This is the second post in a series of ten discussing major faux pas’ made by wholesalers, ideas on how to correct them, and suggestions for advisors on how to deal with wholesalers who make these mistakes.

Mistake #2: Telling, Not Selling

Presenting is an essential skill for wholesalers. You demonstrate your product in such a way so the advisor knows what it does, how it works, where it fits, and how to sell it. And to say nothing about group presentations! Master wholesalers dominate when it comes to individual and group presentations.

However, hear the words of Jaime Calva, a selling sage with 60 years under his still productive belt:

“Telling is not selling.”

Dialogue happens when two or more people converse. Like the Tango, it takes two to dialogue, and in order for a sale to be made, both parties must communicate. While this involves feedback, it means more than the typical sales feedback loops. Selling involves interviewing your prospect. Selling means knowing your prospect, and in order to know someone you must ask questions. Asking questions does NOT mean interrogation with “Fact-Finding” questions, but professional rapport building with “Foundation Building” Questions, such as:

• “Tell me about your family.”
• “How did you get into the business?”
• “If you were to bring me on as new vendor relationship, what has to happen in the next twelve months in order for you to consider your decision a success?”“
• In looking at your practice / business today, what do you consider your biggest challenges?”
• “What is the biggest factor in your success?

SOLUTIONS: Develop a standard interview structure, and be flexible. Build a list of 20 Foundational Questions as a goal for each advisor relationship. Ask these questions over a couple of meetings to find the advisors passions, drivers, and motivations. Don’t forget to build effective feedback loops into your presentations, as well.

FOR ADVISORS: You should do the same with your clients. Ask better questions. And, beware the wholesaler who leads with, “What part of your sales is made up of [PRODUCT]?” Chances are he/she is looking out for himself/herself alone. For your part, get to know your wholesalers better with every meeting. Learn about their internal drivers, and what they need and want in a professional relationship. Expect wholesalers to truly be your partners, and be a partner with them as well.

Good selling!

At this time, flood-waters  continue to savage North Dakota. Some of the communities affected include Fargo, Minot, Mandan, Williston, and Bismarck. These communities, and others are being challenged as never before . Bismarck is the home of Investment Centers of America (ICA), and they have offices in all of these cities. Several ICA employees face loss of their homes and possessions in floods that might last weeks, and in fact months.

ICA was founded in 1985 by Tom Gunderson, an investment executive and native North Dakotan. Tom Sr. is a leader, and he built ICA from the gound up, and guided the firm through its formative years. All six of his sons have worked for ICA over the years, and oldest son Greg Gunderson currently serves masterfully as President. From the time ICA was founded, Tom Sr. always spoke of “The ICA Family.”  Several years ago Tom Sr. sold the company, and today it is part of NPH Holdings, an affiliate of Jackson National Insurance Company.

While ICA is part of a much larger corporate conglomerate, it still is a “Family.” Like all companies, ICA is not perfect and faces its share of challenges, but in times of crisis, the ICA Family rallies itself. A significant number of ICA representatives from several states went to Bismarck, (at their own expense) to help with sandbagging, moving furniture, and providing other services to those in need. Other ICA reps and employees continue to help and provide assistance in other ways. Reps from across the United States plan to go to Bismarck after the water recedes to help their “Family” clean-up and get their lives back in order.

So can a large company still be a family? The evidence says the answer is “yes” for a broker-dealer firm in North Dakota.

Good selling!

(Note: Investment Centers of America is a client of mine. This has had no impact on this article, but this note is written in the spirit of full disclosure.)

Last week I did a series of public investment seminars for David Milbrath, a financial advisor with Investment Centers of America.  David’s main office is in Springfield, MN and we did a general seminar for all of his clients, as well as presentations to two of his corporate clients.

One of those clients was Mathiowetz Construction.  Mathiowetz has “proudly served Southern Minnesota since 1924 with quality, dependable earth-moving construction.” We were scheduled to present during their annual “Safety Week” meeting, at which  they gear up for the coming construction season.  One of the companies disciplines is that all employees go through a series of warm-up and stretching exercises before beginning work for the day. ALL of their employees do the same, even the office staff. In fact, they stretched to open up the day’s meeting! This commitment to discipline carries through to all facets of the company.

Examine the disciplines and traditions you have in your firm.  Do you always practice and maintain your commitment to quality and meeting your clients needs first? Do you prepare yourself and improve your skill sets?

Mathiowetz is a great employer with great employees that do great work; hard work of which they are proud.  Be proud of what you do.

Good selling!