You chose to work in this field, so of course you see the incredible value of having an organized, strategically planned financial life. And, most likely, you became a financial advisor so you could help people take control of their money and reach their goals. But not everyone thinks hiring a financial advisor is necessary, as 75% of Americans manage their own money. (1)
When you are out prospecting for new clients, it helps to understand their motivations, to figure out why they aren’t currently working with an advisor and what would push them to make that kind of commitment. By knowing what motivates people to hire an advisor, you can then meet them where they are, speak to their concerns, and stay top-of-mind until they are ready to take the next step.
1. Retirement And Other Milestones
It should be no surprise that the number-one reason people hire a financial advisor is so they can get help with retirement. (2) After all, it’s one of life’s most significant milestones, and lack of preparation can make or break those all-important golden years. Next to retirement, people tend to seek out an advisor when they are facing a divorce or the death of a family member.
What do these three life events have in common? They are all major milestones that can either throw a wrench in your well-laid plans or cause stress and uncertainty. Anytime you experience a transition in life, whether it’s changing careers, sending your kids off to college, moving, or saying goodbye to your working days, there are countless decisions to be made and strategies to take. Many people feel insecure about which options are best for their situation and turn to a professional to help them align their decisions with their long-term plan and set up safeguards to protect their finances when life changes.
2. They’ve Reached The Limit Of What They Can Do On Their Own
We have apps, software, and Google at our fingertips, providing us with more information than ever before. But sometimes you just don’t know what you don’t know. For example, you might find general rules of thumb for how much to contribute to your 401(k), but those guidelines don’t tell you if that prescribed amount will help you prioritize your ideal retirement.
Many people reach a point where they’ve done all they can for their financial management, but they aren’t sure if they are missing something or if they are still on track. They need a specialist who can tailor their next steps to their unique life.
Clients who are motivated by a need for a specialist want a lifelong financial partner who provides education, personalized service, professional advice, and ongoing guidance as they encounter new challenges and opportunities. They want someone to help them feel empowered to make informed decisions and walk out their life with confidence.
3. They Don’t Want To Deal With Money
Managing money is stressful. No matter how much you have, money leads the race as the number-one cause of stress among Americans. (3) And instead of facing this stressful task head-on, our human nature often leads us to avoid the cause of stress at all costs. (4) As you know, that only leads to more problems. That’s why people look to a professional to carry this burden for them. They know their financial life is too important to ignore, so they place the details in your capable hands.
Aside from stress, many people hire an advisor because they just don’t have the time to manage the complexities of their financial life. Staying up to date on the stock market, tax laws, and retirement plan limits can quickly become a full-time job, and since our society runs at a faster pace than ever, your prospective clients want someone who specializes in this area to take care of it for them so they can focus on what’s most important in their life.
How To Be There When They Need You
Okay, so you know the core motivations that push someone to seek out the advice of a financial advisor, but how can you ensure you are the financial advisor they choose?
Deepen Your Current Client Relationships
Referrals tend to be one of the biggest sources of growth for financial advisory firms, (5) and one study found that 50% of investors have referred their advisor. (6) If you’ve created trusted, long-term relationships with your current clients, focusing on their needs, providing exceptional service, and increasing their confidence, you can bet that they’ll pass on your information when a friend shares their money woes.
Maximize Your Niche
There’s a lot of competition out there for financial advisors. What you need is a niche clientele and a specialization that sets you apart. That way, when someone searches for “financial advisor for corporate executives in [your city],” your name shows up. Set yourself up as the go-to person for a specific group of people or a specific financial concern, and you’ll be the one those people turn to.
Do Your Branding Due Diligence
We live in a digital world and rely heavily on technology to help us gather information and make decisions. Statistics show that more than 70-80% of people research a company online before committing to buy a product or service. How much more important is it to research someone with whom you will entrust your money than someone who will pressure-wash your driveway?
Make sure you have a solid online presence through a user-friendly, easy-to-find website that clearly portrays your brand and message. Then be where the people are, connecting with people through social media accounts and providing timely, relevant content so they can’t ignore you or the value you provide!
Get The Growth You Want
There are many people in need of what you provide, but the steps between setting up your firm and increasing your client base can seem overwhelming. At Freedom Wealth Alliance, we set you up to succeed, helping you with technology, best practice services, and marketing, just to name a few. Learn more about our firm and how we can help you stay top-of-mind and attract the right clients by visiting www.explorefreedomwealthalliance.com. You can also email us at email@example.com or call Kurt Rozman at 262-798-7979.
About Freedom Wealth Alliance
Freedom Wealth Alliance is a Registered Investment Advisor providing a home and multiple affiliation options for financial advisors seeking business growth and/or succession planning, operational excellence, and turn-key placement. We created this firm to relieve your stress no matter the stage of your firm. We take the burden of running the business off your back, so you can spend your time doing what you do best and love the most. If that means spending more time with clients and prospects, you can. If that means spending more time with your family, just do it. Visit www.explorefreedomwealthalliance.com and sign up for a free account to access all the tools and resources we have developed to help you transition to true freedom and business ownership.
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