Marketing Idea - Recycle

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Sep 12, 2008 8:36 pm

Here's a marketing idea I use for mutual fund prospects.

 
As we all know, prospects hate having their entire portfolio revamped and re-charged with new commissions. Whether they're in "A or B" shares, they don't want to have to pay again to be taken out and put into the "latest and greatest" fund.
 
So, I tell prospects that I might be able to "recycle" their current investments. They get this perplexed look on their faces and, inevitably ask, "Huh"? Then, I tell them that I might be able to incorporate some of their current investments in their new (and improved) investment plan. "Recycle", get it? Corny yes, but it gets their attention.
 
Because there are certain asset categories that I like (being a bear and all ), I tell the prospect that the fund family they're already in and have paid-for may offer a fund that covers one or more of the categories I like. I also tell them that the fund needs to be rated at least 4-5 stars by Morningstar to be included in the new portfolio. (I have yet to have any prospect ask to be kept in a fund rated substandard by Morningstar.)
 
Agreed, I don't make as much, but I do believe I collect more assets. You can almost hear a sigh of relief when I tell a prospect this policy. So far, I've been able to collect commission on about half of an average prospect's portfolio.
 
Hey, works for me....
 
 
Sep 12, 2008 9:31 pm

Nice idea. Thanks.  I will use that on a new prospect I gained today who recently switched to a new fund family.