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When I hear of advisors spending $80,000 on marketing and getting zero clients from it, as one advisor shared with me recently, I often envision an image of a revolving door in my mind.
Prospects cycle through and exit as easily as they come in.
Most advisors accept an average conversion rate of prospects-to-clients between 10 - 40%, which they think is normal.
But I often point out to new advisor clients that for every 2 clients they convert each month, there were 8 other potential clients who came in but went out... and if their average annual client value is around $10,000, then on average they’re losing $300,000 every 5 years... they quickly see the other side of the coin and its hidden opportunities.
How do you stop the revolving door from spinning, where prospects come in and go out?
You stop it by targeting your ideal high net worth clients only.
Instead of targeting ideal clients, most advisors are doing “be seen” general marketing, which is attempting to create awareness or consideration for your business merely by promoting its existence.
The basic marketing message boils down to: “We are X financial advisory company and we can provide Y advisory services for all of your financial advisory needs. Please consider us”.
That won’t attract a flow of new inbound ideal clients.
Many advisors take this general mindset into their sales consultations as well, where they think that by sharing their knowledge and solutions pre-sale, it will prove their value and help convert a prospect into a client.
But all this does is encourage the prospect to say “I need to think about it” or “I need to discuss this with my spouse”, or to take that free valuable information and use it to shop around for another advisor.
The best way to solve these two problems is to become what I call a “Trusted Authority” in your market niche.
A trusted authority does not attempt to create awareness or consideration for their business simply by putting themselves out there. They attract only their ideal clients, by positioning themselves around a specific problem and addressing it directly in their marketing. This makes them the authority on, or the “go-to person” for, that problem.
As a result, every prospect that has an initial consultation becomes pre-qualified, not just as a generally interested person but as a potential client in specific and urgent need of a solution.
If you are converting less than 4 or 5 out of 10 qualified prospects that see you every month, then it’s time to start thinking like a Trusted Authority.
Related: The End of the Discovery Meeting
Get your Free copy of Ari’s best-selling book "Trust In A Split Second!" here and you’ll also receive a Complimentary Sales and Lead Generation Consultation (value $995.00). Ari Galper is the world’s number one authority on trust-based selling and is the most sought-after high-net-worth new client acquisition expert for financial advisors. His latest book, “Trust In A Split Second!” has become an instant best-seller among financial advisors worldwide.