A few years ago, adviser Jeff Bland was approached by an executive from Houston-based oil company Cameron International Corp. who was searching for an adviser to manage his more than $6 million in assets.
Mr. Bland, president of Burrus Institutional Wealth Services, which manages $50 million in assets, recalls that the prospective client also ran his own firm that provided wire line services to oil fields. He was planning to retire from Cameron and sell his firm. The executive wanted an adviser to help manage his 401(k) assets, as well as invest the $6 or so million he'd receive from the sale of the firm, which was already under way.
At the time, Mr. Bland said, he was certain that if he could convince the oilman to let him rollover his $200,000 401(k) account, he would be able to show off his investing philosophy and win over all of his assets. He met with the prospect four times to discuss his style and investment options. He also explained that by rolling over his 401(k) plan he could reduce his management fees.
“I showed him we could save him thousands the first day he signed with us,” Mr. Bland recalled.
The prospect wasn't convinced and kept delaying a decision. One evening, however, after talking to the executive, Mr. Bland said he believed the deal was in the bag. “I went home walking on air,” he said. “I was so ecstatic.”
That feeling didn't last long. Mr. Bland called the executive at 8 the following morning to persuade him to fill out the required paperwork for a rollover. He now admits, however, that he had misread the situation and had pushed the oilman too hard, too soon.
“He ripped me a new one,” Mr. Bland said. “He swore up and down and dropped F-bombs. The gist of the conversation was: ‘Don't push me.'”
It was too late. Mr. Bland lost the account, but said he learned an important lesson: You can't rush prospective clients into making decisions. Now, he said, he gives clients all the time they need.
“I've learned that pushing these people only forces them to hold on and delay longer,” he said.
Shop Talk is a regular column detailing how financial advisers run their businesses. The column focuses on unusual or innovative ways to attract more clients. Suggestions or tips for Shop Talk? E-mail Lisa Shidler at
[email protected] or visit the Shop Talk page at InvestmentNews/shoptalk.
