In the last 12 months, the world has changed a lot. Has your business changed or has your approach remained the same even when your prospects have different concerns? This is the Achilles heel of most financial advisors—as the world changes and prospects have different concerns, advisors continue to:
- Sell the same things
- Say the same things
- Do the same things
Is it any wonder you can’t attract business when the variables of the game have changed but you haven’t? Do your prospects hear from you the same things that have not worked for them, advice like:
- Equities for the long run
- Be patient
- Diversification is key
These mantras are old, tired and as far as your prospect is concerned, is mindless droning they teach you in financial advisor school, repeated by mindless “financial advisors.”. These recommendations have caused them nothing but big losses in their portfolio.
The stock market fell 23% in 2 days in October of 1987. Like now, investors had no appetite for equities. Thousands of stockbrokers starved as they continued to talk up stocks to people who had no interest. This is a very foolish strategy. A better strategy is to sell what people want. (If you have some altruistic bent that you want to sell what people SHOULD buy, you will always be poor. If you want to educate people, then become a teacher and make $60,000 a year. If you want to make money as a financial sales professional, then sell what people want).
One clever advisor called through his prospect list in those dark days of 1987 and in three months opened 100 accounts selling bonds to his new clients. He called and asked if they shopped at Safeway (tip: sell something familiar to your prospects, not a fund or some arcane security). They all shopped at Safeway, the dominant supermarket in the area. He then proceeded as follows:
Advisor: How much money have you spent at Safeway over the last 20 years?
Prospect: I don’t know, but it’s thousands of dollars
Advisor: How would you like to get some of their money for a change?
Prospect: sure, how does that work?
Advisor: Safeway is offering bonds that pay 11.75% (interest rates were higher back in the 80s so this rate was not out of the norm) so on a $100,000 investment, you get two checks a year of $5,875. Would you like that?
Prospect: I only have $50,000 available. Can I still get these bonds?
Rather than pitching stocks, a financial plan, a mutual fund or something else for which prospects had no interest, this advisor pitched what prospects wanted:
- A familiar name that gave them a sense of security
- A fixed return
Are you selling what people want?
