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You’re at a networking event or on a call, and someone says, "I already have an advisor." It might feel like a closed door, but this could be a great opportunity with the right approach. If they already have an advisor, they’re likely serious about financial planning—which could mean they’re an ideal client for you. So, what’s the best way to handle this situation?
Many advisors “move on” when they hear this response, assuming it’s a rejection. But staying on their radar could pay off in the future. Life changes, and so can their relationship with their current advisor. Here’s how to tactfully remain in the running if things don’t work out with their advisor.
Why Staying on Their Radar Matters
People’s situations change, and so do their financial needs. Consider the following scenarios where a prospect might need a new advisor down the line:
1. The advisor may retire earlier than expected
2. The advisor may change firms to a bank-owned firm
3. You've become concerned about succession planning, no obvious options
4. The advisor may change their fee structure
5. The advisor may change their service process or ideal client profile. You don't fit in anymore.
6. With the client passing, the spouse may not like the advisor
7. The prospect's new, more complicated situation requires a step up in certification or experience.
8. Clients may be unhappy with the performance or the attention paid to their account
9. Their advisor might be increasingly asking for referrals, and that bugs them
10. The prospect may have been re-assigned to a junior team member
11. There may have been a falling out recently
12. Advisor has become too busy or difficult to reach or book a meeting
For any of the above reasons, you want to be the prospect's first call when things change for them. So, in the early days of building a relationship with prospects, it's essential to show respect for their current relationship yet plant the seeds for the "better way" you know you have to offer.
Making an Impression (Without Pushing Too Hard)
Keeping things positive and respectful is the key to staying on their radar. Here are some strategies to plant the seeds for future business.
1. Assess Their Satisfaction
Try asking questions like, “Is there anything you’d change about your current advisory relationship?” or “Are you completely satisfied with how your advisor handles things like investments, insurance, and retirement planning?”
2. Offer a Free Second Opinion
Suggest a complimentary, no-obligation review of their financial plan. You might ask, “Do you feel confident you understand what you own and why?” This can prompt them to think more critically about their current setup.
3. Discuss Key Goals and Concerns
Ask about their financial goals, such as retirement, education savings, or supporting loved ones. You could say, “Are you satisfied with how your advisor is helping you reach those goals?”
4. Highlight the Financial “Head Coach” Approach
If they have multiple advisors, explain how your team takes a comprehensive approach, looking at the entire financial picture and integrating all strategies for a cohesive plan.
5. Emphasize Your Professionalism
Make sure to mention any credentials and your disciplined, goal-oriented process. Showing your professionalism can set you apart.
6. Be the Agent of Change
Switching advisors can be intimidating. Clients may fear financial disruptions, like liquidating their current holdings. Reassure them that transitions don’t have to be stressful or costly and that you’ll help make it as smooth as possible.
7. Suggest Account Sharing as a "Test"
If they’re open, I suggest transferring a portion of their assets to you to see if working together could be beneficial. This lets them experience your approach without feeling pressured to switch completely.
8. Bow Out Gracefully (But Leave the Door Open)
If they seem genuinely happy with their current advisor, stepping back is okay while leaving an open invitation for the future. I suggest they subscribe to your newsletter, or you can ask for a second opinion.
9. Keep in Touch Regularly
With their permission, send occasional emails, invitations to events, or helpful updates to keep your name fresh in their mind. Building a slow but steady connection keeps you on their radar.
When They’re Ready, You’ll Be Ready
There are countless reasons someone might eventually be open to switching advisors, even if they aren’t now. By staying engaged in a respectful, low-pressure way, you can be the first person they think of when that time comes.
Related: Beyond the Numbers: What Clients Really Want From Their Financial Advisor