Many successful financial advisory practices started with an effective cold-calling strategy. But today, many advisors shy away from the practice of approaching new prospects on the telephone.

A phone call can be a first step in building a deep relationship. You need personal interaction to develop any business relationship, says Mary Jane Copps, owner of the Phone Lady in Halifax. And the telephone is a good place to start.

Of course, to start those relationships you first need to pick up the phone. And that’s where many advisors stumble. Here are four myths that might be holding you back from making that call:

Myth #1. The Do Not Call List means do not call anyone, ever
The National Do No Call List puts limits on your calling strategy. It does not, however, completely prohibit telephone calls as a prospecting tool.

In August 2010, the Canadian Radio-television and Telecommunications Commission ruled that financial advisors cannot call people who are listed on the DNCL.

You can contact people who are not on the list, between the hours of 9:30 a.m. and 9 p.m. local time. (You can also contact existing clients, under the “existing business relationship” exemption.)

Before making any cold calls to prospects or even to existing clients, ensure that they are not on the list. To subscribe to the whole list or portions of the list covering area codes relevant to you, visit www.lnnte-dncl.gc.ca. You can also receive updates.

Myth 2. People will yell at you
There’s a general assumption that people will be furious when you call.

In fact, people are almost never angry when they receive a cold call, Copps says. Rarely, if you catch people at a bad time — such as during dinner or a family crisis — people may be annoyed. But the overwhelming majority of cold-call recipients remain civil.

Don’t be afraid to pick up the phone, Copps says. Just remember to call during business hours at the prospect’s place of business.

Myth 3. A cold call is a sales call
Many advisors believe that the only purpose of a cold call is to make a sale. That is simply not the case.

In business, a cold call is like an introduction, Copps says. It’s similar to a handshake at a networking event.

Instead of attempting to sell a product or your services, make it your goal to have a conversation with the prospect to introduce yourself and your services.

Myth 4. You have to know everything
Some advisors hesitate to make cold calls out of fear that the prospect will ask a question for which they are not prepared, Copps says. It’s OK if you don’t have all the answers, she adds.

Turn the situation into an opportunity by saying you don’t have the answer, but will investigate and get back to the prospect with the requested information within a specific time.

Following through on this promise is a great way to establish trust, Copps adds. “It really goes toward building the relationship.”

IE