Obtaining Referrals is a Process, not an Event

A recent article I read, "Don't Make These Mistakes With Centers of Influence" (e.g., attorneys), is worth your attention.   It covers key mistakes often made by advisors when attempting to obtain referrals from centers of influence (COI's). 

One of the experts said that advisors should help the COI first.  I've seen this successfully done by advisors with a free analysis of the COI's own investment program.  This shows them exactly what you can do for their clients. 

Click here to find out about a free trial for an analytical and reporting system which can enable you to provide a free analysis to your COIs, and for your prospects and clients. 
 

Read article

4 Reasons to Fire a Client

 Recently on our Financial Advisor Network (FAN) group's Discussion Board, we had a member reluctant take on a new client.  This prospect was in prison for the rest of his life, for doing some awful things to multiple victims (the advisor was approached by the convict's attorney.)  This got me thinking about four reasons, I learned from experience, to fire a client or say no to a prospect.

Reason # 1.  "You expect what of me?!" - Someone asked if I could manage money for his client.  But after I asked a few questions about his client's investment expectations (impossible) I said "no."  It isn't easy turning away a client, but I knew that he would fire us because we (no one) could live up to his expectations.

Reason #2. "You're a time killer" - The 80/20 rule (20% of clients creating 80% of income) seems to have an opposite rule on time spent servicing clients (20% of clients taking up 80% of your time.)  Rarely are the former 20% clients the same same as the latter 20%.   Questions and experience can uncover these time killers. 

Reason #3. "Don't make me hurt you" - Some clients are adversarial.  At a former firm, we had a VERY difficult client threatened to sue us (meritless) unless we lowered our fees.  We fired this client, with glee.  Such clients not only hurt the work we provide them, but also affect our work with our other clients.

Reason #4. "You're unprofitable at any speed" - Of course, the income we derive from each client must at least cover our costs, including the cost of our time and that of our staff.  Even "low maintenance" clients have fixed and variable costs (direct and allocated.)  "Loss leaders" are OK, if they lead to profitable clients.

 

 

 New content on FANResources.com

 

Our Financial Advisor Network (FAN) group's FANResources.com website is updated weekly.  Here is a review of this week's updates.

• 5 new 1-min. videos on better LinkedIn connections. 
• 5 new advisor articles, to help you grow your business.
• A new advisor resource, for established advisors looking for a new B/D or RIA firm. 

 Keep checking our website for fresh ideas.


 Closing Tip

Your LinkedIn profile shouldn't be your resume.

Many LinkedIn profiles of professionals look more like a resume for a new job, than information on why a prospective client should use you.  Replace words like "grew my AUM from x to y" with "I help my clients...