Stockbroking is all about offering an interesting value proposition to clients to trade in equities and other investment products. If you want to carve out a successful career in stock broking, here are 10 tips you need to keep in mind at all times:
10 Tips to make a Successful Career in Stock Broking
Be a self-starter. You cannot hope to make a successful career in stockbroking if you are not a self-starter. As a stockbroker, you are not selling a tangible product but an intangible service. Your product is not the stockbroking platform or the trading terminal or even the trading interface that you offer. It is the trust that the client is willing to repose on you. Once that is built and once the client is confident about you, the rest will follow.
Get used to cold calls. There is no ready market and more often than not you need to create the market as a stockbroker. You have a broad catch list with you but don’t wait too long to start. There is a way you should make cold calls. For example, try to start off by giving your research ideas with no commitments from the other side. When the markets correct, call up a handful of large customers and tell them what to do. These can be great starting points for a long-term relationship.
Get used to hearing No for an answer. That is one of the most important facets of carving a successful career in stock broking. Normally, your deal with a client gets struck after the fourth or fifth meeting. At times you may be lucky enough to get it done quicker but that is an exception than a rule. Normally, the best clients will come to you after a number of attempts only. Remember, No in the stockbroking business does not mean Never. Just because a person says No, don’t stop communicating or giving them ideas. Business will follow automatically.
Patience and perseverance can do a lot of good. This is a corollary to the previous point. Quite often you will find that customers come to you not because of any great reason other than the fact that you were the only one who persevered. Perseverance is all about persisting with your potential clients and continuing to give them a value proposition.
Communication is the key; focus on what is in it for the customer. Don’t talk too much about how great your analyst team or how wonderful your platform is. Those are the things the customer will eventually find out. Focus on what the customer needs and build your pitch around that. Make the customer the nucleus of your sales pitch and you see the relevance sinking in much faster. As Napoleon rightly said, most men understand much faster when they understand what is in it for them.
Improve and work on your domain skills. Stockbroking is not about sales skills but a lot more about domain skills. Brush up your awareness of facts, shifts and latest companies. You don’t need to talk like an analyst but customers do expect you to narrate a story with some depth. As Peter Lynch used to say, it is all about illustrating with a piece of chalk. How best you can break down a research report and communication the idea to a customer will make the difference.
Start trading with your own money. Trading is not just about wealth creation but also a lot about emotions. You can never understand the customer’s emotions unless you actually part with your own money. Let that be your test case of how your customer will receive your ideas. If your ideas are great and refined but they are not making money then it is pointless. That is something you can only understand if you put your own money and understand the entire cycle of emotions.
Creating a funnel of sales at all times. Customer acquisition is a continuous process if you want to be a successful stockbroker. You can acquire customers through online, offline, cold calls or through campaigns. Always look around for such opportunities and use this opportunity to create a sales funnel. Always adopt a wider approach to financial goals when you talk to your leads so that they understand where stock broking actually fits in. That way, the job gets a lot easier. A funnel of sales leads at any point of time is a must in this business.
Always focus on ROI per customer. The return on investment per customer measures how much revenues you make out of each customer. In the marketplace, it is much easier to increase revenue per customer than constantly seeking new customers. While customer acquisition must go on, also focus on how you can improve the revenue per customer. Give them more ideas, engage them more frequently, focus on the missed opportunities and highlight to the customer. That is called deepening the relationship.
Network, network, and network. That is last but by no way the least important. Use multiple forums to build contacts. Attend seminars and conferences to network with like-minded people. Look at opportunities to get potential customers together. Even try and start a social media group of potential customers for a serious discussion. All these can go a long way in helping you build your stockbroking career.
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