Be Prepared – Don’t Ever Run and Hide

Be Prepared - Don't Ever Run and Hide

What do you do when the market takes a turn for the worst? Do you wait for the storm to pass and simply do nothing – or do you reach out to clients and reassure them things will get better? According to recent research carried out by Financial Advisor Magazine failure to communicate with clients on a timely basis is the number one reason advisors lose clients. The upshot is you need to be prepared to talk to clients both in the good times and the bad times.

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Put Investing in Terms That Clients Can Understand

Put Investing in Terms That Clients Can Understand

Everyone knows that cars go down in value. That’s just the way it is. No matter what you pay for a car, and no matter how carefully you look after it, it’s going to be worth a lot less than you paid for it. It’s never going to bounce back in value, but car owners are okay with that. They are pre-conditioned to the loss. However, clients don’t see their investments this way. They think investments are only supposed to go one way – up. When investments go down, clients feel they have lost money, even if they have not sold out. They will take a hard loss on a car and not bat an eye, yet they can’t stomach a paper loss in their portfolios.

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Lead by Example – Prepare Yourself so Your Clients Are Ready Too

Lead by Example – Prepare Yourself so Your Clients Are Ready Too

As an advisor, you need to prepare your clients for events that have not yet happened. You need to know in advance how you are going to manage your relationship with them when the markets take a downturn.

To step up to this challenge you need to practice your soft skills so that you inspire your clients with confidence in what you say. If they believe in you and think you are the ‘real deal’ they will go where you lead them.

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What’s The Greatest Cause of Burnout among Financial Advisors

A Blueprint for Aspiring Million Dollar {Producers to Follow - AskDON

Here’s a question I received from Ricardo in Portugal. He’s writing about burnout with an interesting question.

What’s the greatest cause of burnout among advisors in the United States?

I think that actually is very easy to answer. Whether it’s Los Angeles or Lisbon, it doesn’t really matter.

Listen to the audio or read the transcript below to learn what Don thinks the greatest cause of burnout among Financial Advisors is.

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Remind Your Clients Investing Is a Marathon

Remind Your Clients Investing Is a Marathon

Despite regular and sometimes frightening dips markets continue to rise incrementally over time, continually setting new highs. The problem is that many clients disbelieve this; they panic when the market temporarily falls. As their financial advisor, it’s your job to keep them on track.

You need to get them over their short-termism and make them see that their focus should be on 20, 30 or 40 years from now – not on this afternoon or next week.

Use all the tactics at your disposal to illustrate that investing is a marathon not a sprint.

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Understanding Your Clients’ Behavior Is Key to Your Success as a Financial Advisor

Understanding Your Clients’ Behavior Is Key to Your Success as a Financial Advisor

The more you understand what motivates your prospects and clients, the better your chances of success when it comes to attracting and retaining them. When you begin to see things from your clients’ and prospects’ point of view you can start to influence their decisions and help them make good financial decisions.

So break out of your own mindset. Step into their shoes: Then you will be able to build strong client relationships, anticipate your client needs and manage their expectations.

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