Welcome to Selling Season 2017!

Welcome to Selling Season 2017!

401(k) Advisors know that the four month period of time from July thru October is the time of year you make your numbers in 401(k) sales. Employers are most inclined to improve their company retirement plan during this time of year we call the Selling Season. Employers seem to be conditioned and comfortable discussing retirement plan improvements for implementation on January 1st, 2017.

Plan sponsors with a calendar year end plan are more aware of their company retirement plan at this time of year because Form 5500 is due by July 31st, (unless a 2 1/2 month extension is sought).  And if the plan has over 100 participants the plan audit is being finalized to review with the auditor and attach various schedules to their company retirement plan Form 5500.

This is the time of year for all 401(k) prospect facing sales professionals to continue to be in contact with plan decision makers. Hopefully you have been in communication with plan prospects over the past months and possibly past years leading to the 2017 selling season.  Those numerous communications prove your determination and make it easy for the decision maker to remember you.  401(k) plan decision makers will still vacation over summer, but as each day progresses your persistence and timing can be rewarded.

June 30th, 2017

 

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

Are You Ready To Answer These 8 401(k) Plan Fee Questions?

Are You Ready To Answer These 8 401(k) Plan Fee Questions?

“Prepare for adverse weather conditions”

A football coach of mine uttered as part of his pre-game pep talk, “prepare for adverse weather conditions” as we faced a weather quagmire. He wanted to encourage us to understand our obstacle and to stay focused on the task at hand.

Below is a list of eight questions focused on how much money you may make and possible perks of the 401(k) profession. A prospective or current client could ask these and more.  Are you ready to answer them?  Are you ready to explain and defend your answers?

  1. How much money will you make in a fee or commission if we select you and your recommendation?
  2. How much will you make as an ongoing fee or trailing commission?
  3. Is there a bonus you are eligible for that comes as a result of our selection of your recommendation?
  4. Are you earning more from this recommendation than you might from putting us in a similar product from a different company?
  5. Is any company that is part of your recommendation running any contests that might lead you to getting a free trip if we select your recommendation?
  6. Do any of the companies that are part of your recommendation offer “due diligence” trips or provide you with other forms of payment, say in points that you might redeem for merchandise?
  7. Do any of the companies that are part of your recommendation provide free food or tickets to sporting, concerts or other social type events?
  8. Finally, does your firm stand to collect any fees that you yourself will not share in as part of your commission because they have favored one product or another or limited their platform to certain products and locked out others?

Your answers can vary based on if you are serving as a Registered Investment Advisor or Registered Representative. The first two questions can be verified via fee disclosure forms.  All questions posed by plan sponsors and plan participants need a clear and concise answer.  You may believe that your responses will upend the sale.  You’ll see otherwise when you deliver honest and complete answers.  Prepare yourself for anything and stay focused on your task of managing and growing your business.

*Questions adapted from, “The 21 Questions You’re Going to Need to Ask About Investment Fees”, Ron Lieber, NYTimes.com 2/14/17

March 2nd, 2017

Time’s A Wastin’

Time’s A Wastin’

Advisors Should Always Be Active With Their Prospecting

I’m not talking about what June and Johnny Cash had in mind with their song, but if you slowed or are waiting to begin building your qualified plan business because of uncertainty surrounding the Conflict of Interest Rule, and you truly want to serve the qualified plan market for the long term, you should be active with your prospecting activities. Your broker dealer will provide guidance and process to manage the changing environment as the weeks pass, and you will continue to make adjustments.  Change in the financial service industry is constant as should be your business building activities.

Three months from now we will enter selling season as I define it, August thru October in any given year. The contacts you make now and over the next several months with your referral network and plan prospects can improve your selling season outcome espanolviagra.net.  Your prospects aren’t as aware of the Conflict of Interest Rule as you might believe.   They are not letting it hold them back from managing their company and improving their retirement plan.  They want to find a quality Advisor to work with them and their plan participants in order to improve their company retirement plan.

So stay active with you prospecting activities no matter what and get busy. The Cash’s couldn’t wait to get going and neither should you – just in different contexts.  Your business building is always on because Times A Wastin’.

May 2nd, 2016