Joining the financial services industry can be a second career for many people. In my years as an advisor I met people who had previous careers including military officer, research analyst and clergy. I heard about advisors who had been pilot a pilot and another, a zoologist. You encounter advisors with law or accounting credentials.  Often, the ability to sell was a key skill. The basics of the financial services industry could be taught.

New advisors (and insurance agents) are encouraged to cultivate their natural market. These are people you know. Family members might feel an obligation to become clients, but your natural market also includes former co-workers. They might agree you were an excellent mechanical engineer, but what do you know about stocks? The thought running through their minds is: “They don’t want you practicing on their money! Someone might even say: “Call me in two years. If you are still in the business, then I will invest with you!” 

How do you get across you are qualified to give them financial advice?

1. You are a licensed professional. Before your firm allows to solicit an order, you need to get licensed. This often starts with passing the Series 7 exam. There may be other licenses your firm requires you to hold, especially if you sell additional products like insurance. You hold several licenses.

2. Have you earned a professional designation? Many firms encourage advisors to attain the designation, Certified Financial Planner or CFP. According to the CFP Board, there are almost 102,000 professionals holding the CFP designation. (1) If you are in the insurance industry, there are several other designations you might hold. Your client likely has an MBA or other additional academic credentials. They understand what they mean.

3. Do you have statistics on the firm’s hiring protocol? Not everyone who applies to become a financial advisor gets a job. Years ago, a firm (I think it was Smith Barney) ran an ad indicating how many people who start off at the application process, actually qualify to fill a seat in a branch office as a financial advisor. Any might apply, but few qualify. 

4. Are you on a team? Many firms have embraced the team structure. Newer advisors are brought into an existing team. This might be a permanent arrangement, or they might have the option of stepping away and becoming a sole practitioner. The team photo shows several people, listing each by name. You can present the concept the client is working with a team having a combined (large number) of years’ experience.

5. Sell the firm. If you work for a large financial services firm, you are an “agent of the firm.” You “bring the resources of the firm into the client’s living room.” You are the client’s conduit to the firm’s research department. The firm has (x) advisors in (y) offices. These offices are in (z) countries, etc. What is the firm’s credit rating? What awards has the firm won? They have taken a step up when they chose to work with the firm. They are doing that through you.
 
6. The role of specialists. Imagine if your doctor said you needed a pacemaker. They pulled a book from a shelf, opened to a diagram, pulled out a scalpel and said: “I think I know how to do this!” You would run out screaming! They refer you to a specialist, likely a cardiologist at a major hospital. If your client has a need in a specific area, you might bring in your lending specialist or the estate planning specialist. You have a team supporting you.

7. Your role as a relationship manager.  Why are your former co-workers hesitant about doing business? They think investing means stock picking. They see this as a learned skill. What do you know about stock picking? News flash:  You are not a stock picker! You start a relationship with financial planning. Eventually, money managers are brought into the picture. You and the client periodically monitor their performance. You are both on the same side of the table. Many former co-workers can rationalize your former job expertise as transferrable into the role of relationship manager. 

8. Have you won awards?  Many local publications run “Readers Choice” competitions. Several major financial publications do the same. Do you appear on the list? Third party endorsements are a great way to establish expertise.

9. Continuing Education. For experienced advisors, licensing is something that happened in the distant past. Your client might be interested in a product or service that didn’t exist five or ten years ago. They wonder if you are keeping current. You talk about the Continuing Education requirements you must complete. They likely have the same requirements in their profession. Yes, you are keeping current.

10. Products with few moving parts. Suppose none of this works. Your friend or relative is unsure you will be in the industry two years from now. They don’t want to take any chances. Talk with them about products that “perform as advertised.” Examples are six month insured CDs and Treasury Bills. These should be the lowest risk investments these could buy. Hopefully they are more comfortable with your career prospects when they are due for renewal.

There are times you need to prove you are qualified to give financial advice. There are many ways to make your case.

Bryce Sanders is president of Perceptive Business Solutions Inc. He provides wealthy clients with acquisition training for the financial services industry. His book, “Captivating the Wealthy Investor,” is available on Amazon.