IDA conference update: Painless prospecting — Marketing through

National securities regulator would save $40 million a year, study says Offshore account ownership must be disclosed, IDA says Retail dealers surviving as profits collapse Market cons facing longer jail sentences, expert says (June 26, 2003) Forget about seminars, direct mail, cold-calling and other “spray and pray” advisor marketing techniques, says consultant Duncan MacPherson. Current […]

By Doug Watt | June 26, 2003 | Last updated on June 26, 2003
3 min read
  • National securities regulator would save $40 million a year, study says
  • Bases loaded for securities reform, Oliver says
  • Painless prospecting — Marketing through “advocacy” client
  • Berkshire exec says compliance costs will fell advisors, dealers
  • BONUS TOOL: Asking clients for referrals (a template letter) Back to IDA coference coverage main page

    “They’re a joy to work with and best of all, they brag about you to anyone who will listen,” he said. “And they believe with conviction that they’re doing their friends a disservice by not introducing them to you.”

    Still, MacPherson says advisors must be “hyper-sensitive” about the referral process. “You don’t want to appear needy, so never ask directly for referrals,” he believes.

    As an example, MacPherson suggests ending a client phone call this way:

    “By the way, a couple of clients recently introduced me to a friend who had a question about their personal financial plan. It’s no surprise that in times like this, people want a second opinion. So if you are speaking to someone who is concerned, call me and we’ll set things up. I’m not promising miracles, but I’ll either validate for your friend that they’re on the right track, or I’ll reveal a few minor flaws that need to be adjusted. And as you know, minor adjustments can often lead to major improvements down the road. But either way, if they’re a friend of yours, I’ll make the time to answer their questions.”

    Although the referral floodgate won’t burst open using this technique, MacPherson says it’s better than saying, “I could use a few more people like you, so if you could just right down a few names of your friends and their phone numbers.

    “The advisor of the future does not chase or pursue,” he added. “Remind your clients that you accept referrals and create a recommendation process.”

    MacPherson is also a proponent of culling client books by asset base and attitude, a process he calls “right-sizing.”

    “Look at your existing clients and only bring on the ones who meet the profile,” he says.

    In one dramatic example, an advisor cut his client base from 1100 to just 37, without any financial sacrifice. In fact, less than a year later, the advisor was actually making more money, MacPherson says. “It has been done. Your business is supposed to serve your life, sodon’t fixate on growth.”

    • • •

    Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca

    (06/26/03)

    Doug Watt

  • Offshore account ownership must be disclosed, IDA says
  • National securities regulator would save $40 million a year, study says
  • Bases loaded for securities reform, Oliver says
  • Painless prospecting — Marketing through “advocacy” client
  • Berkshire exec says compliance costs will fell advisors, dealers
  • BONUS TOOL: Asking clients for referrals (a template letter) Back to IDA coference coverage main page

    “They’re a joy to work with and best of all, they brag about you to anyone who will listen,” he said. “And they believe with conviction that they’re doing their friends a disservice by not introducing them to you.”

    Still, MacPherson says advisors must be “hyper-sensitive” about the referral process. “You don’t want to appear needy, so never ask directly for referrals,” he believes.

    As an example, MacPherson suggests ending a client phone call this way:

    “By the way, a couple of clients recently introduced me to a friend who had a question about their personal financial plan. It’s no surprise that in times like this, people want a second opinion. So if you are speaking to someone who is concerned, call me and we’ll set things up. I’m not promising miracles, but I’ll either validate for your friend that they’re on the right track, or I’ll reveal a few minor flaws that need to be adjusted. And as you know, minor adjustments can often lead to major improvements down the road. But either way, if they’re a friend of yours, I’ll make the time to answer their questions.”

    Although the referral floodgate won’t burst open using this technique, MacPherson says it’s better than saying, “I could use a few more people like you, so if you could just right down a few names of your friends and their phone numbers.

    “The advisor of the future does not chase or pursue,” he added. “Remind your clients that you accept referrals and create a recommendation process.”

    MacPherson is also a proponent of culling client books by asset base and attitude, a process he calls “right-sizing.”

    “Look at your existing clients and only bring on the ones who meet the profile,” he says.

    In one dramatic example, an advisor cut his client base from 1100 to just 37, without any financial sacrifice. In fact, less than a year later, the advisor was actually making more money, MacPherson says. “It has been done. Your business is supposed to serve your life, sodon’t fixate on growth.”

    • • •

    Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca

    (06/26/03)