Lloyd Williams

What makes a person a true advocate? The dictionary defines advocate as “a person who pleads on someone else’s behalf .” Simply it is someone who speaks positively about you to others. So we should ask ourselves who does that for our us?

I believe there are three criteria for an advocate:
1. they like us
2. they talk positive about us to others
3. they want to help us grow our business

List your top 50 clients and ask yourself how many of them meet all three criteria. If you want 100+ unsolicited introductions a year, your practice is going to need a number of true advocates. If you do not have enough then your work is set before you. Start with the Relationship Conversation and help them achieve their dreams.

Describe the days you have enjoyed the most throughout your life. Make a list of all of them. See what is common and what makes them unique. That is what you want the rest of your life to be like. Try it.

Are you prepared for the increased volatility of the next decade. During my career 1984-1999 the market enjoyed an unprecedented rise. Despite the volatility of the single largest one-day decline in the history of the market and two other volatile years the sixteen year bull market was extraordinary. In 1995, I stated that the following decade would be substantially more volatile that the 80’s and 90’s.

The decade from 2000 has proved to be one of the most volatile in history. An investor in the S&P 500 on January 1, 2000 has yet to break even. I am stating here that the next two decades will be even more volatile than this one. The reasons are globalization, communication, and technology.

Globalization will increase the breadth and depth of the markets. This is good and bad. At times the different markets are trading in contrast to each other and diversification can reduce risk and increase opportunity. But in times of crisis they trade in tandem leaving no safe haven and increasing the risk and volatility.

Communications will allow information to speed around the globe and technology will allow for faster response. This would seem to be good, but it requires a quicker response to changes. When decisions are forced without adequate thought, there is an over reaction that increased volatility.

Are you prepared for this increased volatility?

- Were your accounts up last year?

- Are you prepared for increased volatility in the markets?

- Do you know where to go if stocks are unattractive?

- Can you protect your portfolios during the next correction?

…If you answered NO to any of these questions…

Participate in the upcoming Conference Call Workshop.

For sixteen years we had no down years, few down quarters, retired every client early, and received hundreds of introductions each year. How this was acomplished has never been presented in public before. Even as a coaching or workshop client we focused our time on team infrastructure and building a deeper client relationship.

For the less than the cost of a one hour consulting call, your entire team can participate in 15 hours of instruction on how we actually managed our clients money.

NOTE: Our unique solution was NOT managed money.

You will want to participate in these calls.

REGISTER NOW

Why is it necessary for businesses to have a Relationship Conversation with clients? Over the last decade confidence in professionals has declined. Lawyers and Accountants have lied in corporate scandals. Patients regularly double check what a doctors says against their own research done over the internet. Financial Advisors have failed to protect their clients assets from the volatility of the markets. Trust is rare. And Unlimited Trust is nearly impossible to achieve with out a Relationship Conversation followed by helping clients identify and achieve there dreams faster.

Most important decisions in life are counter intuitive and difficult to make when the herd is moving in one direction and you need to go in the opposite. This is when a professional is needed to help the client make the correct decision. This is also when unlimited trust is necessary. Without it a client will naturally gravitate to the herd.

To gain Unlimited Trust a professional must become a Strategic Catalyst in the life of the client. Positive change is what every client desires. By partnering with your client to identify and create positive change toward a specific dream or goal you become integral to the clients life. This quickly leads to Unlimited Trust.

We all desire positive change in our lives. As we discussed last week, positive change requires not just a desire or goal, but a next action. If you want to be a catalyst for positive change in the life of others you must partner with them in identifying their desire and next action. Then, with them, track the accomplishment of their next actions until the desired outcome is realized.

You no longer sit on the sidelines of their life, but actively participate in the achievement of their dreams. Your conversations can now focus on what is most important to them and, as a partner, you share in their excitement and are valued by them in a unique way.

Remember refer-ability is not tied to your expertise or knowledge, which are usually assumed. It is not your unique solution that compels them introduce you to others. Your refer-ability is directly tied to your clients experience with you. Is their lifestyle maintained and enhanced by knowing you?

Partnering with those around you and monitoring the positive change in their lives connects you to the accomplishment of their dreams. The simple process of recording what they want to do and encouraging them in completing simple next actions will guarantee they achieve the dreams.

For each person or couple you partner with, record their next dream. Then note under that dream the next action they want to accomplish. Now each time you talk with them update the next action as they are completed. Occasionally drop them a line or call to check on their progress. This simple process changes your conversation and gently encourages them to complete what they desire. Now because of your partnering with them, the desired outcome is achieved sooner and a new desired outcome can be set. As a catalyst for positive change you can help others achieve substantially more than they ever imagined. Now you are value-added.

Why are New Year’s Resolutions stated on January 1st and not accomplished by December 31st? There is one simple reason. The goal was established, but there was no next action. Any project, desired outcome, or goal must have a next physical action to make it a reality.

You know what you and those around you want to be true in the next twelve months. Now ask yourself and those you want to partner with, what is the next physical action necessary to make the dream a reality? You have just become a Strategic Catalyst in the life of another person. That is what an advisor should be in the life of their clients, Strategic Catalyst for Positive Change. People do not need a financial plan about how to manage their money, they desire a Strategic Spending Plan to effect positive change in their life.

Next we will discuss how to partner with those around you to monitor their progress toward positive change.

When you ask someone what they most want to do or accomplish in the next twelve months, it is easy for them to identify what they would like to be true. At the beginning of each year millions of people establish a set of New Year’s Resolutions. We all know what we want to be true about our life. We know exactly what we would like to change, improve, or accomplish.

In other words we all know what we want to spend our money on. We have a dream and we want to fund that dream. As we discussed last week, it is not the money that is important, it is what the money will buy whether that is a vacation, a new deck on the back of the house, a kitchen renovation, college education, or a comfortable retirement. Each of us knows exactly what we desire.

If the money is not what is important and what we want to buy is, do you see the disconnect in most conversations between an advisor and their clients? The advisor focuses on the money and how it is managed and the clients wants to focus on what they want to buy and how to make that a reality.

This week ask yourself what it is that you most want of have, do, or accomplish in the next twelve months and ask those around you what they most what to accomplish. Remember this is what is important to you and to them. Record that information. Next week we will discuss how to partner with those around you to make certain they accomplish what they want and it does not become just another New Years Resolution that is unachievable.

If you asked yourself and others the two questions from last week, you realized everyone has the same answer for number one. What do you first look at when you open your bank statement? When a person opens their personal bank statement, the first thing they look at is the BALANCE. As individuals we are concerned with what the balance is in our account. This is the first distinction between clients and advisors. The client looks at the balance and the advisor looks at the holdings. The advisor is concerned with issues like: is this something we like or not, is it properly allocated or not, is the portfolio diversified or not, is there something we need to adjust or not. These questions then determine the agenda for any conversation with the client.

This is the First Cause of miscommunication and misunderstanding.

The second question, “Why is that item you look at important?” is where the second distinction is made between clients and their advisors. It is also where the relationship is derailed. Why do clients look at the balance? We discover it is for none of the reasons the advisors are questioning above. Everybody looks at the balance to know how much they have to SPEND, either now or later.

If you are living close to your budget then the balance represents whether or not you can pay your bills this month, if you are a little better off then you are wondering whether you can take the vacation you planned later this year. And if your are well off you are looking to see if you are still retireable and if your lifestyle will be maintained and enhanced in the future.

In every case the client is NOT concerned with the money, but with what the money will BUY.

This is the Second Cause of miscommunication and misunderstanding.

This is the biggest mistake in the financial service industry. The industry is concerned with the money. They want to create financial plans and grow the investments forever, while clients are concerned with what money will buy. Clients want a Spending Plan, not a financial plan. They want to maintain and enhance their lifestyle, not their investment portfolios.

These different perspectives create a large disconnect between the client and their advisor. One is talking about apples and the other is concerned with oranges. This problem is easily solved. Next week we will see how to step through a conversation to connect with the client’s concerns.

The following two questions identify a unique distinction between clients and financial advisors:

1. What do you first look at when you open your bank statement?

2. Why is that item you look at important?

Think about these two questions and ask others this week to gather their response. We will discuss the differences next week.