Practice Management TrendsettersNovember 2, 2015


What do you do for $____,000 per year? 

 

When meeting with a new client or prospect as a financial advisor, it all starts with a simple question, “What do you do for $___,000 per year? “ . But the question, may not come as that direct from a client or prospect looking for help with their finances. It may be disguised in another way such as” how do your fees work? “ or “ how often will I hear from you” or “what do you do?”. In other words, people are trying to make a value decision, whether tangible ( Measurable dollar value) or intangible ( peace of mind, comfort or security) when they discuss fees and cost. It is the skill of articulating your value and having a clear value proposition to answer the question, “what do you do for $____,000 per year?”

Is it comprehensive or one dimensional?

We all realize that the financial advisors who deliver a comprehensive approach to financial services can clearly articulate their value become extremely important and indispensable to their clients.  If you specialize in one area of financial services, such as insurance, do you have a team, associates or sources to help clients in other areas such as risk management, estate planning, banking, investment management, tax and financial planning?  Can you clearly articulate your value, your process and your fees in a comprehensive manner? 

Is it coordinated or individual?

Do you prepare advice, products or services in a coordinated way? For example, some advisors would meet with the client’s accountant to make sure it is a coordinated tax effort. It is common for top advisors to meet with the team of experts for solving complex problems for business owners, before proceeding with setting up a big life insurance policy. The meeting may include an accountant, lawyer insurance professional from an insurance company. How do you articulate your value to other professionals in that meeting? They realize you are getting paid to solve the client’s problem. Does it make sense to them? 

Communicate ongoing value and service?

When I look at my account and see what I paid in fees for the last twelve months, I also consider what I have been paying for the last five years or so. Does this represent good value? Or does this justify one meeting a year for the fees I paid. How will you meet your client’s expectations on communication? Is it proactive or reactive? Do you have too many clients and not enough time?  If I find an advisor that can deliver more value for the same fee, will I switch? If the new advisor can articulate their value better, the odds of a client switching are significantly increased. 

Regulatory changes and CRM2

In a world of full transparency for every industry, consumers are facing different ways to measure value. The problem is that until now, some consumers did not know how to measure value.  Smart financial firms are teaching clients and prospects how to measure value and teaching clients about total transparency.  They have a practice management process for their communication process, wealth management process and comprehensive advice process.  In other words, their value proposition is teaching clients and prospects what to look for and how to measure value. What do I get for $___,000 per year?  What should I expect to get for $___,000 per year? 

For some advisor-client relationships, using the old conversations going forward will not cut it in a new era of transparency, cost and value.  Below is information on a workshop I am doing with Bill Bachrach this fall.

 MASTERING THE ART OF CLIENT ACQUISITION AND BUSINESS DEVELOPMENT:

THE 7 CRITICAL CONVERSATIONS TO BUILDING AND MAINTAINING A SEVEN-FIGURE FINANCIAL ADVICE BUSINESS.

If you want to learn better scripts and would like to have a community of Ideal Clients, then join me this November 13-15 in Atlanta, Georgia at the “ Mastering the Art of Client Acquisitions For Financial Advisors”  https://peopleskillsnetwork.com/

Or learn more by clicking on the link below to watch a short video

https://player.vimeo.com/video/139997580    

    and for a great discount up to $1000 off, enter promo code APM1K  or email me for more information at: grant@ghicks.com  

 Advisor Practice Management’s goal in all of our initiatives is to elevate standards of practice for financial advisors and their teams. Remember, any marketing initiative should include communication with your compliance team.

Let’s work on your business. Start by emailing us. Why not? 


Enthusiastically yours,


Grant Hicks, CIM, National Director Practice Management
Advisor Practice Management
www.advisorpracticemanagement.com

909-17th Ave SW, 4th Floor
Calgary, Alberta  T2T 0A4
Tel  587 390 3148
Cell 403 970 8895
Email grant@ghicks.com   

PS Where do you want to be in 3 years?

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