Tax free investment script help

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Feb 26, 2007 4:51 pm

Hi my name is leap from lillypad securities, here in anytown.  Are you familiar with who we are?


From time to time, we bring to market excellent tax free investments.  Is this something of interest to you?


No - Does this mean that you don't currently believe in savings or investments?


No, I am not interested - Are you more interested in dividend income?


What kinds of instruments DO allow you to gain the majority of your success?


Yes - These things come across my desk on occasion so is this the best time of day to reach you with some information?


********


Does this sound good or should I change it?  I seem to get some disconnect when I ask if they are familiar with who we are but I ask because I figured a yes early would help my cause.


Feb 26, 2007 6:57 pm
LEAP:

Hi my name is leap from lillypad securities, here in

anytown. Are you familiar with who we are?



From time to time, we bring to market excellent tax free investments.

Is this something of interest to you?



No - Does this mean that you don't currently believe in savings or

investments?



No, I am not interested - Are you more interested in dividend income?



What kinds of instruments DO allow you to gain the majority of your

success?



Yes - These things come across my desk on occasion so is this the best

time of day to reach you with some information?



********



Does this sound good or should I change it? I seem to get some

disconnect when I ask if they are familiar with who we are but I ask

because I figured a yes early would help my cause.







I'd leave the "do you know who we are?" out. What do you say, for

example, if the prospect says, "Nope. Never heard of you."? The prospect

is now in control of the conversation and you're playing defense. As

lawyers are fond of saying, never ask a question that you don't already

know the answer to.



Just my $.02.

Feb 27, 2007 4:30 am
Philo Kvetch:

[quote=LEAP]

Hi my name is leap from lillypad securities, here in

anytown.  Are you familiar with who we are?

Good morning, Mr. Jones this is AllREIT at Falling Knife Capital. I'm
calling you today with a fantastic tax free bond yielding 5% tax
free. In your tax bracket that's the same as a CD yielding 7.5%. Is this something you would be interested in?



I would record myself a few times till I had my pitch down pat. Don;t
speak too fast or mumble. Smile into the phone. Wear a good headset
with dual headphones



Honestly, if I was cold calling, I would do it with CD's.


Feb 27, 2007 2:33 pm
AllREIT:



Honestly, if I was cold calling, I would do it with CD's.


Wouldn't calling on CD's open the door to people who are much more conservative and much less apt to invest in anything else?


I know the bond market has been sideways for a while but don't investors tend to be a little more educated if they are looking for tax free bonds?

Feb 27, 2007 9:06 pm
LEAP:
AllREIT:



Honestly, if I was cold calling, I would do it with CD's.


Wouldn't calling on CD's open the door to people who are much more conservative and much less apt to invest in anything else?


I know the bond market has been sideways for a while but don't
investors tend to be a little more educated if they are looking for tax
free bonds?





93% of people know about CD's, 7% of people know about Tax-free bonds.
You sell people a four month 5.5 CD, and in four months you have a open
and funded account.



You call that same person with a TF bond, and you get asked to be placed on DNC. Are you calling to open new accounts or for some other purpose?

Mar 1, 2007 2:30 pm
LEAP:
AllREIT:



Honestly, if I was cold calling, I would do it with CD's.


Wouldn't calling on CD's open the door to people who are much more conservative and much less apt to invest in anything else?


Yes this is possible but what you're doing here is fishing. Once an account is opened you move into the "wonder of me "stage of the relationship. You've got a seat at the table. Use that seat to show the new customer who you are and what you can do. If they can be turned into a client this will do it. If they don't budge, so be it, you've got a CD/gov't bond buyer. As long as they've got money to invest you'll make money and possibly harvest referrals down the road.


I know the bond market has been sideways for a while but don't investors tend to be a little more educated if they are looking for tax free bonds


I've found this to be true. Still, it all depends upon what you are looking for. And what were looking for are prospects that will become suitable clients. With CD rates as high as they've been lately they do make a good cold call calling product and will still uncover bond prospects. The words "I only buy tax free" are like music to the ears. When you hear them, shift gears and start asking questions.



Mar 5, 2007 3:41 pm

Ditto on the "do you know who we are?"!!!


I always started with:


Mr Jones, this is exEDJIR from EDJ.  I know you're busy, so I promise I'll be brief.  We have...


This will usually eliminate the "I'm busy right now, can you call back" concern.  As far as other concerns go, make sure you have your responses rehearsed.  Even though it may be a script, you want it to sound like a nature conversation.


Selling CDs will get your foot in the door to impress them with your service.  Then, as AllREIT said, as the CD comes due you can educate them about saving money with munis.  


Make sure you call them when their first statement comes in, to ask if they have any questions.  After you answer any questions they may have, it's time to turn your service call into a fact finding call.  "Mr Jones, our research dept just upgraded XYZ stock, is this something you and Mrs Jones would be interested in?  Really?  why?"  and then shut up and let them talk.


Hope this helps. 
















Mar 6, 2007 12:50 am
exEJIR:

Make sure you call them when their first statement
comes in, to ask if they have any questions.  After you
answer any questions they may have, it's time to turn your service call
into a fact finding call.  "Mr Jones, our research dept just
upgraded XYZ stock, is this something you and Mrs Jones would be
interested in?  Really?  why?"  and then shut up and let
them talk.

Hope this helps


Calling people with research reports is a good idea, just make sure
you understand the report and have done a bit of reasearch yourself.
Not a bad idea to start off of say the S&P Platinum portfolio of 5
STARS stocks rated a 5 for value, and then pull up reports on any that
look interesting to you.

Mar 6, 2007 8:08 pm

I prefer cold calling with tax-free bonds, than stock. I just get the feeling that if I call with a stock idea, Joe Prospect will login-in to his online discount broker and buy the stock.


Once, I fired a client for doing exactly this.

Mar 7, 2007 3:07 pm
doberman:

I prefer cold calling with tax-free bonds, than
stock. I just get the feeling that if I call with a stock idea,
Joe Prospect will login-in to his online discount broker and buy
the stock.


Right, what I ment was calling your existing base with research. Thereby adding some value that a discount broker can't match.

Mar 7, 2007 5:35 pm

Calling people with research reports is a good idea, just make sure you understand the report and have done a bit of reasearch yourself. Not a bad idea to start off of say the S&P Platinum portfolio of 5 STARS stocks rated a 5 for value, and then pull up reports on any that look interesting to you."


I have been ramping up my prospecting to executives at publicly-traded firms here in my area. After the typical exchange, I always offer to send them a research note on their firm ( if they agree to a meeting- to DRIP them something of interest. If they tell me to F 'off, as one more excuse to follow up on later). I love the reactions weh I have everything prepared, they say sure go ahead and send it, and 20 seconds later they are looking at it...

Mar 7, 2007 5:43 pm
blarmston:

I love the reactions weh I have everything
prepared, they say sure go ahead and send it, and 20 seconds later they
are looking at it...





I usually delay it a little bit, to be fashionably late.



I've had sucess with doing a seminar on managing your ESOP positions.
Now that we have sector and inverse sector ETF's its pretty easy to
design a portfolio that is market sector neutral (inclusive of the ESOP
position) and even has some negative exposure that market sector.



I explain to people the dangers of correlated risk. I.e the company
does bad, you get layed off, and your ESOP holdings go down at the same
time.

Mar 7, 2007 7:37 pm

Now thats a good idea right there... Not only for ESOP's but for exec's who have boatloads of company stock or middle management types who insist on being heavily overweight in their 401K's etc and may be interested in hedging with other monies....

Mar 8, 2007 3:31 am
blarmston:

Now thats a good idea right there... Not only for
ESOP's but for exec's who have boatloads of company stock or middle
management types who insist on being heavily overweight in their 401K's
etc and may be interested in hedging with other monies....





Be very careful about letting HR know about this, since
shorting/trading/hedging company stock is almost always against the
companies code of ethics. Not sure about owning an inverse
sector/shorting a sector ETF. I'd tell people not to talk about it with
anyone.



For a big account what I do is use the Big10(9) sector weightings of
the total market to build a portfolio around that such the final
portfolio is closer to market weight. Usually collapse Tech+Telecom
together.



https://flagship.vanguard.com/VGApp/hnw/FundsHoldings?FundId =0970&FundIntExt=INT



But it also depends on the company stock too. If someone has a big postion in GE   it is not the same as a big postion in GOOG .



Also, for many portfolio's you can crank up effective diversification immediately by adding in TIPS , and xUS. It's not uncommon for even small amounts of TIPS/xUS to really lower expected portfolio volatility.



Then over time you can build up the rest of the portfolio the right
way. I use the correlated risk example to try to convince people to
trim back such positions.



A seminar on managing concentrated stock positions/ESOP can pull down a
useful audience, especially if you qualifiy people wrt to ESOP
positions.




Mar 9, 2007 2:40 pm

Thank you for all of the helpful responses.


Its funny but the advice I get from people in Reg Rep as well as what I hear from a vet in my office seems to be similar in advice.  Product calling pitches based around either CD's or Tax Frees and building a relationship one transaction at a time is the way to go.


This differs much from the brief wirehouse training I experienced a few months back at the home office.  I am curious to know if any of you vets use an approach similar to the pitch format found below.  This is the style we were encouraged to use if willing to prospect using a cold calling regimen. 


WHO YOU ARE.
(e.g. My name is leap. I'm with Lilypad securities.)

WHY YOU'RE CALLING.
(e.g., I'd like to tell you a bit about what we do. And then see if you might be interested in exploring a business fit.)



ASK PERMISSION TO CONTINUE.
(e.g., Got a few minutes?)

IF YOU GET PERMISSION - GIVE OVERVIEW OR GENERAL DESCRIPTION. OR, BETTER, A COUPLE EXAMPLES OF HOW YOU'VE HELPED CLIENTS.
(I sort of do things the old fashioned way.  I meet with you face to face so that we can discuss your current investment policies, your long and short term goals in order to see how my approach will demonstrate a fit in with your team of advisors.  My goal is to improve investment income while reducing risk exposure.  I can't I will be perfectly willing to tell you that as well.)

TRANSITION.
(e.g., That's me, in a nutshell.)

ASK FOR NEXT STEP.
(e.g., Of course, any real fit would be uncovered in more discussion. Can we set up a meeting?)

IF THEY AGREE TO A MEETING.
Ask them when is a good time. Do not suggest a couple times unless you are actually, truly swamped. 


Mar 9, 2007 4:32 pm

By hedging I meant taking into acoc**t their positions in their company stock. If they work for a public pharmaceutical firm or biotech, we would look for non- correlating assets that owuld help to offset somewhat their exposure to volatility with their company stock... That is usually a hook I use when trying to obtain an appointment...

Mar 9, 2007 10:42 pm

The script for that goes:





About how large an ESOP position are we dealing with?



And how much are your other assets?





Very easy and very smooth way to qualify clients.

Mar 13, 2007 1:44 am

 Broker: Mr. Smith?


 Smith: Yes.


 Broker: This is Joe Blow, with Make Mo investments, here in Anytown.  HOW ARE YOU DOING TODAY?


 Smith: Ok, I guess.


 Broker: That's Great.  Well, I'll be brief.  The reason I have called is to you inform you my firm has made available an insured, double tax-free bond yielding 4.25%.  If you are in the 25% tax bracket, you will need to get 6.25% on a taxable cd to equal this double tax-free rate. Is this competitive with your current rates?


  Smith: What does double tax-free mean?


  Broker: That is a good question. This bond if state AND federal tax-free...and it is insured....Do you know what I BELIEVE would be in your best interest?


  Smith:  No, what?


  Broker: For the two of us to sit down so I can explain this and ensure you are making an informed decision. I have (give them two options) available, what works well for you?


  Smith: I ain't interested?


  Broker: Is the the rate, or the timing?


  Smith: 1. the rate.   2. the timing.  3. both


  Broker: 1. This bond offers a very attractive rate, which is State and Federal Tax Free.  If 4.25% TAX-FREE is the WORST we do on SOME of your money, would that be ok? 


      2.  when do you expect you will have some funds available? (Make a note, this is a money due.)


     3. Well, then I guess I should address both.  I believe it would be in your best interest for the two of us to sit down for 15 minutes so I can further explain this so you can make an informed decision (again, offer two appointment times, and don't forget that one of them should be exactly one week from when you are speaking, ie; if you are calling at 2:15pm Monday, offer that is one of the options.  If they are available to spk today, perhaps they are available next week.)


  Smith: I ain't got no money.


  Broker:  Is that a temporary, or permanent situation!


GOOD LUCK MAN, and remember to SMILE INTO THE PHONE.  You've got to love it.


 my feet hurt,


 ED


Mar 13, 2007 5:11 am
EdJehovah:

Do you know what I BELIEVE would be in your best interest?


  Smith:  No, what?





Too much "best interest" talk. How the *** does some cold caller know what my best interest is?



After you present the bond with its USP, if you get a continuation you want to close on a personal meeting.

Mar 13, 2007 2:40 pm

Ed,


That sounds like every EDJ cold call I have ever heard.  The problem with that is,... do you think you are the only IR calling this person, especially if they a good prospect. 


In a call session one day I heard another IR start laughing as he was hanging up the phone.  So, needing a good laugh, I asked why.  The prospect he had just gotten off the phone with told him that he was the 3rd EDJ IR to call him today.


The reason I tell you this story is,...  Do you think the prospect had the feeling "this guy really has my best interest in mind" after hearing the same scripted "jones call" 3 times that day?