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Fiduciary and sales are two words that you don’t hear in the same sentence in the independent advisory space. What do you think of when you hear the term “salesperson”? Insincere smiles? Over-the-top handshakes? If any of this sounds familiar, you’re not alone. Over the years, salespeople have gotten quite a negative reputation.
But we’re all salespeople in some sense, fiduciary financial advisors included.
In the day and age of the fiduciary standard of care, many investment advisors shrink away from the word “sales.” Seeing as advisors were historically a part of the commission-based model, which almost always put the best interest of the client second, it’s understandable that being salesy no longer feels aligned with their role and responsibilities. While the shift from salesperson to fiduciary is ultimately an extremely positive thing for the investor/client, the planning profession has not come to terms with the necessity of prospecting to build a client base and grow a business – a new and modern form of sales.
As we near the end of another year and begin to map out goals and priorities for 2022, take the time to critically think about the role of sales in your business. While we may have shied away from being salesy in the past, sales means being able to recognize a need and offer a solution. That means being able to identify your clients’ needs and objectives and follow up with a plan and/or solution that is better than those of your competitors. There is nothing shameful in striving to solve a client’s problem or achieve a client’s goal.
How can fiduciaries warm up to the concept of sales? Here are some lessons.
Provide a client-centric experience
A client-centric experience strengthens the likelihood that you will increase engagement in all your touchpoints and receive more (and stronger) word of mouth referrals, which continue to be one of the best avenues for business development. Referrals are a priceless tool for creating growth, as people tend to trust the opinions of those with whom they are closest. With technological expansions and the abundance of digital communities, opportunities for “word of mouth business development” are increasingly vast.
Understand your strengths
Get comfortable with tooting your own horn a bit. After all, as a financial advisor you are selling the idea that you are the best possible resource to help clients reach their financial goals. Come to terms with your strengths and weaknesses and build off of them. Determine your niche and speak directly to them. With fee models evolving from commission to AUM, and now to flat fee and subscription models, the importance of differentiating the value you bring is more important than ever.
Be creative
While long-standing sales methods can be seen as old-fashioned and uncouth, modern business development doesn’t have to (and shouldn’t) follow suit with such worn-out tactics. By combining elements of twenty-first century ingenuity with these long-standing pillars of a fiduciary financial practice, the new growth approach can be seen as something creative and exciting. Utilizing tactics such as creating thoughtful branding and messaging, carving out a hyper-specific niche within the market, and developing an impactful client experience can help you attract an increasing number of potential clients through brand awareness and referrals.
The takeaway
Does the term “sales” still make you uncomfortable? Reframe the concept if you need to. Refer to it as “business development” instead. It doesn’t matter what you call it – what matters is that you understand the direct correlation between sales, clients served, and compensation. The more clients you serve, the more clients get the fiduciary standard of care that they deserve. As you head into a new year with a fresh mindset and a blank slate, embrace that sales skills are a pillar of the financial services industry.
Gretchen Halpin is the co-founder of Beyond AUM, an agency that provides field-tested, data-driven marketing, growth, digital alignment, and experience solutions to financial services firms across the nation, including wealth managers, financial planning firms, and RIAs & BDs. We work with firms to achieve world-class outcomes for their brands and professionals and drive success in the business beyond the AUM number. Gretchen is a regular contributor to media outlets such as Forbes and a speaker at industry conferences including eMoney and Invest in Women.
Want to learn more about how to come up with modern marketing and business development tactics to create opportunities for clients and prospects to engage with your firm? Reach out to the Beyond AUM team!
Read more articles by Gretchen Halpin
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
