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Michael
knew it was time for a change. Thirteen years into his
career as a financial advisor, he felt directionless and
frustrated. “I got into this business to help people,
but I was trying to be all things to all people,”
he told me. “I had no strategy – I was just
taking on any client who could fog a mirror.”
Though
he had made the transition from a commission-based to
a fee-based business, Michael lacked a vision for his
business five years down the road. “I knew I wanted
fewer clients and more focus,” he said, “but
I didn’t know how to get there.”
An
ex-engineer, Michael describes himself as “extremely
process-oriented.” While he had some processes in
place, he felt like he was missing critical pieces.
A
TRACK TO RUN ON
“I
read Effort-Less Marketing and realized that it
was a roadmap for creating the kind of business I wanted,”
he said. “But there are so many great ideas in the
book – I needed some help to keep me on track. That’s
why I decided to sign up for the Effort-Less Advisor
Coaching Program.”
When
Michael enrolled in the program, he had approximately
$10 million under management. He also had one support
person, who he hired using our Hiring Phenomenal Employees
process. “She’s fantastic,” he told me.
“I’ve shared your process with several of my
colleagues. I followed it to a ‘T’ and it really
paid off.”
In
the 18 months since he started the program, Michael has
sharpened his focus, created a higher purpose for his
business, developed specialized services for his target
prospects, and revamped his marketing material to support
his new direction. The response has been overwhelming,
and has paved the way for Michael’s most successful
year to date.
THE
BIGGER VISION
One
of the first steps Michael took was defining his business.
He defined a business purpose statement and developed
a logo, brochure, and established a client-centered position.
His tagline now is “Helping people create better
futures for themselves and their families.”
He
explained his business purpose in more detail. “I
want to inspire my clients to live their ideal lives,”
he said. “First, I help them clarify their vision
for the future and what’s important to them. Then
I keep them focused on the actions that will turn their
dreams into reality.”
He
admitted that this focus on personal vision seemed out
of scope at first. “I thought, ‘I’m a financial
advisor; what am I doing helping people in this aspect
of their lives?’ But if you look at the big picture,
all of these pieces fit together very well – and
the goal is not just to have money, it’s to have
a great life.”
KEEPING
CLIENTS FOCUSED
His
clients have responded positively to his new outlook,
he says. “If you can uncover what is truly important
to someone and help them stay focused on that, eventually
they will be living their ideal life,” he told me.
“It’s that simple.”
Two
prospects, with over $1 million of investable assets each,
were surprised that a financial advisor could help them
achieve non-financial goals. They both told him, “This
is exactly what we want. Who do we make the check out
to?”
With
a focus on turning dreams into reality, Michael must have
a process to keep his client’s goals in front of
him. To manage this process, he tracks his client’s
goals and plans with ACT! software. “When someone
calls in, their profile pops up on the screen and we have
a list of five or six things they have indicated are most
important to them,” Michael explained. “Then
either myself or my assistant can ask the right questions
and talk about the topics that are critical to them.”
ENCOURAE
CLIENTS TO “JUST DO IT”
Michael
tells one story about a couple who said that one of their
most important goals was “a good relationship with
their son.” Michael asked them when they last visited
their son. The husband said that, because he lives across
the country, they hadn’t seen their son in three
years.
Michael
told them in no uncertain terms: “I’m going
to coach you until you buy a plane ticket to see your
son.” When the client did finally visit his son,
he thanked Michael for encouraging him. “They both
said they had a wonderful time, thanks to me,” added
Michael.
PACKAGE
YOUR PROCESS
A
clear purpose is the source of much success for Michael
– and it helped him clarify the value he delivers
to clients. After conducting research interviews, Michael
created a detailed list of his services and fees. He then
categorized the services into three groups:
-
Initial analysis and recommendations;
-
Ongoing money management; and
-
Comprehensive wealth management.
With
this information, he produced a detailed list of his services
for potential clients. He told me he was amazed by what
happened once he put his services down in writing. He
said, “You know the old saying that you only retain
a certain amount of what you hear, but when you see something
you retain twice as much? Well, I have found that to be
completely true. Usually when I pull out my fees, the
prospects will sit up, lean forward, and examine the services
in detail. This list has been one of my best tools to
close big sales.”
TREMDNDOUS
VALUE, FOR THE RIGHT CLIENTS
Another
benefit: his pricing structure makes his clients feel
like they are getting a great deal of service for the
money. “Most people are interested in the comprehensive
wealth management and they want to know how much that
is,” he said. “I tell them that if I do the
money management, it’s all included in the annual
fee. Many clients have the feeling that they are getting
a freebie, which leaves them with a good impression.”
But
Michael doesn’t just woo anyone – he now knows
exactly the type of client he wants to take on. For example,
two of his target markets are widows and well-off retirees.
His ideal client has a minimum of $500,000 of investable
assets and wants to simplify and get control over their
finances. But they want someone else to take care of the
details.
When
he started the Effort-Less Advisor Coaching Program,
Michael’s minimum account size was $50,000. Now,
it is ten times that, at $500,000 – and he is securing
a number of accounts in the $750,000 to $1 million range.
And he brought on a $3 million account – his largest
account ever.
To
support his goal of having fewer and more qualified clients,
Michael has created a detailed step-by-step process for
screening prospects. Not surprisingly, he also has a process
for converting great prospects into clients. Typically,
when he sits down with a new client, they map out the
first two or three years of services that Michael will
deliver at the quarterly meetings. Each time they meet
there is a specific agenda, based on the individual priorities
of each client.
ATTRACTING
ALLIANCES AND REFERRALS
With
such a strong vision for his business and client base,
Michael has found it easier to develop strategic alliances
– a strategy that keeps his company growing. “One
of my accountant friends recently took on a new partner
who is a certified financial planner,” Michael told
me. “Initially, I thought that meant there would
be no business for me, but I found out that this partner
is not licensed and does not sell any products.”
During
a lunch meeting with the accountant and his partner, Michael
explained that he was only going to take on a total of
50 accounts with $1 million each.
Michael
says, “I have shared that business model with a number
of accountant and attorneys, and it really seems to electrify
them. I tell them that once I get my 50 great clients,
I will stop marketing and do nothing but service these
clients and provide incredible hands-on, vision and goal-based
advice.”
Michael’s
accountant contact was impressed with this new direction,
to say the least. Michael told me that during lunch his
friend said, “Don’t take this the wrong way,
but you seem so much more professional now – so much
more focused.” He and his business partner said they
saw a great fit between Michael’s organization and
theirs.
SHARE
YOUR BUSINESS VISION
One
thing his friend noticed in particular was that Michael
was looking at client situations “from the top of
the mountain, whereas most financial planners seem to
be looking up from the bottom of a river.” In other
words, Michael was looking at his clients’ total
life, not just the money and investments.
Toward
the end of lunch, his friend’s partner expressed
keen interest in partnering with Michael’s business.
“He felt I could provide value to their clients with
my financial planning services,” said Michael. “He
was also concerned that if they couldn’t offer these
services, their clients may go elsewhere. It was the beginning
of a great strategic alliance.”
CREATE
MARKETING APOSTLES
In
addition, because he has defined and packaged his business,
Michael has made it easier for others to tell his story.
For instance, an accountant recently referred him to an
$800,000 account. “The great thing was that she told
the prospective client about my three-phase service approach,”
said Michael. “She understood my business services
so well, she was able to explain them to her clients and
generate interest.”
All
of these steps have led Michael to the best year of his
career. “Gross income is up about 40 percent in 2002
over 2001,” he told me. “It’s mostly fee
based, but I did also close some big insurance cases and
I have some large commissions coming in.”
In
an extremely difficult market, Michael has increased the
amount of money under his management from $10 million
to roughly $15 million.
ADVICE
TO READERS
When
I asked Michael for his advice for readers of my newsletter,
he offered two insights. “First”, he said, “it’s
critical to find a focus. A second, related lesson is
that you can’t try to be all things to all people.”
“Find
a group of people that you absolutely enjoy working with
and focus on working with nothing but those people,”
Michael said. “Since you only need 50 to 150 great
clients, you can be very selective with the people you
take on. This will allow you to create a very profitable
and enjoyable practice – and it will save you from
burn out. Equally important, you will be making a major
positive impact on your clients’ lives.”
Michael
said that since he has been involved in the coaching program,
his stress level has dropped considerably because he is
not trying to wear thousands of hats. He advises others
to, “clone your top clients and create 99 more just
like them. That way, you will become an expert in a specific
niche. Over time, you will become skilled in handling
the same issues, which will create an efficient business
model. You can work 25 to 30 hours a week and have a very
profitable, enjoyable and stress-free business.”
In
concluding, Michael told me, “I now have a systematic
marketing process that I know will work. Every advisor
needs to develop a systematic process for identifying
and attracting wealthy clients. The key is to identify
a program you believe in, and then stick with it. Stop
constantly chasing the hot promises. You’ll end up
wasting time you could invest to create meaningful and
long-lasting change.”
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