I got really desperate about nine years ago and cold called.  My objective was to make 40 contacts per day although sometimes I went until 6:30 or 7pm because I would procrastinate doing it.  It was perhaps a bit aggressive however when someone really seemed to want me to mail them something I would say "well I am going to be near your home later this week visiting a client so I will be sure to drop off that info you wanted when i pass by your home."  If I thought it was someone I had a chance to do business with sometime over the next six months I think it was a good thing to do. It definately surprises people and makes them remember you.

I would also mail "a-la Edward Jones," a brief thank you note to everyone who would talk to me.  THen I would immediatly put them in my drip funnel.  I opened accounts.  Not the kind I would want now days but if you're tough, you can make it work.

Nowdays if I had to cold call it would be 100% to business owners.

I agree that 'if' you cold call - you've got to put together a quick, product focused, script.  Almost to the point of, 'are you a bond buyer?' - yes or no. 

I'm anti-cold calling (because I know better).  But I also believe that it's a great exercise for someone new - or a bit rusty.  Nothing helps you overcome objections and nervousness like a few hundred cold calls.  If you perform this activity as a training exercise - get a list of trailerhomes to call.  This way you're less worried about rejection (since you won't get any business from this 'high propensity to buy' group) and you can focus on refining your conversation.

I'm working tirelessly to figure out what does and doesn't work. I have door knocked religiously for the past 2 weeks and out of nearly 200 some homes have not found one decent lead (after calling them later and inviting them to a free second opinion consultation).

a coworder is telling me to have a wholesaler pay for a list and cold call that and pitch muni bonds. I hate the idea of calling people telling them what to buy before getting to know anything about them but I guess any way I can get my voice heard is useful......isn't it?

Been reading the local paper looking for community gatherings and made a few calls.

This business is tough as ****, but just as fun! I had my first client meeting yesterday with a senior sitting in on it. The client expressed how please she was and it was a natural high.

I just need to find more people like her...

[quote=apprentice]

I agree that 'if' you cold call - you've got to put together a quick, product focused, script.  Almost to the point of, 'are you a bond buyer?' - yes or no. 

I'm anti-cold calling (because I know better).  But I also believe that it's a great exercise for someone new - or a bit rusty.  Nothing helps you overcome objections and nervousness like a few hundred cold calls.  If you perform this activity as a training exercise - get a list of trailerhomes to call.  This way you're less worried about rejection (since you won't get any business from this 'high propensity to buy' group) and you can focus on refining your conversation.

[/quote]

Apprentice, I have to disagree. First, as you may be aware, the largest producers in this business all built their books from cold calling. None of them liked it. They all liked the lifestye it afforded them. Let's take just one of them, Rick Desoto from UBS. Rick is in the 3 million dollar range in production. Since leaving UBS my info is a bit dated, but in 2003 Rick and one registered assistant opened over 80 new accounts in one month on a new issue muni. All of those accts were opened via cold calls. New AUM from that one bond, almost $8,000,000. Some of those people were one shot wonders, others have gone on to become real clients. So please, don't say it doesn't work. That said, cold calling isn't for everyone.

As for calling trailer park leads, two points: Don't judge a book by it's cover. My wealthiest client drove a 5 year old Dodge mini van. His account with me was over $5 million. Second: Don't ever be afraid to talk to wealthy people. They're just people, for crying out loud. Just like you. If you want to practice, call your parents, siblings and friends. In fact, you should practice with them. Then get out a D and B directory and start calling the top management of the S & P 500. When they get on the phone read your script and go for it. You have nothing to fear, nothing to lose, and everything to gain.

Personally I've propected and pitched to many top S & P 500 executives. Landed some as clients. Even counted a major sports team owner as a client. He invested millions with me. Lost him in a move that presented a conflict, and yes, that hurt. But I got him and others because I  picked up the phone and dialed his number. I could have not called him, telling myself cold calling doesn't work, he'll never get on the phone, I'll get screened, I'm not good enough, he's already got a broker, etc,etc,etc. But I didn't, I made the call and got a client. One of my charges got James Kinear as a client. At the time, Kinear was the President and CEO, I believe, of Texaco. Maybe he was the chairman, I don't remember exactly. Then there was Gillette.We had so many Gillette executives we lost track. Same with Boeing. However, our bread and butter was the local business owners. Small fry in the big league world of the Fortune 500, but with more wealth than the average Gillette VP. A lot more!

I'm a big believer in it takes a lot of failures to get to a success. You have to fail and not be afraid to fail in order to succeed. With regard to cold calling there is only one way to find out if it works, get out there and do it. Get out there and fail. If you fail enough, my bet is that you'll succeed. And if you do fail at cold calling, at least you know, it's off the list, one step closer to finding what does work for you.

Ana, you've got the wrong idea about pitching specific products. If you call with a muni idea and that doesn't wash with the prospect, you immediately find out what they're interested in and go from there. Ideally, you should have several ideas from different investment categories, laid-out in front of you (when making cold calls), so that they're within easy reach. For example, you should have a muni idea, stock idea, corporate bond idea, etc.

And get creative with your ideas. For example, if you're calling prospects in Houston, TX, look for some Houston or Texas muni's to sell. If P&G is a major employer in the area you're calling, look for some P&G bonds and/or recommend the stock.

If you can't tie-in a bond or stock to a particular calling area, then get topical. Watch the news and see what's on everyone's mind, then tie-in your recommended stock/bond that way. For example, if Pfizer is making the news about some potential wonder drug, pitch either the stock or bond the next day.

Good luck!

Good stuff, BondGuy!

I'm reading a book called, "The Complete Idiots Guide to Cold Calling" written by Keith Rosen. Excellent bathroom read and lots of great advice.

Good Luck,

Dan

[quote=anabuhabkuss]

a coworder is telling me to have a wholesaler pay for a list and cold call that and pitch muni bonds. I hate the idea of calling people telling them what to buy before getting to know anything about them

[/quote]

Get over this. To have a busines you'll need clients. Cold calling on munis is a proven way to get them. Don't worry, people who don't need munis won't buy them. Once a customer has bought a muni and a few other fixed income products from you call them and say "Helping you find the best yields around is only a small part of what we do over here at Whack'em Securities. As part of our wealth management advisory service we offer comprehensive financial, retirement, and estate planning. I'd like to get to together with you and Mrs. You to see if there is any way we can help you improve your financial situation and attain your goals. Are evenings or afternoons better for you?" And there you have it! The world is now round again and in perfect alignment with the Kool Ade you've been fed about the way this business is supose to work. You meet, you penetrate the account or you've got a fixed income buyer. Either way, it's a win,win,win.

Freakin’ sweet. Thanks guys. I just need a change of mentality. I’ll put a plan together tomorrow.

Objection: "Im 80 years old. Im too old to invest!"

Your right, never mind...If I may make 1 suggestion..DONT BUY GREEN BANANAS

Sorry..couldnt resist

Bondguy/tjc...good stuff...and good to see you out of the closet.  Be careful with what buttons you press going forward, OK?!!

Hey everyone.  Great posts!  Im soaking everything in.  Besides trying to alter my direction of cold call responses, I was wondering if anyone can shed some light on their past or present cold calling routine. 

Specifically, I've been introduced to different methods and ideas on this subject.  For example, if your starting out as a new broker its flat out human nature to try to hold onto any prospect who sheds even the slightest interest in your pitch.  This is mainly because you don't have any prospects to begin with and you'll take any you can get.  

Is there a rule of thumb that you follow to decide whether they're worth the effort to even call back, send a letter, or even make an appointment with in the future? 

Here are two basic scenarios I've been introduced:

1.)  I've met one successful broker who told me that even if the person is happily with another broker, rude, flat out says "no,"  or hangs up on him he will still send them info and follow up if he KNOWS that they have money or a good account. He was so persistent he actually got one person who fullfilled the criteria used above to be a client.

2.)  Another successful broker stressed the opposite.  He told me not to waste my time with mailings or callbacks even with people who show modest interest if I KNOW they don't have money, haven't invested in stocks/bonds before, or if they do have some money (good enough for a minimum trade) I shouldn't even bother.  He said to basically keep calling until I get "qualified" prospects who have invested before since its more efficient and saves time.  He too, is also sucessfull. 

So for the last month I have 20-30 cards of prospects that I cold called who were nice and gave me permission to call back, to send info, and some who seemed genuinely interested (only they didn't have money at the moment.)  In all honestly, anyone who sounded like they raised their eyebrows for a slight moment on what I had to offer was automatically put on my prospect card and sent a detailed product letter.  I know that this is not probably the best way to do things, but its either try keep fishing with what you got or keep leaving the tadpoles behind to hook that nice juicy trout or GULP...whale.

So, I am hoping to see what others feel.  After receiving moderate to high interest in your idea, what do you do next? Do you automatically try to qualify them on the spot to see if they have any money first or try to take it relatively slow not to scare them off with those blunt/direct questions and get into that later once they are more comfortable with you?

Question:

How does your cold calling approach change, if at all, when you are at a wirehouse?

I know that the minimums are larger, and that weeds out some potential prospects. I have been reading this thread, which is great, but I am wondering if these answers are aimed at the EDJ's and smaller regional shops or the wirehouses?

[quote=Helter Skelter]

My cold calling days were the most fun and exciting days of my career.

[/quote]

I hope to feel the same way some day.  I am just starting out so I make a game out of it - if it works for anyone, it'll work for me, too.

[quote=doberman]Good stuff, BondGuy![/quote]

Same backatcha. Your post shows the rookies the nuts and bolts of how to get this done. Good stuff!

[quote=Indyone]

Bondguy/tjc...good stuff...and good to see you out of the closet.  Be careful with what buttons you press going forward, OK?!!

[/quote]

Yeah, I've made it a policy to stay off the profile page going forward. Of course that doesn't mean I won't find some other way to delist myself.

[quote=tsaem]

Hey everyone.  Great posts!  Im soaking everything in.  Besides trying to alter my direction of cold call responses, I was wondering if anyone can shed some light on their past or present cold calling routine. 

Specifically, I've been introduced to different methods and ideas on this subject.  For example, if your starting out as a new broker its flat out human nature to try to hold onto any prospect who sheds even the slightest interest in your pitch.  This is mainly because you don't have any prospects to begin with and you'll take any you can get.  

Is there a rule of thumb that you follow to decide whether they're worth the effort to even call back, send a letter, or even make an appointment with in the future? 

Here are two basic scenarios I've been introduced:

1.)  I've met one successful broker who told me that even if the person is happily with another broker, rude, flat out says "no,"  or hangs up on him he will still send them info and follow up if he KNOWS that they have money or a good account. He was so persistent he actually got one person who fullfilled the criteria used above to be a client.

2.)  Another successful broker stressed the opposite.  He told me not to waste my time with mailings or callbacks even with people who show modest interest if I KNOW they don't have money, haven't invested in stocks/bonds before, or if they do have some money (good enough for a minimum trade) I shouldn't even bother.  He said to basically keep calling until I get "qualified" prospects who have invested before since its more efficient and saves time.  He too, is also sucessfull. 

So for the last month I have 20-30 cards of prospects that I cold called who were nice and gave me permission to call back, to send info, and some who seemed genuinely interested (only they didn't have money at the moment.)  In all honestly, anyone who sounded like they raised their eyebrows for a slight moment on what I had to offer was automatically put on my prospect card and sent a detailed product letter.  I know that this is not probably the best way to do things, but its either try keep fishing with what you got or keep leaving the tadpoles behind to hook that nice juicy trout or GULP...whale.

So, I am hoping to see what others feel.  After receiving moderate to high interest in your idea, what do you do next? Do you automatically try to qualify them on the spot to see if they have any money first or try to take it relatively slow not to scare them off with those blunt/direct questions and get into that later once they are more comfortable with you?

[/quote]

First, keep calling until you have more leads than you can call back. Then call some more ,and finally, call some more. In fact, NEVER stop cold calling. He/She who dials most, wins.

Next, who is a prospect? A prospect is a person who is interested in what you're offering AND has money. Qualify all prospects for both. If the prospect is only mildly interested you are most likely wasting your time. Qualify them further for what does get them hot. If a prospect doesn't have any money now ask them if that is a permanent condition. "Do you have any CDs coming due in the next 3 to 6 months or are you just poor?" OK. you can leave out the just poor part if you're not in a smart ass mood. If they have money coming due in the future that's good news! Now you have all that time to build a relationship with them. Most brokers/advisors put the prospect in a tickler file, electronic or paper, and call them back about a week or two before the money is due. BIG MISTAKE! On the first contact send the prospect the info proffered. Call'em back in a week and qualify them for THEIR interest and RISK TOLERANCE. Send them something, anything, that gets close to what they like. One month later call them again just to touch base. Next month send them info on another investment that rings the bell for them. All along send them marketing pieces about you or your company. Call or mail to them at least once a month until the money comes due. Then five, six months down the road when the money is coming due you have established your identity with these folks. You will be first in line to get the assets. If you don't get them reevaluate on a case by case basis.

How do you qualify? By asking questions. Have a list of questions ready. What kind of investing do you like to do? Do you buy stocks/ bonds /mutual funds? Why do you invest? What is a comfortable amount for you to invest whan you see something you like? If we came to you with something you really liked, how long would it take you to raise $100,000 for an opportunty such as that? Could you and three of your best friends raise a thousand dollars? How about if I threw in a case of Bud? You get the idea.

Pitch and miss- These are the fence sitters. leads that are so old they're starting to grow mold. For these we have a special day reserved. It's pitch and miss day. Find a really good bond/preferred stock. Call these leads and PITCH them the bond/stock. and then close them. Get outrageous. Keep closing;

"I told you I don't have any money"

Mr. Jones, with all due respect, you own the largest car dealership in the state of Indiana. I'm not calling you with our second best idea. I'm calling you with our best idea. A prefered stock yielding over 7% which is exactly what you like to invest in. Let's start small, with just a thousand shares. That's only $25000. How would you like the account to read?

"I've already got a broker"

Yes, so you've told me. I'm not asking you to interupt that relationship. Nor is that my goal. But quite frankly, your broker is not offering you this opportunty, 7%, I am. Let's start small, with only 1000 shares, give us an opportunty to show you how good we are and lock in 7%. Would you like to open the account in joint name or just for yourself?

"I really don't need another broker"

Believe me I understand, many of my best clients felt the same way when we first started. Today, for most of these people I'm their only financial advisor. Where our relationship goes from here is up to you. But let's be honest, if you were totally satisfied with your broker you wouldn't have taken my call. But you did, because you wanted to hear what I had to say. And you wouldn't still be on the phone if you weren't interested in what I'm offering. Your broker isn't offering you this, I am. I can give you up to 5000 shares of this deal to get us started together or we can start with just 1000 shares. What level is more comfortable for you?

OK, you get the idea, it's either click, dial tone or keep closing.

[quote=BondGuy] 

First, keep calling until you have more leads than you can call back. Then call some more ,and finally, call some more. In fact, NEVER stop cold calling. He/She who dials most, wins.

Next, who is a prospect? A prospect is a person who is interested in what you're offering AND has money. Qualify all prospects for both. If the prospect is only mildly interested you are most likely wasting your time. Qualify them further for what does get them hot. If a prospect doesn't have any money now ask them if that is a permanent condition. "Do you have any CDs coming due in the next 3 to 6 months or are you just poor?" OK. you can leave out the just poor part if you're not in a smart ass mood. If they have money coming due in the future that's good news! Now you have all that time to build a relationship with them. Most brokers/advisors put the prospect in a tickler file, electronic or paper, and call them back about a week or two before the money is due. BIG MISTAKE! On the first contact send the prospect the info proffered. Call'em back in a week and qualify them for THEIR interest and RISK TOLERANCE. Send them something, anything, that gets close to what they like. One month later call them again just to touch base. Next month send them info on another investment that rings the bell for them. All along send them marketing pieces about you or your company. Call or mail to them at least once a month until the money comes due. Then five, six months down the road when the money is coming due you have established your identity with these folks. You will be first in line to get the assets. If you don't get them reevaluate on a case by case basis.

How do you qualify? By asking questions. Have a list of questions ready. What kind of investing do you like to do? Do you buy stocks/ bonds /mutual funds? Why do you invest? What is a comfortable amount for you to invest whan you see something you like? If we came to you with something you really liked, how long would it take you to raise $100,000 for an opportunty such as that? Could you and three of your best friends raise a thousand dollars? How about if I threw in a case of Bud? You get the idea.

Pitch and miss- These are the fence sitters. leads that are so old they're starting to grow mold. For these we have a special day reserved. It's pitch and miss day. Find a really good bond/preferred stock. Call these leads and PITCH them the bond/stock. and then close them. Get outrageous. Keep closing;

"I told you I don't have any money"

Mr. Jones, with all due respect, you own the largest car dealership in the state of Indiana. I'm not calling you with our second best idea. I'm calling you with our best idea. A prefered stock yielding over 7% which is exactly what you like to invest in. Let's start small, with just a thousand shares. That's only $25000. How would you like the account to read?

"I've already got a broker"

Yes, so you've told me. I'm not asking you to interupt that relationship. Nor is that my goal. But quite frankly, your broker is not offering you this opportunty, 7%, I am. Let's start small, with only 1000 shares, give us an opportunty to show you how good we are and lock in 7%. Would you like to open the account in joint name or just for yourself?

"I really don't need another broker"

Believe me I understand, many of my best clients felt the same way when we first started. Today, for most of these people I'm their only financial advisor. Where our relationship goes from here is up to you. But let's be honest, if you were totally satisfied with your broker you wouldn't have taken my call. But you did, because you wanted to hear what I had to say. And you wouldn't still be on the phone if you weren't interested in what I'm offering. Your broker isn't offering you this, I am. I can give you up to 5000 shares of this deal to get us started together or we can start with just 1000 shares. What level is more comfortable for you?

OK, you get the idea, it's either click, dial tone or keep closing.

[/quote]

If you'd like to see an example of this prospecting method (which definitely works) rent "Boiler Room". 

[quote=Boomer]

Question:

How does your cold calling approach change, if at all, when you are at a wirehouse?

[quote=Boomer]

Question:

How does your cold calling approach change, if at all, when you are at a wirehouse?

I know that the minimums are larger, and that weeds out some potential prospects. I have been reading this thread, which is great, but I am wondering if these answers are aimed at the EDJ's and smaller regional shops or the wirehouses?

[/quote]

We're probably going to have to start an new thread entitled "Don't drink the Kool Aid." That is, don't buy into the wirehouse mantra of big game hunting and feeing everyone up. That works for them. It doesn't work for over 70% of their trainees, who fail within the first two years. Wealth management is a worthy goal. To be a wealth manager, first you need some wealth to manage. How do you get that money, those clients?

This thread about cold calling is not aimed at EDJ or regionals. It's aimed at everybody.

There are a few things to be aware of. First, most of the wirehouse trainers and managers and all of the bank managers have never advised anyone about how to invest. They've never done it. Yes there are some who have, a dying breed, but most haven't. These people are clueless on how to do this. This being building a business. Yet, the will spout chapter and verse on how to do it. Actually, they're telling you what the company wants. OK, you have to listen. But, it's your career.

Management talks out of both sides of its mouth.- This isn't a bad attitude, it's a basic truth. Take my example of Rick Desoto. UBS is in full wealth management pursuit mode. The company is building product to meet the needs of the very wealthy. Referrals, networking, and seminars are the preferred marketing channels. Cold calling isn't supported. In fact, it gets the same cold shoulder response from management as it does from the street. "Do you really think rich people will respond to a cold call?" they ask. Yet, they roll out Desoto on  national sales calls to give everyone his enthusiatic approach to cold calling. The answer, by the way, is that rich people are just... well, people. Start small with them on a bond or something they like, give them service like they've never seen, penatrate the account, AND WONDER OF WONDERS, YOU'VE GOT SOME WEALTH TO MANAGE. ALONG WITH REFERRALS.

To answer the question, don't change anything. If you want only large accounts then aim your prospecting at those people and close big. Instead of closing for 25 or 50k, close for 250k. The largest account I opened from a cold call, on that first call, was $500,000. That's right, $500k over the phone on a cold call. $50 and $100K is routine. One the other side of that, if I know there is money there, I'll open on $10K. In fact, I was just reviewing an account I opened for 10K in 1991. Today it's $687,000.  Another client that I talked to last week started with 25K in 1992. Today his accounts total over $2,000,000. Want to be a wealth manager? That's how it's done.

It's out there. All you need to do is go after it.