We could tell you, but then we'd have to kill you...

- Signed, the Angry Ed Jones Broker (sent by teletype)

They are in reality looking for lonesome housewives to answer the door dressed in scanty lingerie so they can write letters to Penthouse about “what happened next”.

I have a friend who is a broker here in Omaha and he always has said he would be more prone to give the “traveling salesman” pushing his religion 5 minutes than a door-knocking EDJ rep.  Always thought that was kind of humorous.  Not an answer to your question, but there ya go.

Something to the effect of...

"Hi, I'm _____, I'm with EDJ & I'm opening an office at _____."

Then they want you to "connect" with the prospect and talk about anything that will get you into a conversation with them.  (family, hobbies, yard)  "How did I get lucky enough to catch you home today?"

Then work the conversation into investing.  (new job = 401k rollover, retired = cost of living discussion, new baby = 529 plans, etc.)

Everyone has a little different spin, but for the most part it's all cut from the same fabric.

that’s about what I figured, that simple huh?

when you get started in this business, which would you rather do?  door knocking and meet 25 people face to face.  or cold call 300 numbers and hope for the best.  EDJ does it one way, most firms do it the other.  Both are successful.

To be honest, both of those options sound pretty crappy.  I’d rather sit in a bank getting warm referrals…guess that’s why I did that, huh?!!  Once you’re more established, then you can work primarily on client/professional referrals…that is the best clue that you’ve made it.

Honestly, do you think anyone doorknocks any more? Have you personally

been doorknocked by a Jones rep?

[quote=The Truth]Honestly, do you think anyone doorknocks any more? Have you personally
been doorknocked by a Jones rep?[/quote]

One came to my house last fall.... similar pitch.. he was opening an office nearby (which never opened).  I have to admit they work hard starting out and I like the idea of individual offices, but they just don't have the resources you need in order to be a serious player in this industry.

There were some A G Edwards guys who were building successful Muni bond books by cold walking. This was 5 or 6 years ago. Their approach was simple. They each carried a folio with brocheres in it. They cold walked nice upper middle class neighborhoods. They'd knock on the door and then hand the homeowner a brochere. They'd tell the prospect that they were in the neighborhood and that they'd like to call the prospect at some future date to discuss their situation. At the time 2000/2001  each opening about 15 accounts a month after using this approach for about a year. My A G E contact moved to Pru, so I lost track of how these guys ultimately did, but, I can't see why a similar approach wouldn't work today.

If you have a prospecting idea/approach, give it a test. The only way to find out what will work for you today is to find out what won't work. And the only way to do that is to get out there and do it. Only successful people fail. Get your butt out there and fail.

I hear that this is primarily how EDJ brokers get started.  But it seems strange that anybody would buy a muni bond from a door to door salesman.  This actually works?  Do you just give them the brochure and then ask if you can call them in the future? 

[quote=RecordGuy]I hear that this is primarily how EDJ brokers get started.  But it seems strange that anybody would buy a muni bond from a door to door salesman.  This actually works?  Do you just give them the brochure and then ask if you can call them in the future?  [/quote]

RG, I'm going from memory here, but, yeah, that's what they were doing. My understanding is that they weren't pitching a bond when they met, at the door they just introduced themselves and asked for permission to call sometime. Their books of business were dominated by Munis, so someplace along the way they moved the prospects to bonds.

I talked to a rep recently who went door to door and used Cds as a way to get his foot in the door.  He would introduce himself, get a phone number, and call back a week later with a relatively high yielding, short term CD.  After the CD matured, he would recommend that the client move into a mutual fund or bond.  I’m guessing this is the way some new reps build a book from scratch, but how do new brokers at other firms prospect?  I have talked with UBS and they have not mentioned anything about door knocking. 

[quote=RecordGuy]I talked to a rep recently who went door to door and used Cds as a way to get his foot in the door.  He would introduce himself, get a phone number, and call back a week later with a relatively high yielding, short term CD.  After the CD matured, he would recommend that the client move into a mutual fund or bond.  I'm guessing this is the way some new reps build a book from scratch, but how do new brokers at other firms prospect?  I have talked with UBS and they have not mentioned anything about door knocking.  [/quote]

RG, I worked for UBS/Paine Webber until a few years ago. I worked with a guy at Kidder Peabody (Kidder was aquired by PW) who after getting every opportunity to prove himself as a broker, quit and took a management/non sales position at ML. That was almost 20 years ago. One day while working at UBS I needed to contact the training department for something and guess who answered the phone? Mr. failed broker. He was a trainer for UBS and may still be there. He's a great guy, but my point is don't put much thought into what UBS, or for that matter, any firm is training its reps to do. What, could a failed broker possibly teach a rising star broker trainee. Nothing!

This biz is about finding the money and converting into production. Many if not most of the largest producers in the biz are surprisingly low tech when it comes to doing this. Cold calling built the books of such greats as Marty Shafirov and Ira Walker. Cold calling also was how Rick Desoto built a $400,000,000 book. How you choose to find the money is up to you, cold call, cold walk, direct mail, network etc etc etc. Cold walking may seem beneath the dignity of many but, the low IQ approach to this biz works.

[quote=tjc45]

[quote=RecordGuy]I talked to a rep recently who went door to door and used Cds as a way to get his foot in the door.  He would introduce himself, get a phone number, and call back a week later with a relatively high yielding, short term CD.  After the CD matured, he would recommend that the client move into a mutual fund or bond.  I'm guessing this is the way some new reps build a book from scratch, but how do new brokers at other firms prospect?  I have talked with UBS and they have not mentioned anything about door knocking.  [/quote]

RG, I worked for UBS/Paine Webber until a few years ago. I worked with a guy at Kidder Peabody (Kidder was aquired by PW) who after getting every opportunity to prove himself as a broker, quit and took a management/non sales position at ML. That was almost 20 years ago. One day while working at UBS I needed to contact the training department for something and guess who answered the phone? Mr. failed broker. He was a trainer for UBS and may still be there. He's a great guy, but my point is don't put much thought into what UBS, or for that matter, any firm is training its reps to do. What, could a failed broker possibly teach a rising star broker trainee. Nothing!

This biz is about finding the money and converting into production. Many if not most of the largest producers in the biz are surprisingly low tech when it comes to doing this. Cold calling built the books of such greats as Marty Shafirov and Ira Walker. Cold calling also was how Rick Desoto built a $400,000,000 book. How you choose to find the money is up to you, cold call, cold walk, direct mail, network etc etc etc. Cold walking may seem beneath the dignity of many but, the low IQ approach to this biz works.

[/quote]

Make that Shafiroff

Good stuff tjc, thanks for taking the time to write. 

I’ve got 7-8 Jones offices within 1.7 miles of my house and I’ve never had a rep call my house or knock on my door.  I think the strategy is more utilized in smaller towns than in major cities.  I told my family one time at a holiday event that some Jones reps knock on doors.  NONE had ever had a Jones rep knock on their door.  My brother was the only one to ever be seriously contacted by a Jones rep.

I have an acquaintance in a (relatively) small town.  They were door knocked by an EDJ guy.  The guy I know mentioned he may want to look at college funding ideas, putting something like $100/ month into an investment.  Like clockwork, the EDJ broker called him back EVERY week for the past 5 months.  I honor the persistance, but $100/month seems like you are wasting you time.

It’s not about the $100/mo… it’s about the 401k rollover he hasn’t
told him about yet… or his dying mom’s $500,000 estate.  Door
knocking sux and I have not done much of it that panned out to
anything. 

What did work was DKing and invititing people to a seminar at the local
golf club.  In CA I have several great ones in my area.  They
don’t say no to free food very often.



AND… the office very rarely gets open.  Probably less than 10%
of the time.  They either fail or take over one of your indy
offices before that happens.



Now QUALIFIED door knocks is not a bad was to go.  Buy a list or
hire an assistant from the local bank who knows everybody that has $$.