Question for those that have made it

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Dec 13, 2008 1:38 pm

For you vets that have built a business first of all congrats.  I have trememdous respect for anyone who builds a biz in this industry. 

I am 2yrs out with EDJ and

Started from scratch, killed it for my first year out, did 100k + and worked my tail off
Salary ran out and kept on going strong, opening up 10+ accts
Have hit a SERIOUS drought and I am struggling, seems like I can't get anthing going
Can't get prospects to move and don' t have a big enough client base to work yet.

I know I need to keep my head down and keep making contacts, but any words of wisdom from veterans that have come through a tough time or two would be appreciated. 


A vet in my region told me that this is the easiest 200k job and the hardest 50k job... I agree.
Dec 13, 2008 1:49 pm

When you saying you are making contact, how are you doing this?

I think instead of trying to get in front of people now, try scheduling appts for january(after they get statements) or talking about tax losses(selling out of mutual funds they bought last year to avoid to the cap gain and dividends they are going to get taxed on)



Try a holiday open house(invite chamber people if you are in it) nothing special $100 worth of food and drink.

Dec 13, 2008 1:49 pm

ice,

 
what is your mix of phone and face 2 face?
Dec 13, 2008 1:51 pm

chief




I am focusing on repeat face 2 face contacts.
Going after those folks that I know have an advisor.
Getting alot of deer in the headlights looks from folks lately.
Dec 13, 2008 2:00 pm

Chuck, maybe you could add in another form on prospecting.



When I was at Jones I bought a list and did a combination of doorknocking and calling them. That way I didn't waste my time in the winter walking everywhere. I focused on 25 a day and then cold called some others back at the office. Then repeated.



Ask a wholesaler if he will pay for a seminar in January or Feb(assuming you gave somebody some business)

Dec 13, 2008 2:07 pm

Call on those fix annuities to older people instead of CDs.

Try Businesses, 401Ks, etc..

Dec 13, 2008 2:10 pm

I haven't made it by any stretch of the imagination.  The only thing I have to add is I strongly realize how important it is to continue to be active even if you "make it."  I have an advisor in my office who has seen his book go from 1mm in production to less than 500k in the last few years.  The majority of the reduction was laziness (working half days maybe 3 days a week and not even being there the other two days), but the losses have become more pronounced in the last year with the downturn in the market.

 
That person who made the comment this is a tough job for 50k a year is right.
 
Keep up the hard work!
Dec 13, 2008 2:41 pm
iceco1d:

Speaking of wholesalers paying for shit, I have a question.  Anyone generally know how much $$$ you have to have with a particular company to get, say $100 worth of 'assistance' from them (say for seminars, etc.)? 

 
Suppose you were looking for $500 towards a seminar (relevant to the products offered by a particular company), what type of $$$ would you have to have with them to get it?  $1MM?  $5MM?  $10MM
 
Just curious (yes, I know this probably varies by company, btw).  Thanks in advance.



Most wholesalers will toss $500 your way without doing any business, if you just ask.

Dec 13, 2008 3:27 pm
Chuck:

For you vets that have built a business first of all congrats. I have trememdous respect for anyone who builds a biz in this industry.

I am 2yrs out with EDJ and



Started from scratch, killed it for my first year out, did 100k + and worked my tail off

Salary ran out and kept on going strong, opening up 10+ accts

Have hit a SERIOUS drought and I am struggling, seems like I can't get anthing going

Can't get prospects to move and don' t have a big enough client base to work yet.

I know I need to keep my head down and keep making contacts, but any words of wisdom from veterans that have come through a tough time or two would be appreciated.



A vet in my region told me that this is the easiest 200k job and the hardest 50k job... I agree.





Chuck, offer to give them complimentary review of their 401K. Not that you should give away adv ice for free, but I often do this just to get them in the door. I simply assume they will become clients, and talk to them as if they will. If you can show them as many things as possible that they are doing wrong (obviously without talking down to them), they will be convinced to want to work with you without you even asking. Right now, people are sh11ting in their pants over their 401k's.

Dec 13, 2008 4:29 pm

Ice,
If a wholesaler sees you as a potential for business, they will generally help you out, sponsor a seminar, whatever. But you need to be able to give them business after the first or second event, for it to continue.

Dec 13, 2008 9:21 pm

Chief and B24 make good points: Fixed annuities for "some" of their CD money, and definitely 401k reviews. I have another suggestion:

Every single stock and fund you have sold since beginning is probably at a loss right now, especially bank stocks. (How's THAT for a kick in the crank?) Call the clients & ask if they have enough tax losses for this year. If they don't, bring them in, go over what to sell, and what to buy later. If you get out of a mutual fund, possibly do an exchange to a similar one (won't pay you.) If you get out of a stock, there's at least a commission for you, and a tax loss for the client.
Of course, don't forget to ask "Who else do you know who might need tax losses this year?"
Dec 13, 2008 9:40 pm
Renter:

Chief and B24 make good points: Fixed annuities for "some" of their CD money, and definitely 401k reviews. I have another suggestion:

Every single stock and fund you have sold since beginning is probably at a loss right now, especially bank stocks. (How's THAT for a kick in the crank?) Call the clients & ask if they have enough tax losses for this year. If they don't, bring them in, go over what to sell, and what to buy later. If you get out of a mutual fund, possibly do an exchange to a similar one (won't pay you.) If you get out of a stock, there's at least a commission for you, and a tax loss for the client.
Of course, don't forget to ask "Who else do you know who might need tax losses this year?"
 
Don't you think it is a little late in the year for that?  By the time prospect comes in, ACAT comes in, it will most likely be next year.
Dec 13, 2008 10:19 pm

Hey come on over I can lose money just like your current advisor but atleast I don't let you forget about realizing the loss..

Dec 13, 2008 11:08 pm

tincup... obviously an abused child

Dec 14, 2008 12:15 am

The annuity/insurance guys tend to have a larger budget. Of course you're dilema at EDJ will be finding one that isn't paying for everyone else in your region. I would ask around and find out who isn't being used, Lincoln, Hartford, Met etc.. And call that wholesaler up saying you are looking for a product partner and a little help. Don't lie cause they know what you need

Dec 14, 2008 12:25 am
chief123:

The annuity/insurance guys tend to have a larger budget. Of course you're dilema at EDJ will be finding one that isn't paying for everyone else in your region. I would ask around and find out who isn't being used, Lincoln, Hartford, Met etc.. And call that wholesaler up saying you are looking for a product partner and a little help. Don't lie cause they know what you need

 
Wouldn't there be a reason nobody uses the ones that aren't being used? 
 
 
Dec 15, 2008 9:02 pm
iceco1d:
Sportsfreakbob:

Ice,
If a wholesaler sees you as a potential for business, they will generally help you out, sponsor a seminar, whatever. But you need to be able to give them business after the first or second event, for it to continue.

 
Thanks for the replies guys.  I've been thinking about exploiting this for a seminar - but I don't want to be the guy @ the blackjack table playing $5 a hand for 10 minutes, and asks the pit boss for a dinner comp, and gets turned down, if ya know what I mean...
 
if you pitch a niche concept to a wholesaler, they'll hop on board, most likely.  wholesalers love to prospect fa's with 'success stories'.  in the beginning.  they'll do something for you 'on the house'.  as a rule of thumb, they base their 'support money' for fa's on around 10-15 bps of the assets you throw their way over a given period of time (qtr, year, etc).  btw, wholesalers typically get a bump up in their own payout the last qtr of the year, and may feel more generous 
Dec 15, 2008 9:42 pm
snaggletooth:
chief123:

The annuity/insurance guys tend to have a larger budget. Of course you're dilema at EDJ will be finding one that isn't paying for everyone else in your region. I would ask around and find out who isn't being used, Lincoln, Hartford, Met etc.. And call that wholesaler up saying you are looking for a product partner and a little help. Don't lie cause they know what you need



Wouldn't there be a reason nobody uses the ones that aren't being used?







Not at Jones. The regions tend to use the same product line. My region did a lot with Hartford, and next to nothing with MET or Lincoln. I meant look for a wholesaler who isn't up to his ears in calls from big producers to do the same thing.

Dec 17, 2008 4:53 pm

It depends on the size/type firm and wholesalers budget. I am friends with a couple of wholesalers and their budget plays a big role along with how much production you do.

 
For example a wholesaler with a nice sized territory with a mid grade mutual fund company might only be able to swing $250 on a rep that hasn't done much biz. Of course they like to hear that you will use them going forward.
 
Some wholesalers will spend a thousand to a couple thousand on a rep that has 1 mill + with them.
 
Honestly with what's been going on at firms and the bleeding of assets most wholesalers budgets have been slashed. Spoke to rep yesterday and he said he had planned a seminar and the wholesaler backed out last min. (Oppenheimer Wholesaler) Said they weren't allowed to sponsor any more meetings the rest of the year! So he had to scramble and find another wholesaler last min. He said that he is not using Oppenheimer anymore for that reason.
And you know the joke with American Funds wholesalers. Can't even get a pen to give clients let alone money for a seminar :)
Dec 17, 2008 10:28 pm
And you know the joke with American Funds wholesalers. Can't even get a pen to give clients let alone money for a seminar :)

True story...Doing a shareholder meeting with one other broker and the Amer. Funds wholesaler at Olive Garden 3 - 4 years ago.  We had brought some notepads and generic Bic pens from the supply closet, and the wholesaler met us at the OG.  We had the first few clients arrive, and were putting out the sign-in list at a little table by the door into the back room, but didn't have a pen right there, so I ask the wholesaler, "Hey, can I borrow your pen real quick?"  He gives me his Official American Funds Thundercloud 9000 Pen, and I turn to my client and give the pen to them to sign in on the sheet.  The wholesaler starts to hyperventilate (I'm not kidding), skips back to the main room, grabs one of the Bics, skips back to the sign in table, TAKES HIS PEN OUT OF THE HAND OF MY CLIENT, and gives him the Bic.  We're all standing there with that half smile, like Ok, what's the punch line to your little joke.  But he was serious as a heart attack, and didn't say anything. 


After, we asked him what in the world was that about, and he said, "Anything given to a client or prospect with American Funds on it can be considered a solicitation to buy, and must be accompanied by a prospectus..."
 
No kidding.