The purpose of this article isn't to criticize advisors. Our goal is to give you a way out of the morass, to give you specific steps you can take to show yourself as different and better, to distance yourself from the bad press and perceptions. And, our strategy is to show you how to entice clients away from other firms that have failed to take these steps.

Clean Off The Ick

For eons, advisors have sought to distinguish themselves from the competition in the eyes of their target markets. As important as that is, most never figure out how to accomplish it. Today, though, it's so much more important because people like Bernie Madoff have made it that important. The state of the market and financial services in general have made it important. The disheartened clients have made it important.

The logic is simple but scary: if you can't prove that you're different and better, then you risk being lumped in with the worst of breed! If you can't prove that you are not a crook, you risk being lumped in with the worst of breed!

It does not matter if you are an honest, well-meaning and ethical person. It doesn't matter if you have absolutely nothing in common with Madoff or any of the other crooks. It doesn't matter if your clients have lost far less than most. Your credibility has already been tarnished by association. The damage done by Madoff (and the many others like him) impacts every one of us in the industry. Face it, you've become a victim. You're the innocent by-stander – collateral damage.

How can I say that with authority? Simple psychology – humans learn by association. And, we tend to subconsciously lump people with similar jobs into similar categories. So, every advisor is given the lowest common value – simply by association.

It works like this. You gain or lose credibility through your association with a person, industry or profession. The graphic on the right shows the levels of credibility.

1. John Smith has a certain amount of credibility or tarnish as a person.
2. John Smith also benefits from or is dragged down from the perceived credibility of financial advisors as a whole.
3. In our example, John works for Merrill Lynch. So, he benefits from or is dragged down by the perception of his employer's credibility.

During the Vietnam War, Army Lt. William Calley led a massacre on a village. After that, every person in uniform had to deal with the sour attitude toward them. Those other soldiers and Marines had not done anything to deserve it, but they were guilty by association and had to deal with it.

This article shares with you some of the most actionable ways to distinguish yourself from others and use this difficult time to leapfrog the competition. These are steps you should have been taking all along – even when the market was better and scam artists were still operating under the radar.

If you haven't taken these steps already, take heart. There is still time, and if you're smart, you can use the muck and mire to your advantage. Look at it this way. Clients and prospects will have something to compare you to. And for you, it becomes just a little bit easier to describe the contrast.

Step 1. Become Proactively Transparent

We've been preaching transparency for nearly a decade, and not just because it's the right thing to do. Also, because over the years, so few advisors were proactively transparent that it became an easy way to distinguish yourself and build your credibility.

With today's headlines, proactive transparency becomes even more important. Madoff surrounded himself with an opaque wall, not showing anyone what he was really doing. How can you show that you are the opposite of that? Combat the assumption (association) that all financial firms are hiding something, and do it by becoming proactively transparent. Specifically, become transparent about:

• How you make money. Be upfront and specific about when and how you get paid.
• All fees and charges they'll incur. Be upfront and specific about all fees and charges, even the little ones.
• Oversight. Let clients and prospects know about the checks, balances and oversight in place to protect them. Mention specifically your broker/dealer, custodians, accounting firm, etc. along with specific oversight measures in place.
• Client commitment. Outline your commitments in writing. This way you can graphically show your clients what they can expect from you. Call it a "Bill of Rights" or your "Unconditional Promises." Otherwise, it's possible that your prospects may imagine a black hole into which their money could go if they gave it to you.

Step 2. Prove Your Credibility

It is no longer enough to merely BE credible. Now, you must be able to prove and demonstrate your credibility. The most effective way to do that is to prove it before anyone questions it, and you do that in these ways:

• Publishing. Publish books, articles, and white papers. In them, you would tell stories about specific situations in which you made appropriate and successful decisions. You would discuss specific strategies and show your relevance and expertise in areas that are important to your clients. (Warning – If you can't write at a professional level, get help.)
• Speaking. Book yourself to speak at every luncheon meeting for every organization you can find. (Warning – These are very different from sales seminars, so if you're not trained in how to write and/or deliver a speech, get help.)
• Introductions. We call these "credibility introductions" It means finding someone to introduce you who the client already perceives as credible. This enables you to gain credibility by association.
• Explanations (of Credentials and Licensing). The financial services industry has more designations than any other industry and as such, it's difficult for clients to know which are credible and which are suspect. Help your clients make the distinction. Develop a simple explanation of the professional designations and licenses. Show your target market what they really mean. Expose the less credible ones, and highlight the highly credible ones.

In Conclusion

In this first installment, we've given you some steps to help you separate yourself from the bad press, show yourself as different and better, and use this challenging environment to your advantage.

We recognize these steps are "easier said than done." Doing everything we've suggested here can seem a bit overwhelming, and doing it all at once may be a bit unrealistic. That's OK. Simply do what you can. Pick out one or two of the eight and focus your efforts there. When you complete those and achieve the boost to your results, pick two more. When you complete those, pick two more. It's a process. If you want a helping hand to implement these steps, give us a call.

Your Reward

If you regularly read my articles, you know that I always give a reward. It's my way of saying Thank You for placing your trust in me. This month's reward is a 2 for 1. Go to my website: www.aboutpeople.com and buy any of our eBook titles and I will personally send you (free) one of our other eBooks: The Boomer Report- The financial advisor's guide to understanding the Boomer mind. This is the most relevant, actionable book on the Boomer Market I've ever seen.

Pssssst – Pam doesn't know I'm doing this, so let's keep it a secret. Send me a personal email (include this paragraph) after you order your eBook and I'll personally send your copy of The Boomer Report – free! Send it to: [email protected]