Grey hair is a selling point in the financial services industry. Longevity and experience inspire confidence. This can be a problem for newer advisors when they appear younger than the prospect’s children. How can the younger advisor position themselves to win business, especially if the older prospect appears uncomfortable?
1. Sell the firm. News flash: When a prospect walks into a major brokerage firm, they are generally not intending to hire a specific person (unless they were referred). They are hiring a firm. The tall building with the firm’s name on top implies stability (and deep pockets). Independent advisors grow their firms largely by referrals. But unless they find a way to harness their client networks into a consistent source of referrals, they are likely to remain relatively small. That's one reason why we are witnessing the dramatic proliferation of national RIAs creating their own brands in the last five years.
Younger advisors: Talk about the firm. How much do they hold in assets under management? What about retirement assets? That second category is important because people equate retirement assets with “safe money.” Client confidentiality is paramount, but there is often an exception for public pension funds, when that information is in the public record. The advisor is an agent of the firm. They bring the firm’s resources into your living room.
2. Sell the team. Younger advisors are often on teams. Add up the combined longevity of all team members. “We have 100 years of combined experience.” Talk about the specialized knowledge different team members bring to the table.
Younger advisors: Make the case the prospect is hiring the team. The advisor is their point of contact.
3. Talk about your professional certifications. Many people enter the financial services industry as a second career. Have you earned a law degree or do you hold the CPA designation? Does tour firm allow you to talk about it? Have you achieved your CFP or CFA designation?
Younger advisors: Lean on your credentials. Credentials convey competency. Your prospect has them too. Indirectly, you are also delivering the message you are current on the latest developments in the industry.
4. Tell them about your previous experience. Your prospect is a teacher or an engineer. You used to be in that field too. Talk their language, possibly establishing common connections.
Younger Advisors: In this case younger might mean newer to the industry. Make the case you understand the factors making their profession unique. This is an advantage in helping them plan their future.
5. You are a specialist. This is different from the above example. You weren’t a teacher or engineer before. You decided to specialize in helping clients with special needs children. You have earned related certifications, providing knowledge that would be useful. You have written articles and spoken on the topic.
Younger advisors: You specialize in a niche market. You have built up a clientele in this category. The prospect knows all about doctors who are specialists. They probably have a few.
6. You are where you always wanted to be. You have been an investor for as long as you can remember. Your parents and grandparents were investors too. Perhaps one parent is already an advisor and you are their junior partner. You are a key part of their succession plan.
Younger advisors: You do not want to imply this job is transitory until something better comes along. You want your natural enthusiasm to come through. Many prospects are looking for long-term relationships.
7. You will be an important client. This will be a big account relationship. Well, big for you, anyway. The prospect is considering two advisors. One is established with hundreds of millions under management. The other is you. Why should they choose you? If they bring their larger account to the established advisor, they may be one more face in a crowd of similar sized accounts. If they become your client, they are a big fish in a small pond.
Younger advisors: Convey you will be respectful of the relationship, and they can expect excellent service from you.