Hedge Fund Capital Raising
April 25th, 2009
Why do most salespeople fail in hedge fund sales? Here’s one take:
- 44% of all salespeople quit trying after the first call
- 24% quit after the second call
- 14% quit after the third call
- 12% quit trying to sell their prospect after the fourth call*
This means 94% of salespeople quit before the fifth phone call while 60% of all sales are made after the fourth call. This means that the overwhelming majority of hedge fund salespeople probably don’t even give themselves a shot at selling their products.
*Data from Herbert True, a marketing researcher at Notre Dame University
Mid-day Update: Funny story, I wrote this post at 6AM this morning. I just got back from lunch and caught a call back from a financial advisor I have emailed once and left 5 voicemails for over the past 6 months. I had heard nothing and now he is in investing in one of our managers. Tenacity paid off this time around.
