Raising AUM - vets only

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May 4, 2009 11:43 am

This is a question for the vets who still cold call.

I am trying to add more AUM this year as the area I am in has been dominated by the wirehouses. I am seeing a ton of money leave them and I want to make sure I get some of it.

I have hired a full time assistant (to go along with the part time assistant I have) to free up time to prospect more.

I am taking the free time I am gaining and hitting the phone again.

My question for the vets who are still cold calling - what is a good target for new aum for the next 12 months. I am trying to set up some realistic goals to stay focused, as I find it is too easy to goof off being indy.

This is in addition to everything else I do, so I am trying to get a number for cold calls only. I have used a 250,000 min for the past couple of years, and I am trying to stick with that number in this new campaign.

Thanks for any input.

May 4, 2009 12:59 pm

$6,000,000.

Here's how I came to that.
I assume you can dedicate a minimum of 1hour a day for at least 4 days out of a week to purely cold call. At 50 dials/hour that equals about 800 dials a month. Then:
 
800 dials x 20% = 160 contacts.
160 contacts x 20% = 32 interested & qualifed prospects.
32 prospects x 20% = 6.4 new prospect meetings
6.4 x 40% (your closing rate may be better or worse than this) = 2.56 new clients/month
2.56 x $300,000 (again this is variable) = $768,000 new AUM per month.
8 months left in the year gets you to just over $6,000,000.
 
This math has always worked for me whenever in my career I have gone into a cold calling prospect mode. Which I am now. Like you I see tremendous opportunity and so few FAs that are new to the biz have learned these skills that it creates an even bigger opening for vets that have succesfully cc  in the past.
 
Good luck!
May 4, 2009 2:58 pm

I think(based on my experience) you would need to make more calls than that because of the assets size you are looking for($300K to day was probably $375-425 last year) and would depend who you are calling.. But the numbers are typical.. 20% contacts, 20% prospects, 20% appts and then close 40% of those..

Jun 1, 2009 2:00 pm

Maybe you don't want my opinion here but i'm at a loss why so many want to attempt to build a business via cold calls.  I remember starting in the business back in 1993, cold calling was really the only method at the time and i really really hated it.  In 2000, myself and a few co-advisors started perfecting the art of seminars.  What a relief!  I know the press and many others have jumped on the annuity seminar bandwagon and trust me that's not what i'm talking about.  You can do High Networth Seminars, gather millions under managent, if done correctly.  Any thoughts or ideas let me know.

Jun 1, 2009 2:57 pm
advisorcontrol.comL:

Maybe you don't want my opinion here but i'm at a loss why so many want to attempt to build a business via cold calls. I remember starting in the business back in 1993, cold calling was really the only method at the time and i really really hated it. In 2000, myself and a few co-advisors started perfecting the art of seminars. What a relief! I know the press and many others have jumped on the annuity seminar bandwagon and trust me that's not what i'm talking about. You can do High Networth Seminars, gather millions under managent, if done correctly. Any thoughts or ideas let me know.





Yeah you and everyone else... Anything useful besides advertising your website??

Jun 1, 2009 3:03 pm

When you fail as a broker,  start a website.

Jun 1, 2009 3:19 pm

So since I have the flu and took today off... I checked out his website... nothing.. a bunch of music videos.. kinda strange

Jun 1, 2009 3:36 pm

This guy is a hack... same people who peddle that Advisor Marketing Systems crap.. they are not even smart enough to change the address.



A friend of mine purchased their system and spent $1K(told him not to).. and all he got was a poor presentation and garbage direct mail pieces(word files)..



Stay away..

Jun 1, 2009 3:57 pm

I can tell you, this guy is not a hack.  FWIW, I have verified some of what they have talked about on their websites (I found it interesting, so I did some research).  I won't say much more, but his ideas and practices are worth looking at.

 
Jun 1, 2009 4:10 pm
B24:

I can tell you, this guy is not a hack. FWIW, I have verified some of what they have talked about on their websites (I found it interesting, so I did some research). I won't say much more, but his ideas and practices are worth looking at.





I have only been able to verify his assets... Though according to my friend he went straight from a wirehouse to ria.. However he made a stop off at woodbury for quite some time...



What about what he does is worth looking at? from what I understand is that they give you a bunch of word files. And his money management is taken straight from First Trust UITs..

Jun 1, 2009 4:36 pm

I'm not going to write a narrative on the guy.  If people are interested, they can do their own due dilligence.  Unlike many on this site, I would not take what I, or anyone else on this site says at face value.  Gotta check it out for yourselves.  All I am saying is that there is a whole lot more to the story than the Advisor Marketing site (which is not even his) and whatever you are saying about FT UIT's.

Jun 1, 2009 5:00 pm
B24:

I'm not going to write a narrative on the guy.  If people are interested, they can do their own due dilligence.  Unlike many on this site, I would not take what I, or anyone else on this site says at face value.  Gotta check it out for yourselves.  All I am saying is that there is a whole lot more to the story than the Advisor Marketing site (which is not even his) and whatever you are saying about FT UIT's.



What?!  You want us to do research all by ourselves?!    You are so mean!  Like we have time to do anything for ourselves!  As if!

What kind of sicko are you?  BiLo and Harley are definitely not going to like that!  You're in trouble now!! 


Jun 1, 2009 5:07 pm

I could give you a fish and you could eat for a day, or I could TEACH you to fish....

Jun 1, 2009 9:25 pm
Northfield:

$6,000,000.

Here's how I came to that.
I assume you can dedicate a minimum of 1hour a day for at least 4 days out of a week to purely cold call. At 50 dials/hour that equals about 800 dials a month. Then:
 
800 dials x 20% = 160 contacts.
160 contacts x 20% = 32 interested & qualifed prospects.
32 prospects x 20% = 6.4 new prospect meetings
6.4 x 40% (your closing rate may be better or worse than this) = 2.56 new clients/month
2.56 x $300,000 (again this is variable) = $768,000 new AUM per month.
8 months left in the year gets you to just over $6,000,000.
 
This math has always worked for me whenever in my career I have gone into a cold calling prospect mode. Which I am now. Like you I see tremendous opportunity and so few FAs that are new to the biz have learned these skills that it creates an even bigger opening for vets that have succesfully cc  in the past.
 
Good luck!



this sounds like a lot of work - i think i'll allocate a few hours to some other marketing activities and then ef off the rest of the summer and bring in 8 mil

but the math is very good and i do think that would be a realistic goal - if you're pretty good at cc.  most aren't so i'd plan on a much lower meetings per dials if you're a rook reading this.  more like 1 per 1,000 dials.  in which case you'd be looking at 1 new client per month and 2.4 mil in new aum.

in any event - knock em dead, all the wirey brokers i know are bailing, going indy, and scrambling to keep their clients.

Jun 1, 2009 9:45 pm
B24:

I'm not going to write a narrative on the guy. If people are interested, they can do their own due dilligence. Unlike many on this site, I would not take what I, or anyone else on this site says at face value. Gotta check it out for yourselves. All I am saying is that there is a whole lot more to the story than the Advisor Marketing site (which is not even his) and whatever you are saying about FT UIT's.





I will give him the benefit of the doubt.. however his name and firm are all that the Advisor Marketing site talks about, so he is involved somehow.



Jun 1, 2009 9:55 pm

Hello All,

This post is pretty hilarious from my view - so maybe I can clear some things up.

My name is Jason and I just started a new site called AdvisorControl.com.  It's actually not even close to being done, but since some people already registered and this is likely where they cam from I figured I'd better set the record straight.  The last post was not from me, but from a partner in the venture named Len (hence the L after the site address).  He'll probably post here from time to time and we'll both try to be constructive without being pushy.

So a couple of things:

I have nothing to do with Advisor Marketing Systems.  I sold the rights to some of my older marketing material to a friend who runs the site from 500 miles away from my office.  Since he's a friend and I like to help him when I can I'll do some calls and let him record some of my seminars.  That's it.  I get zero from that site.  No $, just headaches as people from around the country call me all the time.  If anyone here is thinking about selling their wares to other advisors - I would use a pen name or not do it all all.  Plus, there is way more money in being an advisor than in selling stuff to them, imo. I don't use FT UIT's - but did until 2004. I started at a wirehouse in 2000, left in 2002 and brought nothing with me.  I did non-profit work for about 9 months before going indy with a b/d for a few years and started my own RIA in 2005.  It's creepy, but the research from some on this site is scary accurate.  No one here knows where I live, right? Anyway, the new site is free.  I'm not selling anything.  Actually, I'm hoping to give a lot of very valuable stuff away that should help a lot of advisors.  For the next week though there is pretty much nothing there other than videos my crazy programmer from Europe put up as demos (I guess they still love Sinead O'Connnor).

I've been around this board for long enough and read enough posts to know I'll likely get slammed for posting.  But wth.  Now when I post everyone will know exactly who it's from and can take my input at face value.

On the flip side, I am really interested in knowing what things fellow advisors would like to know more about.  I can't write/speak too inteligently about cold calling as I just didn't like it.  But if there is anything else anyone on this board thinks would be helpful - I'll be trying my best to make video blog posts covering those items.  So pm me or use the contact form on the advisorcontrol.com site and I'll see what I can do.

Now the fun part - I can sit back and watch people I don't know make as a** of me.

Cheers,

Jason
Jun 1, 2009 10:12 pm

See that is what I was looking for..

I got the my information from a trusted friend and have seen the info..



I appreciate the clarification and won't bash your posts anymore.



P.S. congrats on the assets, regardless of what else you do that is a lot of assets to gather in a very short time..

Jun 1, 2009 11:11 pm

Northfield - Are you telling us that you're gathering $6,000,000 per year in new assets ($500,000 per month) with four hours of cold calling per week? <?: prefix = o ns = "urn:schemas-microsoft-com:office:office" />


 


There's no f_ing way those numbers are right. The day I start believing that is the day I'm sending $1,000 checks to a TV preacher for holy water.


 


Who are you calling? What’s pitch?


 


I’ve been cold calling for years. It works but you need to crank out massive numbers. One hour per day is not going to do it unless you’re calling your wealthy family.

Jun 1, 2009 11:19 pm
Northfield:

$6,000,000.

Here's how I came to that.

I assume you can dedicate a minimum of 1hour a day for at least 4 days out of a week to purely cold call. At 50 dials/hour that equals about 800 dials a month. Then:



800 dials x 20% = 160 contacts.

160 contacts x 20% = 32 interested & qualifed prospects.

32 prospects x 20% = 6.4 new prospect meetings

6.4 x 40% (your closing rate may be better or worse than this) = 2.56 new clients/month

2.56 x $300,000 (again this is variable) = $768,000 new AUM per month.

8 months left in the year gets you to just over $6,000,000.



This math has always worked for me whenever in my career I have gone into a cold calling prospect mode. Which I am now. Like you I see tremendous opportunity and so few FAs that are new to the biz have learned these skills that it creates an even bigger opening for vets that have succesfully cc in the past.



Good luck!





His assumptions are dead on.. in terms of percentages. the only variable is that each new account is worth $300,000.00.



But you can figure it out if it is less. $150K accounts would be $3 million... you get the idea...

Jun 1, 2009 11:31 pm

Chief:

 
B.S. - why not call 8 hours per week and bring in 1,000,000 per month. How about 12 hours for $1,500,000 per month.
 
It might work for you but these are not average numbers. If you can show the average idiot how to raise $6,000,000 per year for 1 hour of cold calling per day you should sell videos on how to raise assets. You'll make more money.