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I knew a couple of guys who really stuck it to thier families.
1. was a bet-the-ranch recommendation on CBS Sportsline during the dot-com bubble
2. other shafted his father in law in Russian G-bonds when they collapsed in the hedge fund meltdown
#1 is now divorced and is selling Lexus.
I know a guy (no longer in the business) whose parents joined a lawsuit against him for unsuitable option trades. He tried to put the best face on it, saying he was following firm advice, but the panel said the qadvice wasn't so much the problem as the unsuitable clients he did it with. Result, the firm settled, went back at him for part of the money and ran him out of the business
Regarding family and friends,
For some of us younger reps, it can be hard. We lack the experience and long-term credentials that people who've been in the business for a number of years have. While they may trust us, but they know we may have next to nothing experience in managing people's money.
...just my opinion, not that I haven't tried to solicit my family/friends.
I wouldn’t go after family and friends at first in building the business. Cold call face to face is how I did it. It’s tough but wait to bring them on board. They will come over in time.
[quote=SonnyClips]I've been reading this for a while. Some good advice about not doing business with families how about some on how to get business with strangers. I've been courting a number of civic positions, volunteer stuff, just to build my profile. I know it couldn't hurt but what have y'all experienced as far as real business from this kind of stuff. Everything I have volunteered for is stuff I like so that isn't a big deal.
Exactly the way it's suppose to be done. Make yourself the resident expert in these groups and let the business come to you. It's a slow build, but you will get business from it. Keep to groups, and causes that you believe in. This way, if nothing else, you are doing good or having fun. Maybe both!
[quote=SonnyClips]Always good to get some positive reinforcement. Hey thanks for the cold call script too, in the prospecting 101 thread. Are your cold call lists general zip code phone book derived or does your firm provide rookies lists bought from third parties, ie like all the people in the 90210 zip who have bought Camrys or Volvos?
The firm has supplied lists screened by age, location, income and net worth. These lists aren't any better than self generated lists of calling A neighborhoods from the reverse directory. I haven't bought a list for myself in a couple years. The last one was from CIS in New York. They do a good job. Since the DNC rules have come into effect they supply DNC screened names. Still, if you use them, I'd screen the names again. Our phone system does this for us, so we're covered.
Industrial directories are also good sources of names.
Another thing to do is to go down to your local government store. Pick up the cenus tract income info. Cross reference against a reverse directory, what you are looking for are A streets in B and C neighborhoods. Preferably in older areas. These people aren't getting their fair share of attention from investment professionals. No Govt store, no problem. This weekend take a ride. Have a tape recorder or writing pad handy. Find nice neighborhoods in not so nice places. Public libraries have reverse directories if you don't have one or can't afford one. I spend a lot of time at the library.
While at the library another good refernce book is the Dorlands Medical Directory. It's a comprehensive list of doctors. Names,addresses, area's of specialty, school and year of graduation. Lots of info to figure out a plan of approach, if just calling them doesn't suit you.