7 Reasons Why Cold Calling Is Still The Best Way To Contact 401(k) Plan Sponsors, And Why You Should Do The Calling

7 Reasons Why Cold Calling Is Still The Best Way To Contact 401(k) Plan Sponsors, And Why You Should Do The Calling

Besides being given a plan that you would have otherwise pursued, I believe of all available ways to connect with your target 401(k) plan prospects is by using the telephone and cold calling. Cold calling is not dead, not even a little bit.  If cold calling were dead – why are there lead firms willing to sell you leads of 401(k) plans they cold called?

And I believe that owners cold call best. Whether you are the team leader or solo Advisor, you are an owner.  And owners like talking with owners, key executives like talking with owners.  These are the seven reasons why I believe cold calling is the most effective form of growing your 401(k) business where you control your message and pursuit of plans that make sense to you.

  1. I believe you are responsible for making the first impression with a target plan prospect. When either you or someone from a lead firm initially connect with the prospective decision maker, according to Dr. Amy Cuddy* the prospect immediately asks themselves two questions; 1. Can I trust this person? 2. Can I respect this person? Who do you want responsible for the first impressions with the prospect? A caller you hire will not be able to communicate your value better than you.
  2. It is a small amount of time – 30 minutes to two hours a day based on your goals. It’s daily “exercise” to grow your business and accomplish your goals.
  3. Your experience is a differentiator in the marketplace. The longer your length of service the greater distinction you can make between yourself and your competition. And your competitors may consider cold calling too difficult, ineffective and demeaning.
  4. Calls can last longer because the decision maker can hear your passion and focus to assist them and their employees to achieve their goals with the company plan.
  5. On the phone you can reach as many potential plan prospects in 1 or 2 hours than the more expensive ways of buying leads, buying lunch for referral sources and time to cold walk and drop by target plan prospects.
  6. Telephone prospecting relays your value and is measurable. And you can quickly determine the quality of the prospect and whether to continue to pursue them or not.
  7. If the 401(k) conversation isn’t going well, you can pivot to discuss the most important company or personal financial need they have at the time.

Even if the decision maker doesn’t take your call, leaving a quality voice mail, month after month demonstrates your persistence. Persistence is easily recognized by the decision maker because it is a quality they admire about themselves.  As you continue to call they will reward you and take your call.

Cold calling is just one activity you can execute to process Cold prospects. I strongly encourage the development of a referral network with your continued success.  Educate your referral sources about the plans you are pursuing and ask them who they know at each.  But unless you are overwhelmed with qualified referrals, I believe a part of your day should be spent processing Cold plan prospects and the most effective way of doing that is cold calling.  Smile and dial.

* Dr. Amy Cuddy, Psychologists, Harvard Business School. Book, Presence.

May 18th, 2017

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