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Why Clients Dump Advisors

Written by: Donald F. Pooley

Article Overview: "You're Fired!" is the scary title of an article in the June 2005 issue of " Advisor's Edge " that reveals why high net worth clients drop their investment advisors .

Why Clients Dump Advisors

"You're Fired!" is the scary title of an article in the June 2005 issue of " Advisor's Edge " that reveals why high net worth clients drop their investment advisors .
The reasons they give are that the advisor:
* ignored advice to invest more conservatively,
* didn't explain why fees were so high,
* favoured one-size-fits-all asset allocation,
* caused friends to lose money in poorly managed portfolios,
* didn't bother to understand concerns beyond money matters.
Though the article focuses on investment advisors it has a message for all of us who market financial products or offer financial advice , i.e. TIP subscribers.
In fact, it has a message for all professionals . My wife is planning to dump her doctor for similar reasons to those cited above. In general, it's a doctor-knows-best attitude.
And the message is: Listen to your client!
Listen to what your clients tell you. Don't jump in with a fast answer. Don't decide that you know best. Don't give the identical answer that worked so well for another client who seemed to be in similar circumstances. Think it through.
When a client asks a question, pause before you answer. Let it sink in. If you're doubtful about what they are really asking, repeat their question followed by, "Is that what you'd like to know?"
And ask them lots of questions. Don't just take an order. Find out what their goals really are. What do they hope to achieve? Where do they want to be in 5 years?
Aim at developing a relationship with each client that will want them to continue to do business with you forever.
That's the way to build a life-long business.
And that's what you really want, isn't it?

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