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].