Talking Points

We Are Number 1 Mark Zinder Action Shot

As sports fans prepare for the completion of baseball season and make preparations for the football season, a familiar battle cry is ringing out over the national landscape: "We're number one!"

As a longstanding Atlanta Braves fan, I remember with vivid detail their 1991 season when they went from "worst to first." Being number one, being first, or capturing the gold: all euphemisms we relish as we stake claim to our right to taunt our opponents and their disappointed fans. If you have found yourself in the unfortunate circumstance of not being first, one could always refer to the standings in hoping that a second place showing was a way to reiterate that "it's not over till it's over" and hope for the best, which, for the Chicago Cubs this year, would be all too welcome.

Being the best certainly comes with its advantages--the gold medal, the fame, the adoration. Place second and take the silver, but that's about all. Consider, however, the words of Jerry Seinfeld, that "out of all the losers, you were the first- no one lost ahead of you!"

Much like evaluating the standings, making lists may serve all types of purposes--most commonly, they are used to denote a group of related objects or activities, such as the numerous pieces of paper I have scattered about with "To Do" scrawled hastily across the top. They can be used to compare and contrast, to gain perspective. Occasionally a list will even be intended to throw you off balance--a list of questions that come at you so fast it's nearly impossible to respond. I would often receive something of this nature from my mother about the same time that my younger brother would begin chanting "Mark's in trouble, Mark's in trouble..."

With amazing rapidity, my Mother would call them out in order:

"Are you deaf; are you blind; are you crazy?"
"Uhh-"
"Do you live in a barn?"
"Umm-"
"Do you think we are made of money?"
But my all time favorite-
"Just who do you think you are?"

Whether it is being number one (or wondering why you aren't) or having things put on a list for you, you have the opportunity to gain perspective.

On the morning of August 18, I awoke with futures down strongly. After a nearly 50% run-up in stocks since the March lows, this made me wonder: for an investor, is there more anxiety being out of a bull market or more anxiety being in a bear market? But more importantly, it made me wonder, did you call your best clients? If you did, what did you say? Better yet, what did you hear? Were you listening? After 30 years of being employed in direct sales I have learned that what you don't say is just as important as what you do say. When you are speaking to your clients, are you listening or are you just waiting for your turn to talk?

Thomas Edison learned this lesson well, not because of his sales skills but because of his lack of sales skills. Of over 1,300 patented inventions, the first he sold was the stock ticker tape machine. After he received his patent, he made an appointment with the president of a Wall Street firm and showed him his new invention. He was prepared to ask $5,000 for the rights. After witnessing the demonstration, the Wall Street professional asked him how much he wanted for it. Mr. Edison, believing his asking price was too high, chickened out and said nothing. The executive offered Edison $25,000. Again, Mr. Edison said nothing. The offer was doubled to $50,000. Again, Edison didn't respond. The executive double it again, now at $100,000. Again, Edison didn't speak. The officer then said "$150,000 and that is my final offer" in which Thomas Edison agreed. After signing the check and handing it to Mr. Edison, the Wall Street executive gloated and said,

"I was prepared to give you $200,000."

Edison took the check, shook the man's hand and replied, "I was prepared to take $5,000!"

Recently I saw a list of the top ten reasons an investor will leave an advisor. Topping the list was lack of communication. Number two: lack of trust. Performance came in seventh.

Your clients want to hear from you, and your best clients want to receive a response from you in no more than three hours after leaving a message. But remember, not only do they want to hear from you--they want you to listen.