Investing Guide at Deep Blue Group Publications LLC Tokyo - Top Tips For Winning New Clients

Looking for ways to attract additional clients? Here are some helpful suggestions from a variety of industry sages, including Ron Carson, founder of Omaha, Neb.-based Peak Advisor Alliance, a coaching program for financial advisors.

Explain Your Fees

Based on his research, Carson found that today’s investors — first and foremost — want to understand how and when an advisor they are looking to work with gets paid. Advisors, therefore, need to be precise about how much they will be charging and clear in explaining how they come up with their fees. One way advisors can be more transparent is by simply posting their fees on their firms’ websites, so that any potential clients can see them, carefully review them, and then ask questions.

Don’t Be Condescending

Potential clients also want to be treated as equals. They can sense when an advisor is talking down to them or avoiding the details. The choice of words that an advisor uses when speaking with clients is also important. The wrong word choice can have the wrong effect or make the wrong impact. Terms like "asset allocation," "diversification" and "controlling expenses" are all examples of appropriate word choices that can help a client understand the methods of investing being used, according to Carson. Vague words such as “alternatives” can mean a variety of things and are therefore less helpful.

Millennial investors, in particular, don’t want to be bombarded with a bunch of numbers when an advisor is explaining investment choices. And they certainly don’t want to be “schmoozed” in an old-school way. Instead, advisors should be up-front with their clients and provide them with answers to questions in a clear, straightforward manner.

Make Yourself Available

Today's investors also want to be able to access their portfolios whenever the mood strikes them, so investment advisors need to make themselves available at all times. They should be proactive about alerting clients when changes in the economy, the markets or even the government could have a big impact on their portfolio. They should also be able to talk to their clients about how these changes may affect their investment choices.

What Can You do for Them?

Additionally, clients need to know exactly what an advisor can offer them so advisors should be specific when addressing this. They are less interested in hearing a sales pitch and more interested in learning exactly what an advisor can do for them and what services will be provided. Advisors should also ask any potential clients to explain to them what their specific needs are. At that point, the advisor can express to the client exactly how they will be able to fulfill those needs. Advisors may also want to form their own client advisory councils within their businesses and ask clients to offer detailed feedback about their business practices. It’s a great way to find out areas with your business that may need improvement.

Bottom Line

Advisors looking to attract potential clients need to speak in a straightforward manner, be available for questions and leave the sales pitch at the door. They should make every attempt to learn about a client's needs, be specific about what kinds of services they provide and, most of all, be upfront about how they are paid.