Cherry-picking your clients isn’t turning down business, but growing it, argue an increasing number of industry players.
The more experience you have, the less it becomes about taking whoever comes knocking, and the more you focus on advisor/investor compatibility, they say.
“Knowing yourself and who you can work with is the sign of a financial advisor with maturity,” says Bev Moir, investment advisor and financial advisor with ScotiaMcLeod in Toronto. “I’m well-trained, with good experience and a good track record, so I know I can be successful. I’m more interested in working with the clients that have more planning needs and are dealing with life issues.”
Regardless of the acronyms that trail your name, if you don’t click with a client from the get go, your knowledge and expertise won’t be enough to build the trust and confidence essential to form lasting relationships and a prosperous client base.
“You can talk about your goals and how they match up with theirs, but if a client is not open to listening to your advice, they are just going to walk away,” says Cory Papineau, senior financial advisor at Assiniboine Credit Union in Winnipeg.“If they see the value, they’ll stay.” (continued on Page 2.)
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But how do you turn a client away if you have to? Working as an independent advisor out of Hamilton, much of Marta Stiteler’s new business comes from client referrals. She agrees to meet with prospective investors, gaging compatibility from the first conversation. If it isn’t a good fit, Stiteler puts the onus on herself, and helps the person find a more suitable advisor.
“It takes the pressure off them,” she says. “People are baring their soul. They are financially naked in front of us. A lot of confidential information (is shared).”
Papineau, however, hesitates to turn people away, believing the rejection process happens organically. For example, he explains, a client who just wants to pick your brain, will schedule a meeting or two and move on.
“From my point of view it’s about educating the clients. If they’re willing to be educated, they will stay with me,” he says. “(If they walk away), it may not be that they’re not the right client, but it may not be the right time to deal with that individual.”
How do you choose your clients and how do you turn them away? Submit your comments to WP below.
