Friends and family will disappoint you. I promise. People are weird when it comes to money. When you handle their money, you will see a side of them that you never knew existed.

Your F & F won't give you business because they know that you are new.  That being said, I would absolutely prospect them.

1) It's great practice

2) It's the best way to build a referral based business.  They will refer you to more people.  These referrals won't know that you are new in the business.  When people come to you via referral, it is easy to get referrals from them.  When you cold call, it is much harder to get referrals.

3) If you are not prospecting friends and family, someone else is.   Do it in a very professional manner.  If you prospect them, almost all will become clients in the future.  Don't prospect them and most will never become clients.

4)Having friends become clients lead to better friendships.

Personally, I would have failed if I didn't start with friends and family. 

Sell them life insurance.  You have no risk of blowing up their portfolio, you get paid a decent commission and they probably need it.

Bornagain, I agree with you.  It’s important to me that they become insurance clients and I don’t care if they become investment clients.  I

don't prospect friends & family until you've been in the business 3yrs. then they will come to you.

besides you need to learn how to build a business without f & f.

I totally agree with Vin Diesel and Bobby Hull.  I guess I was feeling pressure from others to prospect F & F. 

Most senior advisors in my office say not to.  One guy says he has never had a problem working with friends and family.  I have one associate who lost a good friend trying to prospect him.  Fortunately no one in my family has money so it is not an issue for me.

Once you have been in the business long enough they will ebg you for advice.  For nowe realize you don't know much.  If you want to make some quick cash sell them some life insurance, they probably need it.

That’s funny. Insurance companies make you LIST your friends and family and basically require that you prospect them.

Insurance companies suck.

Closer, insurance is different than investments.   If you don't rollover your friend's 401(k), you don't earn a commission.  If you don't sell your friend a necessary DI policy, your friend is screwed for life.

They make you list your friends and family because they want you to build a referral business.  Your success is not dependent on getting F&F as clients.  Your success is dependent on getting referrals.  Who's going to give you more referrals....F&F or people whom you cold call?

With an insurance company, an all referral business can be built almost instantly if you call on F&F.  This can't be done in a wirehouse.  What's the difference?  Your friends will know lots of people just starting out.  Many of these people will be very successful in the future.  However, today, they are making $60,000 and have virtually nothing invested.  These are not prospects in the wirehouse environment.  Therefore, you must cold call to find people with money now.  In the insurance environment, they are good prospects.  At the very least this person should be buying disability insurance, $1,000,000 + of covertable term insurance (or WL + term) and starting a Roth IRA.  You'll easily make $1000+ consistently with these types of clients while you are doing the right thing for them.  Their investment business will be easy once they have money.

Closer, insurance companies suck for you because you are failing.  If you can't make it there, you can't make it at a wirehouse.  Work your ass off every day and you'll be earning 6 figures in your second year while making a huge difference.

What do you get when you take the “C” out of “Closer”?

[quote=Bobby Hull]What do you get when you take the “C” out of “Closer”? [/quote]

Bobby Hull?


Sorry, just to easy.

That made no sense.

I think Ferris was referring to MaxDud's weird comment.

[quote=Bobby Hull]What do you get when you take the "C" out of "Closer"? [/quote]

that's funny!!!

[quote=pretzelhead]

I think Ferris was referring to MaxDud's weird comment.

[/quote]

+1

joe is the slow one.

Anonymous… get off insurance companies nuts.

Ferris… get off Bobby Hull’s nuts

All in all, the reason I feel so strongly may be because of my particular agency of my particular company. Why does single 24yo with no discretionary income need 1 million in term? That much insurance isn’t cheap. If he dies, so what, nobody depends on him. Plus, you aren’t locking in anything with term. Hmmm.

Closer,

I'm surprised that someone can show so much ignorance on a subject with such a short post.  Are you sure that you work for an insurance company.  This is basic stuff that you don't know.

Why does single 24yo with no discretionary income need 1 million in term?

You are correct that they can't buy term insurance with no discretionary income, but nobody mentioned $0 discretionary income.  You are correct that he doesn't need it.  He will need it in the future.  Insurability is extremely fragile.  Coverage must be purchased when one is healthy.  You'll understand when you have a friend die or simply talk to a 30 year old who really needs coverage, but can't get it because of a cancer history.  If someone is going to need coverage in the future, it must be purchased today.  

That much insurance isn't cheap.

The coverage is cheap.  He can get $1,000,000 for under $25/month.

Plus, you aren't locking in anything with term. Hmmm

Please tell me that you are joking with this comment.  He's locking in the fact that he will have the best rates for the rest of his life.  He's locking in the fact that he can convert to permanent insurance without answering any medical questions and have the best rates.  He's locking in the fact that when he dies, he is leaving behind a $1,000,000 legacy. 

Watch a family struggle because you didn't sell life insurance to your friend and you'll understand forever.

Again, if you can't make it at the insurance company, you have no chance at the wirehouse.  It may be time for a career change.