Prospecting Tips for an Old yet "NEW" producer

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mivy's picture
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Joined: 2010-04-20

I know you guys give some valuable and interesting perspectives and thats why I'm here. I have been given the green light to produce here at an indy firm. A little of my background. I came from the retail bank as a licensed retail banker. (6&63) We didnt concentrate to much on the brokerge business as we got referral credit for passing it off to a FA (got paid without having to do anything but referring.) The small amount of mutual fund business that I did do was with Evergreen Asset Allocation business. (LOL the only wholesaler that would call me and the only mutual fund our DM felt comfortable with us selling). Now I moved moved to an independant channel where I started off as the recruiter (cold calling etc) Obtained my series 7 and 24 where now I am considered a producing branch manager. I inherited a small small book and looking to grow upon that. SInce I never received any formal training as far obtaining assets in this manner (no retail branch to support but I did kill it when gathering deposits for the bank) what are some ideas to get my feet wet. I know you cant go into like this, but I'm not looking to knock it out of the water, as in I need this to sink or swim.. I'd be happy with gathering some assets making 15k-30k the first year. Is this doable?? Please, I need some help as my wife is very hungry these days P.S. When I say old I'm not old I'm 29. I mean I've been in the financial world for 4 years but new to the straight securities business.

jackofalltrades's picture
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Joined: 2009-05-20

mivy wrote:I'd be happy with gathering some assets making 15k-30k the first year. Is this doable?? Did you mean in the first month...?

mivy's picture
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Joined: 2010-04-20

No I meant the first year.. I still serve as a branch manager and make a little money with those responsiblities. Hoping to build a significant book to possibly be strictly a producer at some point.

BondGuy's picture
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Joined: 2006-09-21

Go to www.billgood.com and order his two books. Read from cover to cover. Use a hi-liter and then go for it. Additionally, call every service club, social goup, and church in town and surrounding towns and offer to be a guest speaker. Come up with something good for your presso. That would be a start.

mivy's picture
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Joined: 2010-04-20

Thanks BondGuy books are ordered and got em for less then $10.

gethardgetraw's picture
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Joined: 2009-10-22

I got one of his books on Amazon in pristine condition for 35 cents (excluding shipping). Booyah

Greenbacks2's picture
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Joined: 2010-03-03

You are new and they made you a BRANCH MANAGER 

mivy's picture
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Joined: 2010-04-20

GHGR- I elected to get like new quality LOL paid like $3 can't complain. Are they any good? I saw you switched your whole style up after reading the book. You went from prospecting any accounts to only wanting 100k accounts and having people drop off statements for review. Greenbacks- Yup it's at an indy and I'm not coaching or anything just simply trade review, annuity review, and signing off on new accounts. I'm not necessarily new I've been licensed to a certain extent for 4 years (6&63) just got my 7 and 24 within the last 2-3 months.

gethardgetraw's picture
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Joined: 2009-10-22

it definitely changes things. makes you literally not want their business. unless they've got the money. no more "dropping by when im in the neighborhood" or "yeah i'll mail this out and follow up next week no problem" or any weak crap like that.  getting one $100k account is way better than twenty $5k accounts. less phone calls, less maintence, less headaches. that gives the clients better service as well. 

gethardgetraw's picture
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Joined: 2009-10-22

jones thinks otherwise. "Hey! But if those twenty guys know three friends each, that's 60 more people!" HAH!  $100k referrals > $5k referrals oh man

BigFirepower's picture
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Joined: 2010-07-09

To back up what GHGR says...A few years ago, when I had 1200 households, I studied the numbers. Of those accounts that were 250k or more, less than 3% of them had started with our firm with an initial deposit of 50k. Trust me, we worked those 1200 in textbook fashion. For several years, every household got phone calls, mailers, and seminar invitations. After about 5 yrs of constant contact, we finally realized that the smaller accounts were small for a darn good reason. I think the target for prospecting, that seems to give the most bang for the buck, is 50k of investable assets right now. I supposed it does depend a bit upon the demographics of your business area. Our area is a blue collar work area, moderate net worth, with average home prices of about 250-300k, some pockets of hnw folks.     

B24's picture
B24
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Joined: 2008-07-08

BigFirepower wrote:To back up what GHGR says...A few years ago, when I had 1200 households, I studied the numbers. Of those accounts that were 250k or more, less than 3% of them had started with our firm with an initial deposit of 50k. Trust me, we worked those 1200 in textbook fashion. For several years, every household got phone calls, mailers, and seminar invitations. After about 5 yrs of constant contact, we finally realized that the smaller accounts were small for a darn good reason. I think the target for prospecting, that seems to give the most bang for the buck, is 50k of investable assets right now. I supposed it does depend a bit upon the demographics of your business area. Our area is a blue collar work area, moderate net worth, with average home prices of about 250-300k, some pockets of hnw folks.   That's some damn good market intelligence.What did you end up doing with all the small accounts?  Still have them?  Did you move?

BigFirepower's picture
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Joined: 2010-07-09

Thanks. I was tech savvy, early in my career, and I was able to monitor all sorts of things. I have a very personalized and tricked out Act! program that I've used since 1997. I went Indy, and we left behind all the small stuff. You talk about financial social work?? Man, if our back office sent out a "letter", dang, our phones would ring off the hook for a week, drop ins, almost exclusively by folks that generated zippo for us. The bank, had no growth plan that made sense, and when they created a new series 6 program, they didn't allow us to dump the small stuff. Think about how little sense that made huh? 

BigFirepower's picture
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Joined: 2010-07-09

Thanks. I was tech savvy, early in my career, and I was able to monitor all sorts of things. I have a very personalized and tricked out Act! program that I've used since 1997. I went Indy, and we left behind all the small stuff. You talk about financial social work?? Man, if our back office sent out a "letter", dang, our phones would ring off the hook for a week, drop ins, almost exclusively by folks that generated zippo for us. The bank, had no growth plan that made sense, and when they created a new series 6 program, they didn't allow us to dump the small stuff. Think about how little sense that made huh? 

youngbuck's picture
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Joined: 2010-03-05

Pardon my ignorance, but does Bill Good function out of anything other than cold calling?

BondGuy's picture
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Joined: 2006-09-21

youngbuck wrote:Pardon my ignorance, but does Bill Good function out of anything other than cold calling?Not sure what you're asking?Bill Good is a businessman who has made a career out of helping sales people market themselves. He started life as a cold caller. Through that experience he developed his famous Cherries and Pits cold calling program and took it on the road after forming Bill Good Marketing. His first clients were Dean Witter in Walnut Creek California and Janney Montgomery Scott in Philadelphia Pa. From there Good developed his Gorilla Marketing System which is primarily a mailing marketing program. Through integration with service and sales assistants it becomes a high touch marketing machine. You've really gotta want to fail if you do so using his system.Good also teams with top producers who are pioneers in some aspect of the business to produce Master Classes. These programs are nothing held back complete programs allowing participants to fully clone the Master teacher. Do they work? Let's put it this way:In the early nineties I signed up for the Bill Tennison Tax free Muni Class. Even though my production had previously been as high as 800k, because of a personal situation my gross had dropped to under 150k. Bill Good's Bill Tennison Master Class saved my career. It's taken me 20 years but we're closing in on 2mm in production. Not only did it give me the tools I needed, it gave me the motivation to push the rock uphill once again from the bottom. Turned out that Tennison went through his trials as well. I could relate! Right now Good has a Master Class, No More Pies. It looks like it's worth every minute of time and every dime of it's cost. Additionally, Good, due to his vast network of RRs, is one of the industry's go to "What's working today" experts in the country today. And, after all that, he is still the definative source for cold calling, 20 years plus after writting his first book.The old saying says it best: If it ain't broke...

Takingnames's picture
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Joined: 2007-11-09

mivy wrote:I know you guys give some valuable and interesting perspectives and thats why I'm here. I have been given the green light to produce here at an indy firm. A little of my background. I came from the retail bank as a licensed retail banker. (6&63) We didnt concentrate to much on the brokerge business as we got referral credit for passing it off to a FA (got paid without having to do anything but referring.) The small amount of mutual fund business that I did do was with Evergreen Asset Allocation business. (LOL the only wholesaler that would call me and the only mutual fund our DM felt comfortable with us selling). Now I moved moved to an independant channel where I started off as the recruiter (cold calling etc) Obtained my series 7 and 24 where now I am considered a producing branch manager. I inherited a small small book and looking to grow upon that. SInce I never received any formal training as far obtaining assets in this manner (no retail branch to support but I did kill it when gathering deposits for the bank) what are some ideas to get my feet wet. I know you cant go into like this, but I'm not looking to knock it out of the water, as in I need this to sink or swim.. I'd be happy with gathering some assets making 15k-30k the first year. Is this doable?? Please, I need some help as my wife is very hungry these days P.S. When I say old I'm not old I'm 29. I mean I've been in the financial world for 4 years but new to the straight securities business.Read the Bill Good books someone suggested, also read Dave Mullens book - he was a trainer for ML for years. Reading won't be enough if you don't have some of the training. One great little system that is literally a sales trainnig process is BNI. I'd suggest you join a BNI and borrow from somone or buy the cold calling college from Wendy Weiss to listen to in your car. None of this stuff is to expensive. BNI will teach you referral marketing. Wendy's CDs are practical cold calling training and the books are outlines of how to attract and service.

mivy's picture
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Joined: 2010-04-20

Thanks for all the help guys but I've been dialing like a mad man the last couple of days with this bobo call list that I generated off of Reference USA. I have been getting a couple of answers here and there and have generated 2 future prospects leading with bonds. As far as everyone else I'm not getting any love. Here is an example of my script: Hey Mr/s. Smith my name is Stud of the Year an investment specialist from (insert indy firm that no one has heard of) the reason for my call today is we have some tax free muni bonds that are paying anywhere between 2-4%. I know right now the savings vehicles in the banks are paying close to nothing after taxes and this is a good way to start generating more favorable returns. Do you have any cd's generating 2-4% after taxes OR do you have any investments accounts that your satisfied with the returns or communication from your current advisor? Other than the 2 leads that I've generated the other callers make it feel very awkward to discuss their personal business. Is this common? HELP HELP HELP!!! The numbers:166 dials, 10 answers, 1 prospect, 1 send me something in the mail 

gethardgetraw's picture
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Joined: 2009-10-22

Hey Mr/s. Smith this is Stud of the Year with _____. The reason for my call is about one specific (your state) tax free bond. It is insured. Would you like to hear about it?Changes in bold. Don't state the interest rate. Make them ask for it. Try to only pitch insured bonds. Remember, they're used to FDIC insured CDs.  In my opinion, I think it's best to never send anything out. I've generated maybe ONE callback from hundreds of bond fact sheets sent out. If they really are interested in the bond, tell them they sell in increments of 25 bonds and there are only 250 bonds left. They'll do the math in their head and realize it's not going to be around forever.  Also I don't even think of looking over their other accounts until they already have an account open with me and they've bought something.  I think finding the CD is a bit overrated. Money dues are great, but you should be calling these people once a month. As close to the month mark as possible. You'll catch money dues and liquid prospects just fine that way.

squash2's picture
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Joined: 2010-03-09

Your pitch is way to long.. it needs to be quick and to the point... I have an insured investment paying  7% does this sound like something you would be interested in?This has been said multiple times, but calling with bonds, you have to appeal to a high yield(even if its the taxable equivalent of a taxfree bond )..Get rid of investment specialist...Just say who you are and where your from.. If no one knows the name of your firm, either say "independent advisor" or just the city where your office is located..Hi John, this is Hard Up an independent advisor here in Anytown USA..Hi John this is hard up, I am a financial advisor here in Anytown USA..Hi John this is Hard Up, calling today to see if you have any investements yielding 7% right now?

mivy's picture
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Joined: 2010-04-20

Well just to keep you guys up to date with this here thing they call prospecting. I have shortened my script to:Hello Mrs. Pleasedontsayno my name is James Doe I'm an financial representative with a firm downtown City, AL. I'm calling to see if there is any opportunity for us to meet to review your investment accounts as I know there's alot of advisors ignoring their clients during these uncertain times. With that  I know banks arent paying anything and we've just had some insured tax free muni bonds become available. Do you do any brokerage business? You guys still think this is too lengthy? On the phone it doesnt seem to be.  Other than all the dang no's and the lack of prospects I've generated to dial I love this jobCan anyone suggest any other sources for creating a dial list. I've literally scrubbed 1400 names to come up with 225 callable leads of which 63 were bad or fax numbers. It took me literally a week to scrub the 1400. I have to come up with something better then scrubbing residential leads.  When calling on a business what do most pitch? I am very confused when people say they call on businesses. The one business I called on was to get a 401k plan and am in the works of getting it. (side note what do we get typically get paid on 401k plans? 2 milliion assets) Any help will help!!!!    

gethardgetraw's picture
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Joined: 2009-10-22

You dont want to hear this but I've got to shoot straight here - it's still way too long Lose the financial representative. They won't let a stranger calling them out of the blue to review their retirement accounts as well. Some bonds? Tell them about ONE bond. One. Specific. Bond. They need to know it's a particularily attractive bond. And you called them about it. Their existing broker didn't. Scrub on the weekends. Bring an ipod.

Sportsfreakbob's picture
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Joined: 2008-08-24

Hello Mr Mcgullicudy, my name is toolongscrpt and I'm calling from BeMyClient Wealth Management. I'll be brief - The reason for my call is as follows: 6%, Tax Free, Fully Insured. Any interest on your part?Then shut up.

Sportsfreakbob's picture
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Joined: 2008-08-24

Hello Mr Mcgullicudy, my name is toolongscrpt and I'm calling from BeMyClient Wealth Management. I'll be brief - The reason for my call is as follows: 6%, Tax Free, Fully Insured. Any interest on your part?Then shut up. And by the way, buy a list thats already scrubbed.

proteinshake's picture
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Joined: 2010-08-04

Bob, or any others. Have you found being very punchy with minimum details like you've said would yield serious responses? I sometimes feel you;ll get a sincere response in level with how sincere you ask. Just curious what you guys think about a pitch as brief as bob's

BondGuy's picture
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Joined: 2006-09-21

Mr. Smith, i'm calling with information on an investment that yields 7% tax free. Does that sound like something you'd have an interest in?or the long version:Mr. Smith I'm calling with inforamation on an investment called a tax free mutual fund are you familiar with these? (yes)Then as you are aware they are a collection of bonds selected for tax free income and safety. i currently have a fund available that is yielding over 7% tax free. Could i send you some information on it?(sure)terrific, i have you at ________________ . And i've got your last name spelled_________ is that right?Great, Mr. Smith, on last question , our minimum investment is $50,000, if you like the idea, i assume that wouldn't be  problem for you?(no problem at all)terrific, mr. Smith i'll get this information right out to you and i'll be in touch next week to see what you think.(OK)Have a great afternoon (you too goodbye)let them hang up first. _________________________________________________________________This approach is known as an appeal to greed. Yeah it sounds horrible. Our job isn't to spend couch time analyzing why this works, only to know that human nature being what it is, it does work. So, while the jury may be out on whether or not greed is good, greed does sell lots of fixed income.  So, use it.Send Oppco Rochester National Fund info. (due to bond market conditions, this fund's yield may currently be a smidge below 7%)Note: this may be an inappropriate investment for some investors. I'm not reccomending anyone buy this fund. Not the point! The goal here is to guage interest not to sell a product. On the second call you can either fact find or set an appointment. On the flip side, there is nothing wrong with selling the prospect this Opco fund if it fits their needs and risk parameters. You be the judge.  

mivy's picture
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Joined: 2010-04-20

Thank you all. (Bond Guy thanks for putting in the real vanilla script as I needed it LOL)  I will be out of the office the remainder of the week but look forward to using a revised pitch starting next week.  Thanks again for the recommendations and I will keep you posted.  Another thing I'm looking at doing is changing the city/region of the state in which I'm calling. I have familiarity with this region as I use to work over there. Again, I'll keep you guys posted. Thank you thank you thank you for the positive input!!!!!

gethardgetraw's picture
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Joined: 2009-10-22

Sportbob's script works very well.  Here's the simple truth: you're a stranger calling them out of the blue. Here's what you've got to do: close your eyes and imagine you're home after work. Doing what you do. Sitting on the couch watching tv, grilling outside, browsing the web, throwing your dog's toy around - and you get a phone call. You're kind of hungry and kind of tired, and it's some guy just calling you out of the blue. You really weren't doing anything important so you hear the guy out. You already know you're not interested. Why? Because you don't know him and he called you out of the blue. But let's say you're a cigar aficionado. And this guy who called was actually just letting you know that his cigar shop has your brand of cigar at an insanely low price because of an shipping error they were delivered 100 too many cases. Ok... so now you're interested. You went instantly from zero interest to a hot prospect. And you hear him out.  Is everyone you call going to be a cigar aficionado? Nope. But, this is exactly the scenario with a wealthy tax free bond buyer. Take you 160 calls to find one? So be it.  6%. Tax free. Fully insured.  He starts asking questions... bingo.

mivy's picture
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Joined: 2010-04-20

GHGR when you say 6% are you calculating a ficticious tax bracket into that? Assuming obivously the caller is at least in the 25+ tax bracket. I guess the other issue I'm running into is when looking at the muni bonds available in AL. I dont have anything over yield to worst of 2.82 with being held to maturity of 3.482 for 12 years so in this case what would you quote?

BondGuy's picture
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Joined: 2006-09-21

When prospecting use the highest yielding bonds in the inventory. That means showing long term bonds. You have to get their attention and 2% isn't going to get that done. Don't worry, they will tell you if they don't buy LT bonds. There is no reason to stay in state when selecting a bond for prospecting. let the prospect tell you they buy only in state bonds. If you can find higher yield out of state, do it! Again, they will tell you if that isn't going to work.One of the reasons I showed a MF pitch is with the movement in the market you may not be able to find suitable bonds to pitch everyday. The funds are open and available every day. Even if you're not a fund guy, and I'm not much of one, using one to prospect with in lean times is just plain smart. And, to cover the base, there is nothing wrong with being a bond fund guy/girl. Whatever floats your boat. In fact putting a million a month into C share  muni funds will give you a great start to next year. Or, doing a million a month of A shares will give you a great year this year. I can't speak for others, however, the fund i showed has a yield of 7% tax free. The Fake yield better known as the taxable equivalent yield will be north of 11% for your target investors.

Sportsfreakbob's picture
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Joined: 2008-08-24

Mivy. Just do whatever BondGuy says. Seriously. He is probably the best prospector on this forumI would also add, stop analyzing so much. If you call one thousand people and your script is "the reason for my call is to tell you to F*** off, are you interested" 5 or 10 will say yes. I'm exaggerating, but i think you get the point. Start a conversation. Talk to people.

mivy's picture
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Joined: 2010-04-20

As promised a quick little update.  As everyone has stated it takes time to build a book but some things are starting to roll. Someone I had been speaking with for some time finally came in to open an account and stealing it from a major wire  Not to mention I have a HUGE deal in the works that will almost double my salary.... KEEP YOUR FINGERS CROSSED I know I am.

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