Wholesaler utilization continues to be a never-ending topic of discussion. Professional advisors seek new ways to partner with quality wholesalers and wholesaling companies, and the wholesalers also look for ways to differentiate themselves. There are a number of successful strategies for wholesaler utilization, including “5/60 Events (TM).”

A wholesaler comes to you with an idea you feel merits attention by a number of your clients. You have decisions to make. Do you:

• Present the idea to one client at a time at reviews?
• Conduct a large seminar?
• Do a mailing?

Consider a “5/60 Event.” Contacting clients one by one is a long process, and labor intensive. Seminars can be expensive and are also labor intensive. All of us know the challenges with large mailings, and quality advisors often prefer a more personal approach. A 5/60 Event involves inviting five, (yes, only five) clients/prospects to a luncheon, breakfast, or coffee to hear an idea of interest. The time commitment is 60 minutes, and the small number of attendees allows for prompt, professional follow up. A 5/60 Event is economical, efficient, and effective. You and your staff avoid the challenges of complex meeting planning, and the small number of invitees provides a wonderful forum for idea sharing and relationship development. The wholesaler presents and participates in the cost of the event. Simple!

How many wholesalers call upon you with quality ideas? What if you did monthly 5/60 Events? What if you opened accounts with just a third of those who attend? What would that do for your business? Consider building 5/60 Events into your Q4 Marketing Plan.

Good selling!

Client reviews are sometimes difficult to schedule. The client says something like, “Well, no need to get together. We are happy where we are.” We assume that means they are “satisfied” – and we are right. However, satisfied clients are not necessarily loyal clients. Maybe we need to examine our review process. Maybe, just maybe, the client does not see the value of sitting down for a review. Maybe the problem is us; we don’t really provide a quality review! Many advisors consider a review to be a time to simply go over account statements, increase positions, and sell additional services.

One of the biggest constraints you face when making any presentation is a limited amount of time to get your point across. You have to deliver your information as efficiently as possible, and address everything you can in the time you have. Your goal isn’t to make listeners instant experts on the subject but to include as much information as they can effectively process. Keep the following pointers in mind, both during your preparation phase and while you’re conduction the review.

1.    Know Your Client. Knowing your clients well helps you determine how best to help them quickly, based on what they want and need to learn. Ask yourself: Who is this person, and do I not know about them?  What’s most important to them? How does your information help them? Don’t worry about your needs; focus on the review from their perspective.
2.    Prepare Carefully. A quality client review begins with a tight, succinct agenda; utilizing an organized, logical process which is goal-attainment. Use a standard meeting agenda. Keep everything as simple and straightforward as possible, supporting your message with facts, without being overly technical.
3.    Broaden Your Appeal. To maximize information transfer, you have to appeal to the basic types of learners. Build your review around their preferred method of gathering, sharing, and organizing information. Some people want the bottom line. Others want detail. Some like visual communication tools, while others are verbal. Know your clients’ communication styles.
4.    Use Effective Visuals. Speaking of visuals, the old saying that a picture is worth a thousand words may be a cliché, but that doesn’t mean it’s untrue. Charts, graphs, and props can add immeasurably to your ability to get your message across, but only if they’re easy to read and easily grasped. Graphics are especially useful for quickly presenting statistical measures and numeric indicators, in order to get your points across. As with your words, though, they need to be concise.

Examine your review process, and consider how you can make it more effective. This pays dividends for the client and for you.

Good selling!

According to the American Heritage Dictionary, both “customer” and “client” can be defined as “one that buys goods or services.” However, there are distinct differences.

• Customers need the transaction
• Clients need the relationship.

• Customers buy a product or service.
• Clients buy the people of the firm.

• Customers are dependent on the product for quality
• Clients are interdependent with the advisor for quality.

• Customers are “satisfied.”
• Clients are loyal advocates.

• Customers buy commodities.
• Clients buy commodities with value added services.

• Customers buy cheapest price.
• Clients buy best value.

• Customers might buy only once.
• Clients buy over and over.

Ask yourself the following questions:

1. “What percentage of my accounts or professional relationships are customers and what percentage are truly clients?”
2. “What can you do to improve and in fact maximize your client relationships?”
3. “What do you need to do first, and when will you start?”

Good Selling!

Only two things matter when you seek to improve production. You have your choice of one or both of two strategies:

A. Increase Sales Activity

B. Work with Larger Cases and Larger Clients

If you cannot meet with more clients than you do at the present time, examine your activities. Look for tasks you do that could be handed to an assistant.[1] Your role is simple; meet with clients, design strategy, and implement solutions. Marketing and selling[2] to different groups requires different strategies and tactics, and as a group, high net worth individuals[3] require different strategies and tactics.

MARKETING

Top-performing professional service providers possess many common denominators, including a focus on marketing to High Net Worth (HWN) people, as well as a marketing and follow-up strategy that includes the following five steps for growing a practice and increasing the bottom line:

1. Provide a Personal Touch In Your Marketing Strategy – To develop relationships, you must know your clients. The more personal your communication with clients, prospects and centers of influence, the more effective your message will be.  The secret in your personal touch is to know your clients and focus on the value and benefits you bring to relationships.

2. Communicate Your Benefit-Based Defining Statement (BDS) – Successful professional service providers understand how important it is to differentiate themselves from the competition. Your marketing message needs to communicate your unique value proposition in the form of a BDS, which is short, repeatable and focused upon the needs of the client, not what you do. Communicate your BDS through traditional and online strategies. Traditional strategies should include postcards, letters, cards, and tasteful, appropriate gifts.[4] Your online strategies will include e-mails, social media and article marketing. Make sure that your marketing message is consistent, stands out and resonates with your target audience.

3. Know Your Market – The core of your marketing strategy needs to focus upon a niche market or markets. Once you identify the clients you want to serve, you can then find out everything you need to know to dominate that market. By working with a group of people with similar needs, you can learn exactly what they see as challenges and opportunities, which allows you to provide a better service experience. When your affluent clients experience this level of care, they provide high quality referrals.

4. Networking – One of the easiest methods for receiving highly qualified referrals and introductions from other professionals in the same niche is to network with the purpose of building professional relationships, which provide opportunities for sharing referrals. Networking, professional, and community events provide tremendous opportunities for business expansion. In addition, using social media marketing strategies designed to identify potential mutually beneficial relationships results in an amazing amount of new business.

5. Maintain Consistency In Your Client Contact Strategy – Top advisors touch their affluent clients between 18 and 36 times per year. Depending on your clients needs, you may need to touch them even more or less. To achieve this goal, it’s essential that you include an automated follow-up process in your marketing plan. Use technology to automate and drive your marketing activities. Task an assistant (preferably a dedicated assistant) with managing your marketing program. Meet at least semi-monthly with this assistant to review results and schedule activities.

SELLING

Marketing to HWN’s differs from broad based marketing. The same can be said for presenting and selling to these people.

1. Approach – Introductions and referrals work far better than direct calls and letters. Letters can be effective, but avoid form letters at all costs. If you choose to use letters make certain the letter is personalized. In addition, use introductions for mutual acquaintances whenever possible. For maximum impact, send the letter by overnight or priority mail.

Often HNW’s do not open their mail, and you must overcome secretarial screening.  Often a personal card can be effective. There tends to be widespread warm response to personalized, signed, stamped letters. Some HNW’s are receptive to highly targeted, well thought-out brochures, but they must be brief, direct, to the point. Given their HNW status, these individuals receive many solicitations every week from the typical providers who try to sound like an old friend. The main point is to be memorable.

2. Expertise – Many HWN’s are skeptical about the ability of others to make better decisions than they do. Financial advisors must demonstrate superior knowledge and experience. Prospects in their 30’s and 40’s are more likely to defer to recognized authorities; but prospects in their 50’s are more likely to see themselves as the best judge of an offering or solution. It is not necessary for an advisor to be an expert in all areas of service to the client. It is necessary for the advisor to be able to bring in specialized expertise seamlessly when it is needed. Regardless of your expertise, you must demonstrate confidence in your recommendations, with a solid plan and backup information if the HWN wants more detail or documentation.

3. Informed Decision Making – Few affluent individuals want to turn major decisions over to another party. Many prefer to be educated as to the process and the choices in a time-efficient manner, and to stay in control of the decision-making process.

4. Access to a Wide Variety of Solutions – Many affluent individuals want access to the widest possible variety of products and product providers, rather than proprietary products. The intelligent firm may offer its own funds or products, but will also have the flexibility to go into the market and access any service or product the client may need and desire.

5. Client Focused, Holistic Orientation – HNW’s typically have complex personal and financial profiles. Most advisors focus on their own functional area of expertise. The advisor who integrates and coordinates different aspects of the client’s situation and sees to the complete and accurate implementation of recommendations, with ease of implementation for the HNW, provides a valuable and rare service.

6. Relationships with Advisor – HNW’s value a strong bond of trust with their advisors, and transition to a new relationship can be problematic. HWN’s expect advisors to act as advocates. They also expect new, creative, customized ideas or opportunities about new products or services that may be of benefit to them. For the most part, HNW’s are not concerned about the age and gender of the advisor, but rather their competence, communication skills, and ability to identify solutions. In addition, premium service delivery and kept promises create loyalty and keep business.

High net worth client development calls for a particular focus and attention to detail to client contact and needs, and an attentive, personalized relationship. There is no understating the importance of knowing your clients at a deep level, and tailoring your marketing, ideas, and recommendations to meet their unique needs. When these principles and strategies are applied to a professional services practice, business grows exponentially.

[2] Many professionals feel they don’t “sell.” However, when business is done a sale takes place, even if the person only buys you, and ultimately that is the sale that matters

[3] This applies to individuals, couples, families, and businesses. ALL interactions are ultimately individual – and personal – interactions.

[4] Make certain to know the compliance guidelines for gifts in your profession.

As children, these words marked the beginning of a big event, such as a circus or some other performance of colossal dimensions! With these words we knew we were in for a treat, with excitement and amazement attached to every moment.

We want our clients to react with excitement and amazement whenever we meet with them, whether it is a professional or personal meeting. Excitement and amazement result from many factors, but they start with something very simple; our ability to be professional, and to act as ladies and gentlemen.

As always, we must know our clients and know our audiences. Times exist when we can and should be more casual, but there is never an excuse for being unprofessional in any way. When we share a meal with clients, we must know how to entertain. You will never make a bad impression by knowing which plate to use for bread (on the left) or which glasses are ours (on the right). Knowing what silverware to use does NOT mean we are professionally competent, but it shows we pay attention to the little things.

A large money management firm was interviewing a person for a role as a portfolio manager, and they chose not to hire him because of a faux pas, which occurred over dinner on the day of the interview. What was the egregious error made by the applicant? The applicant salted a steak without first tasting it. The money management firm deduced (rightly or wrongly) that a person who would salt food without taking the time to taste it first would not do the necessary research to make investment decisions.

Professional conduct shows through in everything we do. How we meet a person, make introductions, entertain, correspond with clients, dress, and any aspect of interaction should be a reflection of our willingness to be a true professional. We won’t always be right, but we can always conduct ourselves in a professional manner.

Often, sales technique or lack thereof is subtle. Recently I attended a business luncheon in St. Paul, Minnesota at a rather well-known restaurant. Significant business transactions are some of the main fare at this establishment, known for fine food and deal-making. While waiting for my client, a party was about to be seated, and the hostess asked one of the ladies in the party if a certain table would be acceptable. Then another lady in the party – the salesperson – said to to her guests – and the hostess – that “I have several documents that I want to show you, and I want to be able to spread them out.” As a result, another table was selected for seating the party.

You may ask what is wrong with this scenario. Aren’t you supposed to control the selling environment? What was said that was so wrong?

The most dangerous word in selling is also the shortest – the word “I” kills more sales than any single word or phrase. Closing rates plummet when the most frequently used word in a conversation or presentation is “I”. Simply change the focus to the prospect by changing your words. In a famous 30-year study, Yale University determined “You” is one of the 12 most persuasive words in the English Language. Our focus should be on our clients first, and our words support us – or sometimes they betray us.

So how could this lady have better controlled her selling situation? First, by telling her prospects that, “You will want to be able to see some documents I have prepared for you, so why don’t we get a table when you can spread them out?” Second, by getting to the hostess early, she could have expressed her need for a larger table in a more private area.

Placing the emphasis on the client and their needs instead of yourself and your needs always helps position you as a client-focused advisor.

Financial services professionals constantly look for ways to stand out among their competitors. Consider the following idea this Valentine’s Day to reach out to your clients. Some of your best clients are widows and widowers. What do these people not get anymore? Flowers and candy on Valentine’s Day. Make an impact – and do something really nice – this Valentine’s Day. Send something to these clients and show them someone cares. Will you get business or referrals from this? Maybe or maybe not, but do it anyway; it’s the right thing to do.

Good selling!

1. Call your ten best clients and tell them you were just wondering how they were doing.
2. Deliver candy/donuts/coffee at a client’s office.
3. Do the same at your local fire department or police station.
4. List your top ten client’s hobbies and interests.  Do a web search and send them an article on topics that interest them.
5. Help sponsor a client’s family reunion. How will you know if a client has a family reunion?  Ask, or have your assistant ask.  Not a bad idea to send a letter to A+ clients asking this question.
6. Sponsor youth teams or events?  Show up at one of their events, encourage the kids, and meet their families.
7. Become a speaker for local civic groups and schools
8. Co-host a “Driver Safety Course” with AARP.  It will save people money on their car insurance, and you get the credit.
9. Host a day-trip for retired clients to area attractions.  Contact a travel agency to set it up, offer it at cost to attendees, and go on the trip.  The travel agency will comp your expenses and you get to spend the day with some of your best clients and prospects.
10. Send $5 gift cards from chain restaurants to your A+ client’s the month of their grandchildren’s birthdays. “Thought you might like to take them out for an ice cream.”
11. Consider tips 1-9 for your assistants. Your assistants can be your best marketing.

Your choice of a financial advisor ranks high upon the list of critical life decisions.  Selection of educational institutions, career, where to live, and family create lifelong consequences.  Choosing a financial advisor often determines what happens to the financial results of those consequences, all the way from financial independence to financial ruin.  Developing a relationship with a financial advisor requires due diligence and review; the advisor that is right for you today may not be the advisor you need in the future.  Consider the following keys to selecting and continuing a relationship with a financial advisor.

Choose An Advisor Whose Practice Is Client-Focused

Advisors who build a business – and it is important to remember that it is their business -  focus on their clients needs; your dreams, goals and objectives.  First, they need to focus on you.  Almost any advisor will spend some time early in an initial interview discussing his or her credentials, (as well they should) but the main focus of every meeting should be the advisor discussing your objectives, your resources, and your outcomes.  Eighty to ninety percent of an initial interview should be devoted to the advisor getting to know your goals and current situation. In addition, any meeting should lead off with a discussion of your objectives, and whether those objectives have changed in any way.

Everyone needs an advisor that is a general practitioner that is willing to use outside resources to help you realize your goals.  However, look deeply at an advisor that attempts to manage client relationships and manage money.  Money management demands an amazing amount of time, education, and expertise.  Rare is the advisor that can do both.  Most advisors are not trained in portfolio management, so look for advisors that know their limitations.  If an advisor states that they are an “investment manager” or “wealth manager” ask for their long term results – in writing.

Look for advisors that use a variety of financial instruments and devices to help clients reach their objectives.  Advisors that focus on one product as a solution to all problems should be avoided, as should advisors that sell primarily proprietary products.  If an advisor with The ABC group offers ABC insurance, ABC mutual funds or separately managed accounts, and ABC annuities – you get the idea – beware.  Does this advisor represent you or ABC?  Also seek advisors who discuss fees without your having to ask.

Choose An Advisor Who Focuses on Your Goals Instead of Products

Any time an advisor makes a recommendation for change, the conversation should begin with a paraphrase of your objectives.  Only after you reaffirm your goals should the advisor discuss the details of changes they propose. If an advisor’s first words focus on a new financial product or service, bring it to their attention, make the advisor tell you why the old solution is broken, and why they changed their opinion of their prior recommendation.

Earlier it was suggested you look for advisors that have broad product offerings.  On the other hand, look for advisors that can tell you specifically what they provide in the way of service.  Avoid advisors that state they specialize in a large list of services.  A brochure that says, “We offer stocks and bonds, mutual funds, annuities, life insurance, long term care, investment advisory services, tax planning, options, retirement planning…” often reveals an advisor who only wants to sell something – anything – to anyone who will buy it from them.

Choose An Advisor Who Offers Exceptional Service

Ask your prospective advisor, “What can I expect from you in the way of service?”  Every client deserves exceptional service.  You should always expect the following at at absolute minimum, regardless of the size of your account:

• Advice based on a comprehensive discussion of your objectives
• Prompt execution of all trades, orders, documents, returns, and applications
• Prompt return (twelve to twenty-four hours; same day for urgent situations) of phone calls and written correspondence
• An annual review face to face review

Instead of telling the advisor what you expect, ask for his/her service proposition, and see if it matches up with your expectations. You want an advisor that regularly communicates with you, as opposed to someone who only calls when they want you to make a buying decision. You should have reasonable service expectations, but if you don’t feel the advisor is as interested in you after you become a client as they were before you became a client, express your feelings and if necessary, change advisors.

Select an advisor that you genuinely like and respect.  While liking an advisor is not a good reason to entrust them with your financial affairs, you want to enjoy the meetings you have with this person who helps guide your financial future.

Beginning or continuing a client-advisor relationship requires homework in the way of research and referral, and an approach based on trust and teamwork.  Do not take this lightly; your future could depend on your decision.

Monday marks the beginning of the end – of the last week of the year.  Financial advisors often complain that nobody wants to do business during the Holiday Season.  Nothing could be further from the truth.  A host of opportunities exist with our clients, including:

• Year-end Portfolio Reviews
• Gift Purchases of Investments and Insurance Products (Hint: Investments are on sale right now!)
• Tax Loss Selling – and Repositioning of Those Assets
• Qualified Plan Sales and Transfers

In addition, make some investments of your own during the next month.  Invest in your best relationships.  Spend time with those individuals and businesses clients that are your best clients and prospects.  Get to know them better.  Make certain you care about them, and just not their business.  In addition, take some time to invest in yourself; hone your sales skills.  Tighten up and refocus your marketing plan for the coming year.  Look for opportunities within your business for client development and improvement of your profitability.  Don’t forget to take time with yourself and your family – the most important investment you make.

Sometimes we earn our money – and sometimes we get paid.  During the next thirty days, earn it.  Consider these ideas to help make next year your best ever.

Good selling!