Behavioral Economics & Prospecting

7 replies [Last post]
Gaddock's picture
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Joined: 2007-02-23

I've been on another fixation. The last was gaming theory but now It's 'behavioral economics'Kahneman & Tversky - "People feel more strongly about the pain that comes with loss than the pleasure that comes with gain, about twice as much"I guess that's why my hedge your account against loss vs. are you open to new ideas call seems far more effective.The fear of loss is far more powerful than I thought.

tenthtee's picture
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Joined: 2006-11-16

Fear of taxes is pretty good prospecting bait, too.

Gaddock's picture
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Joined: 2007-02-23

tenthtee wrote:Fear of taxes is pretty good prospecting bait, too. LOL the trifecta!

JumpMan's picture
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Joined: 2010-06-08

It's why annuities sell so damn well in any market!  Fear sells...

tenthtee's picture
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Joined: 2006-11-16

I have been running my biz like an RIA, but have forced myself to take a fresh look at the new annuities and all insurance. Renew my attitude with the times.

ComBroker's picture
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Joined: 2010-03-22

Have seen a big difference in trying 2 types of prospecting...1) I was quoting past returns...then asking people if they would be interested in these returns.  "we returned 29.41% YTD so far, with 4% being the lowest draw down.  Would these returns be something you would be interested in?"--people get very skeptical about a broker barking out return info at them...they prob think you can just make up any number you want and throw it at them.  2) Just using a simple calling script..."are you an investor, and if so, are you open to diversification ideas?  (yes)....ok, if I could show you how to hedge an account against further loss, and use 80%+ probability in your favor, would you be interested?"#2 has worked a lot better. 

BigFirepower's picture
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Joined: 2010-07-09

#3 works pretty good too.... You're making zero percent at the bank. I've got a tax free bond from the university you graduated from paying 4%, it is investment grade, and the interest is free of state, local, and federal taxes. Oh, you can buy it without paying a commission. Does this appeal to you, or anyone you know?  

squash2's picture
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Joined: 2010-03-09

EIAs...

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