From prospect to client: How financial advisors can grow their business

Ever spent hours cold calling in the hopes of landing a new client? Ever sent out hundreds of emails and messages over social networks? For a budding financial advisor, the early days are often the hardest for this very reason - prospecting is a real challenge.

Even so, it doesn't have to be this way. Turning a lead into a concrete client is possible, even if all those phone calls and emails feel like they will never pay off. And, focusing on this aspect of your business is incredibly important. The financial advising landscape is growing more crowded, and you'll need a steady client base in order to stand out. 

If cold calling doesn't sound like your preferred strategy, here are a few things you should know about prospecting for today's clients:

Create your own brand identity
As a financial advisor, you need to find a way to tell your story so that it connects with the people you want to attract. Wealth management is a very personal, emotional topic for clients, and you need to show an interest and understanding in the issues that matter to them. 

The first step is to create your own brand identity. Who are you as a financial advisor? What type of clients do you want to serve? The answers to these questions will help direct you in your prospecting efforts.

According to Reuters, finding clients is often the hardest task for a new financial advisor. In many cases, young professionals are unsure about the right direction to move in at this time.

"Everyone says referrals, referrals, referrals," Toronto-based financial advisor Christopher Dewdney told the media outlet. "I get it, but when you are young and new at anything, it is very difficult to get a referral. Everyone wants somebody with experience, who is credible, who has done it and been successful."

Joanne Ferguson, president of coaching and consulting firm Advisor Pathways, suggested a different approach. She told Reuters that advisors should look for their individual comfort zones instead. Some prefer the cold calls, while others would rather send out emails first, before reaching out directly. 

This is an important point for financial advisors. You need to determine how you are best suited for prospecting, so your efforts aren't wasted on a method that doesn't fit with your skills and personality.

Increase your professional awareness
Today's clients don't want to work with just anybody. They want their financial advisor to be trusted, respected and successful, among other key traits. This makes cold calling much more difficult, because the person on the other end of the line doesn't know all your professional accolades. 

To ensure your prospecting is working, it may be time to increase potential client's awareness of your services. In an article for Wealth Management, Kevin Nichols suggested a warmer approach. What this means is getting to know prospects before soliciting them - show them you are respected, intelligent and trusted among financial advisors.

This can be achieved in several ways, including:

• Sharing information via social media
• Communicating via online networks or groups
• Following, connecting or "friending" on social media
• Sending a personalized message online

All of these steps will mean your prospect knows who you are, before you ever reach out in hopes of turning them into a client. According to Nichols, this strategy takes longer than colder methods, but it can be more effective and enjoyable for certain financial advisors. The goal is to gradually increase a prospect's awareness of your services.

Get creative with your prospecting
If a slower, more social-media-heavy focus isn't right for your prospecting needs, then perhaps it is time to think outside the box.

In an article for Financial Planning, Samantha Allen wrote that you can concentrate on meeting as many people as possible. Ideally, this widespread approach will yield plenty of new clients for your business.

According to Allen, here are three additional methods you can use to revamp your existing prospecting methods:

1. Team with other professionals
Other professionals in your area can be the perfect resources as you look for new clients. For example, Allen described a relationship between one financial advisor and a local staffing firm. Job seekers can make for great clients, and financial advisors could offer seminars and other classes to generate leads.

2. Pair with local colleges, universities
Similar to other businesses, local colleges and universities can be fantastic client pipelines. These institutions have diverse student bases, and all are interested in college planning and other wealth management topics. Advisors can present for students and their families, increasing the odds that some reach out for additional guidance later.

3. Hold community events
In some cases, it is beneficial to simply give back to your community. For example, consider holding a public or private event for clients and prospects. You could host a block party, rent out a restaurant or put together an outdoor concert. Any creative event will be a great way for people to get to know who you are as a person, as well as an advisor. 

Be prepared to tell your story
Clark Brown from Cannon Financial Institute explains that advisors need at least two things to successfully connect with prospective clients.  First, they need a clear vision of who their ideal client is.  Second, they need to have a Personal Branding Message so they can simply and concisely tell their story at the right time.  This is about initiating engagement.  Their message should cause someone who fits that ideal client profile to sit up and take notice.  “You are talking to me.”  “You have something that might be valuable to me.”  “I want to learn more.”   Brown points out that if those are the desired outcomes then the message must be crafted with that end in mind.  It needs to be a personal message aimed at the prospective client.  Brown says, “It’s the ‘big you’ from advertising.  Like the old McDonalds’s pitch, ‘You deserve a break today’.  Everyone listens through that filter first.” 

Play to your strengths
Above all else, your prospecting must be tailored to your unique strengths as a financial advisor. You might prefer a colder approach, or you could favor warming up to your potential clients beforehand. 

No matter your strategy, moving outside your comfort zone can have negative effects on your prospecting efforts. To keep everything on track, focus on your target audience and your skill set. Prospects will know if your heart isn't in it, so choosing a technique that is best suited for you can lead to better results.

To learn more on this topic, register for our Certified Wealth Strategist program or learn more about our other offerings at www.cannonfinancial.com.

Copyright ©2014 Cannon Financial Institute - All Rights Reserved

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Sources/Resources:
http://www.reuters.com/article/2013/01/25/us-wealth-prospecting-idUSBRE90O0QN20130125
http://wealthmanagement.com/prospecting/using-brand-impressions-warm-your-cold-prospects
http://www.financial-planning.com/blogs/5-clever-ways-to-find-new-clients-2685658-1.html
http://wealthmanagement.com/marketing/how-financial-advisors-can-subliminally-program-clients-prospect-them

Disclaimer: The materials and information contained herein are intended for educational purposes, to stimulate thought and discussion so as to provide the reader with useful ideas in the area of wealth management planning.  These materials and information do not constitute and should not be considered to be tax, accounting, investment, or legal advice regarding the use of any particular wealth management, estate planning, or other technique, device, or suggestion, nor any of the legal, accounting, tax, or other consequences associated with them. 
While the content herein is based upon information believed to be reliable, no representation or warranty is given as to its accuracy or completeness.  For this reason, the program of study should not be relied upon as such.  Although effort has been made to ensure the accuracy of these materials, you should verify independently all statements made in the materials before applying them to your particular fact pattern with a client.  You should also determine independently the legal, investment, accounting, tax, and other consequences of using any particular device, technique, or suggestions, and before using them in your own wealth management planning or with a client or prospect.  Information, concepts, and opinions provided herein are subject to change without notice.
The strategies contained within these materials may not be suitable for all clients.  For many concepts discussed herein, clients are strongly urged to consult with their own advisors regarding any potential strategy and will need to strategy described herein is suitable for their particular circumstances.
Examples, provided throughout these materials, are for illustrative purposes only, and no representation is being made that a client will or is likely to achieve the results shown.  The examples shown are purely fictional and are not based upon any particular client's circumstances.