Comments on: How to lose $1,365 per year and not know it http://www.iwillteachyoutoberich.com/blog/how-to-lose-1365-per-year-and-not-know-it/ Personal finance blog for college students, recent graduates and everyone else -- including entrepreneurship -- for getting rich. Featured in the Wall Street Journal and New York Times. Sun, 8 Nov 2009 06:09:27 -0800 http://wordpress.org/?v=abc hourly 1 By: Sofia http://www.iwillteachyoutoberich.com/blog/how-to-lose-1365-per-year-and-not-know-it/comment-page-1/#comment-19718 Sofia Wed, 06 Jun 2007 03:13:16 +0000 http://www.iwillteachyoutoberich.com/blog/how-to-lose-1365-per-year-and-not-know-it#comment-19718 The focus of your discussion in centered on the advisor when we should be analyzing the public. Who is so hard-up for a free lunch and willing to listen to a sales pitch (educational or not) that they are willing to put themselves through the difficult and uncomfortable task of disappointing (and in fact playing with) the lunch giver? These kinds of prospects I would not want in my practice. The focus of your discussion in centered on the advisor when we should be analyzing the public. Who is so hard-up for a free lunch and willing to listen to a sales pitch (educational or not) that they are willing to put themselves through the difficult and uncomfortable task of disappointing (and in fact playing with) the lunch giver?
These kinds of prospects I would not want in my practice.

]]> By: Enrique http://www.iwillteachyoutoberich.com/blog/how-to-lose-1365-per-year-and-not-know-it/comment-page-1/#comment-16894 Enrique Wed, 23 May 2007 18:59:03 +0000 http://www.iwillteachyoutoberich.com/blog/how-to-lose-1365-per-year-and-not-know-it#comment-16894 ramit: Half analysis is okay but not good enough from a graduated from Stanford. If she is good, and she makes money for her clients, she will be recomended to other associates. Didn't Warren Buffet started his company than way? ramit:
Half analysis is okay but not good enough from a graduated from Stanford.
If she is good, and she makes money for her clients, she will be recomended to other associates.
Didn’t Warren Buffet started his company than way?

]]> By: I Will Teach You To Be Rich » My analysis was incomplete (but it was there) http://www.iwillteachyoutoberich.com/blog/how-to-lose-1365-per-year-and-not-know-it/comment-page-1/#comment-16471 I Will Teach You To Be Rich » My analysis was incomplete (but it was there) Mon, 21 May 2007 16:12:52 +0000 http://www.iwillteachyoutoberich.com/blog/how-to-lose-1365-per-year-and-not-know-it#comment-16471 [...] week I posted about the financial planner who I thought had a horrible marketing strategy. I made the assumptions and asked people what they thought, and the comments pointed out a bunch of [...] [...] week I posted about the financial planner who I thought had a horrible marketing strategy. I made the assumptions and asked people what they thought, and the comments pointed out a bunch of [...]

]]> By: true http://www.iwillteachyoutoberich.com/blog/how-to-lose-1365-per-year-and-not-know-it/comment-page-1/#comment-16056 true Fri, 18 May 2007 23:25:10 +0000 http://www.iwillteachyoutoberich.com/blog/how-to-lose-1365-per-year-and-not-know-it#comment-16056 I also went to one of these lunches (twice actually) and they are paid for by the company. It's usually the newbies that do this as they begin to work on their spiel and as they build up a customer base that keeps them as their financial advisor for a yearly fee. These people are making a lot by doing this, otherwise they would have stopped long ago. So shelling out $1000 total for say 3 different dinners totaling 21 people, will typically reap 4-5 leads where 2 will do a one time thing at $300-500 for advice, and the other 2 or 3 will keep you on as their financial advisor ... paying you $500 a year ... I also went to one of these lunches (twice actually) and they are paid for by the company. It’s usually the newbies that do this as they begin to work on their spiel and as they build up a customer base that keeps them as their financial advisor for a yearly fee.

These people are making a lot by doing this, otherwise they would have stopped long ago. So shelling out $1000 total for say 3 different dinners totaling 21 people, will typically reap 4-5 leads where 2 will do a one time thing at $300-500 for advice, and the other 2 or 3 will keep you on as their financial advisor … paying you $500 a year …

]]> By: unexpected http://www.iwillteachyoutoberich.com/blog/how-to-lose-1365-per-year-and-not-know-it/comment-page-1/#comment-16040 unexpected Fri, 18 May 2007 21:44:23 +0000 http://www.iwillteachyoutoberich.com/blog/how-to-lose-1365-per-year-and-not-know-it#comment-16040 Ramit, was this with Ameriprise Financial? We've done this lunch thing twice, and the Financial Planner doesn't actually pay for the lunch himself. Ameriprise (or whatever company they're affiliated with) will pay for the lunch themselves. Also, if they're independent, they can take a deduction on it. The financial planners here charge $300 per session. If lunch for 10 people is $15 a person, you can take 20 people out to lunch, sign only 1 up, take the deduction, and still have profit. Ramit, was this with Ameriprise Financial?

We’ve done this lunch thing twice, and the Financial Planner doesn’t actually pay for the lunch himself.

Ameriprise (or whatever company they’re affiliated with) will pay for the lunch themselves.

Also, if they’re independent, they can take a deduction on it.

The financial planners here charge $300 per session.

If lunch for 10 people is $15 a person, you can take 20 people out to lunch, sign only 1 up, take the deduction, and still have profit.

]]> By: nubbin http://www.iwillteachyoutoberich.com/blog/how-to-lose-1365-per-year-and-not-know-it/comment-page-1/#comment-15972 nubbin Fri, 18 May 2007 14:24:37 +0000 http://www.iwillteachyoutoberich.com/blog/how-to-lose-1365-per-year-and-not-know-it#comment-15972 I agree with post #15. Recurring clients are the key. She's not so bad that she loses every client after meeting with them once. IOW cost of sales does not get incurred afresh for every deal. If she's good she'll keep giving perks from time to time to reward her best clients, but the cost of perks averaged over service deliveries will go down initially and then gradually creep up for the best clients. It's a truism for most services, repeat business is where the money is. I agree with post #15.

Recurring clients are the key. She’s not so bad that she loses every client after meeting with them once.

IOW cost of sales does not get incurred afresh for every deal.

If she’s good she’ll keep giving perks from time to time to reward her best clients, but the cost of perks averaged over service deliveries will go down initially and then gradually creep up for the best clients.

It’s a truism for most services, repeat business is where the money is.

]]> By: Starving Artist http://www.iwillteachyoutoberich.com/blog/how-to-lose-1365-per-year-and-not-know-it/comment-page-1/#comment-15815 Starving Artist Thu, 17 May 2007 19:45:11 +0000 http://www.iwillteachyoutoberich.com/blog/how-to-lose-1365-per-year-and-not-know-it#comment-15815 I try and keep track of exactly how much money I'm losing in a given day... No, but this is true. I get bonuses occasionally, and they really screw up my spending habits. I'll let myself spend a few hundred extra a month, and get used to that, and then when the bonus runs out, or I've locked it away, my spending habits are out of control. I try and keep track of exactly how much money I’m losing in a given day…
No, but this is true. I get bonuses occasionally, and they really screw up my spending habits. I’ll let myself spend a few hundred extra a month, and get used to that, and then when the bonus runs out, or I’ve locked it away, my spending habits are out of control.

]]> By: Richer than most, Poorer than some http://www.iwillteachyoutoberich.com/blog/how-to-lose-1365-per-year-and-not-know-it/comment-page-1/#comment-15786 Richer than most, Poorer than some Thu, 17 May 2007 18:00:30 +0000 http://www.iwillteachyoutoberich.com/blog/how-to-lose-1365-per-year-and-not-know-it#comment-15786 I think you're over generalizing a bit, just because you and your brother's friends weren't interested or filled out fake information doesn't mean most people does. Like you said, "when she saw them, you could see her heart sink." so it doesn't sound like your group were her typical clientele. I think you’re over generalizing a bit, just because you and your brother’s friends weren’t interested or filled out fake information doesn’t mean most people does. Like you said, “when she saw them, you could see her heart sink.” so it doesn’t sound like your group were her typical clientele.

]]> By: K http://www.iwillteachyoutoberich.com/blog/how-to-lose-1365-per-year-and-not-know-it/comment-page-1/#comment-15784 K Thu, 17 May 2007 17:48:32 +0000 http://www.iwillteachyoutoberich.com/blog/how-to-lose-1365-per-year-and-not-know-it#comment-15784 Okay, here's the dirty little secret I heard from a couple financial planners. They don't make money on the client, they make money on the friends and family that client brings with her. That's where the sweet spot is. And often people who enter contests are, as Seth Godin calls them, noisy people. Okay, here’s the dirty little secret I heard from a couple financial planners.

They don’t make money on the client, they make money on the friends and family that client brings with her.

That’s where the sweet spot is.

And often people who enter contests are, as Seth Godin calls them, noisy people.

]]> By: J.R. http://www.iwillteachyoutoberich.com/blog/how-to-lose-1365-per-year-and-not-know-it/comment-page-1/#comment-15721 J.R. Thu, 17 May 2007 13:09:26 +0000 http://www.iwillteachyoutoberich.com/blog/how-to-lose-1365-per-year-and-not-know-it#comment-15721 Oh yeah, and I'd also bet that they get spiffs or kickbacks on loaded mutual funds they sell, or assorted insurances/investments/tax info etc. A good thing to know in life that very few 'Financial Planners' are required by law to act in your best interests. I imagine that some sort of added kickback, or recurring service charge is what makes these guys profitable. Oh yeah, and I’d also bet that they get spiffs or kickbacks on loaded mutual funds they sell, or assorted insurances/investments/tax info etc.

A good thing to know in life that very few ‘Financial Planners’ are required by law to act in your best interests. I imagine that some sort of added kickback, or recurring service charge is what makes these guys profitable.

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