Three Responses When A Prospect Already Has A Financial Advisor

Three Responses When A Prospect Already Has A Financial Advisor
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Three Responses When A Prospect Already Has A Financial Advisor

June 30, 2015

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by Dan Richards

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This spring I talked to a financial advisor at a large credit union whose biggest challenge when talking to members about their investments were the words “I already have an advisor.” When she offers to provide a second opinion on their portfolios, she finds few takers. That’s why our conversation turned to different ways to engage people who have existing relationships with other financial advisors.

Advisors who work for financial institutions aren’t the only ones who hear the words “I already have an advisor;” anyone who spends time talking to prospective clients runs into that response. For many investors, receiving a second opinion doesn’t provide a sufficiently compelling benefit. After all, when you make that offer, you’re asking someone not just to invest the time to sit down but also to risk experiencing an uncomfortable level of pressure from the ensuing conversation. In addition, there’s the question of how objective that second opinion will be.

You have to give people a clear, tangible and credible reason to sit down with you. There are three hot buttons to use when responding to prospects who already have advisors. But before raising those hot-button issues, there’s something you have to do first.

Taking off the pressure

When prospects tell you that they already have a financial advisor, that’s a good thing. After all, they could simply say “no thanks” without giving you a reason. So the fact that they are honest about already working with an advisor gives you a leg up in building a relationship. The challenge is that when prospective clients tell you this, many expect to hear all the reasons that this shouldn’t matter and that they should meet with you regardless. As a result, right after they tell you that they already have an advisor, many prospects immediately put their guards up.

At that point, your first priority is to get past those defenses and convey that you and the prospect are on the same side of the table. Say something like this:

I’m delighted that you’re working with a professional advisor. People who work with good quality advisors are significantly more likely to achieve their long-term financial goals, so the fact that you’re already working with a financial advisor is a good thing.

You need to pause and wait from a response from prospects. Once you’re heard them out, ask a question that will introduce a seed of doubt about the advisors with whom prospective clients are working.

Here are three hot buttons to use to introduce that little bit of doubt.

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