Most financial advisers are sending out the wrong message in communications with clients and prospects, and that may be preventing them from getting the attention they deserve.
Advisers tend to take one of two approaches on their websites: bragging about how transparent and great they are or projecting themselves as experts in the markets or economy, said Barry Glassman, founder of Glassman Wealth Services.
The verbiage on adviser sites today nearly always includes one or more of the words fiduciary, holistic, objective or best interest, he said, among a few others.
"We're not standing out to the general public by using these kinds of terms," Mr. Glassman told registered investment advisers gathered for the annual Schwab IMPACT conference in Boston Tuesday. "We are using a lot of that same old, same old, which used to be special."
(More: 4 critical elements of every great adviser website)
Instead, every RIA's message should be individual, authentic and focused on how they resonate with clients, he said.
He used his own firm's homepage language to highlight this: "We value the human side of wealth management, which is why we work as hard to build trust and lasting relationships with our clients as we do to create wealth."
Mr. Glassman recommended advisers think about a time they came through for a client and envision how that made the client feel.
PROJECT THE BEST
"Recall when you were at your best working with a client, and figure out how to project that person out into the world," he said.
Some advisers aren't crafting individualized messages because they worry about running afoul of advertising guidelines set by regulators. But the Securities and Exchange Commission only prohibits RIAs from doing two things, Mr. Glassman said: offering testimonials and publishing unaudited performance reporting.
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"We can do everything else," he said. "So do it."
RIA communications should have a competitive advantage over that of big brokerage firms, which have many more restrictions on what they can say, Mr. Glassman said. But it can't be a benefit if the message projected mirrors one that any professional at a brokerage would put out there.
Mr. Glassman shared a rule he's set forth at Glassman Wealth Services, where any communication stating information must also put that information in the context of how it impacts clients and what the firm is doing about it.
