How Do I Qualify Dinner Seminar Prospects?

[BiggitySwat]

From all the events of late what everyone has lost is trust...trust in everything. You have people like my parents in their late 70's and the only thing happening with their money is walking into their bank and getting another CD. They cannot afford trust.

I understand. And I also understand that people need to be educated about an illiquid bank CD making negative real returns after taxes and inflation, and also that many banks have fallen and will continue to fall, putting that shiny FDIC insured sticker to the test.

It's not just the CD folks that I find are scared, it's also folks with wirehouses/stockbrokers and in aggressive mutual funds! To them, a change from their familiar fund families and "asset allocation" into something different scares them to death and paralyzes them.

Point being - folks like your parents obviously have an agenda for their money and may not want to make a change, even if that is a positive change. But how does this situation help me in trying to grow a business and enjoy my job more via my seminars Most importantly, their perceptions of trust are out of my control, how exactly do you change these perceptions?

Edit/PS: I have found it easier to sell insurance (life and LTC) in this climate than before, but the reason why I am hesitant to shift to more product sales versus service sales is that I enjoy portfolio design and implementation more than selling insurance products as my core offering.

 

[moonlightandmargaritas]

But how does this situation help me in trying to grow a business and enjoy my job more via my seminars Most importantly, their perceptions of trust are out of my control, how exactly do you change these perceptions?

The first step would be in realizing it's not all about YOU, it's all about THEM.

 

[Charpress]

Trust is a big issue and so is market volatility. Where we used to be able to move money in one or two meetings, now it takes four or more.

Don't forget that people do not know the basics of what you are about and what you do. We get this out of the way in one of the first slides in our presentations. Why they (the audience) is there -the benefit for them, and why we are there and, by implication, what is in it for us that justifies a free meal.

People need to understand some real basics, for example: that you never have custody of their money -not at any point. You don't have to blatantly say "we are not like Stanford" -you can do that with some subtlety.

By the way, I tried to get someone to move $1 million about 2 years ago and did not get anywhere even after four meetings. I ran into him recently and he sheepishly admitted he put the whole thing in Stanford's 8% CDs. Ouch. "If I ever get any of it back, I will put it with you." Not holding my breath.

 

[indaville]

The first step would be in realizing it's not all about YOU, it's all about THEM.

Great point! Nobody cares how much you know, until they know how much you care.

What percentage of your first appointments are becoming clients? You might have a good closing ratio just not enough "at bats?" I deal with a lot of the same issues you are complaining about, but my schedule is always close to full. So I don't care if someone wants to stay with their broker that just lost them 40+%, the next person I meet will want my help, that is my attitude.

Matt

Matt

 

[BiggitySwat]

The first step would be in realizing it's not all about YOU, it's all about THEM.

I saw this one coming, and I understand that I may have come off as selfish. Rest assured that I put the clients' needs first at all times, and I feel that I have been doing this because of my strong relationships with my current book. My clients and prospect know how much I care, but sometimes caring isn't enough to justify making a change IMHO.

Also understand that I moreso see my practice not as "them" or "me" but "us." My clients understand from the beginning that I desire a good relationship and that it takes two parties to make it work. I disclose that I am earning a living via fees and commissions, and in exchange, the client has value added services and products that can enhance their quality of life. I have not had one prospect or client wrinkle their nose at that. I think it's safe to say that my issues with prospects does not come down to conflicts of interest, lack of disclosure, or any perceived shadiness.

Great point! Nobody cares how much you know, until they know how much you care.

What percentage of your first appointments are becoming clients? You might have a good closing ratio just not enough "at bats?" I deal with a lot of the same issues you are complaining about, but my schedule is always close to full. So I don't care if someone wants to stay with their broker that just lost them 40+%, the next person I meet will want my help, that is my attitude.

Matt

Matt

Matt, I think we talked about this before on the phone months ago when I was really getting started. My first appointments never become clients (except for once in my life, which was refreshing); I run my sales process like:

1st appointment: build rapport, credibility, ask questions about their needs, goals, desires, expectations of me, etc. Then I go into the statements and fact finder they brought and give very basic advice and generally directions they can go in. I then book the next appointment at that time.
2nd appointment: Go over concerns and discussion from last time. I will usually have prepared a basic (very basic) proposal for them and give them more information about how I can accomplish their needs, and also share stories on how my other clients have made the right decision in working with me. I will then offer to have them make me the advisor on their accounts - I explain that I need them to open an account and fill out an ACAT form to rollover their assets so I can advise them on it. If they really hesitate, I pull back and offer to have them rollover a portion of their money and "try me out."
3rd appointment: I go over a proposal for a financial plan/portfolio that will address the issues and concerns they shared with me earlier, and also have them sign the subscription documents to purchase securities, annuities, insurance, etc. within their account with me to get started.
4th appointment: I will usually have dinner with the client or a drink and go over their portfolio again after investment confirmations come in, and also "lock it in" by reassuring them of the benefits that came with their decision to embrace change.
Ongoing service: I will call them from time to time, usually once every few months, to check up on them, mail newsletters out, and invite them to quarterly client appreciation events/referral drives.

My entire process gets screwed up during appointment 2 or 3 when the prospects refuse to rollover any money so I can start my work. I remind them I cannot give them financial planning and advice if my hands are tied, and also I feel uncomfortable giving them heavy/serious professional advice on their other accounts when they won't name me as advisor. (or, if they're in CDs, they state they're happy where they are and don't want to make any changes. This doens't make sense because I always shut down CDs using an OMFN study in the beginning of our first meeting, proving that CDs earn negative returns). This explanation works, sometimes it doesn't. *OR*, they say they have to think about it, and will call me when they're ready. I feel uncomfortable with accepting this objection because they never do call back and just procrastinate into the grave. ** I notice that my "A" prospects who are ready to do business, either small or large, already have a financial need or fear on the table when they meet with me. A majority of the prospects I've met with lately, either in brokerage accounts or CDs, don't care either way - they have concerns, but these concerns are not enough to motivate action. Most of my latest prospects, after I point out their tax liability with nonqual CDs or market risks in being 90% allocated to equity funds, really respond with a shrug and a giggle and say "oh well." (!!!!)

About my seminar frequency: I know the "top producers" in my broker dealer really work the numbers and do 8 seminars a month. For the record, I do two seminars a month now, and scheduled to do 4 next month. I would like to get up to 8, but don't have the money (though I can take out a loan to get up to this frequency, so it's an option). You think that my prospecting issue is more related to the "numbers game" or does it come back to my target market + my closing technique (or lack thereof).

 

[Crabcake Johnny]

I understand. And I also understand that people need to be educated about an illiquid bank CD making negative real returns after taxes and inflation, and also that many banks have fallen and will continue to fall, putting that shiny FDIC insured sticker to the test.

It's not just the CD folks that I find are scared, it's also folks with wirehouses/stockbrokers and in aggressive mutual funds! To them, a change from their familiar fund families and "asset allocation" into something different scares them to death and paralyzes them.

Point being - folks like your parents obviously have an agenda for their money and may not want to make a change, even if that is a positive change. But how does this situation help me in trying to grow a business and enjoy my job more via my seminars Most importantly, their perceptions of trust are out of my control, how exactly do you change these perceptions?

Edit/PS: I have found it easier to sell insurance (life and LTC) in this climate than before, but the reason why I am hesitant to shift to more product sales versus service sales is that I enjoy portfolio design and implementation more than selling insurance products as my core offering.

For my parents it's about capital preservation and being able to sleep at night. I don't think my dad gives a **** if his net return after inflation is -1% - he wants to wake up and know his money is there. The state guarantee corp does NOT offer the same protections as the FDIC...unless we want another 15 page thread on that subject.

 

[BiggitySwat]

For my parents it's about capital preservation and being able to sleep at night. I don't think my dad gives a **** if his net return after inflation is -1% - he wants to wake up and know his money is there. The state guarantee corp does NOT offer the same protections as the FDIC...unless we want another 15 page thread on that subject.

Understandable. Many of my prospects seem to feel the same way. But if they feel that way, I am wondering what drives folks like that to my events *AND* book multiple appointments with me, when they know I'm not a banker (though I used to work for two banks), but a planner that uses annuities and securities? (This is outlined in my seminar brochure that virtually everyone reads over while waiting for the event to begin).

I know these folks aren't platelickers, and they do care about capital preservation. But why hear an advisor out when the intention is just to keep doing what you're doing anyway....and from an advisor's point of view, how do you identify prospects at seminars who are ready, willing, and able to embrace positive change. This is the core of my concerns right now because I can't keep doing something that's not working, even if I'm having fun - it's the definition of insanity.

PS/EDIT - Not to turn this into a political discussion, but after getting to know my current clients, their referrals, and many of the prospects to come through my door, 90% of them voted for Barrack Obama. When I ask why (in a polite, curious way), they always mention that they felt we needed to embrace change. Change you can believe in. Well hell, if the prospects voted for change in our government why not change $25K of your 100K Bank CD portfolio and try out an FIA or nontraded, corporate backed REIT?

 

[annuityseller]

Here's a thought!! Rule of 100?? anyone heard of it?? Why have all the stock jockeys got seniors at 80 or 90% equities??where's the safe money??I've seen it over and over and over on brokage statements(some times in the millions)I see people on TV saying they lost their shirt at 75 ?? Where are the complaince people??I had a retired minister say to me when I looked over his trust account (balance 1.5 million) oh last year it was 3 million.These people lost 1.5 million and the broker did nothing, I tried to get them to take action and the couple wouldn't because they's been with this brokerage house when the wife's father was the owner.and this loss was before this last down turn!!!!!!!! loyalty for some one that lost you millions???????????and he's even half a country away??

 

[indaville]

My entire process gets screwed up during appointment 2 or 3 when the prospects refuse to rollover any money so I can start my work.

Do you know your ratios? How many come in for the 2nd appt, how many become clients, etc. Usually 1/3 of prospects go down the planning trail, 1/3 go for a single sale, and 1/3 should go in the garbage pail.

You think that my prospecting issue is more related to the "numbers game" or does it come back to my target market + my closing technique (or lack thereof).

Could be all of the above. Knowing your ratios would really help, you do track them right? Running large numbers helps. Just today I had 6 first appts. Two of them were prospects like you are dealing with, 1 had CD's and would not budge, 1 had a stock broker who they still like after a 35% decline last year. Do I care about the two that got away, no. I was able to help 4 people today that needed AND wanted my help. If I only had 2 appts and I did not help either it would not have been a good, but b/c my activity is where it needs to be I had a good day.

Matt

 

[BiggitySwat]

Could be all of the above. Knowing your ratios would really help, you do track them right? Running large numbers helps. Just today I had 6 first appts. Two of them were prospects like you are dealing with, 1 had CD's and would not budge, 1 had a stock broker who they still like after a 35% decline last year. Do I care about the two that got away, no. I was able to help 4 people today that needed AND wanted my help. If I only had 2 appts and I did not help either it would not have been a good, but b/c my activity is where it needs to be I had a good day.

Matt

Thanks, Matt. I have rough numbers as far, but not tracked down to the bone. FYI I just tried calling your office line, but it seems you've left for the day
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Here's a thought!! Rule of 100?? anyone heard of it?? Why have all the stock jockeys got seniors at 80 or 90% equities??where's the safe money??I've seen it over and over and over on brokage statements(some times in the millions)I see people on TV saying they lost their shirt at 75 ?? Where are the complaince people??I had a retired minister say to me when I looked over his trust account (balance 1.5 million) oh last year it was 3 million.These people lost 1.5 million and the broker did nothing, I tried to get them to take action and the couple wouldn't because they's been with this brokerage house when the wife's father was the owner.and this loss was before this last down turn!!!!!!!! loyalty for some one that lost you millions???????????and he's even half a country away??

I think it's just the fact that there is ignorance out there on both the consumer and advisor end. I have seen financial advisors from wirehouses (we call them stockbrokers/mutual fund salesmen) twice my age and with twice the experience who have seniors in stuff like 90% international growth equities. These portfolios bombed hard, sending their clients into a panic, and the best thing they can say is "stay in, stay in, stay the course, don't panic."

I really do feel that relationships are 99% in this industry and actual performance/numbers is 1%. Unfortunately I'm better at portfolio design and putting clients into awesome setups than being the calming voice in the storm