Good communication is essential to success as a financial advisor. Talent alone won’t help if you’re unable to effectively communicate the advantages of your practice, in order to gain new clients and then retain them.

Thus you must acquire strong communication skills in two areas:

Your approach, where your goal is to get your message out and convert people into clients.

The quality of service you provide afterward, which determines whether you will be able to retain those clients.

In this column, I’ll offer suggestions on the first point and cover the second in a follow-up column.

If you believe that ads in print or electronic media will immediately pull in lots of new clients, you’re mistaken.

Actually, the first thing a good communication campaign should deliver is a lot of inquiries. Depending on how you respond, these folks might become clients.

To attract inquiries, your written and verbal communication must be three things: 

Clear. Avoid jargon and clichés, and don’t condescend. Use simple, precise terms that convey exactly who you are and the value your firm offers. 

Concise. Avoid repeating yourself, and save details for the right forum. 

Compelling. Ask yourself—better yet, ask others—whether the words you’ve written are persuasive: Will a reader or listener contact you? 

Don’t be discouraged if writing isn’t your strong suit right now.

Developing good writing skills takes time, but you can do it if you make the effort. One key is to regularly read what others write that gets your attention and decide why you think it works. Keep a file of examples. After a while, you’ll learn what makes good copy work and bad copy, well … bad.

If you decide that you don’t want to do this or don’t have the time, hire someone to craft copy for you that will generate interest in your firm and motivate people to respond.

We’ve found that the best way to generate interest in our firm is to offer value. Instead of saying, “Hire me!” we give people knowledge, tools and resources. Not only do people get value from our communications, but we also get to demonstrate our expertise while providing an inkling of the service they can expect as clients. 

For example, our website features the Edelman GPS (Guide to Portfolio Selection). We routinely invite the public to try it out; we promote it as “fast, fun and free.” The GPS lets visitors answer a few questions so we can present them (immediately) with a portfolio that best fits their situation. It’s a popular feature on our site, and it generates lots of inquiries for us.

See if you can create a feature on your website that’s fun and interesting and that causes people to contact you. Can’t come up with an idea? Brainstorm with fellow planners, as well as your staff. Talk with family and friends, too. Even ask clients (and people you wish were clients).

If you’re good at public speaking, use those skills to reach potential clients. Prepare a radio or television ad, or conduct a seminar or webinar. Remember to be clear, concise and compelling. Plenty of experts are available to help you prepare and perform, on either a freelance or permanent basis. 

Whatever your approach, remember that the first thing you’re doing is creating an impression of yourself and your firm. As new people come across you, they’ll contact you by telephone or e-mail if you pique their interest. That is what gives you the opportunity to determine whether they are a good fit for your firm.

Professionalism matters, everything from etiquette and appearance to reputation and responsiveness. But if that’s all it took to be successful as an advisor, then every advisor would be.

Good communication skills are essential.

The next column: “Six Ways to Develop the Most Essential Communication Skill.”
 

Ric Edelman, Chairman and CEO of Edelman Financial Services LLC, a Registered Investment Advisor, is an Investment Advisor Representative who offers advisory services through EFS and is a registered principal of, offering securities through, SMH. Advisory services offered through Edelman Financial Services LLC. Securities offered through Sanders Morris Harris Inc., an affiliated broker/dealer, member FINRA/SIPC. You can connect with him on LinkedIn or on Facebook at www.facebook.com/RicEdelman. Follow him on Twitter at @RicEdelman.