[quote=JimmytheRocker][quote=JCadieux] [quote=JimmytheRocker]

Well..I know for me cold calling didn't work effectively.  Maybe I had a crappy list, crappy market, crappy product, or an overly too young phone voice.  I started to think about the group of people who connect the quickest with me (who also had money)...Asian American Yuppies.  I started networking with them specifically.  The holy grail of strong leads have been through "quality" introductions.  Example:  (I noticed that if I walked up to a prospect cold and chatted, exchanged business cards, and called him later...that lead is a semiwarm lead) (I also noticed that if he was favorably introduced to me by a mutual friend who is highly respected like a Dr or lawyer, the torch of instant credibility is passed on to me.....So that prospect becomes a hot lead because he trusts his friend...but I still have to keep the torch light burning by being a competant professional.  How I see it is why call someone cold when you can set things up to be warm or even HOT?  When your leads are HOT, there is less salesmanship involved.  The one thing I notice is that I am out of the office majority of the time.

[/quote]

I often help new advisors move from cold-call focused training programs into programs with broader approaches.  I suggest that they examine ALL of the techniques that are available to them, and then focus on the ones where they seem to have natural talent or some unique advantage.

Cold calling appears to have a low overall rate of success.

Some people are very good at cold calling.  I'm not sure if this a learned or inherited talent.  Probably a little of both.

If you aren't naturally good at cold calling, you will still get lucky some of the time.  With enough good luck you may last long enough for some of your long-term marketing to pay off (such as networking).

I have also noticed that the long-term approaches (such as networking and referral channels) seem to have a much higher success rate given a reasonable amount of time.  It is also harder to fake your way to success with these approaches.

Full disclosure:  I'm not a financial advisor.  But I talk to a lot of successful ones every day.

[/quote]

To make networking and referrals worthwhile, each account I win must be economic enough to do so.  My system is very simple.  I create about 30 new relationships/month through introductions from centers of influences in a target market (you got to click with this market).  A new relationship does not mean picking up a business card from someone random, but an introduction to a person and having a euphoric conversation with that person. I gather phone numbers and email addresses.  I soft touch each one with free newsletter.  I introduce my new prospects to other people in my network for various reasons (prospect maybe looking for a personal trainer, mortgage broker, golf buddy, happy hour group, etc....)  The point is, I go out of my way.  When I call all 30 up next month, 15 show up to my office.  6 of them do business.  Each average $3k in commission.  Not bad for working 35 hrs/week.  As my network has gotten bigger, it gets easier to make new contacts.

[/quote]

Jimmy, this is some of the best content on this forum.

[quote=ymh_ymh_ymh]

I did, too.

Only pulled B's in that. I hear Tim Wolf got C's. Andy Fastow got A's!

[/quote]

I LOVED it in college, just not in real life.

I found it boring in grad school. Never was an accountant as an adult.

Andy loved accounting. I think he was a Wharton finance major or something. Not sure where Wolf got his but he still can't add and subtract very well (not my problem)!

[quote=BondGuy]

 And yes, I'm being a jerk on purpose.

[quote=BondGuy][quote=JimmytheRocker][quote=JCadieux] [quote=JimmytheRocker]

Well..I know for me cold calling didn't work effectively.  Maybe I had a crappy list, crappy market, crappy product, or an overly too young phone voice.  I started to think about the group of people who connect the quickest with me (who also had money)...Asian American Yuppies.  I started networking with them specifically.  The holy grail of strong leads have been through "quality" introductions.  Example:  (I noticed that if I walked up to a prospect cold and chatted, exchanged business cards, and called him later...that lead is a semiwarm lead) (I also noticed that if he was favorably introduced to me by a mutual friend who is highly respected like a Dr or lawyer, the torch of instant credibility is passed on to me.....So that prospect becomes a hot lead because he trusts his friend...but I still have to keep the torch light burning by being a competant professional.  How I see it is why call someone cold when you can set things up to be warm or even HOT?  When your leads are HOT, there is less salesmanship involved.  The one thing I notice is that I am out of the office majority of the time.

[/quote]

I often help new advisors move from cold-call focused training programs into programs with broader approaches.  I suggest that they examine ALL of the techniques that are available to them, and then focus on the ones where they seem to have natural talent or some unique advantage.

Cold calling appears to have a low overall rate of success.

Some people are very good at cold calling.  I'm not sure if this a learned or inherited talent.  Probably a little of both.

If you aren't naturally good at cold calling, you will still get lucky some of the time.  With enough good luck you may last long enough for some of your long-term marketing to pay off (such as networking).

I have also noticed that the long-term approaches (such as networking and referral channels) seem to have a much higher success rate given a reasonable amount of time.  It is also harder to fake your way to success with these approaches.

Full disclosure:  I'm not a financial advisor.  But I talk to a lot of successful ones every day.

[/quote]

To make networking and referrals worthwhile, each account I win must be economic enough to do so.  My system is very simple.  I create about 30 new relationships/month through introductions from centers of influences in a target market (you got to click with this market).  A new relationship does not mean picking up a business card from someone random, but an introduction to a person and having a euphoric conversation with that person. I gather phone numbers and email addresses.  I soft touch each one with free newsletter.  I introduce my new prospects to other people in my network for various reasons (prospect maybe looking for a personal trainer, mortgage broker, golf buddy, happy hour group, etc....)  The point is, I go out of my way.  When I call all 30 up next month, 15 show up to my office.  6 of them do business.  Each average $3k in commission.  Not bad for working 35 hrs/week.  As my network has gotten bigger, it gets easier to make new contacts.

[/quote]

Jimmy, this is some of the best content on this forum.

[/quote]

I luckily found after 1 1/2 yrs of producing over the phone that it was not for me.  I am a relationship type of guy and luckily found the niche that connected quickly with me...rather than wanting the niche my advisor friends sought (old white men), I sought the group that clicked the quickest with me (asian american yuppies).  The realization and truth was in my own backyard and I ignored it.  That was the basis of seeking after my holy grail (quality introductions). Then I started developing alliances with other asian american professionals.  I wish I figured this out sooner. 

I believe Jimmy sells insurance, rather than securities.  Am I correct?

How’d you guess?

life insurance and annuities are my bread and butter.

[quote=JCadieux]

I often help new advisors move from cold-call focused training programs into programs with broader approaches.  I suggest that they examine ALL of the techniques that are available to them, and then focus on the ones where they seem to have natural talent or some unique advantage.

Cold calling appears to have a low overall rate of success.

Some people are very good at cold calling.  I'm not sure if this a learned or inherited talent.  Probably a little of both.

If you aren't naturally good at cold calling, you will still get lucky some of the time.  With enough good luck you may last long enough for some of your long-term marketing to pay off (such as networking).

I have also noticed that the long-term approaches (such as networking and referral channels) seem to have a much higher success rate given a reasonable amount of time.  It is also harder to fake your way to success with these approaches.

Full disclosure:  I'm not a financial advisor.  But I talk to a lot of successful ones every day.

[/quote]

Jeff, the problem with this is the time frame it takes to make it work. If done well, it most definately is a good way to go. The problem is, that there are so many variables within networking, centers of influence prospecting, that time often runs out before the rookie can find a winning formula that works for them. The time it takes to cultivate these relationships to any meaningful productive level is also a factor. Not to mention, that with many centers of influence relationships there has to be as much give as receive. I'm talking about center of influence propecting with other trusted professionals, accountants, lawyers, etc. In my experience there usually has to be give, before you'll receive. Rookies are dead in the water on this count because they have nothing to give. No clients to refer. Again, speaking generally. So even though networking is a viable marketing channel, it is by no means any more an assured path to success than other marketing channels.

As I stated above, in order to succeed, it gonna take 70 hours of hard work every week for years. How a rookie fills those 70 hours will affect the rest of their lives, for the better we hope. A proactive multi-channel marketing effort is the only path to success. The Rookie needs to develope a method of delivering prospects to the table. As many as possible. Those methods are the key. Each rookie needs to go out and find what works for them, while at the same time giving an honest effort. Attending one networking party isn't an honest effort. Nor is making 10 cold calls a day for a week. Hard work gets rewarded.  Jimmy, found what works and works it hard. To find what works he first had to experience what didn't. It's like I keep saying, you've got to go out and try something to find out what works. Failure brings us one step closer to success. So get out there and fail!

Conflicting with the wealth management image along with the DNC gave some firms more than enough reason to stop cold calling. Again, many of these firms are managed by people who have no field experience as brokers/FC/FA. This matters because they don't understand the mechanics of raising money. It's kinda like you want to make money by flying people around in airplanes. OK, the big picture is making money by flying people to where they want to go. The day to day issue is, nobody's goin anywhere until we get gas in this thing. If there is no knowledge on how to fuel the planes, well, it's not going to be a pleasant flight. The current crop of managers at the helm of the big wirehouses are big picture guys/gals. That's OK if the get the little picture too. Many don't.

As for the low success rate of cold calling, look no farther than our friend in this thread who whipped out the yellow pages. That's why it doesn't work. He's doing it wrong and there's nobody in his branch to teach him how to do it right. Just as there's nobody to teach him how to network centers of influence, present seminars, or work direct mail. Unfortunately, at the wirehouses many of the teachers are clueless. The training depatments are filled with has been failures or never was posers acting as trainers and because of it the failure rate is what...70%? A good education up front would cut that number in half.

Yeah, it's an issue with me.

[quote=BondGuy][quote=tsaem]

Wow.  All good stuff everyone.   Well today I changed my routine slightly and simply picked up the yellow pages and started dialing.  Surprisingly, many of the business numbers I called were on the DNC list... so getting through isn't as easy as some people put it.

Furthermore, it was like taking a shot in the dark more so than calling households b/c I didn't really have an idea about the target market.  Honestly, I didn't put much thought on it as I should have.  All I pretty much did was put my head down low and kept calling # after #.  From what I have read here and as well as others I have talked to who have been in the business for years told me that if they were to do it all over again they would diversify their bets and call businesses.  Why does everyone gravitate toward this?  Can many of you say that this has been more effective than calling grandma and grandpa in the living room?

Also, when you pick up the yellow pages (not coporate directories), what types of businesses do you call?  Mom and pop stores?  Independent contractors or consultants?  Or rather keep it simple and call the sleezy cash rich liquor store owners?  I had no direction.  When you do call, how does the script change if it does at all?  I just found myself call and say, "well this is Jim at ABC firm, are you the owner?"  And I usually found all of them say yes.  So after I got that confirmation, I would pitch the product.  Then after the pitch, all of them would reveal that they weren't the owner, but just manager and I should contact them later.  So then I adapted and now ask, "Hello.  Are you the manager or owner?"

I've called law firms and doctors, but have horrible luck.  I don't know if you all seperate these guys and put them in a different category.  But they are technically a business and really hate to be bothered. 

Since the usual "safe" product to pitch is bonds (and more caitered toward the senior/retired market), am I just doomed by pitching that to business owners who may not be in this group?

[/quote]

And people wonder why cold calling doesn't work. There is so much wrong with this it's hard to find a place to start.

Let's start with the one thing you did right, you picked up the phone. Everything you did after that was wrong.

Rule one- Have the name of the person you are calling

Rule two- Have the address of the person you are calling.

Rule three- the quality of the list you are calling will make or break you.

Rule four- Write a short script and practice it until you know it cold.

Rule five- When the prospect answers the phone read the script.

Rule six- when reading the script try your hardest to sound like you are not reading a script. You want to sound conversational, not scripted. You know the mortgage people who call you all the time? Try not to sound like them.

Enough, people get confused with too many rules.

If you are finding businesses on the DNC, your number scrubbing service is at fault.

If you are going to do this, do it right because the used car lot awaits. Get serious!

And yes, I'm being a jerk on purpose.

[/quote]

Hi Bond Guy.  Once again, great advice.  Only one thing I have to mention... I am not using what would be a quality list.  I don't have the luxury to buy more lists than I already have since my bank account isn't looking too pretty at this point.

So as a result, I am using a primitive way of calling businesses: The Yellow Pages.  Keeping this in mind, normally I don't have the name of the owners for the businesses and addresses.  That is why I call and ask whether they are the owner or manager.  If they tell me they are the manager I ask when the owner is available.  If they are the owner, then I got the right person right?

Also, what types of businesses do you think I should call?  There are too many to dial.  I need to have a better system.  Also, can you give me an idea of why this method is preferred over calling households?  I hear this a lot that people like calling these mom and pops over people at home.

Lastly, you consider yourself a jerk? hahaha.  Heavens no.  You should revist the type of advice I've seen from others in past forums if I can call it advice.  More like an old fashioned spanking. I appreciate the time you've taken to help clear my misguided strategy.  

[quote=tsaem][quote=BondGuy][quote=tsaem]

Wow.  All good stuff everyone.   Well today I changed my routine slightly and simply picked up the yellow pages and started dialing.  Surprisingly, many of the business numbers I called were on the DNC list... so getting through isn't as easy as some people put it.

Furthermore, it was like taking a shot in the dark more so than calling households b/c I didn't really have an idea about the target market.  Honestly, I didn't put much thought on it as I should have.  All I pretty much did was put my head down low and kept calling # after #.  From what I have read here and as well as others I have talked to who have been in the business for years told me that if they were to do it all over again they would diversify their bets and call businesses.  Why does everyone gravitate toward this?  Can many of you say that this has been more effective than calling grandma and grandpa in the living room?

Also, when you pick up the yellow pages (not coporate directories), what types of businesses do you call?  Mom and pop stores?  Independent contractors or consultants?  Or rather keep it simple and call the sleezy cash rich liquor store owners?  I had no direction.  When you do call, how does the script change if it does at all?  I just found myself call and say, "well this is Jim at ABC firm, are you the owner?"  And I usually found all of them say yes.  So after I got that confirmation, I would pitch the product.  Then after the pitch, all of them would reveal that they weren't the owner, but just manager and I should contact them later.  So then I adapted and now ask, "Hello.  Are you the manager or owner?"

I've called law firms and doctors, but have horrible luck.  I don't know if you all seperate these guys and put them in a different category.  But they are technically a business and really hate to be bothered. 

Since the usual "safe" product to pitch is bonds (and more caitered toward the senior/retired market), am I just doomed by pitching that to business owners who may not be in this group?

[/quote]

And people wonder why cold calling doesn't work. There is so much wrong with this it's hard to find a place to start.

Let's start with the one thing you did right, you picked up the phone. Everything you did after that was wrong.

Rule one- Have the name of the person you are calling

Rule two- Have the address of the person you are calling.

Rule three- the quality of the list you are calling will make or break you.

Rule four- Write a short script and practice it until you know it cold.

Rule five- When the prospect answers the phone read the script.

Rule six- when reading the script try your hardest to sound like you are not reading a script. You want to sound conversational, not scripted. You know the mortgage people who call you all the time? Try not to sound like them.

Enough, people get confused with too many rules.

If you are finding businesses on the DNC, your number scrubbing service is at fault.

If you are going to do this, do it right because the used car lot awaits. Get serious!

And yes, I'm being a jerk on purpose.

[/quote]

Hi Bond Guy.  Once again, great advice.  Only one thing I have to mention... I am not using what would be a quality list.  I don't have the luxury to buy more lists than I already have since my bank account isn't looking too pretty at this point.

So as a result, I am using a primitive way of calling businesses: The Yellow Pages.  Keeping this in mind, normally I don't have the name of the owners for the businesses and addresses.  That is why I call and ask whether they are the owner or manager.  If they tell me they are the manager I ask when the owner is available.  If they are the owner, then I got the right person right?

Also, what types of businesses do you think I should call?  There are too many to dial.  I need to have a better system.  Also, can you give me an idea of why this method is preferred over calling households?  I hear this a lot that people like calling these mom and pops over people at home.

Lastly, you consider yourself a jerk? hahaha.  Heavens no.  You should revist the type of advice I've seen from others in past forums if I can call it advice.  More like an old fashioned spanking. I appreciate the time you've taken to help clear my misguided strategy.  

[/quote]

On the jerk thing, I realized that I was being very critical of your prospecting method and wanted you to know it was intended to be harsh.

OK, with that cleared up, no money for lists, no problem, we'll create our own.  I'll assume there is a public library somewhere in your town, county ,state? If so, it's time to take a field trip to this money making building. We want to go to the reference section. Within this quiet and under utilized section of the big book building will be corporate directories. Dalton's, Thompson's, Dunn and Bradstreet, all come to mind. Dalton's or some similar local business directory with businesses listed by county is best, second to D&B. D&B is excellent, but gets cumbersome when trying to screen down to local names. All of these directories have all the info you'll need to execute a successful cold call campaign. That is, name, address and phone number of the businesses, as well as names of all the upper management and/or owners. Bring lots of change and make copies.

Ok, you've got your lists of businesses so you're good to go... not quite. Before you go to the library take a ride through some of the better neighborhoods in your area. Your area being everything within 25 miles of your office. We want older, more established neighborhoods. Write down the names of the streets. next, take a ride to some of the not as nice neighborhoods. note any blocks within these areas that have bigger, or nicer homes. For example, in my area, embedded within a "C" neighborhood sits a 4 block area of half million dollar and up older "A" neighborhood homes. These home owners are not getting their fair share of calls from finanacial advisors. Write down street numbers and block numbers. At the Big Book Building find a reverse phone directory and start popping quarters into the copy machine.

Ok, you've got your copies of corporations, and businesses for daytime calling and your street lists for nighttime calling so you're all set. Well, not yet. There are several other directories at the library that will bear fruit. The Dorlands directory of doctors is a weath of information. Not only does give name address, phone number, but also school, time in practice etc. The local chamber of commerce directory is another good business list. The Directory of Associations or something of a similar ilk will lead you to all sorts of lists. Do you think the members of the Antique Ferrari Owners Association will have money? If there is such an organization, this book will lead you to them. There are lots of groups with expensive hobbies. Horse owners, airplane owners, antique car owners, boat owners etc. Assume they are rich.

And so it goes, the art of finding rich people on a shoestring budget. Just give'em a call and start a conversation. You'll find they are no different than anyother group. Some are nice, some are not. Some will be interested, most will not. Some will talk to you, some will not. Just keep dialing.

You aren't the first poor person to start in this business. Many have come before you. Use your imagination and/or clone their techniques. Either way, do that, apply some hard work, and you won't be poor for long.

[quote=The Judge]

Bankrep1- I think the national do-not-call list is a great idea.  That’s why I recommend only contacting people at work #'s.

[quote=Bobby]
You can tell them you will send it out, but don’t.  Then when you call back, (as if you did send it), you can apologize and insist on meeting with them because you don’t trust the mail anymore.  It sounds shady, but it works.

[/quote]

It sounds shady because it IS shady.

It’s called lying.

TSAEM,

In regards to obtaining lists, leverage the pockets of your mutual fund wholesaler. Identify one or two that you place business with and have a good relationship with. Then ask them to help with your marketing efforts.

"Mr. MF Wholesaler, you know that I have been placing assets into your XYZ Strategic Income fund. I have found its a great idea for retirees or for those looking to conservatively invest some of their funds. I was hoping you could provide a list of retirees here in my area so that I can contact them about your fund".....

Of course, you aren't cold calling on the XYZ idea, but now you have a couple hundred prospects to call, and if it makes sense, you put a portion into XYZ fund..

Most will not hesitate to get you a list.... I usually have them waiting in my email box the following morning...

I've always thought that this was powerful.

"Mr. Jones, I am Mike Maven. I was a senior officer of Wire House Brokerage firm.  I recently retired and am attempting to gather a dozen high net worth individuals into an investment club.

Using my contacts I should be able to get the group the very best advice available today.

Would you be interested in meeting me and a couple of my friends at the Cherokee Town Club for a drink to discuss what we're up to?"

Then shut up.

If you're not a retired senior officer of a major brokerage firm you may find this a bit challenging, but I believe it would work wonders.

TopGun Prospecting for Financial Advisors by Scott Kimball.

The "Best" prospecting book I have read.

[quote=NaySayer]

TopGun Prospecting for Financial Advisors by Scott Kimball.

The "Best" prospecting book I have read.

[/quote]

I read it about twice a year and am in the middle of it at this moment.

[quote=My Inner Child][quote=NaySayer]

TopGun Prospecting for Financial Advisors by Scott Kimball.

The "Best" prospecting book I have read.

[/quote]

I read it about twice a year and am in the middle of it at this moment.

[quote=joedabrkr] [quote=My Inner Child][quote=NaySayer]

TopGun Prospecting for Financial Advisors by Scott Kimball.

The "Best" prospecting book I have read.

[/quote]

I read it about twice a year and am in the middle of it at this moment.

[/quote]

You mean you don't just look at the pictures?
[/quote]

Joe, how about I take care of the funny s*&t around here, ok?

That would be OK if you were funny.