I Carry The Bag - Spring 2013

I s s u e 1 2 | S P R I N G 2 0 1 3 | w w w . i c a rr y t h e b a g . c o m

the art of the small meeting

14 ways to conduct more effective meetings —page 12

IS THERE LIFE AFTER A

30 YEAR WHOLESALING CAREER? Page 08

THE REAL SECRET TO

VOICEMAIL SUCCESS

Page 20

ACHIEVING GREATNESS

THE VALUE OF ASSOCIATION Page 22

Data Poigne 1t6 s pa

6 TIME TRUSTED WAYS TO BUILD HIGH-TRUST RELATIONSHIPS

Page 23

inaugural all digital issue

200+ Wholesaler Masterminds Posts 50+ Wholesaler Masterminds Radio Shows 3 years of publishing I Carry The Bag Now the NEW book is here!

Buy It now

20% OFF CODE: HS9KBDWB http://tiny.cc/bob-book

To see what’s inside, visit www.BrotherhoodoftheBag.com

Table of Contents

2ND Quarter | SPRING 2013

Editor-in-Chief & Publisher Rob Shore Contributing Writers

The Art of the Small Meeting: 14 Ways to Conduct More Effective Meetings

By Ross Marino

06

Wholesaling in the Echo Chamber

By Scott McKain

07

Your Career: Now’s The Time To Step Up!

By Kathy Freeman Godfrey

08 Is There Life After a 30 Year Wholesaling Career?

19 Service Minded Selling

By Rory Vaden

20 The Real Secret to

Voice Mail Success

By Art Sobczek

22 Achieving Greatness: The

By Bill Bachrach, CSP, CPAE

By Don Yaeger

23

Monetizing Value-Add: 7 Ways to Create Tangible ROI on Your Marketing Dollars

Complexity Smothers

Value of Association

By Alan Parisse

14 Divisional Management:

Who Will Be the Next Great Divisional Motivators?

By Hari Krishnaswami

16

kasina datapoints

By Kip Gregory

24

Want Improved Results?

Start by Shoring Up Your Work Ethic

By Eric Chester

26 Un-Stuck Wholesaling

4 | SPRING 2013 | I CARRY THE BAG

Creative Director Jim Nissen | SW!TCH s t u d i o www.switchstudio.com

By William L. MacDonald

To Build High-Trust Relationships

11 Simplicity Sells,

in the 21st Century: How Wholesalers Can Spawn a New Generation of Success Stories

Interview with Aldo Barbaglia

10 Six Time Tested Ways

18 Defining Proof of Value

Bill Bachrach Eric Chester Kathy Freeman Godfrey Kip Gregory Hari Krishnaswami William L. MacDonald Ross Marino Scott McKain Alan Parisse Scott Peppard Art Sobczek Rory Vaden Don Yaeger

By Scott Peppard

Art Director Elizabeth Dam | SW!TCH s t u d i o www.switchstudio.com

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I CARRY THE BAG® is published quarterly 514 San Bernadino Avenue Newport Beach, CA 92663 Tel 888-508-5010 I Carry The Bag is a registered trademark of shorespeak, L.L.C. All content in this publication ©2013 shorespeak, L.L.C. and is protected by international copyright law. All rights reserved. Reproduction in whole or in part without permission is prohibited.

Library of Congress ISSN 2157-1155 (print) ISSN 2157-1155 (online)

Letter from the editor

of magazines &

Cord Boards r ecently I had the chance to tour the Queen Mary docked in Long Beach, CA. If you’re not familiar, this floating museum honors one of the great passenger ships that ever sailed by preserving not only the stories of the past, but the technology of the past as well.

Amongst the relics behind the display glass was a large cord board which served as the main telephone switchboard of the ship. Operators sat at the board and physically connected parties that wished to speak with each other by patching one phone line’s cord into another – physically connecting the conversation.

An elegant communication solution in a much more simple time.

Yesterday’s cord board phone operator would find little resemblance to the way in which information connects us all today.

And so, as our cover this quarter intimates, we begin the dawn of a new era of communication for I Carry The Bag. The era of all digital publication – supported by apps for all of your smartphone and tablet devices.

We trust you will continue to enjoy the only publication that exclusively covers the art, science and lifestyle of wholesaling.

Thanks for joining us on the passage.

ING 2 | sPR Issue 1

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t e ar th eeting the small m of

14 ways to cond

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—page 10

is tHere Life

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Cess VoiCemail sUC page 20 ing gReatnessn

aChieV tHe vaLue of associatio page 22 to BuiLd

ways 6 time trusted h-t hig RUsPst Relationshi page 23

Data Poine 16ts Pag

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all digita

l issue

Rob Shore Editor-In-Chief & Publisher above (top to bottom): example of a cord board, the first all digital edition of I carry the bag, the inaugural issue of i carry the bag.

I CARRY THE BAG | SPRING 2013 | 5

by sc ott mckai n

wholesaling in the

“Echo Chamber” p

icture yourself alone in a large metal structure, standing and shouting to the opposite end. Naturally, you’ll hear your voice returning from the reverberations of the sound waves. You are basically surrounded by an “echo chamber.”

As a wholesaler, unfortunately, sometimes you are inside something similar as you meet with financial advisors. When you expect that those you call upon usually reflect similar attitudes and approaches to yours, you may just be hearing only your own voice coming back in a delayed fashion.

My friend, Ray Massie, is the CEO of a popular radio station in Montana. On his blog, he posted some very interesting figures about marketing and communication.

I was struck by the fact that while 100% of marketing professionals use e-mail on a daily basis, only about 36% of the general population does. A traditional newspaper advertising purchase might make sense for some businesses — however, according to Ray’s post — only about 15% of Billings’ residents read it daily.

In other words, the danger that Ray illuminates is “the huge disparity between the general population and people who do advertising for a living. If you intend to win and grow your business, you must focus on what real people do.”

It’s a critical point…not just about my friend’s business of advertising, but about ALL of what we do in financial services. Just because one avenue is the way in which YOU gather and present information doesn’t guarantee that your clients take and desire the same approach!

Are you focusing upon the client or prospect’s perceptions? Or, are you assuming that they are similar to your own?

Here’s an example: taking off from the Detroit airport, heading for my home in Indianapolis,

6 | SPRING 2013 | I CARRY THE BAG

I looked down and saw the old Detroit airport, which was replaced by the new Detroit airport -- a spectacle of design and technology for passengers.

About forty minutes later, the flight landed at the new Indianapolis airport. It’s the recipient of many awards for its friendliness of layout and a marvel of modern travel. Here’s the important point: Both of these new airports use the same runways as its predecessor.

If you are a PILOT, what constitutes an “airport”? Well, probably you think first of the runways. There’s little difference for you as you guide the plane from Detroit to Indianapolis. However, if you are a PASSENGER — or “customer” — what constitutes the “airport”? You will undoubtedly think of the terminal building! It all depends upon your role, and your perspective.

A pilot would be correct to say, “nothing has really changed” in Detroit or Indy. The runways for departure and arrival are precisely the same. Yet, as a passenger, I would shout that “everything has changed” to make flying better.

In other words, what you see as a wholesaler may be very different from what the client sees.

However, the critical point is this one: Clients will make their determination upon THEIR perspective…NOT YOURS! If you presume that most financial advisors will communicate with their clients, examine significant holdings, think about investments and recommend funds with a similar philosophy to yours, then you may be wholesaling in an “echo chamber.”

At a recent speech, I was highly irritated by a young professional in the front row. It seemed all he did was type on his iPhone throughout my entire presentation…never once making eye contact with me on the platform.

I almost called him out in front of his group of about 400 colleagues, but decided against it.

“If he’s not ‘getting it’ and the rest of the audi-

ence is, I’m not going to draw attention to his bad behavior,” I thought.

After the program, I went to my room and checked my email, then my social media accounts. On Twitter, I noticed there were several messages sent from someone I didn’t know.

Until I saw his avatar/picture and recognized him as the young man in the front row.

He had Tweeted several messages on the major points of my presentation…and loved my content! It was a MAJOR “A-HA” MOMENT for me!

Just because I (and others of my generation) don’t use our iPhones to take notes—and share concepts and insights with our friends—doesn’t mean that everyone else does it the way we do.

“How he was note-taking and sharing wasn’t wrong… it was merely different.”

How he was note-taking and sharing wasn’t wrong…it was merely different.

Being trapped in the “echo chamber” can kill your wholesaling business.

And, importantly, those of us most successful are often the ones who have the tendency to suffer most from this odious form of perceptual problem.

What will you do to open your mind to alternative approaches to create distinction and grow your wholesaling business?

Scott McKain’s presentations benefit from three decades of experience, combined with his innate talent for articulating successful ideas. McKain has spoken before and consulted for the world’s most influential corporations. Visit Scott at ScottMcKain.com or call him at 800-838-6980.

careers

your career:

by kathy freema n g o dfrey

Now’s The Time To Step Up!

s

ince the height of the recession in 2009, the Kathy Freeman Company has conducted annual proprietary national research to quantify the appetite of senior executives, functionally focused in the sales and marketing ranks within the investment industry, to consider job transition going into the next year. For three years those numbers scored high for the desire to make a job change and low for career outlook - plus the vilification of Wall Street was taking an additional toll on morale.

To say that it has been a challenging few years to be in financial services may be a bit of an understatement.

The trends coming out of this year’s research show not only a change in attitude but in expectation.

Here’s an overview some of this year’s data and ways to apply the findings to your own careers in 2013.

First, the satisfaction level registered by respondents in our research was at an all-time high. Not only did more individuals report staying put in their roles than in prior years, their desire to execute on a change going into the New Year was less than we’ve seen since we first began collecting this data. Of course, recognition is due to those firms that have found new ways to keep their talented staff engaged and challenged in the past year. Another component might be the desire, and newly found appreciation, for stability. Looking at your own career, you might want to consider: • Whether you are feeling challenged in your current role.

• Have you pushed yourself to take advantage of new opportunities that have surfaced in your own firm?

• Do you feel like your firm is responsive to the changes in the market and has provided opportunities for key talent to contribute in a more strategic way?

Perhaps you aren’t as challenged as you’d like to be but you appreciate being employed after seeing so many of your friends become unemployed or underemployed during the downturn.

Either way, take a moment or two to register your own satisfaction levels with your career.

What does your future look like if you stay at your current firm? The talent of tomorrow is figuring out new ways to contribute to their firms. If you are sitting on the sideline doing the same old job, be sure you know why you are there. If you can’t find a good reason, this is the year to consider how to make a bigger impact.

“If you are sitting on the sideline doing the same old job, be sure you know why you are there.”

The second interesting trend that came from the research was a new found optimism within the job market. More people than ever before were optimistic that the market for opportunities was more robust today than in the prior years. If you feel like you aren’t maximizing your potential in your current role or you feel blocked to move up the ladder of responsibility, be proactive. Initiate discussions with industry colleagues on what’s going on in their firms to uncover opportunities that will maximize your own potential. Yes, while some firms are cutting back in their distribution organizations, feeling that their offering isn’t quite in the sweet spot for growth, others firms are seeking out quality talent to help them get their story told to the market.

Finally, the research resonated with confidence. So much so that these impact players were optimistic enough about the future landscape of our industry, and their ability to drive results, they were definitely willing to sac-

rifice cash in their total compensation packages in deference to equity ownership.

The implications from this data are compelling. No one in their right mind is going to take less cash in a compensation package unless they are fully confident in their ability to grow a business successfully. And while sales and marketing execs must be among the more confident roles in the industry, they are not naive. They must be seeing enough momentum among their buying audiences for either certain investment strategies or services that they believe they can build their own wealth and net worth by partnering with a firm in ownership structure, instead of adopting the hired gun mentality that was so prevalent back in the 1990’s and early 2000’s.

In your firm and your career, it is powerful to have the conversation with your leadership about the importance of earning ownership in the business through equity. Find out where your company stands in allowing or offering equity, even for purchase, by the talented individuals that make a meaningful impact on the firm’s success. If you are a strong contributor to your company’s success, open up the dialogue.

If you end up being shut down, then it may be time to consider other options for your career.

The data we collected, from across the country and across channels, whether intermediary, institutional, private client, wealth management or with service provider organizations, all indicated a positive outlook for our investment industry and for their careers. While sometimes we can look at our own careers from a myopic vantage point, this is the year to get a bigger perspective on what’s possible. Step up and see what happens!

Kathy Freeman Godfrey founded her retained executive search firm in 1992, focusing her work on assignments for senior level sales, marketing and client-facing executives exclusively within the investment industry. The Kathy Freeman Company celebrated its 20th year of successful partnerships with its clients in 2012. Visit her at www.kathyfreemanco.com to gain further insights.

I CARRY THE BAG | SPRING 2013 | 7

i n terview by r o b sh o re

is there life after a 30 year

Wholesaling

Career?

How sustainable is your career as a wholesaler?

Do you have what it takes to survive the entire marathon that is our chosen profession?

a

ldo Barbaglia, CFP®, has recently retired after a thirty year run as a most successful wholesaler for one of the country’s preeminent asset managers. We asked Aldo to spend some time with us so we could learn how he began a successful retirement from our great profession.

Rob Shore, Editor-in-Chief: I Carry The Bag (RS): Aldo, tell us about the path you followed that led to you becoming a wholesaler.

Aldo Barbaglia (AB): When I began my career in the investment business in 1969 there was a possibility that the mutual fund industry might go the way of the buggy whip. I ended up with a career path that is probably the reverse of many of the readers of I Carry The Bag. After nearly five years in various management roles in a mutual fund transfer agency I realized that, although I was a good team builder, I didn’t like the role of hiring, firing and attending meetings. Realizing it was time to move on, I worked as a financial advisor for three years but learned that prospecting was tough (and I was terrible at it) so I knew I would starve to death eventually.

I jumped back into management as National Sales Manager for a broker/dealer. But I was still restless.

8 | SPRING 2013 | I CARRY THE BAG

RS: How did you end up becoming a wholesaler?

AB: When I was a Vice President of a Massachusetts broker/dealer I had contact with the heads of distribution at many fund firms. It was as a result of one trade, bringing $50 million of assets (which was a substantial sum in 1977) to MFS, which allowed me extensive contact with their senior management. Although I turned down two offers to move to less desirable parts of the country, it was the third offer that intrigued me. I would be part of a team of seven wholesalers covering the independent channel firms, which in those days were predominantly insurance companies. I would be responsible for nine states in the Pacific Northwest.

plan that would be equal to my Average Annual Gross Commissions. The goal was to take advantage of all of MFS’s and the government’s tax advantaged retirement vehicles to maximize savings. Individual IRA’s were where I started.

But I continued to make non-deductible IRA contributions for both my wife and myself and at age 50 we also took advantage of “catch-up” provisions. Also, my firm began offering a 401(K) plan and we maximized our contributions and, after age 50, took advantage of the “catch-up” provisions. The firm also contributed to a profit sharing plan which I also managed. Finally, a lump sum rollover from a defined benefit plan was added to my nest egg.

During all four of these occasions this money was essentially sitting on the side lines, costing me even more money.

RS: Clearly you had to have a plan, and execute it well, to get to retirement. How did you learn the importance of financial acumen?

AB: From the start of my career at MFS, Claude Thomas the president of the sales company warned us to be fiscally responsible with our income. He advised us that our income would be volatile and not to spend it all. He said that commission schedules would change and we needed to manage our cash flow. I remember the first time I made $100K only to have my income go down by 40% one year later due to bad markets. That was just the start of income fluctuations caused by product being taken away, territory reconfiguration, etc…

RS: How far in advance of your actual retirement did you start to seriously measure the progress of your retirement goals?

AB: 20 years prior to retirement I began to keep track of the values of these accounts. The goal was for the amount accumulated to allow me to be “unemployed” for thirty plus years.

Ten years into this plan I purchased a Retirement Time Countdown Clock as both a reminder and an incentive, noting the days remaining. Five years before retirement my wife and I took a year to keep extensive records of where all our cash was spent. I did have to reset the clock twice when the markets gave the portfolio a setback. All along each of the portfolios were diversified into a global mix of stocks and bonds.

RS: What were your other considerations as you planned for your retirement?

AB: I determined that if I was going to accomplish my retirement income goals several decisions should be made: 1) Wait to retire until I was eligible for Medicare.

2) Not take Social Security before my full retirement age so as to maximize my monthly income benefit.

3) One year prior to retirement I converted my non-deductible IRA’s to a Roth IRA’s so as to create a pool of tax free income.

4) At retirement I rolled all other retirement accounts into a new IRA. 5) Set aside sufficient cash for the inevitable market down turns.

6) Set up a systematic withdrawal plan to deposit monthly income into my checking account.

RS: Was there other advice that helped drive your decisions about money?

AB: As my income grew I initially felt that there was no way that I could spend all this money.

The temptation was to buy the biggest house I could afford, a luxury car, new suits and any “toy” I wanted. The reality was that, like most people, I would spend up to my level of income.

One of my most respected advisors warned me—and reminded me— that it’s not just the cost of the house, it’s the incidentals within it that add up to become a burden in tough times.

That was sage advice— especially when I recognized that the day would come when I couldn’t or wouldn’t want to wholesale any longer RS: Tell us about your financial plan.

AB: Very early it became apparent that I would have to focus on a paycheck replacement

RS: What mistakes did you make along the way that our readers can learn from?

AB: In accumulating this money there were fundamental mistakes I made, unfortunately some more than once.

When I left my first job I decided to spend the $12,000 that I had accumulated on a new car and various other indulgences. I later calculated that had I left that money invested for thirty-seven years compounding it might have provided an additional $350K towards my retirement goal.

On two occasions I did a 60 day roll out of my IRA to fund a cash flow shortage.

On two other occasions I took the maximum allowable loan out of my 401(k) for periods of approximately one year.

RS: Let’s talk about longevity. How did you stay with one company the entire time you were wholesaling?

AB: I saw many wholesalers frequently change companies for various reasons, only to move on yet again. That led me to one important conclusion. Find a quality company and stick with them. Regardless of how much they pay you, ultimately you have to have a diversified product line that will allow you to sell something under all market conditions.

RS: We know that it’s been about a year since you retired – how’s it going?

AB: As a retiree I only have two important decisions to make every day: what time will I go to the gym and what time will I take my dogs for a walk.

I do have a third decision to make occasionally, and that is, does my portfolio need any rebalancing and is two years’ worth of cash enough.

After years of windshield time, multiple breakfasts, bag lunches, five to eight meetings per day and evening seminars I find that I am not bored.

Time flies by. I don’t miss call reports, expense reports, countless emails and a busy calendar. I do find time for golf, mid-week skiing, travel and just doing “nothing” for now. As for my wife, she actually enjoys having me around—most days.

I CARRY THE BAG | SPRING 2013 | 9

sales

skills

by bill bachrach , csp, cpae

time tested ways to build

O

ver the past twenty plus years, I’ve studied, taught and written a tremendous amount about building hightrust client relationships. Lately I’ve found myself saying to our core group of committed clients (who implement the Values-Based Financial Planning turn-key business model) that, “trust is not the objective, trust is a by-product of the other things that you do, like your behavior, your communication and the quality of your work.”

I’ve come to believe if gaining your client’s trust is your objective then the focus is on the wrong place: you. When, of course, the focus should be on them. When your goal is to establish trust it might actually be to further your agenda, like, “I have to get them to trust me… so they invest with me... so they give me assets… so they buy my product or idea, etc., etc., etc.”

Consider this point of view instead: “I am going to show up relaxed, be authentic, behave with an extremely high level of professionalism, skillfully execute my process for creating a great client interview experience or progress meeting experience, ask great questions, listen with empathy, be well-organized, be respectful of their time by not bragging about myself (or my company) or boring them with over-explanations of financial concepts and ideas, and be selective about only letting the truly right-fit people join my community of Ideal Clients. And if, in the process of behaving this way, they trust me and hire me, fine. If not, that’s okay too.”

Wholesalers and advisors alike try to force things to happen with everyone they meet by using sales, influence, or persuasion tactics to “close the deal.” This is akin to a woman desperately seeking a husband because her “biological clock is ticking” instead of looking for the right partner with similar goals and values who is best suited for the two them to create a happy, fulfilled life together.

I’m in the business of helping successful advisors double-quadruple their business revenue in four years or less, so what I’m writing about here is not purely altruistic. You may be concerned that “relaxing” or abandoning a more intense

10 | SPRING 2013 | I CARRY THE BAG

sales focus will diminish your results. Actually, the contrary is true. Which “way of being” do you think is more likely to attract successful people to want to become your clients, the relaxed Trusted Advisor or the intense salesperson?

Relaxed doesn’t mean wishy-washy or lacking in passion to help people make smart choices about their money. It means that you don’t show up with what we used to call “commission breath.”

Here are six time-tested ideas for behaving in ways that create the by-product of trust: Look for “right fit” people to join your client community versus a “they manage assets therefore I want them” mentality. Create an “Ideal Client Profile” in which the personality element of the people you meet is equally important to the money element for them to earn an invitation to join your client community. Notice the difference in how it feels to think of inviting people to do business with you versus “closing the deal.”

1

2

Ask good questions; questions that demonstrate your interest in the advisor’s goals and values.

Listen with empathy. The tendency, especially during an initial client interview with people you may have never met face-to-face, is to think more about what you are going to say next while they are answering your questions. When you do this you don’t really hear what they said, therefore it’s hard to be empathetic to things you weren’t fully present, mentally, to hear. The solution is to have your questions memorized so you don’t have to think about what you are going to ask next, thus allowing you to be fully present and a much more empathic listener.

3

Give product presentations with conviction. Wholesalers tend to offer alternatives and let the advisor choose. Trusted Advisors gather all the

4

information they need, consult with other experts where appropriate, and give the best advice for the client… with conviction. There may be more than one way to achieve a goal, but there is only one best way. Find the best way and give a recommendation with conviction.

Tell the truth even if doing so jeopardizes the relationship. Serious and successful people don’t want to partner with a rubber-stamp, yes-person kissing their butts and telling them only what they want to hear. It’s your job to tell the truth, especially when it’s what they need to hear and not what they want to hear.

5

Be inspiring. Focus on helping clients create a compelling vision for their practice’s future and become their bridge to make it happen. Being a future vision creator is much more trustbuilding than being a problem-solver.

6

Keep in mind that these are not “tactics” to build trust. These are the powerful behaviors of financial professionals who are very good at what they do and who genuinely care about helping people get their financial house in order, achieve their goals and fulfill their values. By behaving at this very high level of professionalism trust is the by-product of that behavior.

The bottom line is that you can’t “technique” your way to trust. You earn it by who you are and what you do.

For 23 years Bill and his team have been helping advisors attain top 1% success as measured by value delivered to the client, financial success and quality of life. Bill Bachrach is the author of several books, including the best-selling ValuesBased Financial Planning. He has delivered approximately 2,000 keynote speeches and presentations teaching financial professionals to build high-trust client relationships. To learn more go to www.billbachrach.com or call 858-558-3200 to schedule a Success Road Map® consultation.© Bill Bachrach, Bachrach & Associates, Inc. All rights reserved.

presentation

skills by ala n parisse

When Wholesalers Present …

simplicity Sells, complexity smothers

e

arly in my career, a financial advisor asked me to explain my firm’s offering to a wealthy society widow. I deepened my voice and spewed an avalanche of acronyms and intricacies.

Worse, in a vain attempt to sound as though I was of her social strata, I used terms and grammatical constructions that were out of my league (were like lava on my tongue) (as uncomfortable on my tongue). Her rebuke shut me down hard: “Young man, just because I do not understand something, doesn’t make it good.”

Though her words and condescending tone stung, she did me a favor— especially because my boss made me create a list of lessons learned that I use to this day.  Start presentations as simply as possible.  Add complexity only if appropriate and necessary.  Know as much as possible in advance about the audience.  Avoid jargon and acronyms.  Expand my vocabulary, improve my usage and even soften my regional accent – but do not pretend to be someone I am not.

six Steps to

Simple Powerful Messages

ONE Understand Why We Complicate Getting a sense of why so many of us tend to complicate our messages is the first step to simplification. Here are a few reasons:  Lake of Confidence in Our Case: Nobel Prize winning physicist Richard Feynman once confessed, “I couldn’t think of a good reason; so I gave them five.”  Old Habits Die Hard: College students use showy language and complex constructions to impress professors. Later in life, those who become wholesalers do it to impress financial

advisors. Trouble is, complexity for complexity’s sake is counterproductive.  Compliance Made Me Do It: Legal concerns are a scourge to simplicity. Across industry, regulators and the tort bar are ready to pounce.

It is a real problem but don’t let it rule the day.  It’s in the PowerPoint: When the boss says cover every slide … ugh … do what you can to simplify.  “JUST” a Wholesaler: Even successful wholesalers have heard the put down: “She is JUST a wholesaler.” That stinks, but responding by adding complexity to appear more substantive can destroy your effectiveness.  Confusing Simple and Simplistic: Simple messages don’t ignore all complicating facts.

Instead, they minimize or eliminate the unnecessary details so that the important essence shines through.  “Simple Ain’t Easy:” Delivering complicated information cogently requires a deep and firm grasp of the subject and the self-assurance to communicate in an uncomplicated way. Jazz great Thelonius Monk’s defense of his artful approach to music summed it up: “Simple Ain’t Easy.”

TWO Flogging for Simplicity Ancient Sparta’s warrior culture had a method for ingraining the habit of simple communications in its youth. Knowing there was no time to waste words in battle, boys were flogged for each unnecessary word they used to express their meaning. Flogging is kind of extreme, but ruthless editing can make your presentations soar above the norm.

THREE Get Out Occam’s Razor Named after a 14th Century friar, Occam’s Razor asserts that the simplest hypothesis is usually the correct one. Far from old news, the Razor underlies a lot of what is happening in science and technology today.

Google’s start page is simplicity personified; Apple devices avoid most buttons; and

by limiting us to 140 characters Twitter leaves no room for extraneous musings.

Meanwhile, Microsoft and Facebook struggle with “feature creep.”

So cut and simplify your messages. It is a rare presentation that wouldn’t be improved by cutting 20%.

FOUR Six Words for Focus To help focus your thoughts, sum up your presentations in six words or fewer. Sound tough?

Ernest Hemingway wrote a six-word short story. When literary snobs got on his case for using simple English, he wrote: “For sale. Baby shoes. Never worn.”

Shakespeare went him one better and summed up much of life with “To be or not to be.”

If they can do that, we ought to be able to sum up a financial product in six.

FIVE Work At It Never use big words and fancy phases when simple words will do. If it takes a lot of big words or complex formulas to express a thought, give it more thought.

SIX A Six-Step Program for Presenters Sparta’s system is too rough. So try this:  Become aware of the complexity issue.  Commit to change.  Get feedback from friends and colleagues.  Record yourself and listen to what you say.  Start hearing yourself complicate as you speak.  Be patient. Don’t flog yourself. Instead, rest assured that once you start hearing the unwanted verbal pattern, it is only a matter of time until it fades.

Alan Parisse is the first person to come out of the investment business to be inducted into the Speakers Hall of Fame. For information on his keynote presentations and his unique training The Speaking Intensive visit www.parisse.com or call 303-444-8080

I CARRY THE BAG | SPRING 2013 | 1 1

by r o ss mari n o

the Art of the

14 ways to conduct more effective meetings

Use Name

Tags Name tags are a mu st. Instead of readin g “Hello My Name Is,” they should read “Hello, we’ve met multiple times but you can’t remem ber my name, so I’m weari ng this tag to save yo u from being embarrassed.”

Establish Meeting Goals and Objectives The meeting was successful if ____? As a wholesaler, success may mean a follow up appointment that leads to revenue-generating activity. But your success depends on the advisor. What makes the meeting successful for the advisor? If you can’t define why the meeting is important to the success of the advisor, the meeting won’t be successful for you.

12 | SPRING 2013 | I CARRY THE BAG

Focus the Program Content WIFM: What’s In It For Me? That’s what the attendee needs to know. For most small meetings, attendees care most about two outcomes: 1. Growing a business: Increase revenue (prospecting, new business from existing clients) or productivity (increase capacity, decrease costs, etc.).

2. Managing a business: Fill my clients needs (new products, tools and resources for servicing existing clients, etc.)

Free lunches and CE are also motivating, but usually not to the type of attendee the sponsors want to meet.

Consider Room Size Many hotel and restaurant websites list maximum occupancy for specific table configurations. You should plan on 80% of the room’s capacity for your maximum attendance.

If a room fits 50 attendees for classroom style seating, don’t try for more than 40.

Allow for Registration Select Site and Facility Wisely Convenience: For local meetings, the location should be near where the attendee lives, works or somewhere in between. Attendees who neither live nor work downtown do not like to attend downtown meetings. It’s a hassle for them. Even for destination meetings, convenience matters. Few advisors travel cross-country, even for a major conference.

Use websites to register attendees, or, for smaller events, just ask invitees to reply to the email invitation. Make registration easy. However, the easier it is the higher number of no-shows at each event. It’s a trade-off.

Attendees need email confirmations, with an ‘add to your calendar’ option.

Send the KBYG (know before you go) email three days before the event. Include locations, topics, times and parking details, such as ‘valet parking NOT included’.

Make Reminder Phone Call

Stay on Schedule This should be non-negotiable unless something unforeseen (such as a technology problem) comes up. Attendees understand technical difficulties.

But they don’t understand why you told them you’d finish at 11:45 AM and kept talking until 12:10 PM. Consider this: If you can’t stay on schedule in front of a crowd, why should an attendee believe you will only take ‘30 minutes of their time’ during an office visit? If they can’t trust you to stay on schedule at a meeting, they probably won’t trust you to stay on schedule in their office.

This can raise attendance by 10%-20%. Yes, some people will still forget about the event. To save time, you can call after hours and leave a message. You can make 20 or so calls and leave messages in one hour.

Extend Last Minute Invitations “We still have a few open seats. Is there anyone else in your office that would like to attend?” This simple question increases last-minute attendance.

Use Functional Room Arrangements Crescent round tables are preferred for conversation or meals. Attendees need room to spread out.

Don’t pack the room with attendees. A packed room is uncomfortable. Make sure there is room in the back to stand, access coffee and drinks, etc.

Classroom style is fine (rectangle tables, seated on one side only), but not preferred for collaboration or meals. If you’re using classroom style for meals, be sure to have extra room in the back.

Attendees will stand and talk. Also build in a few extra minutes for breaks since social interaction is less than when crescent rounds are used.

Provide Signage Table-runner vs. table cloth? We prefer table runners. They are usually 1/3 the size and weight of a table cloth, cost significantly less and adapt to different size tables easily.

Unless the meeting room is easy to find, use directional signs (8 1/2x11 or 11x17) with arrows.

If attendees need to make a decision (turn left or right, go down stairs, etc.), signage is preferred.

Attendees neither like the feeling of not knowing where they’re going, nor the risk of being lost.

Reconsider Food and Beverage Keep it simple. For smaller meetings, don’t try to impress.

Just meet the attendees’ needs. For a breakfast meeting from 8:00am9:30am, a full buffet isn’t necessary.

Everyone has probably eaten already.

Always Use a Microphone Yes, you need a microphone if there are more than two rows of tables. Please do not ask people in the back if they can hear you. What do you expect them to say? Here’s what a yes, I can’t hear you means: “I’m hard of hearing!” Or, “Everyone else can hear except me, so please stop this meeting and put the mic on just for me.”

Either way, it’s embarrassing for someone to say they can’t hear.

Important Power Point Tips • Ten bullet points are NEVER better than five.

• 3-5 rule for slides: 3-5 bullet points, 3-5 words per line. It doesn’t need to be exact, but avoid too much info on a slide.

• If everyone can’t read it, delete it. If you have a slide that makes you say, ‘you probably can’t see all of this’ because the font is too small, it is too small--delete it.

• Yes, a picture is worth a thousand words.

Try a picture or graphic with an illustration. It’s much more powerful than ten bullet points or the spreadsheet nobody can read on the screen.

From small meetings to multi-day national conferences, Rekon Intelligence has hosted more than 200 events for financial service providers since May, 2010. In 2013, Rekon has orders for more than 300 events. Approximately 90% are white-label events. Founded by Ross Marino, CFP®, ChFC®, 20+ year financial planner and branch manager, Rekon focuses exclusively on events that serve financial advisors. Visit us at www.rekonintel.com.

I CARRY THE BAG | SPRING 2013 | 1 3

by hari krish n aswami , directo r at kasi n a

divisional Ma map for training others. Divisionals remain a coach, but instead rely on analytics to be a more effective and consistent one.

Technology Impacts Advisors Behaviors As Well

Who will be the next great Divisional Motivators?

14 | SPRING 2013 | I CARRY THE BAG

Divisional Management Evolves National Sales managers recognize the value that Divisional Managers bring to achieving sales goals and motivating their top producers.

The question is, what does the next great divisional motivator look like? Divisional Managers historically were promoted from within the ranks, serving as wholesalers themselves before moving into more managerial roles. In the past, this meant that as a coach, the Divisional would often borrow heavily from their own success to help their team. As such, Divisionals had an easier time coaching those wholesalers who were in territories that they themselves had served in, since they had personal knowledge of those advisors being served.

Now, with CRM, predictive analytics, and other data elements, the next great Divisional motivator can manage their team in a more transparent, data-driven way. The next great leaders will embrace these technologies as a means to create a level playing field, and use the activities of their top producers as a road

Advisors young and old are embracing technology and shifting their preferences for how they prefer to meet with wholesalers. In the past, there was a premium on in person meetings, and in many cases, over meals as the way business was conducted.

However, that is changing. As societal shifts put families into more dual-income situations, some advisors are more likely to want to keep business during business hours, and skip the after work drink or dinner. Technology has enabled them to engage in digital interactions rather than in-person meetings. In kasina’s most recent advisor survey, 67% of advisors prefer to communicate with asset managers digitally, or over the phone. Meanwhile, the preference for in-person meetings fell from 20.5% to 16.4%.

The shifting nature of advisor preferences has implications for divisional managers. The essential metrics of wholesaler effectiveness, such meetings, T&E budgets, should be reconsidered.

Servicing a particular advisor may not require multiple face-to-face meetings, meals or both.

The T&E budget used for those types of meetings can be redeployed to breakfast meetings with prospects. Divisionals can play a role in recognizing how to best readjust T&E budgets, and where the internal desk or expert desk should play a stronger role, allowing them to shift their wholesalers to different opportunities.

CRM quantitatively measures success Many firms have already implemented a comprehensive CRM system to track all interactions with a particular advisor. The emergence of CRM systems such as Salesforce.com, cloudbased systems with access via mobile or tablet, makes it much easier and faster to update and utilize. Divisional Managers can now quantitatively assess the ‘best practices’ of their top pro-

anagement ducers. They can see what types of meetings are working better than others: Breakfast meetings?

Office meetings? 30 minutes? 15 minutes?

Knowing what works with your top producers now gives them a roadmap for the rest of their team. If a top producer is averaging 6 meetings a week with a valuable group of advisors, the Divisional can now use that as the benchmark for others. The Divisional is now freed up from their own personal history and success as a wholesaler, and can coach their team regardless of where in the territory they are located.

Predicting your next sale can be more ‘predictable’ The emergence of greater data and technology has also given life to the business of predictive analytics. Used heavily in many other consumer focused industries (including retail banking), there is now greater interest at firms to invest in software from firms such as Lattice Engines or Angoss. These systems take data from many sources (sales, CRM, etc.) and using complicated algorithms, provide suggestions for which advisors are either most likely to make a purchase from you, or more likely to redeem from you.

Predictive analytics shift how wholesalers call on advisors. Whereas in the past, homegrown “A-B-C” systems may have provided guidance, now wholesalers are being asked to trust a list generated by a system. Divisional Managers have the opportunity to strike the right balance between the intuition of their field force and the lists generated by an algorithm.

Moving Past the Gross Sales Era In the past, gross sales was the king metric for wholesaling. It measured individual success, it helped drive territory management. Redemptions, to the extent they were recognized, became outlier metrics to a bonus pool. When times were good, or companies had that ‘hot product’, sufficient gross sales was enough to mask large redemptions, or territory planning that enabled wholesalers to quickly hit it out of the park and exceed their goals.

However, most asset managers are facing much greater challenges delivering strong profit margins. A strong product killer can still work wonders, but for many firms today, there is much greater competition, much less differentiation, and the movement by distributors to demand more revenue sharing and shelf placement fees has changed the equation. Now, those inefficiencies in territory management, compensation planning or recognizing redemptions can mean the difference between a good year, and a bad one.

The improvement over the level of redemption data can as well help managers exploit inefficiencies in their compensation systems.

They can make net sales a more meaningful component of compensation and ensure that the wholesaler’s focus is also in line with broader, firm type P&L metrics.

Territory Management Moves Past Run-Rates Whereas in the past, Divisional Managers were asked to commit to sales goals for their Division and territories using last years ‘run-rate’ as a guide for the following year. Now, new types of data are available which enables them to truly understand the value of the advisors in their territories.

The new territory data makes it possible to better assess your wholesaler’s efforts. The same wholesaler either looks efficient at maintaining a book of business with an advisor in a territory where the upside is limited, versus the one that only maintains a level of business with an advisor where there is clearly greater upside potential. In the past, perhaps the sales goal was held constant or improved slightly year over year. Now, that sales goal can be adjusted to reflect the true opportunity.

Divisional Managers, with the data that is now available to them, must synthesize this data in such a way they can continue to set achievable, realistic and smart goals that continue to reward their top wholesalers, and ensure the bottom have less of an opportunity to slide by.

“in the past, gross sales was the king metric for wholesaling” Pulling it all together

The changing landscape, from advisor shifts, to the emergence of more digital and data driven distribution places Divisional Managers in a strong position to make an impact.

It is not very easy. Many of our clients today are looking for help to take these many data systems and formulate a more comprehensive segmentation strategy and/or a more effective compensation plan.

It is clear that success for a Divisional Manager has changed from the past. Now, the new successful Divisional Managers will: • Use CRM to capture advisor behaviors and the activities top producers use to service them • Recognize the potential of CRM & predictive analytics to redefine which advisors to call, visit or email • Use holistic territory data to set effective sales goals and drive compensation planning • Use CRM data to coach their team in a more transparent way Hari Krishnaswami is a Director at kasina focusing on advisor research and strategy consulting. He has worked with numerous clients on issues ranging from wholesaling strategy to digital strategy and brand differentiation.

Prior to joining kasina, Hari spent several years at DWS Investments working in Strategy and Product development. Visit Hari and kasina at www.kasina.com.

I CARRY THE BAG | SPRING 2013 | 1 5

by kasi n a

advisor satisfaction

26.4%

37%

43.9%

of advisors are very satisfied with their externals ability to deliver valueadded programs

of advisors are neutral to very dissatisfied with their externals’ ability to connect with me on a personal level

of advisors are very satisfied with their external wholesalers knowledge of their firms’ products

28.6%

26.5%

16.4%

of advisors are very satisfied with their externals’ knowledge of competitive products 16 | SPRING 2013 | I CARRY THE BAG

of advisors are very satisfied with their internal wholesalers’ Availability/Responsiveness

of advisors are very satisfied with their internals’ tailored approach based on my needs

advisors and meetings

RECOMMENDING

of advisors have held at least one meeting with an external wholesaler in the last 12 months

of that 4.4% have had 5 or more meetings over the last 12 months

35.8% of advisors who have met with an external wholesaler who would recommend them to a friend or colleague

SOURCE kasina and Horsesmouth kasina’s FA Vision (in partnership with Horsesmouth) is the industry’s most comprehensive and frequently conducted survey of financial intermediaries.

Our data-driven analysis of the behaviors, preferences and opinions of financial intermediaries helps firms make tactical improvements to their brand, product and distribution.

To learn more about FA Vision, visit www.kasina.com or call (212) 349-7412

I CARRY THE BAG | SPRING 2013 | 1 7

by william l . macd o n ald

defining proof of

Value

in the 21st Century

are you bringing the agent/producer? How can this concept make money for them? To be good at this job, you must be an idea merchant and not a product pusher.”

It’s commonly known that brokers don’t base decisions on a wholesaler’s products, services or even solution differentiators— these are only tools and options to consider, and successful wholesalers operate from that knowledge.

Brokers care first about how wholesaler tools bring results to their clients, and how these tools boost practice revenues.

Tips, Humbly Offered

a

How Wholesalers Can Spawn a New Generation of Success Stories t a pivotal moment in the early years of my first company, Compensation Resources Group, I fell head long into every entrepreneur’s worst nightmare—running out of money.

All the bases had been covered. We were experts in executive compensation and benefits.

We had the talent. We had the right business model and growth plan—even several marquee clients. But we were growing so much faster than expected. Suddenly, we hit headwinds before we could reach cruise altitude.

Priceless Introductions Security Life of Denver, now part of the ING family, took a bold step on learning my issue, and made all the difference. I was introduced, under favorable conditions, to their banking team, and through its board, Security Life even referred my company to potential clients. Since then, I’ve been able to launch and sell several other companies.

For 35 years, I’ve been called on by wholesalers. Some were advocates of my business; others knew little to nothing about my business. To the credit of those forward thinkers, I have witnessed many times when wholesalers worked closely with stockbrokers on books of business in 401K market, for example, adding nonquali18 | SPRING 2013 | I CARRY THE BAG

“To be good at this job, you must be an idea merchant and not a product pusher.”

—Eric Thibault, ING Independent Life Sales

fied service to enhance existing service.

I’ve seen wholesalers assist qualified plan specialists who need new ideas in the nonqualified space.

There are brokers or advisors who specialize in closely held businesses in wealth management, and need help. Imagine how they could benefit from a wholesaler’s coaching and counseling.

Consider the example, too, of Rich Baldwin from Oxford Research. He works closely with brokers and advisors to show them how to take advantage of captive insurance arrangements.

Don’t Arrive Empty-Handed Eric Thibault, sales vice president at ING Independent Life Sales, works a concept with newly minted retirement specialists on business plan development, resource identification and plan administration. He says with confidence, “Don’t show up and throw up. What concept

Heavy lifters in our business, wholesalers self-examine with the best of us. That’s why I humbly offer these few unsolicited tips that I know work in the field.

• Differentiate yourself with thorough research on your target broker’s business • Before you meet, create the broker’s profile and own the information you develop • Understand how she differentiates her firm, match it up to your ideas for growth When you bring knowledge, expertise and ideas to any prospect engagement, you plant the seeds for a trusted relationship which can be harvested over and over throughout its lifetime.

Case Studies in Success One of my clients provides broker-dealer services to investment bankers involved in the merger and acquisition business. Let’s call his firm BDA+. His compliance services are now pure commodity, which is why brokers usually select these services based on cost. Not in this case.

BDA+ walks a different path. His team digs in, rolls up its sleeves and consistently demonstrates to the broker/client how to increase revenues and strengthen profitability. Here’s how BDA+ thrives: • Developed a web-based posting board for clients to share deals. If a client needs money, or wants to buy or sell, he can solicit help from fellow bankers, often partnering on deals.

• Created client access to hard-to-find or costly resources, typically off-limits for small firms: Business valuation firms, legal and accounting services, and transaction documentation services. One special resource is a China-based investment fund with robust interest in investing in U.S. companies.

by r o ry vade n

• Provides access to strategic planning, marketing services, as well as other advisors capable of growing business for the clients of BDA+.

• Holds an annual meeting in the pastoral wine country, where clients enjoy the opportunity to present, network and gain new insights from thought leaders.

Typically, these types of services are not offered by most broker-dealers. Because BDA+ brings industry knowledge, experience and contacts to the relationship, the firm adds welcomed hues to a plain-vanilla selling environment.

Broker Learning Opportunities In another example, a national insurance brokerage firm hired my firm to produce a one-day workshop to guide its brokers and prospective brokers on the best ways to grow their practices.

To ensure a collaborative working session, the brokers team up to tackle a unique Harvard Business case study, licensed for this purpose, which presents a series of head-thumping business issues to solve. What’s magical about the process is watching how brokers identify similar issues in their own businesses. Then, with flipthe-switch efficiency, they self-discover and drive themselves forward to solve their own challenges.

One broker said “I didn’t know what to expect from the case study or the workshop, but I brought home a number of great ideas that I put into my business plan immediately. No other brokerage firm thought enough about my business to help me grow it, all they wanted to do is show me their products.”

Purposely, my client never once pitched a product.

So ask yourself: Is your approach to new business development well-thought out? What services can you bring to help your brokers grow their business? How can you wrap up your products and services to create total value-added package?

Those harder-working wholesalers, who consciously decide to invest time and resources in their broker relationships, and work to solve end-user issues, are destined to breed a stronger, more resilient generation of broker-dealers, agents and producers.

To paraphrase Eric: Now that’s how you show up.

William L. MacDonald is president and chief executive officer of PleinAire Strategies, LLC, a global consulting firm which simplifies the complex sale in financial and professional services through its MERGE process. Bill authored the book MERGE—Simply the Complex Sale, teaches the MERGE Advantage workshops, and is working on his second book.

service minded

Selling a t the time I was just 20-years-old, and it was a routine that I should’ve been used to by then – but I wasn’t.

I was still scared out of my mind. It was my third summer participating in the Southwestern Advantage summer work program and although I had already knocked on over 15,000 doors in my career, I still got nervous every single morning.

Although the experience dramatically shaped my life for the better, something about the idea of interrupting someone’s already busy home life— knocking on their door, unannounced, unexpected and uninvited, always just made me a little bit queasy. And yet when I would say this out loud over and over between houses all day long, the nerves would start to dissipate: it’s hard to be nervous when your mind’s on service.

Fortunately that phrase and philosophy from Southwestern not only carried me through that summer and two more, but it also became an engrained part of my psyche that I now realize is critical to the success of any professional sales career.

As a wholesaler, there are some really similar aspects. You’re competing with a whole lot of other people, who are trying to get the attention of someone who is inundated with other options and you have only miniscule moments to build trust and demonstrate value to an often times skeptical stranger.

How do you do it?

Simple. You focus on them: their wants, their needs, their desires, and their business. It’s not about us. Nobody cares about our product, our pricing, our company’s history or our nice, glossy overly-done brochure. They only care about when we are the perfect fit for their perfect client.

If we are focused on service, then that will also be the only thing that we care about. And in order to find out when we might be the perfect fit for their client, we have to first understand who their clients are and what their approach is to helping them. The way we do that is by asking questions. Ask more questions. Ask better questions. Ask deeper questions. As Andy Andrews once said “the quality of our answers are determined by the quality of our questions.”

Questions are the answers. Questions demonstrate our commitment to servicing the person we are talking to. Questions give us the information to determine whom we’re a fit for and who we’re not. Questions reduce tension because they keep the conversation focused on the advisor’s needs rather than on our products—not to mention I’ve never had someone hang up on me or slam the door in my face while they were talking! Questions build trust and questions eliminate fear.

“the quality of our answers are determinded by the quality of our questions.”

—andy andrews

If you, like me, ever find yourself having fear or anxiety about approaching prospects then it’s a sign that your mentality is way off because fear is always self-centered. Fear is the result of interpreting all possible outcomes through the lens only of how they affect us personally. If you have fear it’s because you are thinking about yourself. The moment we shift our focus from what might happen to us to thinking about how we can serve the person we are talking with is the pivot point of the entire relationship.

Service minded selling is not only a good idea because it reduces fear and works as a selling strategy but also because—believe it or not— service minded selling is a clamorous point of distinction. Asking questions and being truly client-focused will help you quickly rise above the noise of your competition. I promise you they are all still busy talking about their brochure.

Service minded selling is simple but not easy.

It takes intention, focus, dedication and discipline; but it’s worth it. And it’s worth being reminded of over and over, each and every day, “it’s hard to be nervous when your mind’s on service.”

Rory Vaden, MBA is cofounder of Southwestern Consulting, self-discipline strategist and speaker, and New York Times bestselling author of Take the Stairs.

I CARRY THE BAG | SPRING 2013 | 1 9

B y A rt s o bc z ak

the real “secret” to

VoiceMail i

am sometimes amused, but usually annoyed by tactics I see suggested regarding sales and voice mail. Some are asinine, others just flat out deceptive.

For example, one I saw online just the other day instructs you to call a prospect, leave only your name and number, tell them to call you, and say the call is in reference to one of their competitors. Really?

And of course there’s the old, “Just leave your name and number and nothing else” – technique (because you are mysterious), and then they have to call you back. Please.

When it comes to voice mail in sales, I believe that the means does not justify the end, meaning doing whatever it takes to get a call back. If that were the case, why not leave a message that one of their family members was in an accident, and they need to call you right away? Outrageous, right? Just like a lot of voice mail advice.

Well, what should you do to be effective with voice mail?

So that we can plan the optimal approach to leaving messages that get the results we want, let’s take a logical look at what is really going on with people when they get a voice mail.

First, we need to examine the possible thoughts and feelings experienced by an advisor, or anyone in business when they receive a voice message from someone they do not know or recognize, including you.

1 They instantly identify the caller as a salesperson and have no interest at all in whatever the salesperson was pitching.

2 They instantly know there is something in it for them and are excited (i.e., a prospect calling them).

2 0 | SPRING 2013 | I CARRY THE BAG

3 They are curious about the possible value the caller hinted at. They feel there just might be something in it for them. Even though they believe it is a salesperson, their mind is more on what they might get.

4 They are somewhat curious, but very skeptical about what the caller wanted, since there wasn’t much communicated. It might be a salesperson, then again it could be a prospect or customer. They don’t know for sure, since the message was brief, and very vague.

In looking at all of these possible scenarios, of course you don’t want to elicit those emotions in 1. And you can’t fall into the 2nd category — unless you are buying something. Lying is not an option. Number 4 is a possibility, but I recommend against it, as you’ll see in a minute.

That leaves us with 3; you want to make them curious about possible value, so they feel there might be something in this for them.

Exploring further, let’s look at the possible outcomes and actions from someone receiving those voice messages: A No call back. They might not even listen to the entire message. They would never want to talk to this person and will avoid their calls in the future.

B No call back now, although they still have those curious feelings. But they do not feel compelled enough or see enough urgency or value to call, although they might be open to hearing more.

C A call back, and they become engaged in the conversation because they see some value in doing so, either confirming their feeling that they might gain something, or avoid some pain or loss.

D A call back, and within seconds of realizing the caller’s motives, they feel duped… tricked because they realize the caller is a salesperson that has nothing of value for them and was deceptive with his message.

Which outcomes do you desire? Naturally you want to avoid option A, although that is what happens with most sales voice messages.

And I ask you, as a professional, ethical wholesaler, would you want option D, tricking them into calling you? Not me, not a chance.

That leaves (B) and (C), which is providing them with a valid reason to be open to some possible value you might be able to provide. You maintain your integrity, and you are placing them in a frame of mind where they are thinking about their favorite subject: themselves.

Sure, everyone would like that golden magic phrase that gets all calls returned. Sorry to break it to you, but if you want the results I just pointed out, it doesn’t exist. But, you can work to create messages that will get those results. Here’s how.

l Success The Smart Calling Voice Mail Process This process—and it truly is a process, not a technique—is based on my best-selling book, “Smart Calling- Eliminate the Fear, Failure, and Rejection from Cold Calling.” Its premise is fairly simple: KNOW something about the prospect and his/her situation before the call, and use that to create interest and be relevant in your call opening, and voice mail.

The first step is doing your research on your prospect. Information is more accessible today than ever. Google, LinkedIn, their website, Facebook, Twitter, all can hold great info.

Services that collect sales intelligence like InsideView and OneSource/ISell are invaluable.

Doing “social engineering,” calling into the advisor’s office and talking to people other than your prospect, can be one of your best sources of information.

What are you looking for? Anything that might make what you have to offer of possible interest to them. Then you can plug it into the Smart Calling Voice Mail formula.

Yourself and Company 1 Identify

“Hi Mike, I’m Pat Stevens with Executive Financial.”

Your Smart Intelligence 2 Use

“I understand that your firm is aggressively making a push this year to take on more high net worth clients…”

Possible Value Proposition 3 Your

“We work with many advisors nationwide in providing unique options that are very attractive to that segment. They tell us it helps them attract more clients, as well as helping them grow their existing business.”

4 Engagement

“I’d like to ask a few questions and see if I could provide you some information…”

5 Conclusion

“I will call you again Friday morning.

If you’d like to reach me in the meantime, I’m Pat Stevens with Executive Financial. My number is 800-555-9898: I’ll repeat that, 800-5559898. And my email is Pat@ EFinancial.com. Thanks.”

Notice the message doesn’t say that you want to pitch financial products, that you want to meet with them, or make any outrageous promises. It does touch on something that is going on in their world, suggests how you have worked with others in the same situation to get the results they desire, and that you simply want to ask questions to possibly provide information.

It also likely makes them curious about what you are talking about. Remember that from earlier? A great voice message should leave a question in their mind about how they could get that value.

And, it says that YOU will call back.

Let’s face it, most voice mails are not returned. Sure, occasionally you’ll get a call back. Bonus. But, most importantly, you are planting a seed of value that can enhance your chances on the next call.

There is no super-secret method to voice mail success, or magic techniques that work every time. But, if you employ the time-tested method of understanding your prospect, and hinting at possible value they might be interested in, you will show success.

For over 30 years Art Sobczak has helped sales pros say the right things by phone to prospect and sell. Get his free ebook of 501 sales tips at www.BusinessByPhone.com.

I CARRY THE BAG | SPRING 2013 | 2 1

by d o n yaeger

achieving Greatness

w

The Value of Association

holesalers and their leaders have long recognized that great lessons—lessons in leadership, team building, handling adversity, and managing success –can be learned from their peers in the world of sports.

This explains why some of the most sought after public speakers at corporate events are sports greats – Miami Heat President Pat Riley, Duke basketball coach Mike Krzyewski, former Pittsburgh Steeler running back Rock Bleier and former LSU basketball coach Dale Brown are among the most popular speakers on the circuit. The lessons they teach and enact in their world translate perfectly into yours.

In my 20-plus years as a writer for Sports Illustrated and author of more than a dozen books, I have been blessed to spend hours interviewing great winners like Riley, Krzyewski, basketball legend Michael Jordan and Hall of Fame running back Walter Payton.

Some of the best lessons I have learned, however, have come at the foot of the greatest winner of them all, the late John Wooden, former UCLA basketball coach and winner of an unprecedented 10 NCAA championships.

Wooden also was an oft-tapped corporate consultant on the subject of leadership.

Before Wooden’s passing, I often traveled to Los Angeles to talk with him about Greatness and the traits of those who have achieved it.

One characteristic he was passionate about was that the truly “great” understand the value of association. They know they can only become great if they surround themselves with others who are headed in the same direction.

Just a couple of years ago, the then 97-yearold Wooden, his mind sharp as any 30-year-old I had met, got a twinkle in his eye when told me he had a story to share—one I would enjoy sharing with others.

“Many people, when they ask me about coaching great players, always ask me about my two most famous centers, Lew Alcindor

22 | SPRING 2013 | I CARRY THE BAG

(who became Kareem AbdulJabaar) and Bill Walton,” the coach said. “But one of the greatest I have ever coached is a player many wouldn’t suspect. It was Swen Nater.”

I think Coach enjoyed the look of surprise on my face. I remembered Nater, but just barely.

What I remembered was that he was cut from his high school basketball team because, even at 6-foot-11, he was too clumsy to offer the team any value. He didn’t give up, though, and several years later made a community college team. He became talented enough that several four-year colleges offered him scholarships.

At the time, UCLA and Wooden were in the middle of one of the most spectacular runs in all of sports, winning seven of eight national championships. Alcindor had graduated, but Wooden had a new center, Walton, who he thought might be even better.

Nater’s community college coach asked Wooden to consider his player. “I was told he could, at the very least, be a great practice opponent for Walton,” Wooden recalled. “So I spoke with Swen. I was honest. I told him he could go to a small school and play all the minutes he wanted, or he could come to UCLA, where he likely would never start a game, but where he could play against the best center in the country every day. That’s the best I could offer him.”

Nater didn’t flinch. He accepted the opportunity and, as Wooden had promised, he didn’t start a single game at UCLA. “Swen understood that to become the best he needed to associate himself with the best he could find,” Wooden said. “There was no better than Bill Walton.”

Or John Wooden.

When his three years at UCLA were complete, Nater had been part of a team that won a record-breaking 88 straight games and had played for three more national championships – all as Walton’s backup.

Nater then made history when he became the first player selected in the first round of the professional basketball draft without ever starting a college game. He played twelve years professionally and now is a senior executive in the corporate offices of COSTCO. His career “is absolutely and directly the result of having made the decision to associate myself with folks who were the very best,” Nater told me. “I learned that you are who you associate yourself with.”

Coach Wooden was succinct: “Mark these words…You will never out-perform your inner circle. If you want to achieve more, the first thing you should do is improve your inner circle.”

At its core, that is exactly why distribution organizations hold annual events. Those conferences are a wholesaler’s opportunity to improve his or her inner circle, to learn and associate with the very best.

Like Swen Nater, I hope that each of you have identified those in your profession from whom you could learn, those who share your passion for greatness. Then, while attending your divisional or national conferences, introduce yourself, spend time asking and learning what it is they do that makes them successful.

These lessons are often transferable.

Afterwards, take the lessons home with you.

Make your aspirations known to your internal and other members of your team. They will want to associate themselves with greatness, too. You’ll be amazed by what you can achieve when you surround yourselves with those headed in the same direction.

Through each of these steps you’ll understand why John Wooden agreed the value of association is one of the most significant traits of greatness.

Award-Winning Leadership Speaker, Seven-time New York Times Best-Selling Author, long-time Associate Editor for Sports Illustrated and Business Leader. Don Yaeger has fashioned a career that spans more than two decades. As an author, his books have sold more than 2 million copies and have been translated into more than a dozen languages. As an accomplished speaker, he delivers nearly 100 presentations a year to audiences as diverse as Fortune 25 companies and Cancer Survivor Groups, where he shares the story of his personal battle with cancer. For more information email him at don@ team180.com or visit www.donyaeger.com

Productivity

Technology by kip greg o ry

the office. Develop a follow up approach that makes it easy for participants to implement the ideas you share and you will stand apart, opening wide the doors of ongoing access to them.

your call to action clear 5 Make

monetizing 7 Ways to Create Tangible ROI on Your Marketing Dollars

f

irst you get the call, then the pitch and finally the squeeze. Someone’s planning a [fill in the blank… client dinner, training workshop, offsite sales meeting, etc.] and they’re wondering what content you and your firm might bring to the agenda.

Sooner or later they get to the real reason for the conversation. They want your money.

For wholesalers, sponsoring (and presenting at) events comes with the territory. And today, after more than a decade of cuts to in-house training and marketing budgets at distribution firms across the industry, the demand for financial and content support of those events has skyrocketed.

While you don’t want to—and often can’t— say no, you’re reluctant to say yes—at least not before setting some clear expectations of what you need from the experience. Maybe you’ve been burned by no shows …or business promised but never delivered. And even when the room is packed and things go well, the halo effect from helping make an event possible diminishes quickly.

After fifteen years helping wholesalers leverage value-added support as a differentiation strategy, I’ve seen what works, and lots of what doesn’t. You can distill the success formula down to a few key ingredients.

1

Improve their condition, measurably

It’s tempting to want to talk product, and to show you’re student of the markets, but you need bring real, practical business-building strategies to the table—ones that quickly move

the needle on results. That’s what advisors are desperate for. It’s just not what many product partners are offering.

Identify common problems and offer 2 simple solutions Improving sales productivity is a perfect example. Since the ’08 meltdown, filling the pipeline and increasing efficiency have become paramount concerns for every advisor. Which is why right now wholesalers who know—and can teach—practical ways to harness tools like LinkedIn or the iPad more and more advisors are carrying, are in high demand.

on gathering data, not gathering assets 3 Focus Group events offer enormous economies of scale. Properly executed, 30 minutes in front of a room of 100 advisors beats a week of one-on-one meetings. Ask yourself what do I want/need to know about these people to better understand the business they do, and who of them would be good prospects for what we offer? Then structure a questionnaire/feedback process to collect that information.

what comes next 4 Anticipate

Far too much time, money, and effort in this business goes into choreographing the meeting “experience” – well-known speakers, good food, a fancy venue. Virtually none gets spent on how attendees will operationalize what they learn once back at

Invite attendees to request a presentation recap. Schedule a webinar or conference call that drills deeper into your topic. Offer a free consultation. Give people who are interested in learning more a way to do so. That’s a logical, no-pressure way to move the audience through the sales funnel and qualify your best prospects.

Let me repeat: the goal is to get the appointment, 6 not to make the sale Sure, any event attendee could be a potential prospect, but most advisors aren’t going to drop a ticket with you on the spot. The trick is to find out who your message resonates with and get them to ask you to schedule time for a follow-up meeting.

shared accountability for results 7 Establish

Most people in this business aren’t shy and won’t hesitate to hit you up for a check… or give a second thought to what you get out of writing one. Don’t be afraid to ask organizers for what you need to view the event as a success. Their biggest deliverable? A guaranteed minimum number of attendees in return for your support.

Don’t overlook branch contact lists, permission to visit with top producers, or whatever would make your job easier. Asking, and getting agreement on, those issues will quickly reveal who’s truly interested in partnering with you.

If you’d like to evaluate the value-add support process you’re currently employing and identify opportunities to improve it, email me at kip@gregory-group.com to schedule a free, 30-minute consultation.

Kip Gregory is the founder of The Gregory Group, a Washington, D.C.-based consulting firm that helps wholesaling organizations and their distribution partners improve sales productivity and profitability by unleashing the power of resources they already own. You can reach him at kip@gregory-group.com or connect with him via LinkedIn at http://linkd.in/link2kip. © 2013 Kip Gregory, The Gregory Group. All Rights Reserved. Used with permission.

I CARRY THE BAG | SPRING 2013 | 2 3

by eric chester

want improved results?

Start by Shoring Up Your Work Ethic 24 | SPRING 2013 | I CARRY THE BAG

w

ork is central to our lives, so it isn’t a surprise the term “work ethic” elicits such an emotional response in us. And, the concept of a “work ethic” lends itself to especially interesting conversations when we consider how others (a famous athlete, the receptionist in our office, our teenager at home, etc.) embody—or don’t embody— the concept. We’re either praising “them” or condemning “them.” There’s no gray area when someone mentions work ethic.

“Them” is actually the focus of my latest book which, in a nutshell, tells you how you can fix/ repair the work ethic in them—someone else.

However, this article is not about ‘them’.

Rather, it’s about you— and your work ethic.

I know what you’re thinking. Don’t worry.

I am not here to critique your work ethic. I’ll leave the critique up to you. But, I will provide you with a report card to evaluate yourself. I am, however, telling you by taking steps to shore up your work ethic, you’ll see a dramatic improvement in the results of the work you are doing.

Work Ethic Defined Work is defined by action—the effort sustained to overcome obstacles and achieve a result. Ethic is defined by knowing or holding a particular belief. Therefore, we can say that work ethic is knowing the right thing to do and then doing it.

But let’s not stop there.

In an attempt to get a handle on what work ethic really means in today’s economy, I interviewed 1,500 employers (business owners, operators, executives, managers, supervisors, etc.) and asked each of them a simple question. “How can you tell when someone has a great work ethic?”

Although not always with the identical words, the same seven descriptive terms were mentioned in virtually every conversation. Every employer I interviewed, regardless of their level, their business or their industry described an individual with great work ethic as someone who: demonstrated a positive attitude, was extremely reliable, a true professional, took initiative to go above and beyond, respected the rules of the organization and their leaders (whether or not they agreed with them), possessed unshakable integrity and was a gracious person who would go out of their way to provide incredible service to internal and external customers.

So, in the process of writing my book Reviving Work Ethic: A Leader’s Guide to Ending

Entitlement and Restoring Pride in the Emerging Workforce, the first business book on work ethic published since 1904, a much clearer definition of work ethic emerged: Work ethic is knowing what to do and doing it - marked by an individual’s positivity, reliability, professionalism, initiative, respect, integrity and gratitude.

Evaluate Your Own Work Ethic Using my definition for work ethic, make a careful self-appraisal of your work ethic with the knowledge you gain from honestly considering the following:

knowing vs doing

Knowing: Do you know what to do? In the situations when you don’t, how do you decide?

How much time do you invest in learning “above and beyond,” reading more than what is required and working to be the most educated person in your field?

Consider this quote from John Wooden, “It’s what you learn after you know it all that counts.”

Doing: You probably know what to do and what it takes to achieve the results you want.

Take a minute to reflect: Are you doing those things? Do you spend a lot of days simply putting in “seat time,” procrastinating on the unpleasant, arduous activities you don’t want to do (but that you know are essential to your success), and then rationalizing you worked a long day?

The most complex super computer in the world is worthless if it sits in a box on a loading dock. No matter what data and facts it has been programmed with, it only has value when it is working to its fullest capabilities.

The seven Markers How Do You Measure Up?

Positivity: Are you easy and fun to be around?

Do others feel motivated to achieve and work harder in your presence, simply because you bring energy to the working environment? When the you-know-what hits the fan, how do you respond?

Reliability: When you tell someone, “I’ll call you next week,” do you? If you have an appointment at 10:15, what time do you arrive? Do you pay your bills on time? When you say to some-

one, “I have your back,” and then a crisis occurs at an inconvenient time, what happens?

Professionalism: If your company was looking for an image of an employee to feature on their annual report and they saw you as you appear right now, would they ask to take your photo? When your coworkers and clients hear the term “consummate professional” do they think of you? How would others evaluate you based on the language you use, the way you dress, how you are groomed and how you spend your time while on the job?

Initiative: You know how to cut corners and get by with the minimum effort; the question is, do you? When ‘good enough’ is acceptable—but better is possible—how far are you willing to go? Are you doing what is required or are you constantly exceeding the standard to add value whenever and wherever you can?

Respect: There are rules you don’t like and think are unnecessary. Do you follow them anyway? How do you respond when a superior you don’t particularly like gives you a task you don’t want to do?

Integrity: How trustworthy are you? Do you begin sentences with: “I’ll be honest here” or “Truthfully…?” Character is revealed when no one else is watching. Are you living in congruence with the way you want others to perceive you?

Gratitude: Is the level of service you provide tied directly to the dollars you receive for that service? Are you willing to go out of your way for someone even if there is little or no chance it will ever lead to a sale? Are you as kind and cheerful to the receptionist on your way out of the office of a prospect who just rejected your proposal as you were going in?

Remember, you and I are works in progress.

We all could improve in one or more of these areas. But, if we diligently strive to improve our work ethic, the rewards of our efforts will surpass our expectations, and, make us better people in the long run.

Eric Chester is an award winning keynote speaker and the author of Reviving Work Ethic. He is also the Founder of The Center for Work Ethic Development. He can be contacted through www.RevivingWorkEthic.com or by calling 303-239-9999.

I CARRY THE BAG | SPRING 2013 | 2 5

by sc ott peppard

un-wholesaling breaks sticking points Is your territory stuck? Doubling activity will not double your income. Working harder is not scalable—don’t equate more sales calls to more dollars. Competing with other wholesalers on the playing field of transactional activity is idiotic. Learn to lap and leap using transformational marketing strategies.

a

t the risk of sounding blasphemous, getting another finance credential will NOT increase Box 1 of your W-2. It doesn’t matter what you know or who you know, but who knows you that counts. You’re better off becoming a student, not of the markets, but of marketing and branding.

Sad but true, people do judge a book by its cover. Your network is your net-worth and knowing more about kurtosis or Sharpe ratios will increase neither. So if your production has plateaued, get unstuck by thinking not like a wholesaler, but a marketer. Sales is when you call them; marketing is when they call you.

With good niche marketing, sales are easy.

Because the cornerstone of marketing is education, begin introducing novel and innovative ideas to your advisors.

How does a wholesaler find valuable strategies to share? Read books on marketing and enroll in the affiliated seminar. Attend trade associations OUTSIDE the financial services industry and become a conceptual learner. Observe or extract their systems, procedures, processes and thinking. That is, take filaments (advertising, writing copy, sales literature, etc.) from non-related industries, combine into hybrids and show advisors how to import and implement into their practice. Examples may include:

Referral techniques Realtors use (to gain listings) may be more effective than the status quo employed by investment advisors.

Principles revealed at Ritz-Carlton’s Leadership Center may help strengthen client longevity to a rep’s book. The possibilities are endless.

26 | SPRING 2013 | I CARRY THE BAG

Your advisors’ retail business is a pretty good indicator of your wholesale business and the secondary benefit of associating with outside industries is learning about your clients’ clients.

Share a profitable idea picked up and you become not only memorable, but also indispensable.

That’s the goal: to be the de facto advisor to other advisors by being perceived as the problem solver/ solution finder. This is accomplished through helping your reps optimize their systems, practices and procedures. Here are two ideas I picked up attending business seminars unrelated to the financial services industry: When emailing clients or prospects, put their name in the subject line - they are more apt to read it. Dale Carnegie’s advice is as true today as it was more than eighty years ago: “a person’s name is the sweetest, most important and recognizable sound in any language.” If there’s an attachment (PDF, word doc, etc.), save it in the recipient’s name.

I have always been a fan of leaving detailed voice messages for prospects and clients. It is more powerful than email and often easier to telegraph your pitch than an actual conversation. Plus you can professionally bypass any gatekeepers. The problem is voicemail stamina - after five dials, enthusiasm begins to wane.

The solution? Digitally record your pitch and play it back on each of your prospect’s voicemail. By scripting a well-crafted message, you can duplicate your zeal over and over again - you’ve just captured lightning in a bottle!

If you want to make inroad and develop relationships quickly, book broadcast meetings.

Effective speaking is a short cut to distinction - when you present in public, people automatically overestimate your skills, talent and intelligence. Weighting branch meetings over individual sales calls doubled my wholesaler income in one year.

Lunch presentations don’t work because the garden-variety wholesaler rolls in at 11:55AM. The ceremony is typically done with no stage setting (i.e., apropos lighting, chair arrangement, air temperature, email/voicemail rep invites, branch manager endorsement, scripted announcement over the hoot-n-holler, etc.) Then to make a banal situation grave, the topic is always a financial product, never the financial advisor. Prospects don’t want your stuff, they want profit - so stop flogging funds. It’s no mystery why lunch meetings have only 20% attendance rates.

Make the thesis of your next meeting on a novel business practice you discovered while mining outside the industry. Lunch meetings are a piece of theatre and if orchestrated correctly, can transform your production. Your role is to educate the advisor on how to generate referrals and write bigger/better business, not simply to “bring in” assets. If you share something of value, it comes back to you: the law of reciprocity is irrefutable and biblical.

Some call it educational marketing, I call it a cosmic bribe and math of the Universe. So don’t be surprised when branch management offers to pick up the tab at your next lunch meeting. Mission accomplished - you’re now branded as the UN-Wholesaler.

Scott Peppard began his career in 1985 with Thomson McKinnon Securities. He is the author of The Book on Making it as a Broker [http://bit.ly/Zn3PhR] and Managing Partner of NAVCAP—a marketing firm focused on distribution for high-quality, yet undiscovered asset managers. Scott, a Chartered Mutual Fund Counselor, also earned a Bachelor of Arts degree in Business Economics from UC Santa Barbara. He resides in Princeton, New Jersey and can be reached at (609) 651-1260 or speppard@navcapital.com

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28 | SUMMER 2012 | I CARRY THE BAG

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