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What can one expect from cold calling? $$

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Jan 20, 2010 11:10 pm

I just got my tax and wage statement for my second calender year in this business. FYI I’m the least shiniest person in the group I started with. My education was mediocre at a mediocre college that was known for parties. I have no graduate degree. I’m short, fat, half crippled and losing my hair. One thing I do know is how to work hard AND make money in the market. I had ZERO connections and refused to recruit family members.

  I worked harder and smarter than most which is the only way I can conclude why I'm smoking them all (that are left in my class) in production by 258% of the class average.   The first year I cold called with over 35000 dials in total and did everything I could to get 40 new contacts a day. I believe if you do this you can't fail no matter how impossible it will feel at times. If I had to start over again I have 110% confidence I would be where I am now or even better.   If I can pull this off YOU CAN   $122,395.94 W2 income    + $58,000 deferred comp bonus for production and another $10200 of deferred comp for growing my business more than 15% this year. AND the remaining $12,500 of $25,000 that is for business expenses.   In 2010 I'll bring home at least 30% more.
Jan 20, 2010 11:42 pm

Those are some impressive numbers! 

  Do you have any support staff or assistant?
Jan 20, 2010 11:44 pm

I have an assistant that I share with two other brokers. I am the only one that gives bonuses so I get better help and she’s awesome. I pretty much dont do any paperwork. Sure did not start out that way. I was 100% on my own with a bunch of vultures waiting to split up my book.

Jan 20, 2010 11:50 pm

[quote=Gaddock]I just got my tax and wage statement for my second calender year in this business. FYI I’m the least shiniest person in the group I started with. My education was mediocre at a mediocre college that was known for parties. I have no graduate degree. I’m short, fat, half crippled and losing my hair. One thing I do know is how to work hard AND make money in the market. I had ZERO connections and refused to recruit family members.

  I worked harder and smarter than most which is the only way I can conclude why I'm smoking them all (that are left in my class) in production by 258% of the class average.   The first year I cold called with over 35000 dials in total and did everything I could to get 40 new contacts a day. I believe if you do this you can't fail no matter how impossible it will feel at times. If I had to start over again I have 110% confidence I would be where I am now or even better.   If I can pull this off YOU CAN   $122,395.94 W2 income    + $58,000 deferred comp bonus for production and another $10200 of deferred comp for growing my business more than 15% this year. AND the remaining $12,500 of $25,000 that is for business expenses.   In 2010 I'll bring home at least 30% more.[/quote]   what was you career background before this? Congrats on the $$
Jan 20, 2010 11:52 pm

Looks like you average 145 calls a day if I take 35k and divide by 12 months and 20 days in a month.  On another thread you posted: 

Daily Activity Gaddock Dials 364 Contacts 15 Qualified Leads / Prospects   Contacts per Prospect 9

Looks like some variability in calls is that right?

Also, do not remember reading anywhere do you have a "brand name" behind you or is is "jellystone investments"?   Just trying to figure out the other obstacles you might have had to overcome.  Clearly dialing is a non issue for you. 

Jan 20, 2010 11:55 pm

Thank you. I was prop trading stat risk arbitrage at bright and before that insurance sales. I was a partner of an insurance agency that did group health insurance primarily that was sold when the market became pretty much a duopoly. Some guys bought it for a ridiculous amount of money that allowed me to concentrate on trading.

Jan 21, 2010 12:03 am

Thanks for sharing your story and your numbers Gaddock. I read everything you post and always come away confident and inspired. Thanks for sharing your great attitude and continued success with everyone on here!  Hope you have an incredible 2010!!

Jan 21, 2010 12:11 am

[quote=Roxie]

Looks like you average 145 calls a day if I take 35k and divide by 12 months and 20 days in a month.  On another thread you posted: 

Daily Activity Gaddock Dials 364 Contacts 15 Qualified Leads / Prospects   Contacts per Prospect 9

Looks like some variability in calls is that right?

Also, do not remember reading anywhere do you have a "brand name" behind you or is is "jellystone investments"?   Just trying to figure out the other obstacles you might have had to overcome.  Clearly dialing is a non issue for you. 

[/quote]   The calling was not linear as time went by and I was building my book there was less and less time for cold calling. Those stats are right on the money as I took pretty good records. I started with AGE and rode the horse through the entire sordid affair so you can easily conclude who I'm with now.   At first I was calling at the tail end of a bull market. Nobody was even opening their statement as every time they did they had more money than before. The February when the first real cracks in the foundation began to show the prospecting was MUCH MUCH easier.   By the time the market was crashing I was shorting the market. I had two very wealthy clients that brought me other wealthy people and we made a lot of money while their other brokers were like deer in the headlights.   If there was anything that was key in my success it was being very proactive when the market tanked.
Jan 21, 2010 12:14 am

[quote=Gaddock][quote=Roxie]

Looks like you average 145 calls a day if I take 35k and divide by 12 months and 20 days in a month.  On another thread you posted: 

Daily Activity Gaddock Dials 364 Contacts 15 Qualified Leads / Prospects   Contacts per Prospect 9

Looks like some variability in calls is that right?

Also, do not remember reading anywhere do you have a "brand name" behind you or is is "jellystone investments"?   Just trying to figure out the other obstacles you might have had to overcome.  Clearly dialing is a non issue for you. 

[/quote]   The calling was not linear as time went by and I was building my book there was less and less time for cold calling. Those stats are right on the money as I took pretty good records. I started with AGE and rode the horse through the entire sordid affair so you can easily conclude who I'm with now.   At first I was calling at the tail end of a bull market. Nobody was even opening their statement as every time they did they had more money than before. The February when the first real cracks in the foundation began to show the prospecting was MUCH MUCH easier.[/quote]   How many assets does it take to generate that revenue in your second year?
Jan 21, 2010 12:24 am

Not as much as you would think. I do large amounts of trades. I dropped over 5000 tickets in 09. About two thirds were transactional and averaged out at about $97. Options tickets can be as high a 5% on some trades. I averaged a bit over 60% net with a beta of .57 so even with fees that some feel are high I have no complaints.

Jan 21, 2010 12:59 am
Curious1:

Thanks for sharing your story and your numbers Gaddock. I read everything you post and always come away confident and inspired. Thanks for sharing your great attitude and continued success with everyone on here!  Hope you have an incredible 2010!!

  A response and the karma received from a post like that is worth a million dollars. I don't know about the great attitude these days here but I am proud. After getting this thing off the ground, the hardest thing I've ever done, I can see how one might become a bit arrogant. But again if I can do it ANYBODY can do it. THAT MEANS YOU!!!
Jan 21, 2010 3:47 am

I too am a follower and fan… Care to divulge any other information about your calling strategy?

  Residential vs Business or both.. Script preferences(product vs planning) Times to call average day?
Jan 21, 2010 3:52 pm

[quote=Gaddock]I just got my tax and wage statement for my second calender year in this business. FYI I’m the least shiniest person in the group I started with. My education was mediocre at a mediocre college that was known for parties. I have no graduate degree. I’m short, fat, half crippled and losing my hair. One thing I do know is how to work hard AND make money in the market. I had ZERO connections and refused to recruit family members.

  I worked harder and smarter than most which is the only way I can conclude why I'm smoking them all (that are left in my class) in production by 258% of the class average.   The first year I cold called with over 35000 dials in total and did everything I could to get 40 new contacts a day. I believe if you do this you can't fail no matter how impossible it will feel at times. If I had to start over again I have 110% confidence I would be where I am now or even better.   If I can pull this off YOU CAN   $122,395.94 W2 income    + $58,000 deferred comp bonus for production and another $10200 of deferred comp for growing my business more than 15% this year. AND the remaining $12,500 of $25,000 that is for business expenses.   In 2010 I'll bring home at least 30% more.[/quote]   I am guessing for $120K in W-2 income your production for the year had to be in the neighborhood of at least $300K.. am I correct?
Jan 21, 2010 5:54 pm

You should get a couple discretionary accounts opened (if approved) and start building a track record.  Keep in mind what you will need for performance portability issues when you eventually leave your firm.

Jan 21, 2010 5:58 pm

[quote=chief123]I too am a follower and fan… Care to divulge any other information about your calling strategy?

  Residential vs Business or both.. Script preferences(product vs planning) Times to call average day?[/quote]   +1
Jan 21, 2010 6:21 pm

Good numbers Gaddock.

  I worked for Stuart James like 19 years ago myself, I thought I read a post of yours recently where you said you worked there? A little confusion as to the 2nd full year in the biz.   Great work ethic, congrats!   Stok
Jan 21, 2010 8:19 pm

Beginner’s luck!!! Who are you kidding!

  Seriously, nice job. Looking forward to reading about your continued success.
Jan 21, 2010 8:26 pm

[quote=Gaddock]I just got my tax and wage statement for my second calender year in this business. FYI I’m the least shiniest person in the group I started with. My education was mediocre at a mediocre college that was known for parties. I have no graduate degree. I’m short, fat, half crippled and losing my hair. One thing I do know is how to work hard AND make money in the market. I had ZERO connections and refused to recruit family members.

  I worked harder and smarter than most which is the only way I can conclude why I'm smoking them all (that are left in my class) in production by 258% of the class average.   The first year I cold called with over 35000 dials in total and did everything I could to get 40 new contacts a day. I believe if you do this you can't fail no matter how impossible it will feel at times. If I had to start over again I have 110% confidence I would be where I am now or even better.   If I can pull this off YOU CAN   $122,395.94 W2 income    + $58,000 deferred comp bonus for production and another $10200 of deferred comp for growing my business more than 15% this year. AND the remaining $12,500 of $25,000 that is for business expenses.   In 2010 I'll bring home at least 30% more.[/quote]   You should reward yourself with some rogaine and a personal trainer   Just kidding, I look forward to more success stories and use that as motivation; You're obviously killing it and making clients happy at the same time, they don't always go hand in hand
Jan 21, 2010 8:31 pm

Talk about a hypocritcal thread! If i would have posted this, holy crap. sh*tstorm.

Jan 21, 2010 8:35 pm
mlgone:

[quote=Ronnie Dobbs]Talk about a hypocritcal thread! If i would have posted this, holy crap. sh*tstorm.

  yeah well if you had then we would add in the IDIOT factor[/quote]   Coming from a guy who talks and spells like he's 5.