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"You need to cold call."
We regularly repeat this to advisors we meet because they often rely heavily on cold calls.
Although referrals are great for bringing in new business, they're inconsistent and unreliable. If the referrals dry up, business growth halts. Still, most advisors prefer referrals over cold calling because the prospects are already vetted and the advisor doesn't need to work so hard at selling. Better yet, referrals don't require any additional investments.
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In their defense, cold calling requires dedicated resources — someone needs to sit and call from a list of leads — so many advisors continuously put it off, telling themselves they'll get to it tomorrow. That tomorrow never arrives and advisors continue to focus on what they do best and are most comfortable with instead of putting on their salesperson hat.
To jump into cold calling faster, advisors can hire someone internally to manage the responsibility. This isn't a perfect solution, however, as it generates its own mix of pros and cons. If the hire is talented and consistent, two of the biggest advantages an advisor will see are:
The full-time hire has more bandwidth than an agent at an outsourced third-party company.
