Prospecting in This Mess

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Sep 16, 2008 12:13 am

Is there anything any of you would change about the way you prospect, whether it's cold calling or cold walking, given the paralysis of this market right now?

 
Sure some people might just puke when somebody mentions the market, but I would have to believe the best angle to take is to see if they're hearing from their advisor and what his plan to deal with this is.
 
Would you agree, or do you think there is something better I can say to someone dead cold? 
 
Maybe, "How sure are you that this won't be your financial end?"  That's a joke...kind of.
Sep 16, 2008 2:00 am

If this nightmare could end.......that would be terrific.  However I stick with my "we think long term, not short term" angle.  I tell people to look at history and see the examples of the same things we are going through right now (Great Depression, 1973 Oil Crisis, 9/11, etc.) and show that since those events, the markets have gone up.


 
Although its hard, the most important part of it all is to present yourself as a competent advisor who has the maturity, composure (and of course the balls and a little bit o' luck would not hurt either) and dedication to weather any events such as the ones now. 
 
If you want a line:  "Human civilization has found a very interesting habit through all the trials and tribulations of the last 2000 years: they somehow kept moving forward"  Let the clients know you will weather the storm to see the light.  Oh and if some of them happen to be hitmen, please kill some of these egghead quants who thought they could make money off a Taco Bell employee owning a mansion in SoCal. 
Sep 16, 2008 4:52 am

How about prospecting based off fear?

 
There was a comment on CNBC that people in this environment are not concerned with the return on their money, they are concerned with the return OF their money.
 
For Fixed Income, that would mean putting them in a bankrate.com 4-5 star bank brokered CD. When the CD matures, you can assess what the environment looks like and put in another product. If you have a wealthy client, I would be showing them Municipals, especially if you think Obama could win. If they think the sky is falling, put them in Treasury.
 
Historically speaking, we should be buying in Equities, but let's face it, the "blood in the Streets" is starting to look like a Friday the 13th movie.
Sep 16, 2008 6:50 am

Agree with Lady Trader - to try to talk a prospect into investing in equities right now is more than likely a futile exercise, even if we think its the right thing to do.

I would think cold calling is not a fruitful use of time right now, although its better than doing nothing. I would think about doing seminars on "What to do now? " or something like that. Of course you have to find a way to fill the room, but that could be thru networking contacts, clients bringing prospects, etc.

Sep 16, 2008 9:56 am

Friday the 13th?  I havent seen this much blood since Scarface.

 
Munis are an excellent idea (and the cornerstone of my business, along with buy-sell agreement and high grade corp. bonds), but bank-brokered CDs.........eh not so much.  I def. see more bank failures on the horizon.  Treasuries are def. a way to go and if they are comfortable with SOME risk, consider either Australian or Canadian bonds.  Good solid exporting (metals and oil, respectively).  Anything that goes with inflation which is running at 10-12% right now and due to continue marching up (in the words of Mike Myers from Austin Powers- I LOVE GOOOOOOOOOOOLD!!!!) is def. something to consider too
 
Its super rough out there.  But its going to be even rougher in the next few years.  I def. see a significant political event coming (and sadly, its not going to be a good one).
Sep 16, 2008 9:43 pm

Snaggle to answer your question I am a rare person who built my entire business from cold calling and a few solid clients early on.  However today was a very productive day and the reason was I talked to several high profile  potential clients that are with other firms.  I called to just check up on them and see how they were doing and to make sure that if there current broker hadn't called them that any question or concern they have would be answered.  At least three were incredibly pleased I would call even though they weren't a client.  One a business owner that I have talked to for about nine months but haven't met ended talking to me for at least twenty minutes on things non securities related.  By the end of the conversation we have lunch scheduled for the end of this month.  I would say this is the perfect opportunity to find the advisors on their way out the door who are too scared to deal with clients or don't want to.  My opinion certainly not gospel but it does work for me.

Sep 16, 2008 10:59 pm
snaggletooth:

Is there anything any of you would change about the way you prospect, whether it's cold calling or cold walking, given the paralysis of this market right now?



How about "what if I could gurantee all or part of your retirement income no matter WHAT the market does?"

Sep 16, 2008 11:58 pm
ExPropTrader:
snaggletooth:

Is there anything any of you would change about the way you prospect, whether it's cold calling or cold walking, given the paralysis of this market right now?



How about "what if I could gurantee all or part of your retirement income no matter WHAT the market does?"

 
With what, an AIG annuity? 
Sep 17, 2008 12:23 am
snaggletooth:
ExPropTrader:
snaggletooth:

Is there anything any of you would change about the way you prospect, whether it's cold calling or cold walking, given the paralysis of this market right now?



How about "what if I could gurantee all or part of your retirement income no matter WHAT the market does?"

 
With what, an AIG annuity? 



LOL Snags,  nice you see where I'm going.

Sep 17, 2008 11:57 am

Hahaha........AIG Annuity


 
Maybe some LEH preferreds to go with that?
Sep 17, 2008 8:36 pm

"What changes has your advisor recommended over the past couple of months to help you meet you financial goals?"


"How does that investment fit into your overall financial plan?"
 
"What would be worse for you: Missing the next 20% up 20% down in the market?"