Asking for the order is a skill every financial advisor needs to master. Very often, we gather data, prepare a financial plan with the client and present a proposal, aligning a client’s goals with your recommendations. You ask for the order. This strategy works well with linear thinkers, but not so well if the prospect gets off track. Sometimes the prospect says: “Let me think about it.” Let us look at some different closing strategies that might help you address that situation.

Strategy #1: No Decision Is A Decision
You have finished delivering your proposal. The prospect says, “Let me think about it.” For all practical purposes, the meeting is over. You setup a follow-up date.

Let us assume your client is 80% bonds and 20% stock. Their bonds are all short term. You have proposed a 60/40 stock and bond split. You are looking at laddered bonds, heading toward the long term.

As the advisor, you mention “no decision is a decision.” By sticking with an 80% short term bonds and 20% stock, you are thinking interest rates will continue to rise and the stock market does not hold much promise.

Your allocation of 60% stocks and 40% bonds (leaning towards longer term) makes the case the stock market holds significant opportunity, and you think interest rates will not go much higher before they stabilize and eventually decline.

“Mr. Client, which set of assumptions do you believe?” You are looking for them to make the case why sticking with what they currently own is the best strategy moving forward. (They may have their reasons.)

Desired outcome: If they cannot make their case, they might accept your advice. If they stand firm and make no changes, they might be assuming they are taking no risks. You are making the case “People who take no risks (by making no changes) are already taking one.”

Strategy #2: Buying Into Each Other’s Ideas
As a Star Wars fan, I always liked the expression, “Give the Wookie what he wants.” Some advisors will look at a prospect’s portfolio, gather data through the financial planning process, present their proposal and say: “We need to sell everything.” This is often met with resistance, especially if the prospect thinks they have done a good job managing their own money in the past. Now they are being told “Everything you did was wrong.” This is coming from a total stranger.

A good strategy involves the concept of the security blanket. Pick some items they already own that are consistent with your recommendations. Congratulate them on making good investments. Let them know these are very good choices and not only do you recommend keeping them, you hope to add to a couple. Explain why they are a good fit.

Desired outcome: Hopefully the prospect is comfortable adding to these positions. They should be more agreeable to your other buy/sell recommendations because a portion of their original portfolio is still intact.

Strategy #3: Dollar-Cost Averaging
This is a concept advisors learn about in training. It’s often associated with smaller dollar amounts. It can be useful when the prospect has a fear of the market or procrastinates in making a decision. I learned this one from an advisor in Northern California.

He would explain the logic of dollar-cost averaging, which he frames as a strategy used by large institutional investors. He suggests committing a portion of the money now. “If the market declines, you can average down. If the market rises, we already have an established position.”

This is standard textbook stuff. Then he follows with “Consider mutual funds. They buy thousands of shares in a company. Do you think they do it all at once?” This is followed by: “Let’s use the strategy utilized by large institutional investors when building your portfolio.”

If the client is still uncertain, he tries to at least get the assets transferred in house—“So we can be ready top move when the time is right.”

Desired outcome: We often forget prospects decide to work with a big firm because it is assumed they have more skill than the average retail investor. The advisor positions dollar-cost averaging as such a skill. This also opens the negation process. If they won’t commit to acting all at once (which was not discussed here), how much are they comfortable committing to a dollar- cost averaging strategy?

There are many ways to close the sale. These or only a few. Have you tried them before?

Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book Captivating the Wealthy Investor is available on Amazon.