One line of questioning I receive often from colleagues involves inquiries that begin with the phrase “How do I get clients to….” and ending with some action the advisor wants the client to undertake. I’ll give my take on a few of these in future columns, but for now I have to confess something.

In many cases, the question is essentially one about selling. This may be an odd way to begin a column, but I have no problem saying you are asking the wrong guy. I may be the worst salesperson on earth.

When I first got out of college, I needed a job in a town where the only person I knew was my high school sweetheart. An insurance company needed salespeople. 

Every two weeks, we would have meetings with sales management to learn and develop sales skills. The trainers would provide us with a host of clever things to say.  We would role play and learn various responses to overcome objections. It was horribly uncomfortable and yes, it was largely BS. I did not last long.

It was not a job that suited me well, but it turned out to be an experience that has proven beneficial. Beside becoming an expert in spotting BS, I understand insurance very well. I appreciate the value of the true professionals in the field, and I learned some things that have been helpful to me in serving my clients.

First and foremost, if what you want the client to do is not in the client’s best interests, you are wasting your time and the time of your prospective client. Don’t even bother asking me a “How do I get my client to….” question about such an item.  I don’t have an answer, and I will spend no time coming up with one.

Second, I have absolutely no desire to listen to a sales trainer or read books about sales. For more than 20 years now, I have avoided all such information. By my standards, my practice has been successful anyway.  When reading for business, I prefer to spend my time on things that will help me empathize with clients, solve their problems, or anticipate their needs.  It is fair to wonder that if my sales skills were better, would my firm be more successful? I don’t really care.   

My “sales” shot up as soon as I stopped selling. I remember the day I decided to be an advisor and not a salesperson like it was yesterday.

Shortly after getting married, Kelly’s transmission went kaput. We took it to the local franchise of a well-known transmission specialist. We were escorted into a room where a well-dressed, grease-free gentleman proceeded to explain our options. He opened up a book with frayed laminated pages and graphics that discussed the basics of how a transmission works and then described the three packages we could choose from.

It was crystal clear that this presentation was made to everyone who walked through the door, and it occurred to me that the same fixes were offered regardless of what any examination may have revealed. I could tell the salesman had been through this pitch too many times. He kept looking around the room like someone who is repeating himself for the umpteenth time.

Sure, the “everybody gets the same” part of it was bad, but the thing that made the most impact on me was the way the process made me feel. By the time he got to page 2 of his presentation, I could feel my blood pressure rising and the urge to squirm in my seat. I barely listened to a word he said and simply wished he’d get to the page with the prices so I could see how bad my checking account was going to be reduced.

Ever since, I have gone into meetings with prospective and current clients with my main goal being to simply have a genuine conversation. That’s it. With current clients, I often have some bit of information I want cover, such as how a tax-code change may affect them, but the bulk of our time together is spent on what’s important to them. How are things going? Anything new on the horizon? Are you excited about anything? Anything bothering you? etc.

For prospective clients, it too is all about what they want for themselves and their families. I often don’t even look at any of their investment statements. I need to see this eventually, of course, and some are anxious to show it to me, but I believe when it comes to comparing where a client is with where they want to be, the where they want to be is more inspiring to them and often harder for them to articulate, so we need to spend more time on that.

I don’t talk much about how wonderful my firm is or how smart I am supposed to be. I am candid and transparent about my fees and my capabilities. I can answer many technical questions instantly, but I’m also quite comfortable with the answer “it depends” or “I don’t know.” I give these answers whenever it depends or I don’t know. I have found that reasonable people find this approach sensible and far more acceptable than dealing with a know-it-all windbag.
I try very hard to avoid jargon or make assumptions about what a prospective client knows or doesn’t know about personal financial matters. I suspect a large majority of Americans do not understand what a mutual fund is even though most own shares in them. Many advisors actively work to make what they do sound extremely complicated. They think it builds prestige or makes the client more dependent on the advisor. “If I make it too simple, they won’t need me,” some advisors have told me. Some clients might think like that, but I am not enthusiastic about working with clients who want things unnecessarily complex.

Sometimes advice is complicated, and trusting clients will often go along with their advisor’s recommendations because of that trust. A sales trainer would say that when the customer says “yes,” you should shut up and move on. I think it is a mistake to move on if you suspect your client or prospective client doesn’t understand. A lack of understanding often results in unmet expectations. They know they don’t quite get it, and this injects anxiety and apprehension. Why would you do that to someone you supposedly care about? 

What I am most comfortable doing is trying to explain the complex in as many different ways as necessary for my client to understand. To me, that’s one of the most fun aspects of this job. That moment when their eyes light up and a smile comes across their face and they understand how something is in their best interest. It’s a rewarding feeling, an emotional and psychic high that I confess I am addicted to.

But that’s just me, and that’s the point. Sure. It is true that in some sense, everyone is selling something, but to me, the best way to sell someone on a specific course of action is to not “sell” at all. Just be yourself and have a conversation. Listen. Be genuine. Be authentic. Seek only to serve your client’s best interests and most of them will respond positively.

Dan Moisand, CFP, has been featured as one of the America’s top independent financial advisors by most leading financial advisor publications.  He has spoken to advisor groups on five continents on topics such as managing investments and navigating tax complexities for retirees, retirement readiness, and topics relating to the development of the financial planning profession.  He practices in Melbourne, Fla.  You can reach him at (321) 253-5400 or [email protected].