[quote]If you don't overcome this attitude, you are destined for failure.  Don't take this to mean that I am saying that you have to cold call or cold walk because I am not saying that.   (If you aren't willing to do that, you're chances of succeeding are very slim, but that's not my point.)[/quote]

And that is the kind of stuff I'm interested in hearing.
  [quote]Please explain the ethical difference in the following situation:  Joe Smith runs a very successful widget business.  He has no desire to talk to a financial advisor. B24 makes a cold call to him.  "Hello, Joe.  This is B24.  Do you have a minute to talk.  I work with quite a few business owners and I have some ideas that you may find of use.  Can we get together on Thursday?" Morphius walks in the front door of his business.  "Hello, Joe.  My name is Morphius.  I help business owners leave their business with maximum profit.  Can we schedule a time to sit down and talk?" Joshi makes a warm call to him.  "Hello, Joe.  This is Joshi.  I met a friend of yours, Tony Perez, at a networking event.   Tony spoke very highly of you.  Can we get together on Thursday?" In the first two examples, how did B24 or Morphius display bad manners?  What made Joshi's manners any better?  How is what Joshi did any more ethical?  They all bothered someone who didn't want to be bothered.[/quote]

There's no difference in them. All are unsolicited and I hate dealing with unsolicited sales offers by phone or in person.  Does that make unsolicited calling wrong? No, but I don't like it. I wasn't referring to networking with people at an event and getting people's names to call sight unseen.  I just meant getting professional relationships going with people that might lead to referrals.  If I talk to a friend and ask for a referral on an attorney and my friend provides one... that's all I meant.  I've never bought anything from an unsolicited offer; there are many businesses out there getting people almost solely by referrals. I use them all the time.  This isn't a criticism of you, though.

[quote]In order to succeed you are going to have to ask people who have no desire to meet with you to meet with you or do business with you.   This is true whether you are calling people who met you at a networking event or referrals or if you are just inviting people to a seminar.[/quote]
[quote]I have no doubt that with proper training you can do the easy, "polite" part of the job.  You see, sitting down with people who trust us and want our help is a piece of cake.  The hard part, and where the money is made, is doing everything in our power to get people to sit down and talk to us.  [/quote]
[quote]I have to tell you that it sounds like you want a business where people call you and say, "Hi Joshi.  I need a fee-only financial planner.  Can I come to your office at 2:00.  I'll bring my checkbook."[/quote]

You're overstating things here.  I wouldn't be just sitting by the phone waiting for business to come to me, much less expect a checkbook brought along. However, it is fair to say that the sales methods I would employ wouldn't be hard-sell (if that's a fair term).  I would rely on good marketing materials, doing quality work in order to land referrals, attend networking events to get to know people who could provide referrals, provide value-add seminars for people to get to know me better and possibly lead to business, etc.  And it's pretty clear that you're telling me "hey, that's all fine and dandy, but it isn't gonna work in this business."  And that is very valuable to know.  I know businesses where it does work.  It's interesting that I looked through a few books on becoming a FA/planner and none of them came right out and said what you've just told me in the quotes above.  They really should.   And I'll commend you for being helpful.

As for some of you others-- seriously-- you are just nasty and you really should take a look in the mirror. Maybe you've heard it all from newbies, but I can't imagine providing advice to interested parties in my longtime profession and responding the way some of you have.  The simple hostility from innocent questions is just ridiculous. Are you that insecure or unfriendly? How about putting a lid on the mockery?  If you don't want to answer questions, then fine, move along.  You really could learn from posters like Morphius.

[quote=iceco1d]

As someone else mentioned, the only new FAs that can start their practice on referrals and/or “walk ins” are people that are already respected financial professionals (accountants, lawyers, etc.).  Although you seem quite successful in your field - it isn’t going to make people want to throw their money at you because there is no correlation.   That leaves you absolutely needing to prospect.  Whether it's wandering around neighborhoods introducing yourself all day 6 days a week, or calling people - you hafta do it. [/quote]

Absolutely, there's no correlation whatsoever between my old career and this one.

The info about prospecting is very valuable to know. I feared that this might be the case, but I wasn't sure that it was until... well, tonight.  As I said, I'm an outsider, I've read through a few books and that's as far as my exploration has gone. I'm moving into a different venture at the moment. All I'm trying to do is compile some basic info to determine whether to pursue it more seriously down the road. 

[quote] I think you are also going to find that you don't know as much about financial planning & investments as you *think* you do - so I'm sure you are going to have plenty to learn before you really can do the "best" for your clients. [/quote]
 
Oh I know. I have a basis, but certainly a ton a learn.
  [quote]Just my .02[/quote]

Thanks, it's a good .02 and I appreciate it.  Some of you guys should band together and write a book.

" I just meant getting professional relationships going with people that might lead to referrals.  If I talk to a friend and ask for a referral on an attorney and my friend provides one… that’s all I meant.  I’ve never bought anything from an unsolicited offer; there are many businesses out there getting people almost solely by referrals."

  Joshi, I think I can sum it up for you.  All of your methods work well in this business - once you have a book of business.  You won't get a single referral until you have a single client.  How are you going to get your first client...and your 10th? (family doesn't count)  Seriously.  Based on what history or experience will someone send a referral to you?  WHO will send you a referral?  I'll tell you who...clients and professionals (CPA's, attorneys, etc.) that have SEEN your work or talked to YOUR CLIENTS (mutual clients).   So again, my question is, how do you get that first stable of 40-50 clients before you start getting referrals??

“Question: In your experience, of the people you’ve seen who intended to go the route you mention (their plan is to start at a b/d, build a book, and then go independent), what is the success/failure rate after 5 years? Again, I consider a “failure” a situation where I wouldn’t be making 100K/yr minimum in 5yrs.”

  Honestly, I have never met someone who intended (openly) to leave after X years before they even started in thie biz.  Most people don't start out in this business knowing much about how the business works.  I am talking about scratch starters, not the guy that goes to work for his father/brother/friend/etc.  It's just not a traditional "business" like opening a restaurant or law firm or contracting business.  Most people stumble upon this career, and then decide to change their situation once they have been in the business for a bit of time.   So I guess my answer is, I can't answer your question.

Joshi, 

  Why don't you see if you can get a job as an associate in an already successful RIA or Indy B/D office before you jump off of the cliff.   That way you can see how the business works and get a feel for if it is right for you.  You may find that the emotional stress of dealing with other people's money in reality instead of in theory is too much for you to take.   What sounds interesting in theory is sometimes just not as attractive as the reality.   I'm sure the rest of the crew here can tell you that our jobs right now are VERY stressful because of market conditions and we have to not only deal with our client's portfolios, but act as emotional and psychiatric counselors half of the time.   Some indy B/D offices need to have a certain level of production to stay open and may be interested in taking on a new but low producing rep in order to boost their total production. 

Joshi,

  Thanks posting this question and thanks everybody for your answers.  I was having very similiar thoughts to Joshi.      I'm in a situation, experience level, etc. that sounds very similiar to Joshi.  My problem is I can't afford to quit what I'm doing to take the chance to work fulltime at a traditional brokerage to get the training and make sure this career is right for me and my family.   You get to mid-life and wonder why your interest in learning about things wasn't this keen in college.   Babbling Looney- that was a great idea.  I have an aquaintance in a small 3 person independant firm that is looking for someone extra.  How would you go about approaching this subject with them?  I need a mentor to show me the  basics, give me a script that I can massage with time and basically put it all together in a cohesive package.  I have an above avg knowledge of most products (except insurance) and know I could pass the 65.  I'd even work for real cheap early on just to learn and bring in what biz I could through the Beiderman approach.  Heck I'd love to practice all approaches given the opportunity.   How did the rest of you folks get your start in the biz? Mainly wirehouse training?  Did everybody here start out cold calling?  And what's the avg net payout for a 10M book for an independant rep vs traditional?  How much of your planning is your own knowledge vs computer generated from client info?   Would having a 65 and 6 increase my chances of getting hired at a bank or wirehouse if thats the route I decided needed to be taken?   Thanks so much for the info.  Info on here is way more helpful than any book on the subject.  Sometimes it's more motivating knowing there is a challenge ahead of you.