For many new financial advisors, cold-calling is the most frightening prospect. Many of us remember how we responded to cold calls in the past, so we understand how easy it is to turn off a prospect. However, look for the positive in this: because you’ve also received cold calls yourself, you have a strong idea of what does or does not work. Bear that in mind, as you contemplate how to use these scripts and lines:
Before you make a cold call, it pays to do some research. The more you know about the prospect, the easier it is to build rapport. You won’t always have the following information, but try and find out:
You can try to find this information on the prospect’s LinkedIn page, or try finding out more from the person who gave you the lead.
Once you’re done with that, you can try the following:
Avoid using generic openers like “how are you” or “do you have a few minutes”. These are so overused for sales calls, prospects immediately go on guard. Rather, consider an introduction like this:
“Hi XYZ, this is (name) from (company)?”
Note that this is phrased as a question, not a statement. When you phrase it this way, most prospects will stop and try to think whether they’ve met you before. Give them a pause of about two to three seconds, then follow up with:
“XYZ referred you to me; congrats on your recent promotion / new job / new house, etc.”
This is where you use the information you have on the prospect. You can follow up by talking about the topic in question.
For example, if the prospect has recently bought a new house, you might share some experiences about your last time renovating; or you may share something about having gone to the same school, worked in the same line, etc.
If the prospect asks how you know about this, don’t lie! Simply explain that:
“I’m a (insert whatever job title you usually use), and I noticed it on your (wherever you found the information). I’m working on something that might help you with (insert your value proposition).
In essence, you want to seek common ground as fast as possible, rather than let the prospect start looking for ways to put down the phone.
Don’t start talking about your experience, your passion, your accomplishments, etc. All that can come later. Rather, get straight to your value proposition:
“I’d like to help you build a more comfortable retirement,” or
“I may have some options to help you with the cost of your new home”.
You can vary this based on the prospect and what you want to offer, but the central idea is always the same: go straight into what you can do for the prospect. Later on, if the prospect wants to find out more about you, then bring up testimonials, credentials, your experience in the industry, etc. You always keep these details for later because, if the prospect feels you’re wasting their time, you won’t even get to explain these.
Don’t overly dominate the conversation, to the point where the prospect feels “railroaded”. Even if you get to complete the call, this may cause them to avoid making an appointment later; just due to the sheer pressure they felt on the phone.
One way to tone this down is to give back some degree of control: let your prospect talk about what interests them. For example:
“We can look at some ways to ramp up your savings for retirement; or we can look at some solutions to cover your children’s education, since they’re going overseas. Which is your main concern right now?”
Don’t offer more than three options, as doing so can distract or confuse the listener.
Rather, identify their three main areas of concern, and let them decide what they want to cover first.
This is also a way to demonstrate that you’re actually listening to them and interacting, rather than just parroting a script.
The Benjamin Franklin effect is named after the American founding father, who explained how he once turned an enemy into a friend by asking for help. For reasons that are not yet fully understood, we tend to like people more, not less, when they ask us for help.
Consider doing this in a cold call:
“Actually XYZ, I was wondering if you could do me a favour; I don’t know if the people in your industry are more interested in issues of retirement or job security right now. Do you think you could share your perspective?”
When you position the prospect as an expert, or someone who knows more, you help to validate their worth. People also tend to like talking about what they know or are good at, so creating this opportunity helps to grow the conversation.
You need to do this in the right frame of mind, however – if you do it in a self-conscious way, such as if you’re worried you’re imposing, your tone will reflect it (if you keep thinking you’re bothering someone, you will end up bothering them).
You’ve gone through the call, now it’s time to set the appointment. Don’t make the mistake of asking “when and where are good for you?”
It may seem like you’re being accommodating, but you’re actually pressuring the prospect to handle the details of the meeting. There’s also a good chance you’ll be brushed off with “oh I can’t this week, I don’t know when I can make it”.
Instead, state when you think will be best:
“How about 7pm this Friday, I can meet you near your office after work.”
(Note that, even though this is a question, you want to intone it as a statement; hence the full-stop).
This alleviates the need for the prospect to figure out the details. If they say they can’t make it, give a few dates and times as options; no more than three as it’s hard to process in conversation. If all options are rejected, it’s best to circle back around at
some time in future, and try again; it could mean you didn’t build enough of a rapport, or that your value proposition needs to be stronger.
It takes practice, persistence, and good emotional resilience to be a skilled cold-caller. At Exodus Capital, we know this is one of the toughest skills to develop; that’s why we use close mentorship and step-by-step guidance, to give financial advisors an edge. If you’d like to develop your prospecting skills further, drop us a note;
so we can help.
