One analogy I like to use is that a Qualified Plan database (or any prospecting database) is like a gym membership.  You only get out of it what you put into it.

We all start the year with good intentions, but (as we enter the second quarter) it’s easy to slip back into old habits.  I was talking to one of our customers about this recently.  As a top producer with many years of experience, he concurred that breaking into the qualified plan business doesn’t have to be a full-time job.  In fact, you can get started by just dedicating a few minutes a day to building a sales pipeline, but you have to do it daily and you have to do it consistently.

We ran a study of our own database several years ago and found that during any one-year period roughly 5% of all qualified plans change advisors.  So if you make just 20 calls, there is a pretty chance that you will speak with at least one party who will decide to move their plan to another provider in the next year.  Make 100 calls and the chances are that you’ve spoken with 5 such prospects!

Anticipate the market….don’t react to it

I have a friend who was looking for employment when the job market was at a recent low.  He talked to headhunters, responded to ads in the paper, sent resumés but still had no luck.  I told him one of his problems might be that he’s too late in making contact with prospective employers.  By the time they received his resumé, they’ve already received 100 others and his might well end up at the bottom of the pile.

So, what he did was start sending resumés and making follow up calls to employers who had not advertised that they were looking for new employees.  Within two weeks an employer got back to him saying, “How did you know we were looking for someone with your skills?  We were just about to post an ad in today’s paper!  When can you come in and talk with us?”  The ad never ran…and my friend got the job he was looking for. 

The reason he got the job he was looking for is simple; he only sent resumés to employers who had the position he wanted.  This has implications for your marketing efforts; only prospect those companies that fit your expertise, i.e. that you can service.

The key to getting those 5% of plan sponsors (who will be making a change sometime this year) is to get in front of them before they’ve decided to make a change and stay in front of them on a continuous basis.  Even if you focused on only 100 plans, the follow-up works out to be about 5 phone calls a day.  That’s very little time invested for a significant payoff.

SPECIAL: Through April 27^th only!

Larkspur Data has developed a 12-month plan that you can use to stay in touch with these prospects.  It includes 12 timely letters, advice on how to follow up and talking points for your conversations.  We’re running a special for the next few weeks to help you get started, we will offer you a 33% discount on DataMaster Pro, our qualified plan database and include our 12-month plan at no additional charge.  How can you not afford to take advantage of this offer?

Larkspur Data Resources, Inc.

(800) 282-4567

www.larkspurdata.com

Single-user subscriptions only.  Offer expires 4/27/12.  Does not apply to existing subscriptions.  Some restrictions may apply.   Please call for details.

One of the easiest ways to start a relationship in the absence of any face-to-face contact is to build familiarity.  Here’s an example.  Every day when I drive home from work, I see a giant billboard with a local real estate agent’s face on it.  The billboard changes every so often, but there’s always some tagline about how he’s the best in the business and can sell your house (at the best price) faster than anyone else in the area.  I don't know this individual personally, but I assume he’s an expert in the business and if I were thinking about selling my house and he called, I’d certainly listen to what he had to say.  He has, in some strange way, established himself in my mind as a leader in the community and an expert in his field.  He is familiar to me even though we’ve never spoken or actually met.

Most financial advisers don’t rent billboard space but that doesn't mean you can't apply the same principle.  The key to building familiarity and establishing yourself as an expert is to keep your name in front of your prospects.  There are numerous ways to do this.  One is to contact the financial-page editor of your local newspaper and offer to be a resource.  Submit a short article and send clippings to your prospects and clients.  This will help you establish yourself as an expert in your field.

Another way is to make sure your mailings have “stickiness”.  Let’s say you send out a 1,000 piece mailing in your local market.  If you address it properly, the majority of recipients will open it and scan through the contents.  Even though many will round file your mailing It’s OK, because those who don't and eventually become clients will generate more income than the mailing cost you.  But how do you get people to hang onto your materials?  “Stickiness”   This refers to how well your article or piece sticks out in their mind.  It also refers to how long your mailing hangs around before getting tossed in the trash.   

The key is to include something they won’t want to throw away.  (Forget about emails they’re almost always deleted.)  You can include all sorts of things in a mailing that you’d never be able to include in an email.  You could include your grandmother’s incredible tomato sauce recipe or a crossword puzzle or a calendar of upcoming events in the local area.  Use your imagination; give your prospects something they’ll want to hang on to.

We have a great idea that you can use to get your name in front of business owners; giving them something that’s valuable, timely and “sticky”.  Call us today and we’ll get you set up with everything you need to establish yourself as an expert in your local market AND make yourself a household name with your prospects.

So now, your name (and your grandmother’s tomato sauce recipe) are taped to your prospect's refrigerator door (possibly for weeks) or your crossword puzzle sits on their coffee table or that calendar is hanging up next to the phone.  Each time they see it (whatever it is) your name becomes a little more familiar.  You might even come up in casual conversation at the dinner table.

Some people will always toss your mailing in the trash, but this strategy will easily expand the number of people who open your mail and hang onto your marketing piece.

And guess what, suppose they actually try your recipe and love it?  They will never forget you, so when you call be sure to ask if they tried your recipe and take advantage of the “stickiness” you’ve generated.

Call us at 800-282-4567 or email us at Info@larkspur.com today for information on other ideas for becoming a household name.

Larkspur Data Resources, Inc.
www.Larkspurdata.com

How many times have you had this experience?
You send out a mailing or call on prospects and they just don’t get back to you?  This is a common problem that most people just can’t seem to find a way around.  They think they need to change the wording of their letter or project a little more warmth and confidence in their voicemails, but this misses the point entirely.

The number one reason why people don’t get back to you is because you haven’t given them a reason to. Most people say, “I'm giving them a reason to call me back…I’m offering a free financial checkup!”  The problem is people see right through this ruse and who would be willing to have a stranger start poking through their brokerage statements, trying to sell them something.

What you shouldn’t be doing.
The first thing to remember is that you are not going to close most sales on the first contact, so don’t try to.  I haven’t met anyone who can send letters to complete strangers and have a large percentage of them show up at their office with statements and checkbook in hand. That might have worked at some point, but it isn’t going to happen in 2012.  By inviting people you haven’t met or spoken with to come in for a “free financial checkup” or “portfolio review”, you’re trying to make a close far too soon.

Forget about financial checkups and portfolio reviews for now. People aren’t looking for this and everyone is already offering it.  It’s intimidating and doesn’t differentiate you in any way.  This is what you will be doing later in the sales cycle.

So how do you get people to indicate an interest in hearing back from you?
What you're looking to do here is to develop a stable of warm prospects; people who have indicated that they have an interest in whatever it is you have to offer.  Imagine you’re planting a garden. If you get over-eager and apply to much fertilizer or pour on too much water, or over expose your seeds to too much sunlight, you're going to kill all your plants.

The same holds true in marketing, you don't have to offer your product right away—in fact, you shouldn’t.  Don’t send a mailer telling them what great variable annuities you have to sell them. They don’t want to hear that…not yet anyway.

You've got to plow your field first.  People love free stuff so give them something for free!  Find a compliance-approved report on the advantages of investing in certain products or markets. One company I worked for had a great videotape on investment opportunities in Asian markets. I know someone who buys books in bulk just to give them away for free.  (Don’t worry, not everyone will take you up on your offer.)  If they do you'll have an entirely different type of problem to confront, a problem that will indicate you're on your way to success.

In your letter (or voicemail) sell the freebie not your products. Tell them what a great book this is, include some excerpts or reviews.  Make the case that this is something they want to have.

Provide a very non-threatening way to indicate their interest in receiving the freebie.  Have a toll-free number where they can leave a message—not talk to a live salesperson (your office phone after hours will work just fine), or use an online form or email address where they can let you know that they want your freebie.

Now you have a group of people who are definitely interested in what you have to say.  Nurture these prospects. Follow up with a letter or two, then a phone call, gradually shifting the focus toward selling yourself and what makes you unique.  A few weeks down the road, they’ll be ready for a face-to-face meeting.

This may take a few weeks to get going, but if you do it right, you’ll have a bigger sales pipeline than ever imagined and once it’s up and running your sales figures will be higher and more consistent than ever before. You’ll wonder how you ever did business any other way.

I'm so confident this will work for you that I'm willing to share the cost.
We recently ran the following offer:  This week only, when you order 2,000 high net worth prospects in your area, we’ll pay for an additional 1,000 leads.  As part of this program, you are also entitled to a free consultation with our resident prospecting expert who has over 20 years of experience in the financial industry, to help you launch your own customized sales campaign.

We ran this offer for one week only, but if you call our office and mention that you read this offer in our Sales Forum, we will make the same offer until at least February 29th.  So call us today and get started on this new marketing technique.

Call us at 800-282-4567 or email us at Info@larkspur.com today to take advantage of this offer.

Larkspur Data Resources, Inc.
www.Larkspurdata.com

Building trust is one of the biggest challenges facing salespeople today; getting past that barrier people put up around themselves.  People generally don't want to share personal information, especially investment information with strangers.  I can't say that I blame them.

But how do we explain the Facebook phenomena?  It would seem there are times when people are willing to talk about themselves.  They like to brag about themselves, what they're good at; last week's golf score, the best way to grill a steak, what their kids scored on their S.A.T.  

People actually do like to talk about themselves; they just don't want to do so with strangers.  Once you realize this you've taken a big first step in breaking through the trust barrier.

In late 2011 we surveyed top producers across the country asking them what they'd like to improve on in the New Year.  A significant majority said they'd like help conducting more effective seminars.

Many advisors view seminars as "dog and pony shows" where you send out invites, rent some space, feed people and browbeat them with PowerPoint slides, Lipper averages and investment advice.  Based on past experience they don't have the confidence that this technique will work.

The technique will work, the problem is they haven't established any kind of relationship; they haven't built any trust.  And people know when they are going to be "sold".  This makes it very hard to get them to attend and even harder to convert attendees into clients.

Taking A Different Approach
So how about taking a different approach?  We spoke with an advisor who's having tremendous success using a far less threatening method.  His concept is simple.  He finds things that people in his target market are truly interested in and then invites them to a seminar on THAT topic.  

For example, he ran a series of seminars on how to put together the ultimate backyard barbecue.  He hired a chef from a local restaurant to talk about grilling techniques and cook a few steaks.  This cost him about $200 (steaks included).  He printed out recipes in little take-home binders and prepared a few tasty side dishes.  After the discussion, food was served and while everyone sat down to eat he gave a short talk about himself, his family (who he'd brought with him), the importance of financial planning and his own capabilities.  This informal seminar was held in a local park.  This allowed him to interact casually with members of the community while providing a service they all enjoyed.

Another idea he's found incredibly effective is the S.A.T. prep seminar.  He does this one at a local school or church hall.  Again, the concept is simple.  Find someone in the area who helps kids study and prepare for their college entrance exams.  Pay this party to attend your seminar and give a 40-minute talk on how to prepare for the S.A.T.  Make sure they can deliver quality content (this will reflect on you).  Afterwards serve some coffee and pastries and give a short talk on financial planning for college.  Emphasize your desire to provide this service to the community where your kids are growing up.  

Seminars of this nature can be fun as well as informative.  More importantly they enable you to break through the trust barrier.  Be creative.  You don't have to use either of these ideas.  These are just two suggestions that have worked well for another advisor.

This is the fun part of sales and marketing.  Think about services that people in your community need and run with it!  Mention that the event (seminar) is being sponsored by you or your firm and leave it at that.  Avoid being stuffy you don't want people to get the feeling they are being sold.  

To help you kick off the New Year, Larkspur Data is offering a special for this week only.  We'll give you access to 2,500 high-net-worth prospects in your area, backed by our unconditional guarantee (call for details) for just $295 (regular price $595 for 4,000).  You'll also lock in a special 66% discount on any subsequent purchases throughout the year.  Finally, you will be entitled to a free one-on-one consultation on your next seminar or prospecting campaign with our in-house marketing expert.

Call us at 800-282-4567 or email us at Info@larkspur.com today to take advantage of this offer.  

Best wishes for a healthy and productive 2011!

Below is a link to a recent article in Accounting Today on the subject of small business owners and

their thoughts concerning their employees’ retirement.  Small business owners see a definite need

for retirement planning and as the article points out, employees are pressuring employers for help.

 

The article includes some interesting data that you should find quite surprising.  There are many

common misconceptions among business owners about the costs involved in setting up and

maintaining retirement plans.  This translates into big opportunities for you.

Although the creation of 401(k)’s and other retirement plans isn’t the most lucrative of businesses,

these plans do eventually grow and always generate recurring fees.  And most importantly, they present an

opportunity for you to get in front of small business owners and their employees.  By making connections here

you can establish yourself as a trusted and knowledgeable investment professional.

Click on the link below to read the article:

http://www.accountingtoday.com/news/Small-Business-Employees-Unprepared-Retirement-60907-1.html

Larkspur Data recently conducted a survey of nearly 100,000 financial professionals asking what prospecting techniques they were using to stay competitve in today’s volatile market.

Here are the results which we’re happy to share with you. See what other professionals around the country are doing to build their business.

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What markets are you currently prospecting?

* High-net-worth individuals (69%)
* 401(k) or other retirement plans (67%)
* Tax-exempt organizations (foundations, endowments, churches, hospitals, schools...etc.) (21%)
* Other (15%)

Notes: Figures are often skewed toward qualified plan prospecting as many of our customers first heard of us through DataMaster Pro, our online searchable database of employee benefit plans. In recent months however, we've seen a surge in interest in our databases of high-net-worth individuals. Most attribute their renewed interest in prospecting these markets to a variety of factors. 1) "My current book of business isn't generating the kind of revenue it was a year or two ago. Bringing in new clients makes up for the difference." 2) "I want to get my sales up quickly and while I am still prospecting for 401(k)s, I like the shorter turnaround time with individual clients." 3) "The volatile economy has created lots of great opportunities. Even the most sophisticated investors are nervous and not getting the kind of attention they'd like."

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How important is COLD CALLING to you in finding new clients?

* 1 Not Important (10%)
* 2 (12%)
* 3 (19%)
* 4 (19%)
* 5 Very Important (40%)


Notes: The results here show that people are still cold calling with success, even in this environment. Respondents indicated that people are more willing to talk (even if it is just to talk) these days. Investors are looking for any kind of reassurance they can find, and a knowledgeable voice on the other end of the phone line often prompts them to release all of the frustrations they might be less willing to share with their current advisor. Not all reactions are initially good ones. Some want to "vent" about the financial industry, politics or even their current investments. However, the general feeling is that they "want to get something off their chest" and savvy (and patient) advisors have been able to turn this into a discussion that leads to appointments.

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How important are MAILINGS to you in finding new clients?

* 1 Not Important (13%)
* 2 (13%)
* 3 (21%)
* 4 (23%)
* 5 Very Important (30%)


Notes: While this chart also suggests that advisors are still doing mailings, the real story is in the written responses. Advisors are pointing to creativity as the #1 determinant of successful mailing campaigns. As one respondant put it, "It isn't just a numbers game anymore. You can't expect to get 2 or 3 responses for every 100 generic mailings sent out. You need to come up with a fresh approach. I've found that my mailings are going even better now than they were before. It took a little trial and error though."

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How important to you are HOLDING SEMINARS in finding new clients?

* 1 Not Important (22%)
* 2 (19%)
* 3 (34%)
* 4 (19%)
* 5 Very Important (5%)


Notes: We had mixed responses in this category with some respondents indicating that they had not been working in this area. The ones who have been having success suggested the following strategy: "People have a lot of pent up frustration now, and it's hard to walk up to the podium and speak without having lots of people interrupting you with specific concerns. If you don't impress them right away, you'll lose their trust. What I do is partner with a fund company who will send out a wholesaler...a professional speaker with a prepared presentation. This acts as a good "buffer" between me and the audience. After the presentation they're sufficiently impressed and I talk about portfolio balancing with confidence and credibility. If questions come up that I can't handle (or would prefer not to), the wholesaler and I can easily handle them together, using the wholesaler's access to the fund manager as a standby solution."

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How important to you is ASKING FOR REFERRALS in finding new clients?

* 1 Not Important (2%)
* 2 (2%)
* 3 (15%)
* 4 (21%)
* 5 Very Important (60%)


Notes: There were no real surprises here. Referrals are always important. One advisor commented, "Right now, people really appreciate a little extra handholding. If you've just spent 30 minutes on the phone with a client reassuring them that all will be OK, trust me, they appreciate it! That is the time to ask for a referral. You have just done the most thankless part of your job and the client realizes this. Offer advice, offer guidance, offer comfort and reassurance and ask for the referral right away." Several advisors shared creative strategies that they say are getting great results. Once again, the most successful ones are linked to creativity.

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How important to you is ADVERTISING in finding new clients?

* 1 Not Important (31%)
* 2 (13%)
* 3 (31%)
* 4 (18%)
* 5 Very Important (7%)


Notes: Many advisors don't see advertising (print advertising in newspapers and periodicals, billboards, radio ads...etc.) as a part of their job in promoting themselves. However as one advisor pointed out, "Every day you have thousands of people listening to the news or reading the paper on their evening commute home. What's the news about these days? The economy! So it's on their mind and it could be that they see or hear your ad. After a while they start to think, 'Maybe I should call that guy.' If your ad is structured to be everything the news isn't, comforting, reassuring...you're off to a good start."

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How important to you is SOCIAL MEDIA (Facebook, Twitter, Linked In) in finding new clients?

* 1 Not Important (35%)
* 2 (20%)
* 3 (24%)
* 4 (16%)
* 5 Very Important (4%)


Notes: This is another area where the comments are telling. Most people said that they are not using social media to capture new prospects. One factor may be that many respondents don't consider themselves computer-savvy enough to understand the process. Others see it as a waste of time or a compliance issue. Regardless of what your take on it is, it's a relatively untapped resource right now. Establishing a presence could get you quite a following. Several advisors indicate they they've had a good deal of success connecting with potential clients. As one told us, "I feel like I'm the only financial advisor on there. Everyone gets their news from me (articles I share), and I get to read all of their comments! I love it!"

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As far as prospecting is concerned, in what areas would you like to improve?

* Cold calling techniques (46%)
* Writing mailers that get results (43%)
* Getting high quality prospecting data (65%)
* Running successful seminars (53%)
* Advertising (32%)
* Sales Ideas (51%)
* Other (7%)


Notes: Results here were mixed. Note that this question instructed respondents to "check all that apply", which is why the numbers don't add up to 100%. As expected, the area seen as most important to successful prospecting is high-quality data. We admit that we are a little biased when it comes to this, but this was what people said and it makes sense. Unless you're calling on the right people, it doesn't matter how good your sales pitch is. The second two areas were interesting and we think represent great opportunities for fund wholesalers and branch office sales managers. 51% of respondents want better sales ideas. In other words, they seem to agree that the key to prospecting in this environment is being creative and learning to differentiate oneself from the competition. Right below "sales ideas" on the list of areas advisors would like to improve is "Running successful seminars". While a lot of people indicated in the question above that they are not currently running seminars, it seems that many would like to be doing this but they feel they need help. Partnering with a wholesaler is often the best approach to getting started.

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Are you finding that it's harder or easier to attract new clients than it was a year ago?

* 1 Much Easier (1%)
* 2 (3%)
* 3 (3%)
* 4 (11%)
* 5 (23%)
* 6 (12%)
* 7 (11%)
* 8 (17%)
* 9 (7%)
* 10 Much harder (12%)


Notes: Respondents here were split fairly evenly with just over half saying prospecting is harder this year than it was last year and a little less than half saying it was the same or easier. The interesting thing here was that many respondents who answered that prospecting was the same or easier than last year included comments indicating a more upbeat attitude toward marketing. In other words, these were the creative ones. Some said things like, "It always requires effort, but if you use your imagination, you can make this market work for you." It's also important to note that we're seeing many of the marketing departments of broker/dealers and fund companies branching off in new (and non-traditional) directions in an effort to distinguish themselves. Setting yourself apart from the competition seems to be what separating those who are struggling from those who are succeeding.

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What is the most common excuse you're hearing right now for why people WON'T do business with you?

* Going on vacation/Call me after summer is over (6%)
* Lost money on current investments (4%)
* Bad economy (23%)
* Happy with current advisor (26%)
* Worried about fees (3%)
* Skeptical of financial industry (29%)
* Not liquid (0%)
* Other (9%)


Notes: Clearly the one single issue that prospects are reporting as their reason for not doing business has to do with the state of the economy. 52% of respondents indicated either "Bad economy" (23%) or "Skeptical of financial industry" (29%). This seems to give us some clues as to where people need to differentiate themselves. It's important to radiate confidence because this inspires confidence in others. So many of the so-called experts have failed to deliver any positive results or accurate predictions. One advisor explained that his approach is to "show the prospect the investment process" and give concrete evidence that it works. Educating your prospect can give you a huge advantage. "You need to inspire trust" said one advisor. "Using the same old prospecting methods classifies you are the old brand of financial advisor." Trust and confidence should be central points to your personal branding efforts. In the past (and still today), many are using their firm's name to inspire trust and confidence. We've found however that many have lost trust in large institutions and a one-on-one "people approach" is far more effective in this envoronment.

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How often do you use Facebook?

* 1 Never (48%)
* 2 (13%)
* 3 (10%)
* 4 (0%)
* 5 (9%)
* 6 (2%)
* 7 (4%)
* 8 (7%)
* 9 (2%)
* 10 Very Often (5%)


Notes: Again, the vast majority of financial advisors are not using social media to build their business. This could present opportunities for some. One common misconception is that you need to talk about finance or showcase particular products to have any success here and since most compliance departments won't let you do that, people abandon the idea before giving it a chance. Facebook should be seen more as a "cocktail party" where you're putting in an appearance, reconnecting with old friends and colleagues and keeping in touch. You do not have to mention financial products at all. It's about making and keeping friends and coming across as a "regular person". If you can include let people know you're in the business, post financial reports and set up a business page, that's great, but remember, we recommend it more as a way to "stay connected" and extend your sphere of influence.

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Do you use Facebook more for business or pleasure?
(select #3 if not applicable)

* 1 Business (6%)
* 2 (2%)
* 3 (39%)
* 4 (13%)
* 5 Pleasure (39%)



Notes: For those who are already on Facebook, have a look at how other financial advisors or even other business are positioning themselves. If you're able to use their strategies to build your own presence, that's great. If not, you might be able to come up with other ways to employ any creative techniques you see. One thing that was striking about a lot of the responses was that people seem to be using some things strictly for business and others strictly for pleasure. Given the current market environment and people's attitudes toward to financial industry, it might make sense to try combining the two whenever you can.

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How often do you use Twitter?

* 1 Never (83%)
* 2 (6%)
* 3 (3%)
* 4 (1%)
* 5 (4%)
* 6 (0%)
* 7 (1%)
* 8 (1%)
* 9 (0%)
* 10 Very Often (0%)


Notes: One problem with Twitter is that it's one of the least understood forms of social media. Twitter can be a great source for news articles for your website or newsletter from respected sources like the Wall Street Journal or other well-known news agencies. Yes, there is a lot of "fluff" on Twitter, but people filter that out by only "following" people who are providing the type of content they're looking for. One nice thing about Twitter is that you can build up followers quickly and easily. If you send out a message to your group of followers, one of them may resend it to their group of 20,000 followers (with YOUR name on it). At the very least, it makes sense to have a look at Twitter as a news source or a source of ideas for building your business. Once you become more familiar with it, you'll see that there are ways it can help you grow your business. Twitter is very "targeted", meaning that you can really focus on certain areas of both interests and location. Google+ is like this in a way. Google+ even has a "local" news stream where you can post things for people in your area to see.

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Do you use Twitter more for business or pleasure?
(select #3 if not applicable)

* 1 Business (12%)
* 2 (1%)
* 3 (70%)
* 4 (2%)
* 5 Pleasure (15%)


Notes: Most respondents answered "3" indicating that this question wasn't applicable to what they're currently doing.

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How often do you use LinkedIn?

* 1 Never (21%)
* 2 (6%)
* 3 (9%)
* 4 (11%)
* 5 (5%)
* 6 (12%)
* 7 (10%)
* 8 (14%)
* 9 (3%)
* 10 Very Often (10%)


Notes: The answers to this question are a bit deceptive. At first, you'd think that LinkedIn was very popular. What we found was that people think they use LinkedIn because they get occasional requests via e-mail to "connect" with former friends and colleagues. This seems to be the real extent of a lot of people's usage. BUT, what many don't realize is that there's a lot more to LinkedIn that they realize. There are all sorts of local networking opportunities, webinars and referral groups that you can take advantage of. If you have a LinkedIn account, you may be missing out on a lot of these additional features. It would be worth your while to have a closer look.

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How interested are you training webinars/conference calls?

* 1 Not Interested (6%)
* 2 (5%)
* 3 (3%)
* 4 (6%)
* 5 (19%)
* 6 (11%)
* 7 (16%)
* 8 (17%)
* 9 (9%)
* 10 Very Interested (7%)


Notes: This is in keeping with responses to many of the questions above. People want ideas and creative ways to prospect. People realize that hard work alone won't get them where they need to be anymore. They need to differentiate themselves and they need fresh new approaches. Wholesalers and sales managers take note. Our "Top Producers Coaching Club" sales training program has been very popular in recent months as a way of helping advisors stand out from the crowd.

The Department of Labor recently published new regulations concerning participant fee disclosure.  I can almost guarantee that 90% of plan sponsors haven't a clue about these new regulations. This is an opportunity for you to position yourself as an expert and bring something that is truly important to their attention.

These new regulations provide you with a legitimate reason to make contact with prospective clients
who may have been putting you off.  There is a compliance deadline associated with these regs, so you
have the added benefit of urgency in making your call to action.

The following article comes from the July/August issue of Defined Contribution Insights.  This
is a must-read article for qualified plan professionals re: the Department of Labor's 
participant-fee disclosure requirements for 2012 and beyond.


Compliance Watch - Participant Fee Disclosure
A checklist for fiduciaries.
By Ian Kopelman

Any defined contribution plan fiduciary who has not begun to think about compliance with the
DOL's participant fee disclosure requirements needs to start thinking about it — now. The
rules require initial and annual disclosures of general information and quarterly
statements of the specific fees and expenses charged to a participant's account and are
generally applicable January 1, 2012 for calendar year plans.

A recent notice issued by the DOL clarifies that plan administrators have a 120-day 
transition period for providing the first annual disclosure to current participants in the
first year the rules apply. This means that in 2012 the general fee disclosure to current
participants in a calendar year plan must be made by April 30, 2012 and the first disclosure
of specific fees and expenses charged to a participant's account must be distributed to
participants by May 15, 2012.

The following checklist is intended to help plan administrators gather the necessary
information and prepare the required disclosures so they can meet these deadlines
which will be here sooner than you think.

First Annual Disclosure
Due April 30, 2012

1. Identify plan-related Information.
• General information
- how and when participants can give investment instructions;
- any restrictions, such as limits on transfers among investment alternatives;
- if applicable, plan rules on voting, tender, or similar rights;
- all designated investment alternatives and investment managers; and
- any brokerage window or similar arrangement.

• Information regarding plan administrative expenses
- fees and expenses for general administrative services (legal,accounting, recordkeeping,   etc.) which may  be charged againstindividual participant accounts but not included in  investment alternatives total operating expenses; and

- whether charges will be allocated to individual accounts pro rata or per capita and how charges willaffect individual account balances.

- Information regarding individual expenses — fees and expenses charged to individual  
  participant accounts, such as fees for loan processing, QDROs, investment advice,   brokerage
  windows.

2. Identify investment-related information based on the latest available data.
• Name, address, and telephone number of plan administrator or its designee to request for
  free paper copies of information.

• Specific information for each designated investment alternative
- the name and type or category investment, such as money market fund, balanced fund, or large-cap stock fund;

- if return is not fixed, 1-, 5- and 10-year average annual total  returns (or life of investment if shorter); and

- if return is fixed or stated, the annual rate of return and term of investment or minimum guaranteed rate if rate of return is adjustable, and how to obtain most recent rate of return.

• If return is not fixed, name and returns of a broad-based market index over 1-, 5- and 10-year returns (or life of investment, if necessary) which is not administered by an affiliate of the investment issuer or adviser as benchmark.

• Fee and expense information
- if return is not fixed:

• amount and description of fees charged directly against participant's investment;

• total annual operating expenses expressed as a percentage and as a dollar amount per   

$1,000 for 1-year period; and
- if return is fixed, amount and description of shareholder type fees and any transfer restrictions.

• Internet website for more specific information about investment.

• Glossary of terms.

3. In the case of an annuity option, identify other information.

• Contract name.

• Investment objectives and goals.

• Benefits and factors that determine the price (age, interest rates, form of   distribution);

• Limitations on withdrawals or transfers and applicable fees.

• Fees that will reduce the value of participant's investment (surrender charges, market   
value adjustments and administrative expenses).

• An internet website that provides more information about the issuer, investment      
objectives, distribution options, costs and or factors taken into account under each   option,
transfer and withdrawal limitations and applicable fees.

4. Present investment-related information in a comparative chart or format similar to the    
model provided by the DOL, prominently display the date and include certain information    in
addition to that described above.

• A statement that additional information is available on the investment's
  website and explaining how to obtain paper copies of the additional
  information.

• A statement that past performance is not an indicator of future returns.

• A statement that fees and expenses are only one factor to be considered and that   
cumulative effect of fees and expenses can reduce account growth over time.

• A description of any restrictions on transfers.


Quarterly Disclosure Due May 15, 2012

1. Identify dollar amount of plan administrative expenses actually charged to participant's    
    account during preceding quarter.

2. Identify dollar amount of individual expenses actually charged to participant's account    
    during preceding quarter.

3. Include descriptions of services to which each of the above charges relate.

4. If applicable, include an explanation that in addition to the fees disclosed, some of    
    the plan's administrative expenses were paid from investment alternatives' total       
    operating expenses.


General Rules

1. Plan-related and administrative expense information can be disclosed in SPD or benefit    
    statements if they are distributed often enough.

2. DOL electronic disclosure rules apply.

3. The model DOL disclosure for investment expense information does not have to be used,    
     but if it is used, the disclosure will be deemed to satisfy the regulations.

4. After April 30, 2012, the general disclosures must be made on or before the date the    
    participant or beneficiary first becomes eligible to direct investments under the plan    and
    annually thereafter.

5. Any changes in operational and identification information, administrative expenses, or    
    individual expenses must be disclosed at least 30 but no more than 90 days before the    
    effective date of the change. If it is impossible to meet this deadline, the change must    be
    disclosed as soon as practicable.

6. Statements disclosing information specific to individual participant accounts must be made quarterly.


Ian Kopelman is a partner at DLA Piper LLP (US).
Ian is also PSCA's legal counsel.


Defined Contribution Insights is a publication of the Profit Sharing/401k Council of America
(PSCA). PSCA is a national non-profit association of 1,200 companies and 6 million employees
advocating increased retirement security through profit sharing, 401(k) and related defined
contribution programs to federal policymakers.  PSCA also provides  practical assistance with
profit sharing and 401(k) plan design, administration, investment, compliance and
communication to its members.  Go to www.PSCA.ORG for further information.

It’s summer time and the living's easy so let’s have some fun.

Did you know?

August is National Catfish Month
Celebrating the work of U.S. catfish farmers.  Most U.S. farm-raised catfish are produced in pure freshwater ponds on family-owned farms in Mississippi, Alabama, Arkansas, and Louisiana, where many of these growers are second- or third-generation farmers. I think most of these Catfishers (men and women who fish for catfish) are circling my favorite lakeside vacationing spot.  How do they get all those catfish from Mississippi, Alabama, Arkansas, and Louisiana to California?  I’d really like to know.

Lughnasadh is August 1
This is a Celtic harvest festival that takes its name from the Irish god Lugh.

National Psychic Week is August 1-5
Sooner or later somebody had to come up with this idea, so be sure to say hello to your local mind reader(s).  And be sure to take the time to thank your friendly neighborhood psychic, tarot card reader or palmist.

National Assistance Dog Week is August 7-13
This is a worthy gesture of recognition.  Assistance dogs have transformed the lives of their human partners by providing friendly companionship and unselfish aid.  National Assistance Dog Week recognizes and honors these hardworking animals and it seeks to raise awareness and educate the public about how these specially trained animals are aiding so many people in our communities.  I sure hope the dogs appreciate the recognition.

National Farmers Market Week August 7-13
(Poor dogs have to share their week with farmers markets.)  The number of farmers markets in the United States has grown from 1,755 in 1994 to 6,132 today, as reported by the USDA National Farmers Market Directory.  Get some fresh fruit and vegetables from your local farmers market this week and thank them for their hard work.

International Beer Day is August 5
Not to be confused with National Beer Day, which is April 7th.  This is an international celebration to enjoy a cold brew or raise a stein in the company of friends and express your appreciation for the brewers and bartenders who provide us with beer.  Why can't this be a week-long celebration?  We could fit it in the week of August 14 - 20.  All those in favor send us an email. 

Since we’re on a roll, how about some…Trivia?

Did You Know?
Icelandic phone books are in alphabetical order by first names.  The reason is that male surnames in Iceland are created by adding “sson” to the father’s first name and female surnames are created by adding “dottir” to the mother’s first name. This makes surnames somewhat redundant.

The first bar code scanner to be used commercially was installed in an Ohio supermarket, and the first product to be successfully scanned was a packet of Wrigley’s gum. 

There are two terms used for the fear of Friday the 13th.  The first is paraskevidekatriaphobia, which comes from the Greek words “paraskevi” meaning Friday, “dekatria” meaning “thirteen” and “phobia” from the Greek word “phobos” for fear.  The second is friggatriskaidekaphobia, which comes from the name of the Norse goddess Frigga for whom Friday is said to be named, “triskaideka,” which comes from the three Greek words “tris kai deka,” meaning literally “three and ten,” and again, the Greek word for fear.

Apparently, around 13 people are killed every year by vending machines (how embarrassing). Probably on Friday the 13th I suspect. 

Despite the fact that Dan Brown’s latest novel, The Lost Symbol, alludes to a law stating that no building in Washington, D.C., can exceed the height of the Washington Monument, this is apparently nothing more than a popular misconception aka BS.  Sure is a lot of that floating around D.C. these days.

The opposite sides of a die always add up to seven.  If you don’t know this, don't play craps.

Feel free to use any of this useless information.

One of the biggest mistakes advisers make is not spending as much time and effort following up on their leads as they do trying to generate those leads.

Let me ask, have you ever calculated the lifetime value of a client?  How about the cost of developing a new client?

These two numbers are crucial to the success of your business.  Many of the most important decisions you make are derived from these numbers.

The amount of income you generate from an average client over their lifetime determines how much you're willing to invest to obtain that client, right?  So if you haven't already done so, I suggest you take a few minutes to make the calculations.

Leads Are A Valuable Asset

One of the biggest mistakes that many of us make is not pursuing leads in a consistent orderly manner.  Given the potential value a lead represents it's worth your time to:

1. Create a lead generation system
2. Create a follow-up system.

Let me outline a very simple automated system for lead generation and follow-up.

You begin by sending a postcard, letter or notice of an upcoming event to a list of prospects.  Your goal is to drive them to call you, email you or maybe visit a web-page to request a free report or brochure; something prepared by your home office that is compliance approved.

Your response will include the requested report or brochure and a simple cover letter designed to pre-qualify your prospect and to pre-sell him or her on YOU (not your company, not what you sell, but YOU).

If your prospect doesn't respond after receiving the free report, you automatically send a second letter or possibly an email (if they provide an email address) with a brief note, i.e., "I recently sent you our report on The ABC's Of Investing but have not heard from you.  I know you're busy but please give me a minute to speak with you etc......."

If they don't respond to this, ten days later you send one more contact; a third letter and/or an email. After that you automatically put them on your list to receive your periodic newsletter or other contact tool.

Most financial advisers don't follow up after their first attempt. Why? Because it's a manual process and a hassle. They either forget, get bogged down in other work or they get frustrated and move on to a new strategy.  This is the worst thing you can do.  Don't give up at this point, persistence pays off for those who have patience.

You now have the basics of an automated system.  You automate the process by assigning the tasks to your assistant or team members.  You tell them, "here are the letters, here are the emails and here are the dates I want you to send these.  If there are any problems let me know".  If you don't have an assistant or team we can provide a solution.  Call and let us know, we'll help you.

This system is designed to put your lead generation and follow-up on autopilot so you can focus on closing sales and staying in contact with existing clients.

Staying In Contact With Existing Clients

As for existing clients, you're making just as big a mistake if you're not staying in contact with them in a systematic way.

You can gain so much long-term leverage from your clients by just staying in contact with them on a consistent basis.  A hand written note attached to a WSJ article, a newsletter, a comment about a recent news story, anything you can personalize will suffice.

If you don't do this, the goodwill you've generated will begin to disappear.  Absence does NOT make the heart grow fonder, not in the business world.

The cost to you of having to find and develop new clients far exceeds the cost of maintaining existing clients and generating more income from them.  It pays to stay in contact with your customer base!

You've probably heard recent radio commercials touting the "Constant Contact" product, this is what it's all about; staying in touch with your customers.

Creating contact and follow-up systems should be an integral part of your marketing program.  Call us at 800-282-4567 or go to our website at Larkspurdata.com if you would like more information.  Mention this article and we'll give you the option of either a $100 discount or 500 extra leads on the next order you place with us.

As a financial advisor there are 3 critical components to successfully grow your client base.  You need to be able to identify, locate and reach your market.  Very simply I agree, so let's look at one way to do this.

    1. Identify Your Market
        To identify your market you need to profile your customer by:

    A. Identifying the Demographics

• * Age
• * Gender
• * Income
• * Education
• * Marital Status
• * Job Type
• * Location

    B. Identifying the Psychographics
        Psychographics focus on the personality, character, and views of the individual. For example, are they pessimistic or optimistic? Are they risk takers or conservative? Are they open minded or closed minded? 

    2. Locate Your Market
        Once you identify who your market is you need to locate that market.

• * Start with your existing customers and where they are located and branch out from there.
• * Follow up on inquiries since they will define the geographic area of those you have identified as your market
• * Locate those who are not currently your customers but who have the same attributes as those who are your customers.
• * Get in contact with your industry association to obtain any industry market analysis that has occurred detailing geographic areas.

    3. Reach Your Market
        There are all the traditional methods of reaching your market - direct mail outs, telephone solicitation, and referrals, but there are other ways to reach your market. Let's have a look.

• * The Internet - With more than 2 billion people using the internet in 2010, you have a market that's untapped just waiting to be targeted.  Use search engine optimization to target the market you've identified.  Create headlines that engage and motivate potential customers.
• * Social Media - Up until recently social media was thought to be more of a novelty and place of gathering strictly for social interaction.  The powerful marketing opportunities that exist here are in their infancy and only recently are they beginning to be recognized by business.  Try to get on the leading edge of this new medium.
• * Blogs - Offer an excellent way to target and reach your market, as well as engage them.  Blogs provide numerous benefits including: positioning you as an expert; building the trust factor by showing customers and prospects who you are and demonstrating how you do business; they can help to attract business from people who are simply surfing the web.  Search engines focus on keywords, if they're in one of your articles your site could appear at the top of the search screen.

Financial advisors, this might appear to be a bit simplistic and I agree it is.  The question is are you doing these things on a regular basis?  If not, why not?  To successfully grow your client base this is all it really takes: identify, locate and reach your target market.