Advisors Everywhere, This is Your Time to Shine.
You may have noticed that a bull market in full swing is a rather poor venue to differentiate oneself as an advisor. Well then, how about a protracted bear market where the Dow keeps dropping like a stone every day, day after day? Now that’s more like it!
I was taught by my advisor that there would be times like this. Isn’t everything on sale right now? Don’t I only lose money if I sell my stocks in a panic? Aren’t periods like this just as normal as winter following the harvest? Are my long-term goals in jeopardy? Nope. Why then, do I keep hearing so much doom and gloom, from the ADVISORS no less?
You may have heard that famous quote: Circumstances don’t make the Financial Advisor, they reveal him. OK, so it doesn’t go quite like that; however, I tweaked it just for today. It is when things are looking darkest in the markets that you can shine the brightest.
How Easy Can it be to Attract a New Client in These Volatile Times?
Here is an interesting story that we heard yesterday: An advisor was courting a prospective client, and the client was waiting for a report from his existing advisor before making a decision about switching. At the prospective client’s request, they agreed to get back together in about 30 days. When 30 days had passed, they got back together and guess what? The existing advisor had not come up with the report yet.
Not only that, the client had called the existing advisor 3-4 times, and had not received a return phone call. The extremely frustrated client signed the transfer papers that day. Why do you suppose the first advisor never returned this gentleman’s phone calls? Your guess is as good as mine, but one could surmise he was afraid of dealing with this client due to the volatility of late. Now, perhaps this story is not the best example because this gentleman was only worth a mere 11 million dollars. Regardless, sometimes it can be as easy as shooting the affluent in a barrel!
How many other stories like that are out there? It is conditions like these that expose the weak in your industry for what they are. Good markets do not do that. You should be leaping out of bed every morning with a huge grin on your face, and running to the office as fast as you can. You should be calling your clients and proactively reassuring them. On the call, you should also be talking about your clients’ families, their occupations, their recreational activities.
Be sure to let your clients know that you have been hearing a lot of stories these days and that you are sympathetic to those out there right now that have bums for advisors. Remind them that if they encounter somebody out there that is having dissatisfaction with their Financial Advisor / Financial Situation (oh, and they will), that you will take the time to meet with those unhappy types as one of the services you offer. Explain that if you cannot help them, you will point them in a direction that is beneficial to them. Regardless, if that person is important to your client, then that person is important to you.
Advisors everywhere: Contrary to the naysayers, this is your time. It does not get any better than this. Make some hay while the sun shines and get busy while these good times last.
By Terry Gronbeck-Jones, Senior Consultant, Pareto Platform