What is the point here? You can increase your credibility with your existing clients merely by contacting them during volatile times and discussing their specific situation. This is how you can increase your income and gain more referrals. The referrals happen when you prove to your clients that you are truly credible. Part of credibility is simply being there when they get frightened or concerned. So, the guideline is: contact your clients in tough times. Why is this such an important point? Because far too many advisors avoid their clients during down turns.This is, then, a way for you to show that you are indeed different and better.

Lesson Number Two: The cold call – contacting strangers.

During a coaching call with a group of Canadian advisors, my partner and I were leading the group through some cold-calling exercises. Their performance was terrible. These guys meant well, but had absolutely no idea of what they sounded like or how they were coming across to the person on the other end of the line. They also thought their goal was to make a sale and that the psychology was to show how smart they were.

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Mistake #1. Their first mistake was without a doubt the biggest mistake that financial advisors make. They dove deep into detail. "Hello, might I interest you in a tech stock that has shown great promise for growth through market fluctuation?" If these guys were hard-core stock jocks, that might be an OK beginning, but they were wanting to build a relationship-focused business.

Mistake #2. Their second mistake was to ignore the listener. They would ask a question, then not respond or even acknowledge what the prospect had just said.

Mistake #3. Their third mistake was to jump quickly into a sales pitch. There is a comfortable order for these calls. First, get the prospect to say something. Second, acknowledge it. Third, ask a question designed to pique his interest. Fourth, agree with what he says. Fifth, expand the conversation and move it forward. Ask, respond, expand – repeat if necessary.

The devaluation of – you. Because too many advisors claim to be all things to all people, the advice being given by the entire industry is seen as less valuable. "I'm a financial advisor, and I also do life planning and estate planning and college funding. And, of course I pick my own stocks, but my real strength is in protecting your assets through annuities and long term care insurance."

So, the goal of a cold call cannot be to make a sale right there on the spot. Sounds simple and logical, but just about every advisor we've ever spoken to has aimed at making a sale or setting an appointment. In today's business environment, we believe that approach is lunacy. The goal must be to simply have a positive conversation with that person. The strategy is simply to make it possible to either share information or have additional conversations. I can hear you say, "But Mikie baby, that's not the way we do it." I know that. And, for that reason this is a far better approach. The guideline here is: Always do what no one else is doing.

Cold Call Scripts. What might you say in a cold call today? Well, what is in the prospect's mind? Let's see, the market has been insane. The housing market has been insane. Nothing is as it seems it should be. What does that tell you? That investors are starting to get worried or at least confused. Now, the big question – how many advisors are contacting their clients, if only to tell them to "Hold the course."? Probably few if any. And, what does that tell you is the opportunity right now for you?

Simply start calling people. Say, "Sir, this stock market is crazy, volatile and highly unpredictable. I'm wondering, have you heard from your financial advisor lately?"

Let's flash back to the points I made at the beginning of this article:

1. Communication, by far, has the strongest influence on an advisor's ability to win a client's trust and commitment. Communication gives life to credibility.
2. Most advisors stop communicating with their clients when times are tough (like now). Silence is the death to credibility.
3. Most advisors do not know how to structure an informational cold call.

What's that spell? It spells opportunity for you. It spells opportunity to grab some low-hanging fruit in the shape of someone else's clients. Those would be people who are comfortable investing and are having a negative experience with their existing advisor.

The credibility begins at the point you make your conversation meaningful to that person. And, that point is very likely to be the instant you ask the question – "I'm wondering, have you heard from your financial advisor lately?"

Assuming the prospect steps into the conversation and answers your question, you have several very intriguing questions to pose. These are rarely ever uttered by other financial professionals, perhaps because they don't want to call attention to these "sticky" issues. Let's look at some mind-bending questions:

1. I can tell you from my side of the desk that each advisor likes a different type of client relationship. Do you think your advisor has built a relationship with you?
2. Unless you have an advisor who sells a single product, he probably promised you comprehensive service. Does that sound familiar?
3. The term "Comprehensive" means that the advisor helps with literally every aspect of your money: taxes, mortgage, bank fees, trusts, insurance, investments, and major purchases. Has your advisor spoken with you about how you might be impacted by the collapse of the mortgage industry?
4. Many advisors today refer to their business as "Wealth Management." Has your advisor used that term?
5. The client-relationship model that dominates is the "hands-off approach." It is pure efficiency. Other than for a periodic review, the less the advisor hears from you the better, and the fewer contacts he has with you the better. We also call this the "no service model." It is completely one-side, weighted to the advisor, not you. Can you recall how many times this year your advisor has initiated a personal contact with you?
6. The other dominant financial model is based on financial accumulation. The advisor helps you accumulate as much money as possible in the most efficient way possible. Most investors think this is a good deal, after all accumulation is good, right? It is if you're young and can weather the ups and downs of the market over time. But, accumulation is not so good if you're anywhere close to sixty. After that age, people need to start thinking about distribution of their money, not accumulation. Do you mind if I ask about your age? Are you near retirement age? Has your advisor told you about distribution?

In Conclusion

Most advisors focus on maximizing their incomes in the most efficient manner. That means there are many clients being under served, and each one of them is a potential new client for you. That's because service takes time and energy, and for advisors seeking more money under management, service and communication divert their focus, thus reducing their efficiency, thus reducing their new money under management, thus reducing their incomes. Knowing that, you can position yourself as the high-touch, high-service advisor. All you have to do is talk with people and show them what real service is like.

The Eyes Have It. I teach all my coaching clients to look at the financial industry through the client's eyes. What does the client think advisors do? What level of service do clients expect, versus how much service that actually get?

Take a close and objective look at the way most advisors approach their businesses. Spot the things that they do not do for their clients. Those are fertile areas for you to highlight and step into. They mark how you can become different and (hopefully) better than most other advisors. And, they are the basis for your new and improved credibility.

Your Reward – Save $10,000

The quickest way to gain the most credibility is to be an author of a book that is relevant to your target market. If it is Estate Planning or Life Planning, call me immediately. I can save you about $10,000 and make you an author. Your credibility will skyrocket, your sales cycle will shrink, and you'll get more clients more easily. Call me at: (509) 465.5599, or fill out the feedback form below.