How To Capitalize On The Biggest Money In Motion Phenomenon In History
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By: Erin Tamberella
Date: 10/30/08
I’d like to think that the full-fledged panic we experienced in September, culminating to a selling frenzy on October 10th is for the most part, behind us. As advisors prepare to settle into a more typical bear market, the fears that they may not have a job or a firm are also for the most part, behind them. So, where do you go from here?
My goal as a coach is to have you look back on this time and be able to say, “That stretch right there was grueling, but it made my career.” Remember, great advisors are born in markets just like these. This is your time to rise above the masses and stake your claim because the markets just leveled the playing field for you.
The distractions are many—fear, anger, the news and the election to name just a few. However, you are in the midst of the biggest money in motion phenomenon in history. Prince & Associates, a leading market research firm specializing in global private wealth and frequently cited in the NY Times and Wall Street Journal recently conducted a survey that provided some staggering statistics for financial advisors. The survey found that, “81% of investors with investable assets of over $1,000,000 planned on dumping their advisor.” The number seems high, but cut it in half and it still represents a significant amount of money in motion.
To some, this could be an extremely troublesome statistic. However, if you’ve done a good job of staying in touch with clients and you are a “glass half full” kind of person, this is extraordinary news. There has never been a time in history, where more people are hungry for information, more eager to talk to advisors and want a change more than right now.
I realize as weary and drained as advisors are feeling, the furthest thing from their mind is prospecting. However just like Warren Buffett prides himself on being “fearful when others are greedy and greedy when others are fearful” you must find the courage to do the same in your own business. If you can be greedy and go on offense right now when 95% of the advisors out there are fearful and on defense, like Mr. Buffett, you will be rewarded.
Think in terms of dog years. When you have the courage to call prospects in this environment, it’s roughly equivalent to seven contacts in a normal market period. That puts you on the accelerated program for landing new clients. All you need to do is start. This unprecedented money in motion window of opportunity will soon close as abruptly as it opened. Follow these five steps to start the wheels of your prospecting machine turning.
In this environment, treat prospects like “A” clients.
If you’re talking to “A” clients once a week or once every other week, put your prospects on the same rotation schedule. This may seem like overkill but as I mentioned earlier, the markets have leveled the playing field in terms of performance. At this juncture, it is service and leadership that separates the great advisors from the ordinary. You must demonstrate these qualities to prospects in advance. Treat them like “A” clients from the beginning and they will become “A” clients.
Create your “10 Most Wanted List”
These next two steps are so basic, advisors seldom continue with them beyond their rookie years. However, this is precisely the time advisors need to take a “back to basics” approach. Your 10 Most Wanted List is the list of people you’d most like to have as clients within six months. These can be people you’ve spoken to before, past referrals who never became clients or people you only know of.
Begin with a letter, follow up with a phone call and close for an appointment. There’s never been a better time to initiate conversations with your 10 Most Wanted than right now. If they don’t accept your appointment offer immediately, don’t be deterred. Simply put them in your long-term drip and treat them like “A” clients by putting them on your “A” client rotation schedule.
Make a list of all your warm contacts
This list consists of friends, family, social prospects, acquaintances and anyone to whom you write a regular check. Follow the same process as for your 10 Most Wanted. Send a letter, follow-up with a phone call and close for the appointment. If you don’t get the appointment, they go into long-term drip and on the “A” client rotation schedule. If you’d like a sample letter to use for both the 10 Most Wanted and your warm list, e-mail me at: erin@executivetransformations.com
Start slowly and start with the prospects in your existing database who you’ve spoken to at least once before.
Your calls can begin with something as simple as, “I’m working to keep my clients informed each week with regular market updates and I thought you might appreciate the same.” Commit to just one contact a day, every other day or even one a week. Start with whatever is doable for you at this moment, regardless of how insignificant it may seem initially. The important thing is not how many, but that you break through the psychological prospecting barrier and start.
Commit to building from your initial starting point. Add a minimum of one additional call each week. Be firm but gentle with yourself. If you’re a couple weeks into the program and for whatever reason unable to complete your stated number of calls, start over with the number of calls you were last able to complete consistently. Your mantra should be consistency, consistency, consistency. If you’re able to complete just one prospect contact a day, at the end of a month, you’ve just made 20 prospect contacts that you wouldn’t have made otherwise. At a time when most advisors feel everything is beyond their control, this not only makes you feel more proactive but it’s a way to take back some control over your business.
Plant referral seeds and establish the referral habit.
I know what you’re thinking. How can I ask for a referral, when client accounts are down 20, 30 or even 40%? Remember everyone is hungry for information and wants to talk. It has never been easier. In fact, a natural extension to most conversations should be something along the lines of, “You probably can’t think of anyone right now, but if you know of anyone—friend or family who might appreciate a quick call from me with a market update, please let me know.”
It’s important to align your expectations with reality here. Don’t expect clients to hand over their address book to you. That’s not going to happen. You’re planting a referral seed and when you plant enough of them, referral seeds grow into referrals.
The markets, investments and advisors are primary topics of conversation at the moment. It’s only a matter of time before your client is in a conversation with someone who expresses fear or frustration with their advisor and/or their accounts. Your client will remember your market update offer and may mention it. However, if you use this referral line or some version of it often, you will begin to condition clients and referrals will begin to materialize. That’s how referral seeds work. They don’t sprout overnight.
Even more important than planting referral seeds, you are building a referral habit that will serve you well for the rest of your career. The actual words you use will change with the times, but it’s forming the habit that’s the difficult part. Build the habit now while it’s easy. Everyone is looking for a second opinion at the moment. Use that to your advantage.
Do you want this stretch to be just grueling or grueling but a career-maker? Remember, when you have the courage to call prospects in this environment, it’s roughly equivalent to seven contacts during a normal market period. That puts you on the accelerated program for landing new clients. All you need to do is start. Think dog years.