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Similarities Don’t Sell In our industry, like in all industries, similarities do not sell, differences do. “Who are you and why should I do business with you?” is perhaps the toughest question you will face in your career.
Consumers can buy the solutions we offer from whichever firm and Advisor they choose.
To excel in such a commoditized world, you better be different.
And marketing yourself properly will help you become different.
Marketing creates prospects. Selling creates clients.
The Difference Between Selling and Marketing
The legendary Buck Rogers of IBM fame opined that selling is making somebody want what you have while marketing is having what that person wants.
His famous question to prospects was, “Do you want a computer or do you want a partner?”
Obviously anyone would prefer a partner over a product.
It’s no different in our business.
Marketing Myopia
I urge you to read Theodore Levitt’s article Marketing Myopia.
The article first appeared in Harvard Business Review and can be easily Googled.
It changed the way many business leaders thought about marketing.
To have too narrow a definition of one’s business is to miss tremendous opportunities.
This was the beginning of “thinking outside the box.”
The Drill Bit Lesson
Levitt points out that people don’t want a particular product simply to own the product.
In fact, they don’t want the product at all.
They want what the product can do for them.
A guy in a hardware store buying a ½” bit doesn’t want the bit.
He wants the hole that bit can drill.
In order to get the hole, he must buy the bit.
What the hardware store is selling and what our guy is buying are two different things.
Similarly what you are selling and your clients are buying are two different things.
To forget that can and will lead to disastrous consequences.
What Business Are We Really In?
We are not in the financial planning business.
Financial plans are our tool.
We are in the peace of mind business.
We are offering financial plans and products.
People are buying peace of mind.
People want peace of mind, not deferred annuities.
There’s a big difference.
What Clients Really Want
People don’t go to a Financial Advisor looking for downside protection and an antidote to volatility.
They don’t want stocks, bonds, mutual funds, ETFs, separately managed accounts or annuities.
They’re not looking for a hedge against inflation, growth or liquidity.
That’s what we think they want, so that’s what we talk about.
There are three things people want when they walk in your door.
They want to educate their kids, pay their taxes on a timely basis and retire comfortably.
They don’t want the plan or the products.
They want what the plan and the products can do for them.
If a couple can retire to Florida with enough money to live happily ever after and not stress about being poor, do you think they care if it’s mutual funds or annuities that do the job?
Do they care if it’s Merrill Lynch or Cetera who gets them there?
When an insurance agent delivers the check to the widow, do you think she cares if the policy was whole life or term?
The Curly Hair Story
In his seminal book The IBM Way, Buck Rodgers uses the example of a woman with straight hair who wants curly hair.
There are several processes and methods she can use to get that curly hair.
She doesn’t care how she gets curly hair.
She just wants curly hair.
Getting to her goal is a lot more important to her than how she gets to the goal.
Be the Partner
Yes, you must learn to sell yourself and your ideas.
But you also must learn to market yourself.
“Mr. and Mrs. Client, you can buy an ETF on just about any street corner in America.
If you simply want to invest your money with no goal in mind, you don’t need a Financial Advisor.
If you want to educate your children and retire comfortably, have a seat.
That’s where I fit in.
And, if you do business with me, I come with the deal.
I’ll be your partner.
The nice thing about having me as your partner is that I’ll be with you on every step of your journey.
Please, tell me.
Do you want an investment portfolio, or do you want a partner?”
Let your competition advertise themselves as Financial Advisors.
Let them talk about plans and volatility and liquidity.
You talk about helping a family fund their child’s education and living a worry-free retirement.
Be different. Market yourself.
Related: Success Comes Faster When You Stop Expecting Momentum