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Written by: Jeff Thorsteinson
When on a call or at a networking function, how often have you heard, "I already have an advisor."? It's bad enough to hear it from an ego perspective. It's worse when you believe this is a qualified prospect. It's tempting to drop prospects cold when things don't work out, but I encourage you to stay on their radar. It can pay dividends. We often assume it's a polite way to say, "Get lost. I am not a prospect." It makes sense: Everyone with money already has an advisor unless they are a DIY investor. Nevertheless, staying on a person's radar when you hear this is a good idea. Let's look at how you can tactfully keep your name top of mind with those who already have another advisor.
The most important reason to stay on a qualified prospect's radar is that life happens. Circumstances change. Let's take a look at a few examples:
1. The advisor may retire earlier than expected
2. The advisor may change firms, like a bank firm
3. You've become concerned about succession planning
4. The advisor may change their fee structure
5. The advisor may change their service process or ideal client profile. You don't fit anymore.
6. The prospect's new spouse may not like the advisor
7. The prospect's new, more complicated situation requires a step up in certification or experience.
8. They may be unhappy with performance or the attention paid to their account
9. Their advisor might be increasingly asking for referrals, and that bugs them
10. The prospect may have been re-assigned to a junior team member
11. There may have been a falling out recently
12. Advisor has become too busy or difficult to reach or book a meeting
For any of the above reasons, you want to be the prospect's next call. So, in the early days of building a relationship with prospects, it's essential to show respect for their current relationship yet plant the seeds for the "better way" you know you have to offer.
The art of effective praise can produce stunning results if executed skillfully. Comment on the prospect's decision to work with an advisor rather than go alone, particularly in challenging markets. With that out of the way, your next comment can begin with "Our approach is somewhat different however...", then launch into one of the following:
1 ASSESS SATISFACTION
"What would you change about your present advisory relationship?"
"Are you completely satisfied with how your advisor handles your investments, debt, insurance, and retirement plan?"
2 PROPOSE "FREE" SECOND OPINION
Offer complimentary, no-obligation second opinion or review. Ask if the prospect "knows what s/he owns" and "why." That will either jog their memory or prompt them to realize how clueless they are about their situation.
3 ADDRESS KEY GOALS & CONCERNS
Retirement, funding kids education, and providing for loved ones. What are their goals? Are they being addressed by their current advisor? Ask, "How are they doing with respect to achieving these goals?"
4 INTRODUCE THE ROLE OF THE FINANCIAL "CFO" OR HEAD COACH TO HANDLE MORE COMPLEX SITUATIONS
If you discover the prospect has multiple advisors, inform them that your team looks at the ENTIRE financial picture. Emphasize your expertise in coordinating and integrating diverse strategies into a comprehensive plan.
5 PROMOTE YOUR PROFESSIONALISM
Be forthright about any credentials. More importantly, demonstrate your disciplined approach and process.
6 BE AN AGENT OF CHANGE
Many prospects will stick to an unsatisfactory, status-quo advisory relationship rather than deal with moving accounts, making changes and adjustments. You may want to discuss that "Many think they will suffer a setback when dissolving an advisory relationship due to liquidating some of their current positions. It would be best if you reassured prospects that "it doesn't have to be that way."
7 SUGGEST ACCOUNT SHARING
If the client is large enough, you may be willing to introduce the idea of sharing. Propose a "test" by transferring a small portion of their account to your practice to determine if working together exclusively has a long-term benefit.
8 YOU ARE WORTHY
If you are convinced that the prospect is pleased with her current advisor, then sometimes the best you can do is to graciously "bow out" with an invitation to call should she ever feel the need for a no-obligation review. As the above list suggests, there are a large number of circumstances leading to dissatisfaction. You never know!
So why shouldn’t you be the person prospects turn to first?
Ask her to put her name on your newsletter list. Express how welcome she is into your practice when she's ready. Or you may want to suggest a fresh set of eyes on her current financial plan and portfolio by offering a second opinion – no cost and no obligation.
9 FOLLOW-UP REGULARLY
Get your "name" in your prospect's mind with regular emails, direct mail, event invitations, and phone calls. Get permission to do so and manage that relationship. Every qualified prospect you meet should be considered "on the continuum of becoming your client." While some prospects are more ready than others, they all represent an opportunity!
Related: Accelerating Your Move Up-Market as a Financial Advisor