Advanced experience among financial advisors is sometimes discussed as a liability, given ongoing industry chatter about the need for succession planning.
But the grass isn’t always greener on the other side. As discussed in various sessions at our national conference, ConnectED, convened earlier this month in Las Vegas, next gen financial advisors—which we can define as professionals with less than 15 years of industry experience—frequently see their youth as a distinct disadvantage with client prospecting.
At a recent gathering we had with younger advisors, one of these professionals said, “The average financial advisor is over 50 years old. As a 30-year-old competing for clients, I’m swimming upstream to convince prospects that the 20-year experience deficit between me and the average advisor isn’t a problem.”
So how can a young professional get in front of warmer leads where the prospective client conversation orients towards his or her strengths right out of the starting gate?
By targeting, engaging and reinforcing relationships with influencers.
We’re not talking about “social influencers,” nor are we recommending advisors approach Ariana Grande for mentions on Instagram Live. The influencers next gen advisors should be getting in front of are known more commonly within the industry as Centers of Influence (COIs).
These are professionals in adjacent fields to wealth management and financial planning who are in a position to refer clients, and to do so in ways that precondition favorable conversations from the outset.
Getting Started
An ideal initial goal is to create a three-to-four-person group of COIs by targeting and engaging with specific professionals in your existing network or community, as well as current clients in your book of business.
Demonstrate to these individuals that you have a knowledge level that separates you from your competitors and you can bring value to their personal network.
In theory, a COI can be anyone who is willing to help you gain a new client or relationship, and at the end of the day, one of the single best sources for client referrals for any advisor comes from existing clients.
But if we’re looking at targeting specific adjacent professional verticals, two of the best places to start for next gen advisors are with tax advisors and attorneys.
Engaging With Tax Advisors
When families without a financial professional have money concerns, they usually turn to their tax advisor, who is typically either a CPA or an Enrolled Agent.
These professionals are entrusted by their clients with the most intimate details of their financial lives, which makes these professionals a potentially ideal source for a financial advisor referral.