what would it take to get to the point where he could hire employees, etc).


After gathering this info I came back several days later, recaping what he said. I went on to propose he stop by the office so we can take a look at his portfolio. He did, I explained my business further - emphasizing what it is that I felt I did best relative to what he needed and just flat out asked, "So with all that being said, what do you think of having your account held here and working with me as your advisor?" He gave a thumbs up and although the acct has yet to transfer, he will be in on Tuesday to sign the acat/new account forms.


It's not a large account. I didn't inquire as to the amount because at this point, I don't care. I'm guessing it is less than $25K, dare I say less than 10K. But for me, it was a great opportunity to practice asking for the account. It seems to have gone well and hopefully I'll seal the deal this week.


I feel pretty comfortable asking for the account, but only after I've developed rapport. I doubt I'd be as well spoken had I not interacted with him for a few weeks prior.

May 27, 2007 8:55 pm
707SE:

Ladies, please. Stop the clawing and scratching and go back to your cubicles.


The OP had a great question and I'd like some intelligent opinions as to what you vets do to secure these acats.


I'm a new guy and I just asked for an acat. It was a guy I'd known b/c I'd asked him to do some work on my house a few months back. At that time I was talking to him about his business (i.e. how long he's been at it, does he have a crew/team, does his business have a retirement plan in place, what would it take to get to the point where he could hire employees, etc).


After gathering this info I came back several days later, recaping what he said. I went on to propose he stop by the office so we can take a look at his portfolio. He did, I explained my business further - emphasizing what it is that I felt I did best relative to what he needed and just flat out asked, "So with all that being said, what do you think of having your account held here and working with me as your advisor?" He gave a thumbs up and although the acct has yet to transfer, he will be in on Tuesday to sign the acat/new account forms.


It's not a large account. I didn't inquire as to the amount because at this point, I don't care. I'm guessing it is less than $25K, dare I say less than 10K. But for me, it was a great opportunity to practice asking for the account. It seems to have gone well and hopefully I'll seal the deal this week.


I feel pretty comfortable asking for the account, but only after I've developed rapport. I doubt I'd be as well spoken had I not interacted with him for a few weeks prior.



How did you look at his portfolio without knowing how much it's worth? Did he block out the numbers with a black marker or something?


By the way...nice job, coming out and asking for the business.

May 27, 2007 10:09 pm
707SE:

The OP had a great question and I'd like some intelligent opinions as to what you vets do to secure these acats.



I'm not a vet in this end of the business, but I'll respond.  Every client I have was already with someone else before they met me.  Every new client I will ever get is also with someone else right now.  It's rare that you're going to come across HNW and UHNW people who don't already have an advisor.

So, why do they move their accounts to me? 

The answer is simple.

Besides the trust they have in me, I solve four issues that they all have:

They are underserviced, overcharged, are exposed to too much risk, and have poor relative performance.

If you address those four issues, they will come.

May 27, 2007 10:18 pm
ManagedMoney:
707SE:

The OP had a great question and I'd like some intelligent opinions as to what you vets do to secure these acats.




I'm not a vet in this end of the business, but I'll respond.  Every client I have was already with someone else before they met me.  Every new client I will ever get is also with someone else right now.  It's rare that you're going to come across HNW and UHNW people who don't already have an advisor.

So, why do they move their accounts to me? 

The answer is simple.

Besides the trust they have in me, I solve four issues that they all have:

They are underserviced, overcharged, are exposed to too much risk, and have poor relative performance.

If you address those four issues, they will come.


That's what I do. I hit real hard on the overcharged and poor relative performance parts.

May 27, 2007 10:20 pm
Bobby Hull:
707SE:

Ladies, please. Stop the clawing and scratching and go back to your cubicles.


The OP had a great question and I'd like some intelligent opinions as to what you vets do to secure these acats.


I'm a new guy and I just asked for an acat. It was a guy I'd known b/c I'd asked him to do some work on my house a few months back. At that time I was talking to him about his business (i.e. how long he's been at it, does he have a crew/team, does his business have a retirement plan in place, what would it take to get to the point where he could hire employees, etc).


After gathering this info I came back several days later, recaping what he said. I went on to propose he stop by the office so we can take a look at his portfolio. He did, I explained my business further - emphasizing what it is that I felt I did best relative to what he needed and just flat out asked, "So with all that being said, what do you think of having your account held here and working with me as your advisor?" He gave a thumbs up and although the acct has yet to transfer, he will be in on Tuesday to sign the acat/new account forms.


It's not a large account. I didn't inquire as to the amount because at this point, I don't care. I'm guessing it is less than $25K, dare I say less than 10K. But for me, it was a great opportunity to practice asking for the account. It seems to have gone well and hopefully I'll seal the deal this week.


I feel pretty comfortable asking for the account, but only after I've developed rapport. I doubt I'd be as well spoken had I not interacted with him for a few weeks prior.



How did you look at his portfolio without knowing how much it's worth? Did he block out the numbers with a black marker or something?


By the way...nice job, coming out and asking for the business.



Thanks. I should clarify. When he did come to my office he didn't bring the statement. We discussed the layout of the portfolio, where it was held and how his interaction with the broker was. It isn't an actively managed account which was my indication that it was smaller. I didn't see a statement yet. I should have clarified. but thanks for the compliment.

May 27, 2007 11:20 pm

Bobby, you complimented the guy. I can't believe it! I have a newfound respect for you.


Compliments to you, for being UN abrasive. (I'm figuring that will elicit an abrasive response, but thats truly not my intention. Your complimentary post was actually refreshing.)

May 28, 2007 12:26 am
pratoman:

Bobby, you complimented the guy. I can't believe it! I have a newfound respect for you.


Compliments to you, for being UN abrasive. (I'm figuring that will elicit an abrasive response, but thats truly not my intention. Your complimentary post was actually refreshing.)



I didn't realize that one small act of kindness and senseless beauty would be so far reaching.