How common is it for one to have the ability to cold call clients the way Chris Gardner in the movie did? Does it work today as opposed to the early 80s?
From personal experience, no.
I lined up the cold calls like that when I first started my job. Its sometimes a numbers game, put out enough, and you’ll get a bite.
Yeah I used to cold call at my first job. It is a lot less effective than it once was. In the 80’s, there wasn’t as much of an emphasis on comprehensive financial planning. You were more a stock broker and that’s it. You cold called people and pitched stock. Nowadays, that strategy doesn’t really work anymore. You build a business focusing on financial plans (or an aspect of it) through referral business.
“You build a business focusing on financial plans (or an aspect of it) through referral business”. If referral business works now, why didn’t they go after it back then? Or was it easier to just pick up the phone and just dial? Today, the “Do not call list” and the internet seem to hinder the effectiveness of cold calling. I wonder what the top tier wirehouses out there doing? Are they still “dialing for dollars”?
RycherX Wrote: ------------------------------------------------------- > “You build a business focusing on financial plans > (or an aspect of it) through referral business”. > > If referral business works now, why didn’t they go > after it back then? Or was it easier to just pick > up the phone and just dial? > > Today, the “Do not call list” and the internet > seem to hinder the effectiveness of cold calling. > I wonder what the top tier wirehouses out there > doing? Are they still “dialing for dollars”? A successful broker I know cold calls small businesses. A business may not be on the do not call list. So, he takes the yellow pages and cold calls businesses in the auto industry since he family business is just that. If he got tired of cold calling, he would visit the business cold and pitch the owner of the establishement on the spot. However, cold calling people in the area from a purchased list is very very hard. The firm I was at would purchase leads of new homeowners who have not yet put their landline on the do not call list.
I think the talent that Chris Gardner has is 1 in 1,000. To build a book from scratch is very impressive. I believe many brokers acquire accounts from brokers who flunked out. Hence, winning the war of attrition. Then, they work the relationships from there and obtain referrals that way. What’s impressive about Chris Gardner was that he built his book without connections (rich friends or family)
It’s not that referral business didn’t work. Of course it worked and it always will work. Your network is the best way to gain clients. All I’m saying is back then cold calling worked better than it does now. Another method was direct mail. That worked back in the 80’s and 90’s a lot better than it does now. When I was in the business, all of the successful people had a referral-based business and that’s who most large wirehouses try to hire in the first place. They want people with vast personal and professional networks. RycherX Wrote: ------------------------------------------------------- > “You build a business focusing on financial plans > (or an aspect of it) through referral business”. > > If referral business works now, why didn’t they go > after it back then? Or was it easier to just pick > up the phone and just dial? > > Today, the “Do not call list” and the internet > seem to hinder the effectiveness of cold calling. > I wonder what the top tier wirehouses out there > doing? Are they still “dialing for dollars”?
topher, From what I gather, large wirehouses rarely recruite 23 year old cold callers who don’t have an existing network. It seems that the best odds of doing well as a financial advisor or even a Private Wealth Manager is to enter in your 30s or 40s. Going in there with credibility and a network of people who respect you and trust you is the way to go.
i am just starting in the business as a 23 year old, cold calling since i dont obviously have a lot of contacts, its true they wont even hire you unless you have an in when you’re young, the cold calling is really slow to start though
its Happyness in the movie by the way
I use to cold call life insurance leads I bought for myself. I guess it wasn’t really a cold call, but more of a warm call. Regardless, it is a tough tough business to be in. Every 20 clients you gain, maybe one was a large commission payout. I believe the best route to go is to work at a Bank Brokerage, take referrals from the other side of the business, and continue establishing your relationships. Granted, your payout will be lower than a wirehouse, but you can negotiate for a higher payout once you become a top producer.
for my current internship, one of the projects i am working on is to cold call companies. i get so nervous picking up the phone… any advice?
the first call is always the hardest. after a good call, always make another. smile, they can hear it.
its amazing how quickly you become comfortable, my first few weeks were just awful, now i dont even think twice about it, best advice is to just keep going, after a few weeks or months, you will laugh about how hard it was in the begging and how bad you were, i really wish that i had taped my first calls now, i would laugh like crazy at how bad i started
I know that when people reject you when cold-calling they are rejecting your pitch, not you personally, but I just can’t help feeling crappy. I wanna be like “F U! You think I’m calling because I want to??!!!” I just don’t know what I’m afraid of! I wonder what goes through their minds when they pick up the phone amidst doing something busy/important, and hearing a sales pitch from the other end.
rockstar, If you believe whole-heartedly in what you’re selling, you’ll shrugg off all the rejections. I think fear has alot to do with not believing in yourself/product/or service. Alternatively, you can cold call leads of people who wanted a certain product/service for a certain $ per lead, which is not as cold as randomly calling. Initially, the cost will eat into your payout, however, you’ll eventually catch a whale.
you’re totally right. I definitely believe that in order to sell well, you must be convicted in what you’re selling.
rockstar…try to borrow a headset… walk around and talk…
that’s a good idea. i will try that. ill close my door too so ppl don’t think i’ve gone mad