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Cold calling in the new millennium

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Mar 13, 2012 12:38 am

I am in a training program at a major wire house. After crunching numbers vs. hurdles and reading throughout this forum I have a few observations.

Even if you have a solid network as I do, its more about "when" and not "if" you can close some of that business. I believe given 5 yrs, you will see a good % of it, but you dont get 5 yrs. So you must cold call to find that % of people willing to do business today.

My concerns are:

1. The Muni mkt is half dead. People ive known who have bought nothing but muni's their entire life are in cash or not rolling. So that pitch is definetly not what it used to be.

2. Even if you closed a 100k anuitized account a week, youd techincally be on unemployment by month 9. And 250k a week anuitized barelly cuts it considering there is a lag in the pc's hitting.

So that leaves A shares, Anuities and large anuitized accounts to save your butt, unless Daddy is handing you accts.

Questions:

Whats is a good cold call  pitch, to a qualified investor, to get a whack at his entire 500k account? Because him sending you checks to buy 1000 shares of xyz wont help much like it did in 1987.

NFG-Hello Mr Smith, this is Bud Fox calling from jackson securities. How are you today?

Mr Smith- Fine. How can I help you today?

NFG-?

Mar 13, 2012 5:27 am

Don’t know what wire you are at but bringing in 100k a week puts you well ahead of your goals at most wires

Mar 13, 2012 5:43 am

To make 40k in pc's, on 1% anuitized business, by the time the pc's are hitting 100%, your fired and jr. waiting for daddy's corner office has the accts.

Figure at month 9, with no lag on the pc's, you've made roughly: Month 1. 400 usd , Month 2. 800usd , 3. 1200, 4.1600, 5.2000,6. 2400usd  7.2800, 8. 3200, 9. 3600.

18,000 usd total. give or take. = job in jeopardy and jr. salavating.

Mar 13, 2012 1:30 pm

[quote=mtnman321]

To make 40k in pc's, on 1% anuitized business, by the time the pc's are hitting 100%, your fired and jr. waiting for daddy's corner office has the accts.

Figure at month 9, with no lag on the pc's, you've made roughly: Month 1. 400 usd , Month 2. 800usd , 3. 1200, 4.1600, 5.2000,6. 2400usd  7.2800, 8. 3200, 9. 3600.

18,000 usd total. give or take. = job in jeopardy and jr. salavating.

[/quote]

Your management team will see your total assets/fees and if you have 4 million in assets at 1% they aren't going to fire you.

Mar 13, 2012 11:12 pm

[quote=mtnman321]1. The Muni mkt is half dead. People ive known who have bought nothing but muni's their entire life are in cash or not rolling. So that pitch is definetly not what it used to be.[/quote]

Are you really declaring the state of the muni market based on 'people you've known?' Lulz

Individual Holders of U.S. Municipal  Securities: (in $'s)

1996: 493 Billion

1999: 528.1 Billion

2002: 678.4 Billion

2005: 1639.1 Billion

2008: 1766.7 Billion

2011: 1879.4 Billion

Reported by SIFMA (Securities Industry and Financial Markets Association)

Source: Federal Reserve System.

Mar 14, 2012 12:41 am

[quote=Ulairi]

[quote=mtnman321]

To make 40k in pc's, on 1% anuitized business, by the time the pc's are hitting 100%, your fired and jr. waiting for daddy's corner office has the accts.

Figure at month 9, with no lag on the pc's, you've made roughly: Month 1. 400 usd , Month 2. 800usd , 3. 1200, 4.1600, 5.2000,6. 2400usd  7.2800, 8. 3200, 9. 3600.

18,000 usd total. give or take. = job in jeopardy and jr. salavating.

[/quote]

Your management team will see your total assets/fees and if you have 4 million in assets at 1% they aren't going to fire you.

[/quote]

Are you really dumb enough to believe that? Management doesn't care. They cover themselves with the numbers. That way they can say "we let go everyone under $x production". You might buy yourself one month, but if you have everything fee it doesn't matter. I had managers at every wire tell me this. They have no say anymore. Also talk to the honest senior guys and they will tell you their book was built by trainees and transferring brokers. This is the majority of $400-800k guys who have been in one place for 10 years. Wires want 1 trainee for every 2 vets. Trainee makes it a year, maybe 2 and does $4-10mm. Starves or failed out and assets transfer to the vets. It is the way they have done business for 20+ years.
Mar 14, 2012 1:41 am

Couldn't have said it better Hacksaw. Looks like you've played this game before. The numbers are the ONLY thing that matter. Particularly PC's. You have them by X date or you don't - end of story. There is a partcular month that they will drop the ax. If you don't have the PCs, you'll most likely have 30 days to get the PCs or you're done. It is now out of the hands of the BOM and the Director as well. That's fact. 

Mar 14, 2012 2:45 am

I almost think you have to play the game. Almost everyone winds up at a second firm before making it over the hump. People who play it smart, end up leaving this sort of management scratching their heads when they lose the % that are actually on the brink of becomming successful. Its nuts to see them cutting the salaries of the people who are on the cusp of succeeding when the other major wire managers are secretly courting them. Ive never seen anything so bad as this model. Its management 101. Poke yourself in the eye.

I

Mar 14, 2012 2:59 am

[quote=mtnman321]

I almost think you have to play the game. Almost everyone winds up at a second firm before making it over the hump. People who play it smart, end up leaving this sort of management scratching their heads when they lose the % that are actually on the brink of becomming successful. Its nuts to see them cutting the salaries of the people who are on the cusp of succeeding when the other major wire managers are secretly courting them. Ive never seen anything so bad as this model. Its management 101. Poke yourself in the eye.

I

[/quote]

If you don't like the wire model, fire them, and slip into Indy.

Mar 31, 2012 11:07 am

At the end of the day, how much time do you really have in a management roll to keep your complex 'tight?'. My thoughts are that it's a down line.  In a down line the pressure to succeed is multiplied as the line descends.  We measure the companies we track the same way.  Were always looking to trend and track the best.  Our internal organizations are no different!  You either are or you aren't, you're a top producer or you're a leach.  To a lay, does it suck?  Yes!  But at the end of the day, we also have the choice to be public school teachers.  It perplexes me how as individals we are always so crucial of 'so called' bad systems when they aren't working for us.  

This industry has survived 130 years of anomalies and struggles.  It's still here!  More importantly, although there has been acquisitions, the same people own it.  Perplexing or realistic?  You make it or you don't.  Period!  If you do you'll be lucky enough to be on the receiving end of a poor sap believing the thoughts you have.  If you don't?  Well, you'll be posting on threads like this lol.

If it was easy, we'd all be realtors or loan officers.  

Just saying!

Apr 3, 2012 12:57 am

Very well said Itainteasy. I think this business mirrors the real world. Some people get handed money, and some people have to fight tooth and nail for every penny. Lots of inequalities, but who said life was fair? The only observation I would add though, is that with these large banks becomming players, the playing field is going to change. But in the end the same people will prevail.

Apr 3, 2012 4:54 am

sounds like you are at merrill lynch.

i am too.

hurdles are intimidating.