Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of
Advisor Perspectives.
Every time I coach a group of advisors, I invariably learn something new in the process. Here is how my time working
with practitioners led to an epiphany that changed the focus of my coaching – and drove better results for my
clients.
Some sacrifices are too great
I incorrectly assumed the desire among advisors to gather AUM was more powerful than other motivators. I was wrong,
because I didn’t fully understand certain aspects of neuroscience.
One of my favorite aphorisms is: “You can be the smartest person in the room or you can get the business.
Both are not possible.” I assumed everyone would opt for getting the business, specifically adapt behavior
geared toward gathering more AUM.
While this is the case with most advisors, a small sub-set can’t overcome the desire to demonstrate they are
the smartest person in the room. They justify their behavior by stating they are “educators.”
It took me a long time to understand the cause of this type of conduct. It was not what I thought.
The rationalization for “presenting”
The desire to talk, rather than listen, is understandable. Advisors spend countless hours honing their knowledge and
approach. They often feel a need, if not a compulsion, to demonstrate their expertise.
It’s easy to justify this behavior. If you assume decisions are made rationally, you will conclude that an
exhaustive dissemination of superior knowledge is the best way to convert a prospect into a client.
As you will see, these justifications mask a powerful, chemical issue that explains such behavior among these
advisors.
Ignoring the chemistry of trust
If you ask almost any advisor how they want to be perceived, the responses you typically hear
include “honest,” “professional,” “competent” and “trustworthy.”
I can find no data supporting the view that fostering the perception of any of these traits is enhanced by showing
intellectual superiority.
Almost everyone agrees that “trust” is the most critical element in the advisor-client relationship. If
you want to persuade a prospect to become a client, you must establish a relationship based on it.
The good news is that there is a scientific way to accomplish this. It requires a basic understanding of the
chemistry of trust.
The release of oxytocin, a powerful hormone that acts
as a neurotransmitter in the brain, has been conclusively demonstrated to
increase trust in human interactions.
Studies have shown that participants given a nasal spray containing oxytocin donated more money to the
causes presented in public service announcements. Researchers theorized the oxytocin made them more empathetic.
Other studies have indicated that
increased levels of oxytocin give us a greater feeling of well-being and happiness.
Instead of inundating your prospects with data intended to demonstrate your intellectual breadth and expertise,
focus on how to increase the level of oxytocin they produce. Fortunately, this is not difficult.
Compelling studies
by researchers at the Harvard University Social Cognitive and Affective Neuroscience Lab demonstrated that talking
about yourself activates the same regions of the brain that are associated with food, money and sex. This finding
explains why some advisors find it so irresistible to talk about themselves. It is fun and pleasurable.
An action plan
When I first became aware of this research, I had this epiphany: What if, instead of taking pleasure from talking, I
allowed others pleasure by encouraging them to talk about themselves?
This insight formed the basis for my coaching practice. The new goal of advisors I coach is to flood the brains of
their prospects with the neurotransmitters that make them feel good and inspire trust. I tell advisors to
instead derive pleasure from converting more prospects into clients, and to defer the gratification they get when
talking about themselves.
I will discuss methods for converting prospects into clients using this science in future articles. Those who have
implemented these techniques most commonly describe the experience as “transformational.”
Dan Solin is the director of investor advocacy for the BAM Alliance and a
wealth advisor with Buckingham. He is a New York Times best-selling
author of the Smartest series of books. His latest book is The Smartest Sales Book You’ll Ever Read. He limits
his sales coaching practice to advisory firms that advocate evidence-based investing.
Read more articles by Daniel Solin
Every time I coach a group of advisors, I invariably learn something new in the process. Here is how my time working
with practitioners led to an epiphany that changed the focus of my coaching – and drove better results for my
clients.
