Commodity trading advisors (“CTAs”) who use lots of promotional material typically have lower assets under management than CTAs who use none. Why? Because typical CTA promotional materials repel customers! In this episode you’ll learn the primary reason this is the case, and what you can do to avoid this problem in your own promotional material.
Many CTAs have a hard time attracting customers, and their promotional materials are a big part of the problem. One reason CTA promotional materials repel rather than attract customers is that they are riddled with jargon that prospective investors (including institutional investors) find confusing and difficult to understand. This episode explains what jargon is, gives examples (that you might not think of as jargon), and explains why CTAs are tempted to use jargon.
In the last episode, we discussed the problem of not knowing anyone to invest with your CTA. This week we discuss what to do when you know people who want to participate in your trading program, but you think they’re not suitable to invest. We also discuss the customer suitability rules applicable to registered CTAs, and why writing your own more stringent rules about suitability hurts your profitability.
What do CTAs do when they don’t know any prospective customers? The first thing to do is assess if this thought about not knowing anyone is true, and whether it’s useful. Often, the thought is untrue, and never is it useful. Listen to this episode to learn why.