Cold calling

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w1ngman's picture
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Joined: 2005-12-19

To all cold caller experts in this forum,When you call, during work hours, are there really "decision makers" in the house ? I mean, I'm just thinking...for people who have money (other than retirees) they've got to be working, so most of them not at home. So the phone is either not picked up or the wife says hello and can't make the decision. So what do you do ? I think this question applies to the EJ door-knockers too....heheh....Thanks...

Dirk Diggler's picture
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Joined: 2005-12-30

If what you're doing isn't working, do something else.

BigLew's picture
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Joined: 2005-12-20

I am with EDj and I have had success with cold calling and door knocking.  During the day I am trying to reach retired people since they have the $.  You can often find the decision maker if you focus on this group.  It is not fun, but cold calling will bring results.

stokwiz's picture
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Joined: 2004-12-04

I don't even bother calling people at home unless they are already clients or referrals.With the do not call laws, voice mail and caller id, I think it is a complete waste of time.
Call people at work, (business owners, corporate execs, etc.)Daytime activity, no DNC laws, aren't rude, they are decision makers, used to writing big checks, don't need to check with the wife or husband, etc. etc. etc.
Call early before they get too many other calls.
Stok

Dirk Diggler's picture
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Joined: 2005-12-30

The only people not on the do not call list are people too stupid to get on the do not call list.

bluehorseshoe's picture
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Joined: 2005-07-19

Great contribution to the post Dirk...Reminds me of my office...The olders brokers butting in to tell the younger guys how impossible it is to build a bussiness

Dirk Diggler's picture
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Joined: 2005-12-30

bluehorseshoe wrote:Great contribution to the post Dirk...Reminds me of my office...The olders brokers butting in to tell the younger guys how impossible it is to build a bussiness
If I may butt in...you spelled "business" wrong.

BankFC's picture
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Joined: 2005-05-27

Don't be so hasty to give Dirk very much credit for being a
"veteran."  I am sure their are more than one wannabes who get on
here to fantasize about being a real producer...and I have a feeling
Dirk is one of them. 

Dirk Diggler's picture
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Joined: 2005-12-30

BankFC wrote:Don't be so hasty to give Dirk very much credit for being a "veteran."  I am sure their are more than one wannabes who get on here to fantasize about being a real producer...and I have a feeling Dirk is one of them. 
 
I'm getting the feeling that someone can pass the GED without knowing anything about spelling, grammar, or punctuation.

BankFC's picture
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Joined: 2005-05-27

Dirk,

How's that series 7 book treating you?

troll's picture
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Joined: 2004-11-29

Picked the perfect time to jump on that Bears bandwagon, eh?

bluehorseshoe's picture
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Joined: 2005-07-19

Sorry for the spelling Dink (I mean dirk...Must be the spelling again)

GlengaryLeads's picture
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Joined: 2005-12-21

BigLew wrote:
I am with EDj and I have had success with cold calling and door knocking.  During the day I am trying to reach retired people since they have the $.  You can often find the decision maker if you focus on this group.  It is not fun, but cold calling will bring results.

 
door knocking? are you kidding me? I would rather light fire to myself then walk door to door, peddling stocks...

blarmston's picture
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Joined: 2005-02-26

From what I have found, most FA's are scared to actively pick up the phone and make outbound calls to people who arent expecting their calls... The fact that you make cold calls puts you ahead of the game.. It takes a certain mentality to dial 100's of numbers a week and have 97% tell you to F- off.. Personally, I enjoy the task.. It doesnt really matter who you call ( residents, businesses, etc) or when you call ( mornings to catch retirees or small business owners or evenings for residentail), as long as you make it a consistent habit, and dont get dejected by the inevitable rejection, it can still be done effectively....
With DNC, it has been an excuse for reps to not call. There are still plenty of prospects who arent on DNC- it just takes that little extra effort that most FA's arent willing to make..... "oh, therese DNS, so I cant build my business that way..." Thats a HACK way to look at it, and the easy way out.....
Good- more people for me to call who arent get saturated with dials from other reps.....

TimBo's picture
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Joined: 2006-01-18

So do you call people on the DNC list?  What about that little $10k fine? 

Cowboy93's picture
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Joined: 2005-05-10

I'm all for following the law--by the way, I hope none of you guys EVER go faster than the posted speed limt--BUT, how much would you have to annoy someone for them to go to the trouble of filing a DNC complaint?!
Seems like a "oh, I'm sorry, you're number didn't come up on our system as being on the DNC...sorry to disturb you--have a nice day/evening" would severely limit that risk.  The DNC was to prevent annoyances, and to me going to the trouble to file a claim would be a bigger annoyance than someone who begged off as I soon as I said "DNC!"  I've not been a diligent prospector lately, but I'm with blarm--DNC is one of many excuses not to initiate contact with potential long term clients.

blarmston's picture
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Joined: 2005-02-26

"So do you call people on the DNC list?  What about that little $10k fine?"
So thats what you took from my post huh??? Maybe I should have clarified for the hacks, but many FA's simply feel that EVERYONE is on DNC, so cold calling isnt a fruitful avenue of prospecting...
I stay away from DNC- it isnt worth it for me to get dinged by my compliance for calling some $ss on the DNC. And the fine wouldnt help my nightlife any either.....Although I do agree with Cowboy in that it probably would take a great deal of effort for someone to file a DNC complaint.....

TimBo's picture
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Joined: 2006-01-18

I don't know if I like being called a hack.  I don't even know what it is but it doesn't sound nice  But you have to admit- once you delete all of the DNC #'s you don't have very many left.  Referral's to the Nth power ya know.
I do get the jist of what your sayin' and I have gotten lazy with dials so I'll pick it up.
Cowboy, I hear what UR sayin' but goin' 5-10mph over the speed limit doesn't scare me as much as my compliance officer

blarmston's picture
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Joined: 2005-02-26

Lean on your mutual fund or annuity wholesalers for support and leads... This service isnt as prevalent as a few years ago, but some guys will be more than happy to pay 500 bucks and provide you with a somewhat qualified list... My jack$ss buddy here recently got a scrubbed list of 700 annuity holders in the area... He has been calling them asking to give reviews of their current programs- the results have been amazing. He schedules 2-3 appts per day and actually has people call him back... Amazing... He has slated about 3 MM in appts for the next 2 weeks.....
Something to consider at least......

notabroker's picture
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Joined: 2005-12-30

I would rather make-out with a Rottweiler than cold call or door-knock? 
Don't fool yourself - Any Advisor who has built a $50,000,000 or larger book in the past 5 years and makes over $250,000 of annual income; did not do it with these prehistoric methods.
This is a business.  It should be treated that way.  If you haven't got the cash to market your business effectively you shouldn't be in the business.
Every Million Dollar producer who's built it from scratch (including myself), in the past 5 years, with no contacts, doesn't cold-call.  If you feel like being a poser and calling me out, then go ahead.
I'm sure this will upset many, but come on, be realistic.  90% of the "cold-callers" out there will never make $100,000 or more/yr in the next decade unless they're churning their clients or selling s**t annuities that pay 10% comp.  So don't cheat yourself or the people in your community with this embarassingly idiotic way of prospecting.
(I can't wait to hear the crap I get from this!)

troll's picture
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Joined: 2004-11-29

Ok then...no crap from me.  Just tell me how you do it then.....

babbling looney's picture
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Joined: 2004-12-02

So what do you do?  Wait for your clients to fall like mana from the heavens?  Set really big mouse traps in front of your office door?
Realistically, unless you start out with an inherited book of business or have an extensive network of people who are just dying to throw money at you, you will need to do some cold calling and meeting in person visiting with actual cold prospects at least in the first few years.  Later on....like now for me....you won't need to do those things because you will be getting referrals from your existing client base, adding their families and friends to your book and have buillt a reputation in the community to the extent that total strangers who you used to have to call on, are now calling you. 
If all you ever do is cold call from your sweaty little cubicle and hammer the phones you are going to get the clients you deserve.  But you must, must, must call complete strangers and yes (gasp) even go out to the businesses and press the flesh.
All the marketing in the world, advertisements, web pages, news letters, postcards doesn't mean doo squat until you can look the prospect in the eyes.  If you think so, you are fooling yourself.

Cowboy93's picture
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Joined: 2005-05-10

No Tab Roker...by your last comment you're obviously the poser; I'll give you that bit of attention but that's it.  The whole idea of cold calling or any strategy for a rookie is to get enough clients to survive.  Then as BL mentions, you do such a great job servicing them that they send you people, etc. etc.  It doesn't really matter how you get those first x households, as long as they have trust and confidence in you and you treat them like the gold they become over time (due to referrals, which seem to increase w/the length of the relationship...I'm not "there" yet, but the referrals are coming in more often over time).  So, once something starts working, do a LOT of it.  I had some success doorknockinge (aka cold calling in person), so it became a decent piece of that initial push for me.  Re: my DNC comments above were for the case where you checked a DNC list, but for whatever reason you still call a DNC#.  Lesson is, it's not something to be afraid of if you really feel like you are calling people to HELP them...if they are jackazzes, it's their loss (you know, sales psychology and all).

radernation-1's picture
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Joined: 2005-06-07

All of you have some great points. On one hand cold calling is needed to start building a book.I remember the days of getting hung up on and the F^%# you replies. But if you want to be an actor ,you have to pay your dues. Same in this industry as well. On the other hand a cold call puts the other person in control. After all, when was the last time a Dentist called you and asked if you wanted to come in for a checkup? What has worked for me lately has been cold calling and newspaper ads . So I believe a combo of Cold Calling and other Marketing in other ways is a good strategy. BTW if any of you have any Football experience and believe in the long ball and wouldn't mind be a "puppet" Please call Al Davis! The Raiders have a job opening for Head Coach.

tmorris93's picture
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Joined: 2005-04-17

Notabroker is a salesman for a seminar system. Almost every single one
of his post mention a system that he is trying to push. Almost every
successful broker in my office has built his book by cold calling in
the first years. Seminars also work, but you have to call people to get
people in the seats. I have looked at the seminar system he is always
pushing. Sure it has many great ideas, however it bases everything on
mailers. If you think people get numb to calls, then what do you think
about mailers. I get a mailbox full of crap everyday. I surely don't
take the time to read things from people I don't recognize or know, and
I don't think I am too different from anyone else. You rely on just
mail and you will fail. Calling is the fastest way to reach a large
amount of people. I surely need to do more of it. Calling also helps
you practice your pitch and your speaking and communication skills. If
you talk to 100 people a week on the phone you only get better at
communicating what you have to offer. Cold calling works, it just takes
practice and persistance.

troll's picture
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Joined: 2004-11-29

tmorris I'm glad to see others have noticed....

Beagle's picture
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Joined: 2005-03-21

tmorris is correct.  Ignore the fool that does nothing but advertise his little website.

stokwiz's picture
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Joined: 2004-12-04

Success in this business comes from helping as many clients  as possible. Universal law states that you must approach as many people as possible, and  telephone cold prospecting is far superior than avoidance behaviors such as mass mailings, seminars and referrals to build your business. Review the majority of successful advisor's and unless they inherited a book or are in a bank where their book is pretty much built for them (Consequently at a very low payout with no equity for the broker), cold calling was and still is a superior way to build a client base, if done strategically. 
Those critical of telephone prospecting lack understanding of the process. The ones I've encountered who criticize the successful cold calling broker do it out of envy, lack discipline, as well as lead a life of failure and frustration.  Telephone prospecting allows one to  continually sharpen the saw to think quickly on their feet, which only builds more confidence and success.
I highly doubt the poster has achieved the level of success he has indicated- Building a 50 million dollar book over the past 5 years- through the worst bear market in decades, is himself naive or thinks we're all stupid. 
I am amused at this poster- on the outside looking in and only dreaming of being a successful broker. After 16 years in this business and being a successful broker myself, I would advise the poster to pursue another career - one that doesn't require as strong a character and requires less of an intellectual capacity.
Stok

bluehorseshoe's picture
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Joined: 2005-07-19

Could some of you people who have been successful cold calling give the rest of us some ideas as to what type of script or introduction to use at the beginning of the call?

The day's picture
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Joined: 2006-01-09

It's notabroker's turn...... (I'm dying to hear his response!!!)

JCadieux's picture
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Joined: 2005-01-23

I know nothing about NotABroker's seminars.  However, in general I wouldn't trust a broker who couldn't put together their own seminar.Seminars are one of the top three prospecting techniques that I see working out there (the other two are referral channels and networking).  I would never represent a broker who relied mostly on cold calling for clients.

BankFC's picture
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Joined: 2005-05-27

I broke out in a little cold calling this week.  Not because I really needed to, but because I actually wanted to and wanted to see how rusty I have gotten since I left ML.
I called companies regarding their 401K's...made about 20 calls, got one appointment, and another lead (closing out his 401K and open to talking about managing it in retirement).  Both accounts are a little over 1 million.
Maybe I just had a good day, or maybe it was the fact that I didn't HAVE to do it...but I definitely can attest that cold calling can and does still work.

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