Anyone who sells financial services is likely to be familiar with the struggles that come with it, namely:
- The constant challenge of acquiring new leads;
- The frustration of converting those leads into paying customers; and,
- The heartache of losing existing ones.
But don’t worry, we’ve got you covered. In this article, we’ll reveal a comprehensive roadmap that has led hundreds of advisors to reach top-selling status for their respective businesses or companies in under a year.
Let’s dive in!
Step 1: Understand The Perspective Of “Selling” Financial Services
This is perhaps why most advisors fail – so, take note:
When it comes to selling financial advisory services, you’re not just selling a product or service. It’s essential to develop the mindset of a solution provider. And that means you need to understand your client’s unique financial situations and offer personalized solutions that meet their needs.
Here are some key tips to keep in mind as you develop your solution provider mindset:
- Be a problem-solver. Your clients come to you for solutions, so it’s important to have a deep understanding of their needs. Rather than pushing your solutions on your prospects, adopt the consultative selling technique.
- Empathy is crucial. Put yourself in your clients’ shoes and strive to understand their financial challenges and goals. This will help you tailor your solutions to meet their specific needs.
- Build trust. Trust is the foundation of any successful client-advisor relationship. Be transparent about your services and fees, and always act in your client’s best interests.
- Communication is key. Keep your clients informed about their investments and any changes that may affect their portfolios.
Step 2: Generate A Steady Flow of Leads
Generating a steady name flow is one of the biggest challenges that financial advisors face. Without a constant stream of potential clients, it’s hard to build a successful practice.
To overcome this challenge, you need to be strategic in your lead generation efforts. Here are some strategies to help you attract quality leads:
Referrals – One Of The Best Methods For Acquiring Leads
While there are many ways to generate leads as a financial advisor, referrals remain one of the most effective methods. People are more likely to trust and work with a professional who has been recommended to them by someone they know and trust.
Here are some tips for leveraging referrals to acquire leads:
- Ask for referrals. Don’t be afraid to ask your existing clients for referrals. They may know someone who could benefit from your services, but may not think to refer them unless you ask.
- Offer incentives. Consider offering incentives for clients who refer new business to you, such as a discount on their fees or a gift card.
- Make referral easy. Provide clear instructions on how clients can refer you, and make it as easy as possible for them to do so.
- Follow up. When a client refers someone to you, follow up with that referral promptly. Show them that you appreciate the referral and are eager to help them with their financial needs.
Prospect Up – Referral With An Edge
Here’s a profound fact:
As a financial advisor, you’re only as successful as the clients you serve. To take your business to the next level, it’s essential to focus on acquiring leads in the higher income bracket.
One effective strategy for doing this is the “prospect up” referral approach.
Here’s how it works:
- When meeting with a client, ask them: “Who do you look up to financially that you know?” This question prompts them to think about individuals who are more financially successful than themselves.
- Once they provide a name, ask for an introduction or referral.
- Follow up with the referral. When you receive a referral, make sure to follow up promptly and provide value to the potential client.
By using the prospect-up referral approach, you can tap into the networks of your existing clients to reach potential clients in the higher income bracket.
Leverage Your Network
You’re probably tired of hearing it, but that doesn’t make it false: your network is one of your most valuable assets. Leveraging your network can help you generate leads, build relationships, and establish yourself as a trusted advisor in your community. This is especially important when you consider the potential impact on your financial advisor salary.
Here are some methods for leveraging your network:
- Reach out to friends and family. A lot of the time we assume they know what we do – you’d be shocked to discover the disconnect – we recommend you spare some minutes to educate them about your services and how you can help them.
- Volunteering and community service. When you give back to your community, it not only provides an opportunity to meet potential customers but it sets you up as a good, kind neighborhood financial advisor. People will remember you for your good deeds and feel obliged to reward you – and this could come as referrals and direct leads.
- Partner with other professionals. Partner with attorneys, accountants, and other professionals to offer comprehensive financial planning services to their clients. Or this could simply be you referring your clients their way – chances are they’ll respond in like manner.
- Attend networking events. Attend industry conferences and other networking events to meet new people and build relationships with other professionals in your field.
- Join professional organizations. Join local and national professional organizations for financial advisors to connect with other professionals and stay up-to-date on industry trends.
When networking, keep the following principles in mind:
- Givers, get. Provide value. Offer value to your network by sharing your expertise, providing helpful resources, and being a resource for other professionals in your field.
- Nurture relationships. Take the time to build and nurture relationships with members of your network. Follow up regularly, provide value, and stay top-of-mind.
Put Personal Observation To Good Use
If you rely on traditional methods like networking events and referrals alone to generate leads, you may be letting business slip off your fingers. Sometimes, the best opportunities come from personal observation and making connections outside of formal business settings.
Here’s how to put personal observation to good use:
- Be observant. Keep your eyes and ears open for opportunities to connect with potential clients. This could be anything from noticing a need for insurance coverage at a family gathering to hearing a friend mention a financial challenge they’re facing.
- Create opportunities to engage. Once you’ve identified a potential opportunity, create a natural way to engage in conversation. For example, you could offer to provide information or resources related to the need you’ve observed.
- Educate and offer to help. Use your expertise to educate and offer to help the individual or group you’ve engaged with. This could involve offering a free consultation or providing resources to help them make informed decisions.
Step 3: Fact-finding Mission
After generating qualified leads, the next step is to don your detective hat and gather as much information as possible about your prospects. This will help you tailor your solutions to their specific needs and increase the chances of closing the sale.
There are two key steps involved in the fact-finding mission:
- Conduct fact-finding interviews. Schedule a meeting with your prospects to gather information about their financial goals, challenges, and concerns. Ask open-ended questions and listen carefully to their responses. Take notes and ask follow-up questions to clarify any points of confusion.
- Quell objections. During fact-finding interviews, it’s common for prospects to raise objections or concerns about your services. Address these objections head-on and provide evidence to support your solutions. Use your expertise and industry knowledge to demonstrate how your solutions can help your prospects achieve their financial goals.
Step 4: Dig Deep To Discover Every Opportunity For A Sale
You have identified your prospects, conducted a needs analysis, and addressed any objections they may have had. Now it’s time to take it up a notch and dig deeper to uncover opportunities for a sale.
At this point, your focus should be on finding solutions that meet your prospect’s needs, rather than just making a sale.
- Analyze every fact. Look for inconsistencies, missing information, or any other areas that may need attention. By doing so, you can identify potential sales opportunities that you may have missed before.
- Identify opportunities to optimize what your clients have going on. This could mean suggesting changes to their investment portfolio, recommending a different insurance policy, or finding ways to reduce their tax burden. By doing so, you can help your clients achieve their financial goals while also increasing your sales.
- Don’t be afraid to refer your clients to other service providers in your network. This could be a mortgage broker, estate planning attorney, or CPA. By doing so, you can help your clients save money and receive expert advice in areas outside of your expertise. This not only helps your clients, but it also helps you build relationships with other professionals in your industry.
Step 5: Get The Sale
At this stage, many advisors may feel nervous or unsure of how to proceed. However, if you have done a good job up to this point, getting the sale should not be rocket science. The key activity at this stage is to present a solution to the client that they would be hard-pressed to reject.
Follow these tips to close the deal:
- Present a solution that’s custom-fit to your client. At most two options. Why? You don’t want to overwhelm them or worse, come across as someone who is unsure and throwing ideas against the wall to see what sticks.
- Emphasize the benefits of the solution. Emphasis should include the benefits and features of the product or service you are offering and how it solves their problem effectively. By doing so, you help the client understand exactly what they are getting and why it’s worth it.
- Address any further objections. If the client still has any more objections, address them. This could be concerns about cost, the need for the product or service, or any other issue that may be holding them back.
- Ask for the sale. Finally, ask the client for the sale. By asking for the sale directly, you show the client that you are confident in the solution you have presented and that you are ready to help them achieve their financial goals.
Bonus Step: 3 Essential Best Practices When Selling Financial Services
Build Relationships
In the high-stakes world of financial services, building relationships with clients is like constructing a fortress. Establish trust and credibility through clear communication and consistent follow-up. But the true test of strength lies in the maintenance of that fortress, ensuring its walls remain unyielding. For financial advisors, this means regularly reaching out to clients to make sure everything is in order while fortifying that bond of trust by adding value through every interaction.
Create A Sales Process
Having a defined sales process can help you streamline your sales efforts and improve your success rate. This includes identifying prospects, qualifying leads, and presenting solutions that meet their needs. It also involves following up with clients and addressing any concerns or objections they may have.
Continuing Education And Professional Development
Continuing education and professional development are essential to staying ahead in the financial services industry. This involves staying informed about the latest trends and developments, attending industry conferences and seminars, pursuing advanced certifications and designations, plus registering for sales training programs designed for advisors and others who sell financial services and products. It also involves seeking out mentors and coaches who can provide guidance and support throughout your career.
Conclusion
Mastering the art of selling financial services requires a combination of skills, knowledge, and experience. By following the tips and strategies outlined in this article, you can develop the expertise and confidence needed to succeed in this challenging and rewarding industry.