Critique my calling script- need to close!

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May 23, 2011 1:48 pm

I would love some feed back from anyone in this forum. i am struggling with a close.  

i am cold calling business owners only on a muni bond.

Hi Mr. _____________, this is Joe Smo from XYZ firm. Did I catch you at a good time?

 

The reason for my call is that I currently have a supply of high quality bonds that are paying a tax free yield of over 8%. How does 8% tax free compare to the taxable rates you have seen at your bank?

Response: "way above the rates i am getting"

well let me tell you a bit about this particular bond. it is a blank blank bond blah blah blah (go through a few bullett points on bond.

now mr. prospect, the majority of my clients are business owners like yourself that are looking for a conservative investment that pays a favorable rate of return, preferably tax free (lets keep uncle sam's hand out of our cookie jar). Now i only have a small supply of 100 bonds but i would trust that if a 8% tax free return is favorable to your bank rates, then starting out with 50 would be a good way to start the relationship: fair enough?

great i will put aside the bonds and email you over the account paperwork to sign off on.

i need help on the close. any thoughts?

May 23, 2011 4:29 pm

Nothing against pitching bonds...however with interest rates at an all time low and you are  probably pitching long term bonds...you say they are a conservative investment...what are you going to say to the client when rates are higher and they get a statement showing that the value of there conservative bond investment is down?

Just food for thought.

If you are in this for the long hall be careful.

May 23, 2011 7:58 pm

[quote=on my own]

Nothing against pitching bonds...however with interest rates at an all time low and you are  probably pitching long term bonds...you say they are a conservative investment...what are you going to say to the client when rates are higher and they get a statement showing that the value of there conservative bond investment is down?

Just food for thought.

If you are in this for the long hall be careful.

[/quote]

 I am also newer in the industry wondering the same thing - trying to make a good impression with a number of new clients (usually its a test for the first 50k-100k, a seat at the table if you will). 

There is no arguing the fact that rates are at 40-50 year lows, or close to it, and we've had a 20 year long bull market in bonds, so theoretically unless you think the US will follow Japan into a decade long deflationary environment, bonds could very well be entering a 5-10 year bear market.

I worry that the first 10 year "muni bond" I sell them yielding 4.5% will not look good in a couple of years when the 10 year treasury is at 6-7%.

May 24, 2011 11:38 am

I hope the bond you're pitching has a legitimate 8% yield to maturity, and if so, properly explain the risks associated with this high yielding investment.

If it's simply an 8% coupon bond selling at a premium .........    then well, that's the same type of misleading sleezy salesmanship that lends to giving our industry a bad name. 

May 24, 2011 11:56 am

Good Point Bengal, I think he was inferring that 8% was the TEY for the Muni, in which case you should probably mention "if you are in the highest tax bracket."  An 8% Muni (YTM) is junk these days, unless its out to 2050.

Quick question for you guys.  I call on Muni's very frequently, but only when I get bonds available.  Muni availability in my state is low so when they are available they sell quickly.  Does anyone else have this issue?

I would like to call without having an actual Muni available and build up a nice size "waiting List" when the bonds become available.  Any script ideas?

Rook - go to gethardgetraw's last few pages, he has a pretty good script in there. BG also has mentioned a few.