When I was new to being a financial advisor, a client said to me, “So you’re basically a salesman?” Given that I’d studied finance and obtained my CFP designation, I remember feeling offended. I saw myself as much more than “merely” a salesperson.
But as the years went by, I began to reflect upon that statement, not with resentment, but as a great compliment. I’ve evolved to view the art and science of sales in our business both as an integral part of our profession and as a way to help clients thrive. And that’s because for those advisors who really care about providing the best possible guidance, superior sales and communication skills will not only help you secure potential clients who come looking to you for advice but will help you guide a client into superior outcomes.
Have you ever stopped to consider just how hard it is for an individual or couple to meet with you for the first time? You may come highly referred, but most people still fear that you will either embarrass them about their past financial mistakes or worse, that you’ll sell them some financial product or service they don’t need.
When I was first married, my wife and I needed a refrigerator. Finances were tight, so I bought a Consumer Reports magazine and did a bunch of research. We took a Saturday and browsed through a couple of stores. When we walked into the third store, someone approached me and asked if he could be of service. I told him, “Yes, would you please put us out of our misery and sell us a refrigerator?”
It’s not all that different when someone meets with you for the first time. No one goes visiting with a financial advisor because they have nothing better to do. They meet with someone because they have a need and they are hoping you’re the one who can really help them.
That said, it’s in their best interests if you are highly skilled at guiding delicate financial conversations and can lead them to a place where they hire you, rather than put off building and implementing a plan for another month or year.
When it comes to helping existing clients, if you’re a fiduciary, the better you are at subtle persuasion, the better off your clients will be. The longer I’m in this profession, the more I’m convinced that one of the greatest values we add is keeping people from making decisions from which they cannot recover.
You can have all the designations our profession has to offer, but if you’re unable to communicate and persuade, you’ll make a lousy advisor.
Three years ago, a close friend of mine said, “I bet you are a phenomenal salesman and can get people to follow your advice to the letter.” I took it as a great compliment. After all, one of the only ways I can help someone is if I can convince them to make decisions that are in their best interests.
Scott Hanson is co-founder of Allworth Financial, formerly Hanson McClain Advisors, a fee-based RIA with approximately $16 billion in AUM.
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