It’s important to understand the big picture and how to make money as a financial advisor.
Your goal is to have face to face meetings with prospects who meet two criteria:
1. The prospect has money in their control (i.e. not tied up in a 401k)
2. The prospect is interested in opportunities to do better with their money
If you have any additional criteria, you will lose money as an advisor. For example, if you have a third criteria that the prospect have interest in annuities because you sell annuities, this will cost you a lot of sales because there is NO PROSPECT who cares about annuities. Prospects care about their objectives such as
1. Safety of principal
2. Tax relief
3. Liquidity
IT’S YOUR JOB TO SHOW PROSPECTS HOW THEIR OBJECTIVES ARE CONSISTENT WITH YOUR PRODUCTS AND SERVICES. THEY DON’T COME TO YOU INTERESTED IN ANNUITIES OR MANAGED ACCOUNTS OR ANYTHING ELSE OTHER THAN THEIR OBJECTIVES.
Most advisors miss this concept and rather than focusing on the maximum number of appointments with prospects who meet the two criteria above, the advisor will call the prospect to determine their interest in annuities, managed money, life insurance , etc. But such a call makes it obvious to the prospect that your interest is in YOUR PRODUCTS AND SERVICE and not their objectives. That’s why you don’t get the number of appointments you should.
Let’s provide an example. We run a lot of ads on the Internet to find consumers interested in financial topics. The ad which got the all time best response was for a booklet about ways to increase social security income. This is a HOT TOPIC for seniors. But every advisor told us “I don’t want those leads. I can’t make any money talking to people about social security.”
This is unfortunately a near sighted view that keeps most advisors poor. Many of these prospects meet the two criteria above but because the advisor is SO FOCUSED ON THEIR OWN AGENDA, THEIR OWN PRODUCTS AND SERVICES, they will never have an appointment with viable prospects who could become good clients.
Focus on the big picture–meet with people you can help and don’t focus on your products and services. They are merely tools to help people accomplish their objectives, tools that don’t need to be discussed until the last 10% of your conversation.
A good financial adviser should have some credentials or be working on them to demonstrate a level of commitment to their vocation above the very basic licensing requirements.
This is a great post. I was considering becoming a financial advisor.
Your blog is very attractive, this is a very good article. When you points out the main thing wisely financial advisers have missed,
The old saying is true in business. If you help others get what they want first then you in return will get what you want. By helping someone with a social security question or problems they may send you several referrals and referrals are great revenue for any business. Also you can get a lot of info online today about the financial world that you could not always get in the past.
Financial planners do indeed sometimes miss the big picture. I really liked your example about how you found an under-serviced niche of people (a ver large market for sure). I couldn’t agree with you more about targeting your message to a specific group of people, as long as your products/services actually meet the demand of that market. That’s not to say you can’t target different groups, the key is targeting the actual marketing. You may require different websites for this. Another example for financial planners is targeting divorced people. Divorce can wreak havoc on financial plans. Given so many people getting divorced, this is a huge potential market that many financial planners can specifically target. Think about it, they just get divorced and are at a loss with how to pursue their financial future. Moreover, if the couple had a financial planner, that planner is likely not to continue working with both people. That leaves one spouse looking for another planner.
You’re so right – you point out the very basics of selling and ideas that any financial advisor should know about – your product, whatever it is, needs to fulfill a need that is inline with what the customer wants. Miss that out and you’ll miss sales it’s that simple.
The old saying is true in business. If you help others get what they want first then you in return will get what you want. By helping someone with a social security question or problems they may send you several referrals and referrals are great revenue for any business. Also you can get a lot of info online today about the financial world that you could not always get in the past.
Good point about how necessary it is that “The prospect has money in their control” I mean that is essential. It’s such a waste of time trying to work with people and then you find out that all their money is tied up in a 401k!
This is really a nice article.Many financial advisers lost the big picture as they always think their profit.Actual fact is that help others so they help you a lot.
I found this blog informative. The way you describe each and every point step by step is great and easy to understand .Now-a-days everybody needs financial advisor who helps them in taking financial decesion.Thanks for sharing.
Axl
Hi all, this is really a good resource for guidance for financial experts. I have read many articles on different financial matters but this one is unique and awesome. Thanks bobrichards for taking the time to publish great ideas.
Have a Nice day All.
You hit the nail right on the head in saying that its our job to show our prospects how their objectives/needs meet and suit what our products can offer.
Also, thanks for highlighting the importance of a financial advisor, I never knew how important their role is to the success of a business.
axel
It’s really hard to find a financial advisor that always puts thier clients needs first before profit. We ditched our last one because we sincerley felt that he wasn’t passionate and interested in us at all.
There is an ethical way of dealing with people who are in financial predicament and want a solution. Also any solution should address their needs. We are helping many in the west midlands.
Like your blog site your style of wording and description is similar to our site.
Remember success is 1% inspiration and 99% perspiration.
I hear what you are saying – But it has become almost impossible to find a financial advisor who does see the big picture. I still find it hard to install my trust in any financial advisor – because every one has a different opinion and idea of doing things. I’ll definately follow your tips.( I Don’t have any other option.) Thank you for this insightful article.