Acting as a sounding board helps clients and their CPAs better understand the advantages of working with an advisor—and that you’re looking out for their best interests.

Are you one of the many financial advisors who have referred clients to accountants over the years but have gotten
virtually nothing in return? Based on the law of reciprocity, you would think that giving would initiate the receiving process. But with CPAs, that is often not the case. Often it’s a one-way street.

But a select group of FAs have figured out what is undermining their referability with accountants. As a result, they are receiving a steady stream of endorsements from these very persuasive sources at this critical time in the financial services market. Never has money been so topical, and never before have so many high-net-worth investors
been disillusioned with their advisors.

Recent studies have indicated that as many as seven out of 10 HNW clients are unhappy with their current financial advisors. In many cases, trust has been shattered, and these high-value people are cautiously considering other options. Now if HNW clients have lost faith in their advisors and they are also feeling anxious about their personal financial direction, whom do they call? More often than not, they call their accountants.

The problem is most accountants are more technicians than visionaries. They often leave their clients wanting more when it comes to the big picture, market forecasts, and personal investment strategy. Yet when clients press accountants to suggest a financial advisor, many are reluctant to make an endorsement. Why do you think that is?
What is holding them back?

It could be because they are concerned about liability issues. Or perhaps they view advisors as a threat because they themselves aspire to add financial planning to their offerings sooner or later. Perhaps there is an issue of trust regarding a particular advisor’s abilities, or an advisor isn’t worthy in their eyes.

There are several possible reasons, but most importantly, accountants are wary about how the endorsement will reflect back on them. If they are even remotely uncertain about how you will conduct yourself, or if there is a fear that
the endorsement might harm their client relationship, they won’t introduce a client to you. As easy as it may be for an accountant to wave your flag, ultimately it’s just safer not to. In their minds, it isn’t worth the risk.

Part of this stems from the fact that many accountants perceive financial advisors as salespeople rather than consultants providing advice. In fact, that is why many accountants actually think they are doing you a favor by taking your referrals without any sense that it should be a two-way street.

How to get started
To begin positioning yourself as a trustworthy alternative with CPAs in your area, ask your clients this question in your next wave of client calls:

“If you don’t mind me asking, when you talk about me with your accountant, what do you say? How do you describe me?”

After listening to the client’s response, follow up with a personalized variation of this statement:

“The reason I ask is because I am reaching out to the accountants of my clients to arrange a time to discuss my financial strategy and outlook to ensure that we are all on the same wave length. This is a value-added service, and I’m convinced that staying in closer communication with your accountant is important. I’m wondering if you’d like me to contact your accountant so that we can touch base.”

You may already know the names of many of your clients’ accountants. The question is whether you have been able to connect with them in a way that doesn’t arouse any suspicions that you have a hidden agenda. They may suspect you of getting in touch merely as a tactic to make more sales. Your approach has to be professional, forthright, transparent—and most of all, rooted in value and service.

Once you’ve gathered the names and numbers of your clients’ accountants, look for commonalties and cross reference with your existing relationships, and then begin the process of reaching out to them.

When you make contact, explain the reason you are calling. It will generally come down to one of two motivations:

1.If you have never met but you have a mutual client, you’d like to discuss your financial strategy and financial outlook to be sure that you are both in sync with each other.

2.If you have an existing one-way-street type relationship with accountant, you are calling to discuss ways that you can strengthen your relationship.

Again keep in mind, the unspoken concerns and resistance revolve around these questions they will ask themselves: “What’s in it for me?” and “What is the risk?”

In response to your offer to meet with them, CPAs will either accept your invite, decline, or ask you to elaborate on the phone. While it’s tempting to do an abbreviated meeting over the phone, I would suggest you resist the urge and insist that you meet. A breakfast or lunch meeting or simply a sit-down in their boardroom—all are ideal.

In face-to-face meetings, I would encourage you to follow this checklist:

•Step 1: Start with a printed agenda. A printed agenda allows you to outline your key points and gives you a track to follow. It also demonstrates that you follow a methodical process at every meeting you conduct.

•Step 2: Connect on a professional level with the accountant. Build rapport and discuss your investment philosophy and financial strategy as it relates to the client. Probe for insight and feedback throughout.

•Step 3: Offer to provide a second opinion. You could say something like, “Recently, in light of all the apprehension and uncertainty caused by this market turbulence, I’ve been making myself available to act as a sounding board for friends and family members of my clients as well as clients of like-minded accountants with whom I have a relationship.”

This may well set you apart in the accountants’ minds as they contrast your approach to the current advisor that they use.

•Step 4: Further explain your second opinion approach. Assure the CPA that the people you meet do not need to become your clients to take advantage of this service; you do it because of the fulfillment that comes from helping people make informed decisions. Stress how you realize that this has to be a good use of the client’s time. Be sure to use the words “process” and “service” in your description.

Explain what happens during the sounding-board session by saying something like this:

“I don’t want to claim that miracles will occur, but one of two things will happen when I meet with one of your clients. Either I will validate that their current approach is fundamentally solid, or I will reveal a few minor flaws that they may want to consider adjusting. And after all, minor adjustments can often lead to major improvements down the road.”

•Step 5: Project exclusivity. Explain that your meeting with potential clients involves attempting to see if there’s a mutual fit. Say that while some advisors will work with anyone and try to see how big they can build their businesses, you prefer to focus on how small you can stay to ensure consistent service.

•Step 6: Explain how to get the wheels in motion. Give the accountant a brief suggestion for how to make an introduction to you should the opportunity present itself.

•Step 7: Reemphasize your professionalism. Reassure the accountant that their client will view meeting with you as a great investment of their time. Let the accountant know he can hold you accountable toproviding the same degree of professionalism and confidentiality that you give your own clients.

•Step 8: Give them the same opportunity. Tell your new strategic ally that you’d like to be able to follow the same process when it comes to introducing your clients to him or her should the situation arise.

•Step 9: Be patient. Many accountants are hyper-cautious and you will need to nurture the relationship methodically to move from intent to actual consent. Many advisors get frustrated because accountants say all the right things in the beginning, but then their intent diminishes, and their fears creep back in over time. Stay in touch to keep the flame of trust alive.

This is a guideline you may tailor to suit your own approach and personality. The key is to get busy and start engaging in the process now, refining it as you go. As I often say: Done is better than perfect. Just get it done and communicate this message to as many accountants as you can.

By Duncan MacPherson
as posted on horsesmouth on Sept. 4, 2009

Acting as a sounding board helps clients and their CPAs better understand the advantages of working with an advisor—and that you’re looking out for their best interests.

Are you one of the many financial advisors who have referred clients to accountants over the years but have gotten
virtually nothing in return? Based on the law of reciprocity, you would think that giving would initiate the receiving process. But with CPAs, that is often not the case. Often it’s a one-way street.

But a select group of FAs have figured out what is undermining their referability with accountants. As a result, they are receiving a steady stream of endorsements from these very persuasive sources at this critical time in the financial services market. Never has money been so topical, and never before have so many high-net-worth investors
been disillusioned with their advisors.

Recent studies have indicated that as many as seven out of 10 HNW clients are unhappy with their current financial advisors. In many cases, trust has been shattered, and these high-value people are cautiously considering other options. Now if HNW clients have lost faith in their advisors and they are also feeling anxious about their personal financial direction, whom do they call? More often than not, they call their accountants.

The problem is most accountants are more technicians than visionaries. They often leave their clients wanting more when it comes to the big picture, market forecasts, and personal investment strategy. Yet when clients press accountants to suggest a financial advisor, many are reluctant to make an endorsement. Why do you think that is?
What is holding them back?

It could be because they are concerned about liability issues. Or perhaps they view advisors as a threat because they themselves aspire to add financial planning to their offerings sooner or later. Perhaps there is an issue of trust regarding a particular advisor’s abilities, or an advisor isn’t worthy in their eyes.

There are several possible reasons, but most importantly, accountants are wary about how the endorsement will reflect back on them. If they are even remotely uncertain about how you will conduct yourself, or if there is a fear that
the endorsement might harm their client relationship, they won’t introduce a client to you. As easy as it may be for an accountant to wave your flag, ultimately it’s just safer not to. In their minds, it isn’t worth the risk.

Part of this stems from the fact that many accountants perceive financial advisors as salespeople rather than consultants providing advice. In fact, that is why many accountants actually think they are doing you a favor by taking your referrals without any sense that it should be a two-way street.

How to get started

To begin positioning yourself as a trustworthy alternative with CPAs in your area, ask your clients this question in your next wave of client calls:

“If you don’t mind me asking, when you talk about me with your accountant, what do you say? How do you describe me?”

After listening to the client’s response, follow up with a personalized variation of this statement:

“The reason I ask is because I am reaching out to the accountants of my clients to arrange a time to discuss my financial strategy and outlook to ensure that we are all on the same wave length. This is a value-added service, and I’m convinced that staying in closer communication with your accountant is important. I’m wondering if you’d like me to contact your accountant so that we can touch base.”

You may already know the names of many of your clients’ accountants. The question is whether you have been able to connect with them in a way that doesn’t arouse any suspicions that you have a hidden agenda. They may suspect you of getting in touch merely as a tactic to make more sales. Your approach has to be professional, forthright, transparent—and most of all, rooted in value and service.

Once you’ve gathered the names and numbers of your clients’ accountants, look for commonalties and cross reference with your existing relationships, and then begin the process of reaching out to them.

When you make contact, explain the reason you are calling. It will generally come down to one of two motivations:

1. If you have never met but you have a mutual client, you’d like to discuss your financial strategy and financial outlook to be sure that you are both in sync with each other.

2. If you have an existing one-way-street type relationship with accountant, you are calling to discuss ways that you can strengthen your relationship.

Again keep in mind, the unspoken concerns and resistance revolve around these questions they will ask themselves: “What’s in it for me?” and “What is the risk?”

In response to your offer to meet with them, CPAs will either accept your invite, decline, or ask you to elaborate on the phone. While it’s tempting to do an abbreviated meeting over the phone, I would suggest you resist the urge and insist that you meet. A breakfast or lunch meeting or simply a sit-down in their boardroom—all are ideal.

In face-to-face meetings, I would encourage you to follow this checklist:

• Step 1: Start with a printed agenda. A printed agenda allows you to outline your key points and gives you a track to follow. It also demonstrates that you follow a methodical process at every meeting you conduct.

• Step 2: Connect on a professional level with the accountant. Build rapport and discuss your investment philosophy and financial strategy as it relates to the client. Probe for insight and feedback throughout.

• Step 3: Offer to provide a second opinion. You could say something like, “Recently, in light of all the apprehension and uncertainty caused by this market turbulence, I’ve been making myself available to act as a sounding board for friends and family members of my clients as well as clients of like-minded accountants with whom I have a relationship.”

  This may well set you apart in the accountants’ minds as they contrast your approach to the current advisor that they use.

• Step 4: Further explain your second opinion approach. Assure the CPA that the people you meet do not need to become your clients to take advantage of this service; you do it because of the fulfillment that comes from helping people make informed decisions. Stress how you realize that this has to be a good use of the client’s time. Be sure to use the words “process” and “service” in your description.

  Explain what happens during the sounding-board session by saying something like this:

  “I don’t want to claim that miracles will occur, but one of two things will happen when I meet with one of your clients. Either I will validate that their current approach is fundamentally solid, or I will reveal a few minor flaws that they may want to consider adjusting. And after all, minor adjustments can often lead to major improvements down the road.”

• Step 5: Project exclusivity. Explain that your meeting with potential clients involves attempting to see if there’s a mutual fit. Say that while some advisors will work with anyone and try to see how big they can build their businesses, you prefer to focus on how small you can stay to ensure consistent service.

• Step 6: Explain how to get the wheels in motion. Give the accountant a brief suggestion for how to make an introduction to you should the opportunity present itself.

• Step 7: Reemphasize your professionalism. Reassure the accountant that their client will view meeting with you as a great investment of their time. Let the accountant know he can hold you accountable toproviding the same degree of professionalism and confidentiality that you give your own clients.

• Step 8: Give them the same opportunity. Tell your new strategic ally that you’d like to be able to follow the same process when it comes to introducing your clients to him or her should the situation arise.

• Step 9: Be patient. Many accountants are hyper-cautious and you will need to nurture the relationship methodically to move from intent to actual consent. Many advisors get frustrated because accountants say all the right things in the beginning, but then their intent diminishes, and their fears creep back in over time. Stay in touch to keep the flame of trust alive.

This is a guideline you may tailor to suit your own approach and personality. The key is to get busy and start engaging in the process now, refining it as you go. As I often say: Done is better than perfect. Just get it done and communicate this message to as many accountants as you can.

STEVE MACNAULL/The Okanagan Saturday
Happy clients are your best source of business referrals, Duncan MacPherson of Pareto Systems told a Kelowna chamber of Commerce breakfast workshop this week.

“An advocate is someone who is impressed by your consistently excellent service and the trusting relationship you’ve built,” said MacPherson. “They become fiercely loyal and make those referrals.” MacPherson also calls such clients ideal, or Triple As, for their action, attitude and advocacy. Referrals can come from anyone that you have contact with that is impressed by your integrity.

Even non-clients can be advocates. “Referrals can come from anyone that you have contact with that is impressed by your integrity,” said MacPherson. He used an example of financial advisers because they are currently experiencing tough times and he’s worked with a lot of them doing coaching and business development. “There’s certainly been turmoil in finance,” said MacPherson. “But if a financial adviser can be a voice of reason, and proactively contacts clients to let them know what is going on, then the relationship is strengthened.”

He suggests contact with clients in such a case be every 90 days or so. “Frequency of communication is a delicate balance,” he said. “You don’t want to bug people or go overboard, just be consistent. By doing so, these are the financial advisers that get the most referrals without even asking for them.” The chapter on turning clients into advocates is available for free on MacPherson’s website, breakthroughbusinessdevelopment.com.

Download the original PDF

What Advisors are Doing Now to Become More Relevant and Valuable Than Ever

By Leo J. Pusateri

“It Was the Best of Times; It was the Worst of Times”—Charles Dickens

Dickens’ opening line to “A Tale of Two Cities” begins the literary masterpiece that describes the European environment leading up to the French Revolution. But he easily could have been describing financial industry sentiment for the past year or so. After the market plummeted 350 points in July ’08, advisors and investors have watched in horror and disbelief almost daily as “the best of times” in the market and the economy quickly became the “worst of times.”

The dizzying perspective between absolute despair and absolute hope created turmoil and confusion in the business, and led to much suffering, pain and loss among clients and advisors alike. Many clients lost assets, yes, but they also lost trust and confidence in the firms and in the advisors they trusted with their life savings and, consequently, their hopes and dreams for the future.

Given that the financial community has been pretty beat up over the past year, advisors have had to regain their equilibrium and spend almost every waking hour trying to calm their clients’ fears and trying to instill the “hope” that we will soon see the end of the “worst of times.”

I truly admire and respect the hard-working ethical men and women in this business who never seem to tire of listening with compassion to their still-loyal clients. In the current environment, advisors are striving to maintain their current client base, trying to keep the relationships healthy, and searching for innovative ways to grow their practice. They are trying to do all of this while attempting to differentiate themselves, too. Talk about challenges!

So how can these advisors take their business to levels they have only dreamed of, all the while juggling the many issues of client service and trying to choose the correct wealth management solutions for clients? How do you “take the bull by the horns” with all of the market turmoil, downturns, economic uncertainty and client paralysis? How do you stay in control, deepen your relationships as a trusted advisor, and provide extreme value? These are the crucial issues facing advisors today, and I would love to share my perspective as well as some ideas on how you can rise above the noise and “make a difference” in your clients’ lives.

So, to begin— let me ask you: Are you M.A.D ????

Are You M.A.D? (Making a Difference)

We all remember the 1976 movie, “Network,” where television evening news anchor Howard Beale delivered his impassioned on-the-air speech, “I’m as mad as hell, and I’m not going to take this anymore!” and persuades Americans to shout out of their windows during a spectacular lightning storm. An enraged Beale begins, “I don’t have to tell you things are bad. Everybody knows things are bad. Everybody’s out of work or scared of losing their job. The dollar buys a nickel’s worth; banks are going bust and there’s nobody anywhere who seems to know what to do, and there’s no end to it. We all know things are bad — worse than bad — they’re crazy. All I know is that first, you’ve got to get mad. So, I want you to get up now. I want all of you to get up out of your chairs. I want you to get up right now and go to the window, open it, and stick your head out and yell, “I’M AS MAD AS HELL, AND I’M NOT GOING TO TAKE THIS ANYMORE!”

Sound familiar? Have you been feeling like this lately? Well, in order to really “Make a Difference” you have to get mad! What will it take for you to stick your head out of your office window and say, “ I am mad as hell and I’m not going to take this anymore!” What will it take for you to get up, dust yourself off, and get back up on that bull? Well, there are many ways to pull yourself up and to “make a difference,” and I truly believe you must begin by getting closer to your clients than you have ever been before. Let me explain why I believe this:

The vital and overriding theme for your business today—unquestionably— should be “Get Closer to Your Clients.” This means using strategies you have never used before. Particularly in current times, it is vital to enhance your already-good relationships and, in clear discussions with them, let them know you “truly” care about them and their families, and about what is happening in their lives. AND—that you are not just calling to talk about the state of the market, the state of their portfolio, or the state of anything other than their lives. I call this process a “Relationship Time-Out™” (RTO) and this strategy is my number one out of seven ideas to help you become more relevant and valuable than ever before.

7 Strategies to Become More Relevant and Valuable Than Ever Before

1. The Relationship Time-Out (RTO)

As I mentioned above, now is the time to “Get Closer” to your clients than you have ever been before. Call a Relationship Time-Out. What I mean by this is calling them, having authentic, respectful discussions that are beyond the nature of what they originally hired you to do for them. You must ensure that you know them personally, understand what they are up against in business, in their professional lives, in their personal lives. Look at the big picture from these vantage points. Just think about the added value you can provide as a result of understanding them better! Important: It’s not simply the words you use, but it’s how you DELIVER the message that can make or break the conversation. It’s your tone, the conversational respect. Your client will feel you are speaking from the heart. You will be amazed at how well it works and how much better you will understand your clients. Are you M.A.D yet? Making a Difference?

2. Challenge Your Clients to Be Different

Help your professional clients to become indispensable to their own clients! Consider hosting a seminar or client appreciation night and invite CPAs, attorneys, and business entrepreneurs. You can teach them various ways to compete on value more effectively in their own businesses. It’s a great way to differentiate yourself in a tough market, yet few advisors do it. You could even lead a 1-2 day offsite retreat and act as a business consultant to them. Frankly, your clients and prospects may be losing more sleep on keeping and growing their own businesses than on how they can invest. You may think that the investments you recommend are the most import matters they should be taking action on, but I can tell you— the number one “stock” they are most committed to is their own business. Step in and help them now, and you will have “made a difference” in their lives.

Put yourself in their situations: would you entrust your money to someone else to take risks when you are uncertain about your own earning potential? The trust and confidence that such events can build are remarkable. Did you Make a Difference? Are you M.A.D ?

3. Re-visit Your Own Business Beliefs

Ask yourself what you have learned during the past year. What have you experienced throughout this difficult and painful period? This period where both you and your clients have been beaten down so much you may feel you can hardly get up. Have you re-visited your Business Beliefs? The real power of Business Beliefs is that they can “ground” you when you feel lost and confused. Think about the power your beliefs hold—the compelling reasons for your passion and what differentiates you in the crowded marketplace. The client can feel your passion and what you believe in. Talk to your clients about their beliefs, too. Discover the similarities and confirm how important it is to have Business Beliefs, not only in the “best of times” but perhaps more importantly, in the “worst of times.”

Here is one of my favorites: “Hope is not a Strategy.” Certainly makes sense for today’s environment, doesn’t it. Two more examples of Business Beliefs might be, “I believe people need to be more connected to their dreams” or “I believe that equity builds wealth.” What are some of yours?

If you are proud of your Business Beliefs (and you should be), why not make them more visible? What do I mean? Well, put them on a flip chart near your desk so that they are in plain sight of your clients. You can print them on high quality parchment paper and display them in a beautiful mahogany frame on the wall behind your desk.. Your Business Beliefs need to be shared, so place them in ways that will catch the client’s eye and will encourage a discussion about them. Things are so uncertain today, it will help put a client or prospect at ease, lessen their anxiety if they know where you are coming from. A client may say something like, “What are those sayings?” or “What do you mean by that?” or “Why do you feel so strongly about the second belief?” Before you know it, you are engaged and you have the perfect opportunity to explain what you mean by each one.

Shout to the world what you believe in. Go ahead, get M.A.D; Make a Difference!

4. Going Global

Get out of your cocoon, that’s the first thing you need to do. Get out of your office, out into the community, into your city, your state. Think “globally” — outside of your four walls. When you do, you will accomplish great things. I am reminded of Tiger Woods’ remarkable career. He announced his arrival on the professional circuit at the Greater Milwaukee Open in 1996, with a drive that took the ball 336 yards down the fairway. He stepped up to the microphone and said, “Hello world. There are still courses in the United States that I am not allowed to play because of the color of my skin. Hello world. I’ve heard that I’m not ready for you. Are you ready for me?” Tiger was just 20 years old at the time, and this is when he won the first PGA in Las Vegas. His “Hello World” speech, much like Howard Beale’s in Network, will long be remembered for its passion and commitment and the impact it made on us.

I see parallels to what Tiger has done to be the best in the world, and to what you need to do to get out of your cocoon and to think and act differently. To make yourself

more knowledgeable than ever about world views, politics, the economy, markets, and how it all impacts your clients in their businesses. You can be advising them on these issues.

But are you really prepared? What are you doing to understand what is going on globally and how it might impact the decisions you will make now and in the future. Some of your clients’ businesses might be affected by their own participation in the global economy. How prepared are you to talk to your multinational clients who do business around the globe? What can you advise them on and how can you add value on a global level? I hope you are not just showing up and reporting to clients about their performance. Any commoditized registered rep can do that. But you are not just any registered rep!

Get Global. “Say, Hello World.” Make a Difference. Get M.A.D.

5. Stop “Winging It”

Don’t allow the insanity in our current environment to distract you from your business beliefs and your core message. Get your core messaging down; then take it up a notch. Determine what you need to do to passionately deliver your message, be convincing, and then illustrate with words and feelings what you believe and what your value is. By doing so, you won’t feel like you are communicating ambiguity about who you are and what your value is.

For example, when prospective clients ask you about your background, or about your unique value proposition…are you winging it? When you are asked about your business beliefs or your process….are you winging it? When clients ask how you will work with them or what you can do for them….are you winging it? If a client asks you how you are different, or how is your team different…are you winging it? When a client finally asks you why they should turn over their wealth, their money of a lifetime….are you winging it?

Is the insanity driving you M.A.D? Make a Difference.

6. The “I-Didn’t-Know-You-Did-That!” Syndrome

When you are re-connecting with your clients during a Relationship Time-Out period, and discussing the changes in their lives and businesses, this is when you offer various services that would be suitable for them. You might be surprised to hear how many of them might say, “I didn’t even realize you did those things. Why haven’t you talked to me about these things before?” It could be that you offer business succession planning, or legacy planning, or connecting clients with some of your strategic alliance partners like CPAs, estate planning attorneys, insurance professionals, real estate agents, travel agents and the like. This can open many more doors for you—and for them. Now you’re Making a Difference. Now you’re M.A.D.

7. “What’s Up Doc?”

One of our most beloved cartoon characters, Bugs Bunny, was always inquisitive, curious, and well known for his great one-liners to his pal Elmer Fudd and others. I think he really had something there. “What’s up, Doc” had more meaning that just “hello, how are you.” To me, it means “what has been happening lately” or “what is happening in your life right now.” Think about this: Maybe you have had several prospective client relationships that did not come to fruition. Perhaps a few small business owners that might very well be struggling right now could use your perspective and your help. Why not call? Be gracious and say you just wanted to check in with them to see how their business was faring in this environment (for example). You might say something like, “We weren’t the right fit for you last year—although I know we were a close second—but I wanted you to know I never forgot the respect you gave me in making such a tough choice. How did your decision work out for you during this challenging time period? In essence, I just wanted to call and say, “What’s up, Doc?” You should even call former clients you have lost over the past few years. In these unprecedented times, you might change your approach in reaching back to them. Just let them know you are still around if their needs change, if things didn’t work out with the other advisor, or they just want another perspective or opinion on an issue they are having. Now, you’re really M.A.D! You’ve Made a Difference.

Get Going

If you follow the above 7 strategies, I promise you will become more relevant and valuable than ever before to your clients. What sets you apart is the fact that you are “Making a Difference” in their lives. You are M.A.D!! And you are not going to take what the volatile markets and uncertain economy is dishing out any more. You are now prepared to take the “worst of times” and turn them into the “best of times.” Dickens would be proud and Howard Beale would be smiling.

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