2010 Growth Thread

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Jan 5, 2010 8:14 pm

Have you guys gone through your client list of those expecting to retire in 2010 and rollover 401k’s?

  I'm in the process of doing it now and through 3 HH's, I'm expecting about $1,375,000, which will help with my 2010 goal of $10 mil.
Jan 5, 2010 8:42 pm

Nice. I had some retirement ships arrive at port in 2009, need to locate some new ships.

  So you're potentially 14% of the way there, Snags. I can't just wait for golf season.
Jan 5, 2010 8:58 pm

Question, ya’ll. Are you doing anything special this week to hit your 2010 target?

  This week, Im going through a stack of in-progress portfolio reviews (Albridge report rebalances at wrap), updating the contact manager notes. Developing a proactive portfolio review schedule (by month) in the contact manager to conduct monthly wrap reviews (by phone, lunch or in person). Linking review emails to store the approved wrap review letter in the CM.   Booked a FPA conference for review CE (sharpen the professional saw) and booked a February golf trip (twenty random guys at the club- marketing).   Next week: systematic servicing of the higher decile ( lunch appts and phone reviews) and start calling the lower decile for office meetings ( get re-aquainted and find product needs, hopefully some insurance).
Jan 5, 2010 9:04 pm

bigger, badder, faster stronger.

  and not letting the jerks slow you down.
Jan 5, 2010 9:43 pm

[quote=Milyunair]Question, ya’ll. Are you doing anything special this week to hit your 2010 target?

 [/quote]   Here is my week:  Yesterday met with new prospect that is retiring in June, currently works and lives in Asia.  90% certain he's on board, it would be about $400k in annuities (VA and FIA).   I've been preparing P&L reports for NQ accounts so I don't have to hear from clients and their CPA's come tax time.  Also been doing Roth IRA calculations for clients and calling clients to send in IRA contribution checks.   I need to find some better CPA's in my area because I've gotten several requests for them and the guy I personally use is so horrible at customer service, I can't refer him.   Now, I am putting together a huge Economic Forum slated for early March.  We have very large, influential business owners committed and local politicians we know that will help us.  I'm guessing we're going to have 300 people or more based on our smaller events we've done in years past.  This one single event can make the entire 2010 year.   I am also working on the following events concurrently: -Specifically Safe Money event -Event targeting divorcees, cougars, and housewifes -Annuity company event with chief economist allowing me to invite clients/prospects -Minimizing taxes event -Event in conjunction with estate attorney   I need another intern.
Jan 5, 2010 10:01 pm

Powerful week, Snags. When I call next week, I need to ask them to come in and make the IRA contribution. Didn't even think of that. Could turn into an insurance sale.

You're running a tight ship on the tax planning.

I'd like to hear more about your Economic Forum, later.

I'm a fan of your marketing plan and your week.

Jan 6, 2010 2:16 am
Milyunair:

[quote=BerkshireBull] [quote=Milyunair]Has anyone ever hired an insurance guy to focus on insurance? He’d have to get his seven. I know, already avoiding doing the work myself. [/quote]

If you think the insurance business is a lot of paperwork and trouble you don’t want to go down the path of becoming an employer.

  Good point.  It's risky. Keep it simple, focus on AUM, for me. I tend to go off on tangents. [/quote]

I wouldn't even get into trying to do referrals with an "insurance guy" and send people to him because anyone who has an IRA to rollover he's just going to pitch an annuity to them and if they tell him no maybe he sends them your way for you waste your time finding out they told him no because they already have a guy, they're moving it to their new 401k, they don't want anyone's help, or they simply didn't want an annuity but your credibility is blown and they don't do it with you anyway.

If you think it's too much trouble simply sell the low-hanging insurance fruit that doesn't require much underwriting or salesmanship like term to younger healthy people and disability.  If their health is questionable tell them to check out a broker who can shop it for them.  Let them take the harder more time consuming permanent life, health, and LTC to someone else if they want it and you think it would slow you down.

Don't be afraid to say no to what you don't want in order to get what you do want.
Jan 6, 2010 2:53 am

B Bull, well said. I appreciate the perspective.

A few low hanging fruit contracts would be a good target. I have a part time assistant to crank the proposals and do the paperwork, I just don't like selling insurance ideas as much as I like building relationships and moving money.   Part of the problem, I guess, is I don't want to be sitting down in the office or at lunches for more than about 25 hours a week. Number one priority.   Entertaining or low key prospecting on the golf course is more like work sometimes. At least it's outdoors.
Jan 6, 2010 8:05 pm

" The true product of a business is the business itself. " - Ray Kroc ( McDonald’s)

  " Once you recognize that the purpose of your life is not to serve your business, but that the primary purpose of your business is to serve your life, you can then go to work on your business, rather than in it, with a full understanding of why it is absolutely necessary to do so. " Gerber, E Myth.
Jan 7, 2010 8:12 pm

Business owners, the reviews here are worth reading. Even if you read the book a few years ago.

http://www.amazon.com/E-Myth-Revisited-Small-Businesses-About/dp/0887307280
Jan 8, 2010 6:41 am

I review a lot of newer broker business plans at Jones.  Too many focus on what I feel are the wrong things.  You can only really focus on what you can control, and even in my stage of the game (150 million and around 760k gross last year), that is outgoing contacts.  Whether it’s doorknocking, networking, or coldcalling, you have to put in the work.  Focus on calls, polish up how you are going to open new accounts (either having people sample you out or go after big picture), and the assets and gross will follow.  Those that focus on commission instead of assets are short term thinkers, and I have noticed they run what I call a “hamster in a wheel” business.  I try and focus on getting information out of people when I call, mostly existing clients, but I still devote around 10-20 percent of my calls on big money prospects I still have in my system.  I have never had much luck with small businesses, and I really don’t have many execs as clients.  Just old fashioned middle class americans.

Here's what I tell brokers out 5 years or less:  Focus on just a few things.  1.  positive attitude, because that will dictate your entire year.  2.  good work ethic, because even a moron will succeed with enough effort.  3.  focus on households and assets, the commission is directly coorrelated.  4.  control what you can control.  
Jan 8, 2010 2:52 pm

Rank, I agree with you.  But some of that is the fault of the industry and of Jones.  Jones focuses more on production than other firms.  Most firms focus on asset gathering the first few years, with revenue as a secondary focus.  Jones is the exact opposite.  They seem to care less about assets, and more on generating gross.  Some of my peers are generating a lot more gross than me, with the same or fewer assets, because they have learned how to “maximize” gross (hmmm, split big tickets between A shares, UIT’s, maybe some long bonds, and some stocks, and voila, you’re hitting 3-4% gross on all your new money, and compliance doesn’t bug you).  Meanwhile, I build a much better C share portfolio or Advisory, and look like I’m failing some months.  I brought in $2mm of new assets last month and did $15K gross.  If I did it like most of my peers at Jones, I would have probably done 40-50K.  No joke.  I have some good friends here that tell me how they are selling some existing long bond positions (and selling at 1%) to buy a bond UIT, and try to justify it in their own minds.  You start to challenge them and they get tongue-tied because they know they can’t justify it other than the 5% they’re getting on the round trip.  I’m not saying everyone does this, but it is far too common from what I see first hand.  And yes, those are the people that are “hailed” as the new stars in the region. 

Jan 8, 2010 7:39 pm
B24:

Rank, I agree with you.  But some of that is the fault of the industry and of Jones.  Jones focuses more on production than other firms.  Most firms focus on asset gathering the first few years, with revenue as a secondary focus.  Jones is the exact opposite.  They seem to care less about assets, and more on generating gross.  Some of my peers are generating a lot more gross than me, with the same or fewer assets, because they have learned how to “maximize” gross (hmmm, split big tickets between A shares, UIT’s, maybe some long bonds, and some stocks, and voila, you’re hitting 3-4% gross on all your new money, and compliance doesn’t bug you).  Meanwhile, I build a much better C share portfolio or Advisory, and look like I’m failing some months.  I brought in $2mm of new assets last month and did $15K gross.  If I did it like most of my peers at Jones, I would have probably done 40-50K.  No joke.  I have some good friends here that tell me how they are selling some existing long bond positions (and selling at 1%) to buy a bond UIT, and try to justify it in their own minds.  You start to challenge them and they get tongue-tied because they know they can’t justify it other than the 5% they’re getting on the round trip.  I’m not saying everyone does this, but it is far too common from what I see first hand.  And yes, those are the people that are “hailed” as the new stars in the region. 

  Leave Windy alone!
Jan 8, 2010 11:22 pm

[quote=rankstocks]I review a lot of newer broker business plans at Jones.  Too many focus on what I feel are the wrong things.  You can only really focus on what you can control, and even in my stage of the game (150 million and around 760k gross last year), that is outgoing contacts.  Whether it’s doorknocking, networking, or coldcalling, you have to put in the work.  Focus on calls, polish up how you are going to open new accounts (either having people sample you out or go after big picture), and the assets and gross will follow.  Those that focus on commission instead of assets are short term thinkers, and I have noticed they run what I call a “hamster in a wheel” business.  I try and focus on getting information out of people when I call, mostly existing clients, but I still devote around 10-20 percent of my calls on big money prospects I still have in my system.  I have never had much luck with small businesses, and I really don’t have many execs as clients.  Just old fashioned middle class americans.

Here's what I tell brokers out 5 years or less:  Focus on just a few things.  1.  positive attitude, because that will dictate your entire year.  2.  good work ethic, because even a moron will succeed with enough effort.  3.  focus on households and assets, the commission is directly coorrelated.  4.  control what you can control.  [/quote]   Great post. I'll re-read this post over the year.   Controlling what you can control, focus on AUM, maintain activity. Good stuff.   I agree, the middle class are the savers and preservers of wealth. Small business owners believe they can make more money in the business than in stocks and bonds.   How quickly a year passes. Good start to week one, setting up the proactive system for wrap account reviews. It takes time to service what AUM you have already got.
Jan 9, 2010 7:17 am

B24,

    Keep in mind that I'm at Jones also.  Just because some of your cohorts focus on commissions while you are focusing on growing your business a different way, that doesn't mean your way is wrong.  5 years from now while they're still trying to spin the same old assets, you'll have more trails than their best months.  I'm sure that they may get more awards at the summer regional and are hailed as "fast starters" and such, but it's where you are at the 10-year mark grossing 40/month, while they're spinning the same 30 million trying to muster another 20k/gross month.  Why worry about what others think when you are still in the relative infancy of your career?  Who cares if you sell a ton of C-shares and get a few FSPENDS?  As long as they like the answer, FSPENDS aren't a bad thing.  There are those Jones brokers that spin the hell out of their books, other firms have them as well.  That's not how you build a long-term business though.
Jan 9, 2010 5:15 pm
B24:

Rank, I agree with you.  But some of that is the fault of the industry and of Jones.  Jones focuses more on production than other firms.  Most firms focus on asset gathering the first few years, with revenue as a secondary focus.  Jones is the exact opposite.  They seem to care less about assets, and more on generating gross.  Some of my peers are generating a lot more gross than me, with the same or fewer assets, because they have learned how to “maximize” gross (hmmm, split big tickets between A shares, UIT’s, maybe some long bonds, and some stocks, and voila, you’re hitting 3-4% gross on all your new money, and compliance doesn’t bug you).  Meanwhile, I build a much better C share portfolio or Advisory, and look like I’m failing some months.  I brought in $2mm of new assets last month and did $15K gross.  If I did it like most of my peers at Jones, I would have probably done 40-50K.  No joke.  I have some good friends here that tell me how they are selling some existing long bond positions (and selling at 1%) to buy a bond UIT, and try to justify it in their own minds.  You start to challenge them and they get tongue-tied because they know they can’t justify it other than the 5% they’re getting on the round trip.  I’m not saying everyone does this, but it is far too common from what I see first hand.  And yes, those are the people that are “hailed” as the new stars in the region. 

    I don't believe that Field Services will allow you to charge N-1 on the sale of a long bond and buy another Investment in house?!   From what I was told that is a big no no and will be charged back if you attempt it.  Personally, I rarely charge on the sale of a bond unless they are a-holes and leaving my office!  
Jan 9, 2010 6:54 pm

[quote=rankstocks] B24,

    Keep in mind that I’m at Jones also. Just because some of your cohorts focus on commissions while you are focusing on growing your business a different way, that doesn’t mean your way is wrong. 5 years from now while they’re still trying to spin the same old assets, you’ll have more trails than their best months. I’m sure that they may get more awards at the summer regional and are hailed as “fast starters” and such, but it’s where you are at the 10-year mark grossing 40/month, while they’re spinning the same 30 million trying to muster another 20k/gross month. Why worry about what others think when you are still in the relative infancy of your career? Who cares if you sell a ton of C-shares and get a few FSPENDS? As long as they like the answer, FSPENDS aren’t a bad thing. There are those Jones brokers that spin the hell out of their books, other firms have them as well. That’s not how you build a long-term business though.[/quote]



No, I don’t really care so much about perception or awards - at all. What pisses me off to no end is when the Regional Leader has one of my peers (the type mentioned above) call me to “see what they can do to help” when I am below expectations. I know damn well what they are doing, and I know damn well how to do my job. I don’t need some fukcnut calling me to talk about how to call on a bond. If I was concerned about my performance today, I would be slamming people into the same things everyone else is doing, and out-grossing them at the same time. I am sick of explaining myself to them. I realize what you are saying is true, but when you get the RL and “Growth Leader”, et al, telling you “you need to do A-shares until you hit critical mass…you really can’t do Advisory at this point”, that just irritates me. Then the RL announces at the same meeting that his goal is to move $1mm of existing assets per month into Advisory, you know EXACTLY what the strategy is at Jones.
Jan 9, 2010 6:55 pm
Hey Kool-Aid:

[quote=B24]Rank, I agree with you. But some of that is the fault of the industry and of Jones. Jones focuses more on production than other firms. Most firms focus on asset gathering the first few years, with revenue as a secondary focus. Jones is the exact opposite. They seem to care less about assets, and more on generating gross. Some of my peers are generating a lot more gross than me, with the same or fewer assets, because they have learned how to “maximize” gross (hmmm, split big tickets between A shares, UIT’s, maybe some long bonds, and some stocks, and voila, you’re hitting 3-4% gross on all your new money, and compliance doesn’t bug you). Meanwhile, I build a much better C share portfolio or Advisory, and look like I’m failing some months. I brought in $2mm of new assets last month and did $15K gross. If I did it like most of my peers at Jones, I would have probably done 40-50K. No joke. I have some good friends here that tell me how they are selling some existing long bond positions (and selling at 1%) to buy a bond UIT, and try to justify it in their own minds. You start to challenge them and they get tongue-tied because they know they can’t justify it other than the 5% they’re getting on the round trip. I’m not saying everyone does this, but it is far too common from what I see first hand. And yes, those are the people that are “hailed” as the new stars in the region.





I don’t believe that Field Services will allow you to charge N-1 on the sale of a long bond and buy another Investment in house?! From what I was told that is a big no no and will be charged back if you attempt it. Personally, I rarely charge on the sale of a bond unless they are a-holes and leaving my office!

[/quote]



Depends on the holding period and what it’s going into. There’s rules on round-trip commissions.
Jan 9, 2010 11:41 pm

[quote=B24] [quote=rankstocks] B24,

    Keep in mind that I’m at Jones also.  Just because some of your cohorts focus on commissions while you are focusing on growing your business a different way, that doesn’t mean your way is wrong.  5 years from now while they’re still trying to spin the same old assets, you’ll have more trails than their best months.  I’m sure that they may get more awards at the summer regional and are hailed as “fast starters” and such, but it’s where you are at the 10-year mark grossing 40/month, while they’re spinning the same 30 million trying to muster another 20k/gross month.  Why worry about what others think when you are still in the relative infancy of your career?  Who cares if you sell a ton of C-shares and get a few FSPENDS?  As long as they like the answer, FSPENDS aren’t a bad thing.  There are those Jones brokers that spin the hell out of their books, other firms have them as well.  That’s not how you build a long-term business though.[/quote]



No, I don’t really care so much about perception or awards - at all. What pisses me off to no end is when the Regional Leader has one of my peers (the type mentioned above) call me to “see what they can do to help” when I am below expectations. I know damn well what they are doing, and I know damn well how to do my job. I don’t need some fukcnut calling me to talk about how to call on a bond. If I was concerned about my performance today, I would be slamming people into the same things everyone else is doing, and out-grossing them at the same time. I am sick of explaining myself to them. I realize what you are saying is true, but when you get the RL and “Growth Leader”, et al, telling you “you need to do A-shares until you hit critical mass…you really can’t do Advisory at this point”, that just irritates me. Then the RL announces at the same meeting that his goal is to move $1mm of existing assets per month into Advisory, you know EXACTLY what the strategy is at Jones.

Brother you are doing things the right way as opposed to others. You keep on doing things the right way and everything will work to your good and your client’s good. You have my respect.
Jan 10, 2010 4:32 pm

[quote=rankstocks] I review a lot of newer broker business plans at Jones. Too many focus on what I feel are the wrong things. You can only really focus on what you can control, and even in my stage of the game (150 million and around 760k gross last year), that is outgoing contacts. Whether it’s doorknocking, networking, or coldcalling, you have to put in the work. Focus on calls, polish up how you are going to open new accounts (either having people sample you out or go after big picture), and the assets and gross will follow. Those that focus on commission instead of assets are short term thinkers, and I have noticed they run what I call a “hamster in a wheel” business. I try and focus on getting information out of people when I call, mostly existing clients, but I still devote around 10-20 percent of my calls on big money prospects I still have in my system. I have never had much luck with small businesses, and I really don’t have many execs as clients. Just old fashioned middle class americans.

Here’s what I tell brokers out 5 years or less: Focus on just a few things. 1. positive attitude, because that will dictate your entire year. 2. good work ethic, because even a moron will succeed with enough effort. 3. focus on households and assets, the commission is directly coorrelated. 4. control what you can control.

[/quote]





What have you seen that has worked better (things being equal) - cold calling or door knocking? I know that Jones pushes the door knocking exclusively in the beginning.