In a world full of online insurance sales and do-it-yourself investment platforms, you need to think about why your practice is a well-rounded, one-stop-shop for your target market. If you want to build a raving fan base to grow your business, old-school transactional sales is not the way to do it.
All successful companies started with their philosophy, and built a culture around it. They first built brand loyalty, then expanded into different markets related to their primary offering. Following the Consistent Advisor process means you understand your customers’ financial goals and concerns.
A Full-Spectrum Approach
And in order to achieve all their goals and eliminate their concerns you have to use a full-spectrum of financial products. You’ve spent hours interviewing, and educating the prospect. Why would you want to execute just one fraction of their plan and then send them to another advisor for the rest?
Does that competitor approach your client’s goals and concerns the same way you do? Do they appreciate you, or the plan you constructed? Are you trying to help a prospect achieve their financial goals, or just make a quick sale?
Sales come very naturally and more frequently by applying the principles found throughout the Consistent Advisor approach. To help people reach all of their goals and eliminate their concerns, you should consider becoming a full service shop. It also helps you make the most out of your prospect’s retirement resources.
Full-service financial professionals ultimately write more business. Developing a plan and executing it completely keeps the client closely aligned with you. They have no reason to go anywhere else. Full-service advisors also gain more referrals.
Insurance-only licensed professionals tend to believe that every prospects’ goals can be accomplished and concerns eliminated with an insurance-based product. Securities-licensed brokers tend to view every prospect as an investor who wants to take on the additional risk. Neither of these scenarios is good for the customer. Both professionals are competing for the same dollars.
Questions You Need to Answer
Rather than looking for ways to work together, they tear each other down causing confusion and making it harder for the prospect to adequately plan for their future. When you can service all of your client’s needs you’ll be far more successful rather than servicing only a fraction of their needs. You’ll never think with as much clarity when it comes to recommendation and product selection unless you’re able to handle all aspects of your clients portfolio.
If you are currently not securities licensed and you would like to explore your options, ask yourself the following: Should you be a Registered Representative of a Broker-Dealer, an Investment Advisor Representative of a Registered Investment Advisor, or a hybrid of both? The answer to these questions will depend on the services that you would like to provide your clients.
Think about how investments will fit into your firms overall philosophy and determine what is the most appropriate licensure to meet the needs of your ideal prospect. If you intend to sell variable annuities, mutual funds, stocks, bonds, etc. you will need to be a Registered Representative. These are transactional sales and you are a commissioned representative of a broker dealer in the transaction.
If you do not see yourself selling products but rather gathering assets under management and working with a third-party money manager, then you may be serving your clients better as an investment advisor representative. Many Consistent Advisors choose a path of investment advisor representative, or the combination of investment advisor and registered representative because they view themselves as a fiduciary and would rather charge a fee for their advice rather than selling products.
Our consistent advisers have access to a number of relationships that AMZ has developed with Registered Investment Advisors as well as Broker-Dealers. We will be happy to introduce you to one or more of our partner firms.