Page 40 - Investment Advisor October 2022

FINANCIAL PLANNING IN FOCUS

He also suggested that advisors all give people an experience.” And they’re either going to say yes or no,
use a financial roadmap that is visual, Richards explained: “I don’t think or they’re going to ask a question.”
“engaging” and interactive when you can talk about it. I don’t think you
meeting with prospects. From there, it’s can print it on a brochure. I think the 5. Keep the fee discussion simple
best to proceed to ask them what their only way they can understand at some and don’t let it get in the way of
core values and “tangible goals” are and level is to have the experience” and it listening to prospects.
what their “current reality” is, he said. should be “an experience that they’ve “The whole fact that you’re distracted
All of that helps to build an “emotional never had before.” in your head trying to calculate what
connection” with the prospects, It is highly likely that “no one’s ever you’re going to charge and how to
he noted. “In the first 15 to 30 minutes, asked them” their thoughts on money communicate” is a sign that you may
you’re asking them questions that and “no one’s ever listened to the be focusing more on that than what’s
have them thinking about things that answers,” according to Richards, who much more important to prospects,
the financial people they’re currently added prospects will appreciate feeling Bachrach said.
working with are not asking,” he added. heard and understood. After all, he said: “You’re supposed to
And all of that should be done before What prospects are typically saying be listening to them and all this clutter
you actually invite them to become a cli- to themselves is “I have a desired future in your brain, trying to sort that out, is
ent, he pointed out, noting it should be state, and I am going to discount your disrupting what you’re mainly supposed
made clear to prospects that the reason value — the value I place in you — based to be doing.”
they should become your client is that on the uncertainty I have about your
you have a higher probability of achiev- ability to get me to the desired future 6. You’re probably better off
ing all their goals that are the result of state,” he added. without clients who don’t want to
their values. Kitces agreed, saying: “Show me pay what you charge.
“The mistake that most advisors a prospect meeting where the pros- When it comes to the fee, the worst-case
make” is asking too few questions dur- pect talked 80% of the time and it’s a scenario is a prospect decides not to
ing such meetings and just providing very high likelihood that they’re going become your client.
prospects with a vague list of what they to end [up] doing business” with you “If they’re not a good fit … you don’t
offer clients, he added. “because, at the end of the day, if they invite them to become a client and you
feel like they got their stuff out there move on to find the people who are
2. Record the initial conversations and they feel heard,” that tends to work really the right fits,” said Bachrach.
with prospective clients. in the advisor’s favor. He suggested Richards agreed, saying you can sug-
Bachrach has been recording conver- advisors repeat back to the prospects gest a different advisor the prospects
sations with prospective clients for what their goals are to make it clear can go to if they’re not a good fit for you.
decades, he noted. It’s helpful to also use that they’re listening. Kitces went on to point out that the
a “scripted, repeatable process,” he said. same concept works when it comes to
After recording the conversations, 4. Tell the truth ‘succinctly raising fees for existing clients.
advisors should review the recordings and directly.’ If most clients are willing to pay for
to find mistakes you should not make Bachrach suggested that advisors tell the “value of the advice that I deliver,
again and remove them from the script prospects the truth “succinctly and I don’t really want to spend as much
if they’re in there, he said. directly in a way that’s all about them; time with clients that are significantly
“There’s a lot of failure involved in that’s the formula.” below that,” Kitces explained. After all,
actually grading scripts that work,” he It could sound something like, ‘well, there are only so many clients that an
pointed out. for the work that needs to be done so advisor can effectively serve and if you
that you can … achieve these three goals lose a couple of clients because of a price
3. Provide prospective clients with that you’ve described here in the time- increase, you will likely be able to add
an ‘experience.’ frame that you want….” he pointed out. new clients who are a better fit for you,
Richards agreed with Bachrach but He added: “Then you confidently fol- he added.
added that the “best way to convey low that by just saying the number and
our value add versus the fees in the ‘our fee for that is …’ and then you ask a Staff reporter Jeff Berman can be reached at
introductory prospect meeting … is to question, ‘would you like to get started?’ [email protected].

38 INVESTMENT ADVISOR OCTOBER 2022 | ThinkAdvisor.com