Steps to Take When Ending a Client Relationship

Steps to Take When Ending a Client Relationship

For everything it takes to secure a new client, it seems counterintuitive that a financial advisor would fire one. But, under certain circumstances, that’s precisely what you must do to keep your practice on the right growth trajectory while keeping your sanity.

Holding on to clients who stray outside your profile of an ideal client, or when they become too demanding or no longer follow your advice, can weigh you down. Your time is too valuable to spend it with clients who aren’t a good fit for you.

So, you need to fire them. But how? Ending a client relationship is a delicate process, but it doesn’t have to be awkward for you or the client when handled with care and professionalism. Much like a structured onboarding process, you should also have a clearly defined “deboarding” process to make it easier on everyone. Here are some steps to consider when ending a client relationship.

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Building Resiliency Through Successful Calling Habits

Building Resiliency Through Successful Calling Habits

I think it’s safe to say that most financial advisors don’t like making prospecting calls. Many even detest it. At best, it’s a necessary evil.

However, some advisors not only welcome the challenge of call prospecting, but they also thrive on it. One advisor I know considers each phone call he makes as the potential to uncover riches like scratching off lottery tickets. He said, “I could win the lottery at any minute, and if I scratch off enough tickets, believe me, I will win the lottery.”

That’s one way to stay motivated. But there is an element of truth to it. Ambitious advisors will do whatever it takes to build a resilient mindset, which is critical to success in any endeavor. They’re not afraid to risk rejection because they know it will lead to wins, and that’s what they live for. However, for resilience to be sustained, it must be built on solid habits that eliminate the overthinking that leads to call reluctance.

Here are the essential calling habits—several of which occur before the call—you must develop to grow your businesses successfully:

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Are You Prepared to Guide Your Clients Through Life-Changing Events?

Are You Prepared to Guide Your Clients Through Life-Changing Events

It’s going to happen. You can count on it. I’ve written in the past why it’s critical for advisors always to be prepared for ‘what ifs,’ particularly as it relates to a stock market crisis. That’s when your clients need you most. Having a plan of action to help your clients through difficult times is essential if you expect to maintain their trust and confidence. But what about other crises—the unexpected, life-changing kind that can engulf your clients personally, like a divorce or the death of a spouse or child. Are you prepared with a plan of action to help your clients through the most challenging times of their lives?

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5 Cold Calling Mistakes Financial Advisors Must Avoid to Improve Results

5 Cold Calling Mistakes Financial Advisors Must Avoid to Improve Results

For many financial advisors, cold calling does not play a dominant part in their marketing plans. Many feel it can be replaced by other prospecting methods, such as email campaigns, social media networking, or trade shows. But would it surprise you to know that cold calling still generates better results than those other methods? When you ask advisors why they avoid cold calling, you often get responses like, “It’s not working for me,” or “It’s a waste of time,” or “no one wants to talk to me on the phone.”

No one ever said cold calling is easy. But if your efforts aren’t producing results, have you ever considered it’s not the method, but how you’re executing it that’s not working?

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How to Become Top of Mind with Your Clients and Prospects

How to Become Top of Mind with Your Clients and Prospects

As a financial advisor, you can’t always be there when a client or prospect has a need. You can only hope that you’re the first person they think of when they want to discuss it or when one of your clients is asked to recommend an advisor. That’s where top-of-mind awareness comes in. If you can develop it effectively, your name is more likely to be the first to come to mind when they have a need.

Chances are, when you crave a cola, you think Coca Cola. That’s because Coke spends hundreds of millions of dollars on advertising to ensure you do. You want that same reflexive thought to occur with your clients and prospects, but you don’t have to blow out your budget to create similar top-of-mind awareness. The objective of a top-of-mind strategy is to be remembered, and you can accomplish that with five easy steps.

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For Great Financial Advisors, the Profit is in the Relationship

For Great Financial Advisors, the Profit is in the Relationship

The industry pressures that have weighed on financial advisors over the last few years will continue into 2021 and beyond, especially with the lingering effects of the pandemic. Fee compression, increasing regulation, heightened competition, and the commoditization of services are all part of an inevitable trend that threatens the survivability of many advisors. From now on, advisors who fall short of clearly differentiating themselves will have a difficult time bucking the trend, and advisors who fail to put their entire focus on their client relationships may be doomed.

Unfortunately, many advisors learn too late in their careers what I have stressed numerous times—that this isn’t a money business. It is a people business! For the first several years of an advisor’s career, the focus is almost solely on acquiring product knowledge, investment expertise, and planning skills. While that is essential for building necessary competencies, too few advisors come to realize that money management is not the lifeblood of their business—their clients are.

For financial advisors, the profit is not in the financial analysis or the transactions they conduct; it’s in the relationship.

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5 Red Flags That Will Cause Your Prospects to Dismiss You

5 Red Flags That Will Cause Your Prospects to Dismiss You

You never see it coming, and you may never know the reason why. A prospective client you have carefully cultivated agrees to a meeting to learn more about how you can help them. It seems to go well. Their heads were nodding up and down, and they laughed at your joke. At the end of the 30-minute meeting, you suggest the next step with an offer to follow up with them. Turning toward the door, they reply, “We’ll let you know.”

You know that’s the end of it. So, you replay it in your head, asking, “What were the red flags that soured their perception of me?”

Whether the outcome of a prospect meeting is good or bad, you should always replay it in your mind. With a positive outcome, you need to know what worked and why. For a negative outcome, it’s vital to understand what didn’t work and why. Identifying the negatives is often more difficult because it’s hard to be self-critical. But that’s where the path to self-improvement begins. To help in your diagnosis, we list the five of the most common red flags that could cause your prospects to dismiss you.

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Digital Marketing for Financial Advisors – Email Can Still Be Your Most Powerful Communication Channel

Email Can Still Be Your Most Powerful Communication Channel

It wasn’t long ago when you were considered a marketing dinosaur if you didn’t use email campaigns. Today, you are obsolete if you aren’t using digital marketing to take advantage of all the digital channels available to you, including email marketing. A digital marketing strategy aims to push targeted content out to pull qualified leads in, and email marketing is core to that strategy.

The challenge is your target market is receiving so much content through the internet, email, social media, and snail-mail that the noise has become deafening. It used to be that marketers would create the message and push it out to anyone within range of their ads or mailers. In the digital age, consumers control the message, with the ability to determine what information they receive, how they receive it, and how they respond, if they want to respond. If any content manages to reach them outside that control, it is probably deemed irrelevant or a nuisance.

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Digital Marketing for Financial Advisors – How Social Media Can Generate Leads

Digital Marketing for Financial Advisors – How Social Media Can Generate Leads

Financial advisors know how difficult it is to make contact with high-net-worth people through phone calls and emails. However, when they reach out to connect with the same people via LinkedIn or Twitter, they are often welcomed with open arms. From there, they simply become part of the conversation, which opens the opportunity to build relationships.

By actively participating in popular social media sites, such as Facebook, Instagram, Twitter, and LinkedIn, you automatically expand your online presence while building social capital. At the very minimum, your participation provides social proof to your target market that you exist and that you might actually have something of value to offer.

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Working Mostly Online in a Post-pandemic World Is Especially Hard on New Advisors

Working Mostly Online in a Post-pandemic World Is Especially Hard on New Advisors

This turbulent year is almost over and looking back, we see a few clear trends of topics that interested Financial Advisors the most on our blog during 2020. We’d like to share some of them with you now, in case you missed them the first time around.

Here are the first three topics most requested and read by our community of financial professionals in 2020.

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