23d • General discussion
Warm Market vs Cold Market: Why Most New Advisors Hit a Wall After Year One
Leo dropped some serious truth bombs in his latest training about why so many financial advisors struggle after their first year.
The core issue? Most agencies push the "warm market" approach - basically monetizing your existing relationships with friends and family.
Here's the brutal reality Leo shared: You might hit 8K FYC in year one by calling everyone you know, but what happens in year two when that well runs dry? Meanwhile, advisors who build cold market systems might start slower (2-3K initially) but scale to 10-12K monthly because they're not dependent on harvesting trust from personal relationships.
The analogy that hit home: Warm market is like cutting down mature trees for immediate harvest, while cold market is like planting an orchard that produces fruit indefinitely.
Leo's team just had someone close their first deal independently in 2 weeks using their cold system - no friends or family involved. That's the power of sustainable lead generation.
Discussion Questions:
- How do you balance relationship preservation with business growth when starting?
- What's been your experience with warm vs cold approaches? Did you hit a ceiling with the warm market?
- For those using cold systems, what was your biggest mindset shift moving away from personal networks?
- How do you handle the guilt factor of "selling to friends" vs the fear of cold outreach?
Share your experiences - especially if you've made the transition from warm to cold market strategies. What worked, what didn't, and what advice would you give someone facing this decision?
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Warm Market vs Cold Market: Why Most New Advisors Hit a Wall After Year One
