Why Your Clients and Prospects Need You
Let’s talk some more about Mr. and Mrs. Client. The whole discussion of commissions and fees is not about the question ‘what your commission is’; it’s ‘why should I pay a commission? Do I need to pay a commission or a fee when I can do this on my own? Why should I have a financial advisor?’
Listen to the audio or read the transcript below to learn Don’s advice what to tell clients to convince them they need to invest now and with you.
So when somebody says “What are your commissions? What are your fees?” I’d say “Let’s discuss the real question here, which is: do you need an advisor?”
A very competent financial advisor will give their clients a solid financial education.
I would explain to the client that I’ll try to make them money and minimize risk at the same time. I’ll help them define their goals and, equally as important, I’ll put together a sound investment plan to get them there. I’ll help them minimize their tax bill. I’ll keep them from making investment mistakes. And for all of that I charge reasonable fees or commissions. That’s a very good deal.
I would tell Mr and Mrs Client that it’s not my job to make them rich. Rather, it’s my job to keep them from being poor. That’s what people really want to hear.
So the question isn’t, “do we value an advisor’s advice?” Of course we do.
The question is “how much should I pay for that advice?”
Commissions today are very competitive. You’ve got to tell your clients though – “Don’t lose out on valuable advice for the sake of a few dollars. The small money you’re going to pay me in fees or commissions is not going to change my life, it’s going to change your life.”
So, I think the most important thing we can bring to the table in this discussion is our enthusiasm for how we help people manage their money and achieve their goals. Everybody wants an enthusiastic financial advisor.
Another story and analogy to use when explaining to your clients why they pay you commissions.
Paul Evis made the point that when you go to your doctor, and you listen to your doctor for twenty minutes and she writes you a prescription and sends you a bill for a hundred dollars, the bill for the hundred dollars is not due for the five seconds it took her to write the prescription. The hundred-dollar fee is for the years and years and years of training, sacrifice, dedication and learning that went into knowing, what medicine to prescribe.
It’s the same with a financial advisor. When someone pays you a commission for a purchase, it’s not to purchase that product; it’s to know which product to purchase.
Begin telling your prospects exactly why they need a financial advisor.
* This video was originally posted on Don Connelly 24/7 learning center. Consider becoming a member to gain access to more – check out the membership benefits – a 30-day trial available.
