Make my clients fund their trading account

Fellow sales people,

I recently joined an online trading company as a sales executive.
My main job is to open account and to make client fund their account (at least $400).

Opening new account is pretty easy. The funding part is more challenging. Client tend to delay the funding of their account after opening it. I think that the emotional ressort that make them delay to fund their account is decrease of excitment or maybe fear (rationalization of the risk of trading). Or I least this is how I see it (comment welcome...)

This is still their money as they can withdraw it easily whenever they want.

I'm working on a strategy to make them fund their account straight away when I call them to confirm that their account
is now open. I really believe that this is in their best interest to fund their account ASAP (they get a educational DVD and the more they wait, the less they will have the courage to start trading).

Do you guys have some ideas on the framing, script or incentives I should test to achieve this outcome and respect my client deepest need ?

Thank you

What will the client lose by not funding today?

Quote:

Originally Posted by AZBroker

What will the client lose by not funding today?

Excelent question...

Nothing really when I think about it. This is a huge breakthrough for me to be honest

Why do most people open the account Ryan? What is their motive?

Quote:

Originally Posted by Marcus

Why do most people open the account Ryan? What is their motive?

We offer the trading of CFD* (contract for differences) that allow you to trade the stock market without buying the underlying instrument. So I would say:

For experienced trader: Extremely lower commissions that normal shares trading and tax-free profit. Leverage from x10 to x100.

For a new trader: Make money on the stock market with extremely low commission and tax-free profit.

CFD are not available to US residents that's why some of you may never have heard of them.

Ryan, why do you think it's easy to get prospects to open their account? Why are they reluctant to fund the account? In response to Marcus's question, you say the reason they open the account is:

For experienced trader: Extremely lower commissions that normal shares trading and tax-free profit. Leverage from x10 to x100.

For a new trader: Make money on the stock market with extremely low commission and tax-free profit.

Yet, that can't be if they're not funding their account, right? They aren't paying extremely lower commissions if they don't fund their account, correct? And a new trader isn't going to make money on the stock market with low commissions if they aren't going to fund their account, right?

So, why are customers opening an account? And then not funding it?

Quote:

Originally Posted by Skip Anderson

Ryan, why do you think it's easy to get prospects to open their account? Why are they reluctant to fund the account? In response to Marcus's question, you say the reason they open the account is:

For experienced trader: Extremely lower commissions that normal shares trading and tax-free profit. Leverage from x10 to x100.

For a new trader: Make money on the stock market with extremely low commission and tax-free profit.

Yet, that can't be if they're not funding their account, right? They aren't paying extremely lower commissions if they don't fund their account, correct? And a new trader isn't going to make money on the stock market with low commissions if they aren't going to fund their account, right?

So, why are customers opening an account? And then not funding it?

I believe that they got excited by the lower comissions and the tax-free profits but at some point they realize that they don't really understand what CFDs are and how they works.

Even myself when I joined the company it took me few weeks to understand the concept of trading CFDs. A CFD mirror the performance of an equities offering the benefits of trading these without having to physically own the underlying instrument itself.

Client go on our website, got excited by the benefits of CFD, apply for a trading account but then may think "But how this stuff really works ? ", "Am I trading the stock markets or not ?".

They may get confused and didn't grasp the pratical subtility between trading a normal share and a share as a CFD. If they would it will probably maintain their initial excitment. Because at the end, the concept and benefits are really amazing. It's really a no-brainer for anybody who want to trade on the stock market...

Quote:

Originally Posted by RyanH

I believe that they got excited by the lower comissions and the tax-free profits but at some point they realize that they don't really understand what CFDs are and how they works.

Even myself when I joined the company it took me few weeks to understand the concept of trading CFDs. A CFD mirror the performance of an equities offering the benefits of trading these without having to physically own the underlying instrument itself.

Client go on our website, got excited by the benefits of CFD, apply for a trading account but then may think "But how this stuff really works ? ", "Am I trading the stock markets or not ?".

They may get confused and didn't grasp the pratical subtility between trading a normal share and a share as a CFD. If they would it will probably maintain their initial excitment. Because at the end, the concept and benefits are really amazing. It's really a no-brainer for anybody who want to trade on the stock market...

So it sounds like the opening of the account isn't really helping you achieve your sales goal. Is there a way to package the opening of the account with funding the account?

I'm wondering if it's too easy to open the account. It sounds like it's easy and perhaps free, so there's really no commitment when the customer opens the account...therefore, perhaps your sales focus has to be on funding rather than opening. Does that make sense?

Quote:

Originally Posted by Skip Anderson

So it sounds like the opening of the account isn't really helping you achieve your sales goal. Is there a way to package the opening of the account with funding the account?

I'm wondering if it's too easy to open the account. It sounds like it's easy and perhaps free, so there's really no commitment when the customer opens the account...therefore, perhaps your sales focus has to be on funding rather than opening. Does that make sense?

This is a good point Skip. The process is usually:

A client submit for free an application on our retail website. We open the account but he can't use the trading plateforme and analytics tools until he fund his account.

The company use to offer a mobile when you open an account AND fund it. But it's not the case anymore.

I talked with one of our trainer yesterday and he said that I can tell the client to fund his account and withdraw the money the next day if he is not ready to start trading now with the incentive that he would be able to benefit from the analytics tools offered by the trading platefrom. (I'm a little bit perplex about this idea...).

By the way, we never cold call. All account application come from our retail website. So basically my sales role is more to make sure that as many clients as possible fund the account, the earlier possible.

So Ryan, from the sounds of it, the opening of the account is a non-issue. It sounds like you have people who open an account with no intention of funding the account. Therefore, your sales efforts should not be focused on opening an account, they should be focused on getting your prospects to commit to using your service and funding their account.

Does that make sense?

Make my clients fund their trading account

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