I am in the group that thinks CFP status is a good idea.  However, it really won't make any difference to the relative success of your prospecting methods.

The CFP is not a magic bullet that will feed qualified prospects into your office.  In other words, you will need to use the same prospecting methods before and after you are certified.

There are any number of ways (cold calling, seminars, networking, etc.) that are used by many folks to prospect.  My advice to you is to try a couple methods and find the one that works best for you.

Your next step is to work hard over the coming years to prospect with the goal of getting qualified people into your office that will ultimately become clients.  If you think this sounds like a long and tedious process, then I've succeeded in explaining the reality of the business for a newcomer.

Bottom line - CFP is still a great idea, but it does not (and never will in my opinion) replace the need for hard work in building a business.

[quote=Proton]

I am in the group that thinks CFP status is a good idea.  However, it really won't make any difference to the relative success of your prospecting methods.

The CFP is not a magic bullet that will feed qualified prospects into your office.  In other words, you will need to use the same prospecting methods before and after you are certified.

There are any number of ways (cold calling, seminars, networking, etc.) that are used by many folks to prospect.  My advice to you is to try a couple methods and find the one that works best for you.

Your next step is to work hard over the coming years to prospect with the goal of getting qualified people into your office that will ultimately become clients.  If you think this sounds like a long and tedious process, then I've succeeded in explaining the reality of the business for a newcomer.

Bottom line - CFP is still a great idea, but it does not (and never will in my opinion) replace the need for hard work in building a business.

[/quote]

I can do hard work - no problem!  Thanks for the advice...

The keys to success in this industry fall in this order.

1)Prospecting ability
2)Sales ability
3)Knowledge (a distant 3rd)

People with prospecting ability, but no sales ability or knowledge can do everything joint work and make a fortune.  People with knowledge, but no prospecting ability end up as paraplanners making $50,000.

It probably takes 500 hours to study for the CFP (just a guess).  In 500 hours, you can walk into 5000 businesses or make 25,000 phone calls.  What's a better use of your time...working or studying?

This is a very tough business.  Time spent studying is going to hurt your chances to survive.  Spend all of your time working on the tasks that will guarantee your survival.  Once your survival is guaranteed, then you can spend the time getting designations.

There is a saying that goes like this:

Work Smart Rather Than Hard

Those who are advising that having a CFP designation is not necessary are those who cannot get a CFP designation so they are trying to convince you to join them at the lower end of the spectrum.

Don't do it.  Getting the CFP designation is going to become a minimum standard for credibilty and when it does those who don't have it will fade into the background.

[quote=NASD Newbie]

There is a saying that goes like this:

Work Smart Rather Than Hard

Those who are advising that having a CFP designation is not necessary are those who cannot get a CFP designation so they are trying to convince you to join them at the lower end of the spectrum.

Don't do it.  Getting the CFP designation is going to become a minimum standard for credibilty and when it does those who don't have it will fade into the background.

[/quote]

NASDY, I'm a CPA with a Master's in Accounting. People don't care about the letters after my name. They care whether or not they like me and if I'm telling the truth. People can SENSE the truth when they hear it.

[quote=anonymous]

It probably takes 500 hours to study for the CFP (just a guess).  In 500 hours, you can walk into 5000 businesses or make 25,000 phone calls.  What's a better use of your time...working or studying?[/quote]

Perhaps the solution is to not study during hours when you could be prospecting......

[quote=knucklehead]

NASDY, I'm a CPA with a Master's in Accounting. People don't care about the letters after my name. They care whether or not they like me and if I'm telling the truth. People can SENSE the truth when they hear it. [/quote]

First I don't believe you regarding the CPA and Masters.  You're too dishonest and focused on taking the short cuts for that to be true, but it's also irrelevant.

The fact is that the industry is grasping at logical steps to develop a more professional image.

With the ongoing attack on the NASD being discussed on another thread the industry has even more compelling reasons to dump the uneducated.

Because of the one firm one vote rule at NASD things like education requirement can never pass--however, what can happen is an organization such as SIA (which is big firm driven) could start an "Investor Education" program that delivers the message that if your broker does not have the CFP designation they are not to be trusted.

Put ads like that in widely distributed retail financial mags, in the WSJ, in Investors Daily, and on talking head shows such as Fox's Business Block and you will reach about 90% of the retail investors.

Next get the Investment Company Institute on board.  If the ICI--which represents the mutual fund industry--establishes a rule that their members may only allow CFP licensed representatives to earn trails not having a CFP becomes damn near fatal.

It's crazy to think that Wall Street is going to lose its power and prestige to the sleazy members of the NASD--and if they're going to fight that they might as well fight for other things as well.

The industry needs to purge itself of people who are unable to obtain a CFP--the biz needs people without CFPs like it needs a dose of clap.

Is that why you were forced out?  Because you didn’t have a CFP or because you had (have?) the clap?

[quote=NASD Newbie]

[quote=knucklehead]

NASDY, I'm a CPA with a Master's in Accounting. People don't care about the letters after my name. They care whether or not they like me and if I'm telling the truth. People can SENSE the truth when they hear it. [/quote]

First I don't believe you regarding the CPA and Masters.  You're too dishonest and focused on taking the short cuts for that to be true, but it's also irrelevant.

[/quote]

You crack me up.

"Perhaps the solution is to not study during hours when you could be prospecting......"

It sounds good, but I'm just curious, when are these hours?

There might come a day when the CFP is needed, but today is simply not that day.  I know a lot of million dollar producers, but only one has a CFP and he became a million dollar producer before he got his CFP.

A new guy simply can't afford to spend time doing things other than prospecting. 

The only people who are impressed with cfp’s are other cfp’s.

[quote=knucklehead]The only people who are impressed with cfp’s are other cfp’s. [/quote]



No, this is not true.  Many people begin their search for an
advisor by making this the first screen.  Having the designation
helps and certainly can never ever do any harm. 

[quote=anonymous]

"Perhaps the solution is to not study during hours when you could be prospecting......"

It sounds good, but I'm just curious, when are these hours? [/quote]

That would be after 8PM and before 5AM. Let me guess, you're cold calling at those hours, right?

[quote=anonymous]

There might come a day when the CFP is needed, but today is simply not that day.  I know a lot of million dollar producers, but only one has a CFP and he became a million dollar producer before he got his CFP. [/quote]

You might want to look into when they started their careers (these million dollar producers you know). There's a world of difference in the biz today and for people begining now than the biz the guys starting even as recently as ten years ago saw.

[quote=anonymous]

A new guy simply can't afford to spend time doing things other than prospecting. 

[/quote]

You find me someone prospecting 24 hours a day and we'll talk. Until then, whether you as a non-CFP like it or not, it's a worthwhile use of time when you aren't Prospecting.

BTW, I read through the last "top dog" type article in the trades and was struck by how few of those guys lacked the CFP designation and how not a single one carried an insurance designation on their cards.

'Just saying...

[quote=knucklehead]The only people who are impressed with cfp's are other cfp's. [/quote]

Funny, the only people that dismiss them are people in the industry that don't have them. I've yet to see a client who didn't think it was a plus and I've yet to a consumer-focused article that played it down....

Mikebutler, I agree that if a new guy has some time between 8:00 P.M and 5:00 A.M. he can study.  I'm not arguing that it's not worthwhile.  I'm arguing that a new person has so much other stuff on their plate that taking time to get letters after their name will decrease their chance for success.

The odds are so stacked against a new guy succeeding.  All of his time during the day needs to be spent seeing people and fighting to see them.  This means that the evenings must be spent getting work done.

I know that CFPs feel that the designation is so important.  I can just speak for myself that the subject almost never gets broached and my practice is almost exclusively business owners.   I am not anti-cfp and will be sitting for it next year.  I'm just not expecting it to have any impact on my practice,........but I might be wrong, thus I'm getting it.

[quote=anonymous]

I'm not arguing that it's not worthwhile.  I'm arguing that a new person has so much other stuff on their plate that taking time to get letters after their name will decrease their chance for success.

[/quote]

I’m two months into the POA program at ML.  I’ll be sitting for the CFP in March which is about a week after I go production and start needing to gather AUM.  So far I believe that what I’ve been learning will be helpful to me when I do finally get out there.<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

--WM

[quote=WealthManager][quote=anonymous]

I'm not arguing that it's not worthwhile.  I'm arguing that a new person has so much other stuff on their plate that taking time to get letters after their name will decrease their chance for success.

[/quote]

I’m two months into the POA program at ML.  I’ll be sitting for the CFP in March which is about a week after I go production and start needing to gather AUM.  So far I believe that what I’ve been learning will be helpful to me when I do finally get out there.<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

--WM

[/quote]

Nothing wrong with that.  If you have base salary, it's not a bad idea.

However, if you're an independent and need the cash now, I'd start selling ASAP.  Afterall, it would be unfortunate to go through all of that education when relationship building is what drives your business. 

[quote=WealthManager][quote=anonymous]

I'm not arguing that it's not worthwhile.  I'm arguing that a new person has so much other stuff on their plate that taking time to get letters after their name will decrease their chance for success.

[/quote]

I’m two months into the POA program at ML.  I’ll be sitting for the CFP in March which is about a week after I go production and start needing to gather AUM.  So far I believe that what I’ve been learning will be helpful to me when I do finally get out there.<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

--WM

[/quote]

Come to think of it, you can study and network/prospect at the same time.  Planting seeds and enhancing relationships pan out overtime.  So, you can do that now. 

WealthManager, if you can get the CFP now, that is good.  It just doesn’t make sense when you have to produce and fighting like hell to stay in the business.

A funny thing happened today...I netted an even $4,000.00 today. $50,000 ticket paid at 8%, not subject to the grid.

Not a huge day, but not bad either. The funny part is that I did it without being a CFP. How can that be, you ask? It's nothing short of a miracle.