Eliminate 'I have to think about it'
It may seem like a positive outcome when a meeting goes great and a client asks no questions. But William Marvin Richardson III, CLU, CFP, a six-year MDRT member from San Francisco, California, says questions are an essential part of the process of helping clients know what’s best for them.
“There was a time when I would justsay, ‘Well, that was a good meeting.’ And then, in some cases, I would never talk to that person again because they were in the world of, ‘I’m going to think about it,’” Richardson said. “And they’re probably still right now thinking about it.
“I didn’t know what I needed to address because they didn’t ask any questions. So the really simple question I ask today is, ‘What kinds of thoughts occur to you about that?’ That’s a great question because then they’re going to start to reveal things. So you just ask questions that are soft and allow them to expand on whatever it is, and then eventually they’ll tell you that one thing you needed to know. That makes all the difference in figuring out what we need to do to put the client in the position to make a well-informed decision.” Hear more insights about communicating with clients and handling objections at mdrt.org/podcast.
By Matt Pais
Showing clients that time is money
When a chartered accountant with an excellent reputation caught my attention in the newspaper, I decided I’d like to add his name to my client list. I sent him an introductory letter and then called him. He told me he wasn’t interested in talking to a life insurance agent because he didn’t have the time. I was disappointed, but not defeated.
To get his attention and show him I understood the value of time, I sent him a registered letter and a check for $100, which 20 years ago was a large sum of money. In the letter, I apologized for wasting his time and the check was compensation for the time I took during the telephone call. In addition, I told him I was willing to pay more for the cost of having an appointment for 20 minutes with him.
I waited for 15 days and then received an acknowledgment card with his signature. The next day, I called him and introduced myself. “Bharat Parekh,” he said loud and clear. “Where are you now? Can you meet me in my office in a few minutes?” I didn’t know what to expect, but 30 minutes later I was in his office — and nervous about how he would receive me. To my surprise, he rose from his chair and greeted me warmly, saying, “I’m not as big as you are. You understand the importance of time and have given me this compensation.”
Today, he’s one of my good clients, paying $150,000 in life insurance premiums to me every year and referring me to other people.
By Bharat Vadilal Parekh
Bharat Parekh, of Nagpur, India, is a 24-year MDRT member. He authored the book “Adding More to Life.” Hear more from Parekh in a video on mdrtresourcezone.org.
Saying goodbye to a client
Unfortunately, not every client-advisor relationship can be a great one. Gino Saggiomo, CFP, a nine-year MDRT member from Fortitude Valley, Queensland, Australia, says transitioning the client to a different advisor, in addition to being in the best interest of both of you, may also be a way to also stay compliant with corresponding regulation.
“If either you’re not committed to the client or the client’s not committed to you, then one could argue you’re taking compensation from the client under false pretenses,” he said. “Are you really willing to do whatever it takes to help that client get to where they want to go? If the fit isn’t there, it’s important to have that honest conversation and acknowledge it. But if you genuinely want this person to get help in the future, you help transition them to the right advisor, put together a client brief for the new advisor, wish them the best and hope they achieve everything they want.
“The other point to make in an environment now, where regulations are at the forefront of a lot of the conversations we have with clients, is you might feel you’ve got a great relationship with the client. But if you’re not adding value, there is potential for compliance and regulatory risk into the future, so you’re better off just sort of nipping it in the bud and saying, ‘I just don’t think there’s a proper relationship for us.’ It’s as much for the client as it is for your own longevity in the industry.”
Hear more at mdrt.org/podcast.
