This is a simple tool to help you incorporate a new habit into your life or practice. Decide on some activity you want to do daily and check of each day it is done. See how many consecutive days you can do. It will not be long before the activity is a habit.

Link to download it here.

Happy New Year to all.

Two often when a group presentation is made to prospects, the solution is delivered too early. It is like a farmer planting a field that hasn’t yet been prepared. A presentation should identify the fear the client has and the problems the client faces. You should lay the groundwork by plowing up the ground, then tilling to chop up the dirt so that later when the solution is cast on to the ground, as seeds out into a field, they are cast to a ground that is ready to receive the seeds.

If you try to present your solution in your initial presentation, you waste it, like trying to seed unprepared ground. There is no trust. There is no understanding of the need or problem they have to solve. There is no understanding of the fear that leads to their discomfort.

First, understand and establish the purpose of your presentation: education, information, or new clients. make sure that this purpose is present throughout your presentation. Too often advisors conduct group presentations with the intention of creating new clients, but are caught up in the information delivery and then wonder why few scheduled any follow-up meetings. The “purpose was lost in the presentation.” Know your purpose and stay on topic.

Second, focus on the problem and the need: the volatility that exists in the market place, the future return of another 2008, the myths of the marketplace, the fact that most solutions will not work again, and most of all the audience’s need to become and remain retireable.

Third, once the need is established, a Relationship Conversation is needed to identify their future and better understand their desires. Are their dreams important enough to them to be the destination they want to go after. If they are, then we need to build a bridge to get to that dream to get you from where they are to where they want to go. That is going to require an action plan. To build the action plan we need an analysis to build a road map from where they are today to where they want to be in the future.

Fourth, confirmation of their trust by others. While you are preparing the analysis, the prospect talks with two advocates to answer questions concerning what it is like to work with you. Third party confirmation is a necessary step.

Now the field is prepared to receive the seed of your solution. Here is where you present your solution: after trust is established, their problem is clarified, their goals are identified, and their trust is confirmed by others.

What you’ve done in your initial presentation is laid the foundation for the need for them to come in for that analysis. So before you can give a solution you must understand them at a deeper level and be able to connect the solution to their real situation. Too often, people deliver the solution up front when the ground is too hard and unplowed and untilled, and the seed dries up and dies.

Now when they come in for the third time, once at the seminar, once for the conversation, and now for the presentation of your solution, the soil is prepared to receive the seed of your solution.

Remember: Know you purpose and prepare your prospect, before you present your solution.  

Client Newsletters are an important form of communication. They allow you to talk to your entire client base at once. This mass communication format will save you hours of one-on-one phone calls to answer the same questions that can easily be illustrated in a newsletter. Accompany this with a monthly or quarterly conference call and you are able to proactively answer clients’ questions and concerns.

This will free your time to focus on your client relationships and prospects. Proactivity is the solution. Communicate education and service in bulk and strategic planning one-on-one.

Subscriber Only Content: If you are a subscriber, you can download the full version of the client newsletter illustrated above.

If you are not a subscriber, you may receive a 14 day free trial at http://www.ActionSheets.com and be sure to select Lloyd Williams as referrer to have access to the Subscriber Only training and resources.

Special Note: This client newsletter example is based - with permission - on documents provided to advisors who are subscribers to The Sherman Sheet. For more information please visit www.theshermansheet.com.

- Francoise Rene Auguste Chateaubriand

Fiona Collie interviewed me for an article she wrote for the Investment Executive website titled, “Top five mistakes in shifting to a fee-based model.” We discussed some of the major pitfalls and how to avoid them.

I was recently interviewed by Fiona Collie for an article she wrote titled “Five Questions to Ask Before You Buy” for Investment Executive website. The article discussed several important questions to ask first.

One of the biggest hinderances to successful purchases is the incompatibilty of the new advisor with the new clients, because of the personality differences between the two advisors. I encourage my clients to always have the other advisor do a DISC analysis to confirm compatible personalities. Otherwise, the buyer may discover months later that the assets they thought they were purchasing have disappeared. For more information on the DISC analysis see the link here.

A recent happiness study from Matthew Killingsworth and Daniel Gilbert found that the more our minds wander, the less happy we are. Summing the research, the New York Times wrote, “Whatever people were doing, whether it was having sex or reading or shopping, they tended to be happier if they focused on the activity instead of thinking about something else.” In short, being mentally “present” and focused on the task at hand really does matter – quite a lot, in fact. Source.

- George Bernard Shaw

These questions reveal a problem we all face, both personally and as business owners. We and our clients want to make changes, but in the end most never happen. The dream, goal, or desired outcome is real, but unfulfilled.

There is a simple two word answer. NEXT ACTION. Without a defined next physical action our dream, goal, desire, or resolution is simply a nice slogan. Look back at what you resolved at the beginning of the year and identify the next physical action. Then block off time on your calendar this week, and set an appointment with yourself to complete that next action. Then identify the next action and set another appointment with yourself for the following week.

In less time that you can imagine today you will have accomplished your desired outcome and can set something new. Twelve months from now you will be amazed at all the things you have accomplished.

In December I resolved to begin the P90X Fitness Program in January. After the first month I am amazed how well I feel. Having just turned fifty-three, I look forward to seeing my abs again. Shedding 11 pounds and 5.4% body fat in a month, this program’s discipline of daily next actions makes this program successful. What desired outcome to you have? What desired outcome do your client’s have? Make them a reality by identifying the next physical action.

Attract Clients 10-Week Workshop In the past this workshop was restricted to participants from a sponsoring firm. For the first time Lloyd Williams’ 2-Day Workshop is being offered to all financial advisors. The same workshop used by over fifty top financial service firms is now available to you and your entire team through ten 90-minute conference calls. Lloyd will take you through all aspects of building and running a successful practice in today’s market. The workshop is updated to include new material following the lessons learned in 2008.

Dates: Every Friday starting October 2, 2009 Time: 11:00-12:30 pm Eastern To register for the workshop download registration form here and fax to 309-294-5519. Advantages for your team:

• No travel expenses
• Entire team can participate
• Actionable ideas
• Fifteen hours of material
• Easy to implement
• Weekly feedback
• Email access to Lloyd
• Great refresher

• Build a Practice in Today’s Marketplace: Fees or Not
• The First Conversation - Part One
• The First Conversation - Part Two
• Present a Unique Solution
• Handle Questions and Objections
• Be a Catalyst for Positive Change
• Action Plan for Change
• Build and Manage Your Team
• Counter Intuitive Investing
• Presentations to Move Money Now

“Great presentation and upbeat vision of the future. Lloyd covered the right information with good content for the current market turmoil!” “I have never sat still for 4 hours in my life until this presentation…excellent!” “Everyone should hear this message!” “Lloyd has given me a load of ideas to go to clients and prospects with” “Lloyd’s reasons for being positive are exactly what I needed to hear given the difficult markets”

Here are some comments from advisors who attended Lloyd’s workshops in Montreal, Ottawa and Toronto this past January 2009:

“I needed this conference. I have been letting this business and some of my clients get me down. I needed to be reminded to remain positive no matter what. I found the whole seminar worthwhile. The wheels are turning again and I thank him for that. I have not been this enthusiastic in some time”. “I’ve attended a number of Lloyd’s sessions in the past and always find them valuable” “Overall it was a valuable exercise where someone will definitely have some positive takeaways, regardless of your style of business” “I am always reflecting on trying to manage the ‘right thing’ in the book of business. His emphasis on client intimacy and the practical “how to’s” were excellent” “This seminar was more than I had hoped for. I woke up during the night (after the seminar) thinking of the seminar and ways that I was going to approach my clients & improve my business going forward” “Very productive and one of the best I have been to”

If you would like to host a workshop for your firm please contact office@lloydwilliamsinc.com for more information.

1. Partner up with your clients to calm the fears and concerns of those they value and respect.

Window of Opportunity from now to December 15th 1. Clients are scared. They feel that their dreams are at risk. This is a rare opportunity to touch the lives of others in a meaningful way and help them achieve their dreams.

1. December is family month. They will not want to talk with you after December 15th. Everyone will be busy with the holidays.

2. January Effect A. New popular President B. New Administration C. New Year D. Bad October

3. The opportunity is now.

Stop Putting Band-Aids on Scratches While Other Are Bleeding To Death If you have: 1. Taken your clients through a relationship conversation 2. Identified their Risk Profile 3. Properly allocated their assets 4. Diversified their portfolio 5. Communicated with them throughout this market decline 6. Offered them the opportunity to re-profile their risk 7. Answered their questions THEN YOU HAVE DONE EVERY THING YOU CAN.

Where Is Your Focus? When things are good focus on your clients, because during these times clients are difficult to replace. Everyone is happy with their current relationships. Therefore strengthen your client relationships by helping them fulfill their dreams. This will be easier during the good times.

During Difficult Times First prepare yourself, then settle your clients worries quickly. 1. Remind them that times like these have occurred in the past and will occur in the future. 2. Help them establish a long view of the economy. They have no need to worry. 3. Use the example of trusted experts: Bernanke / Buffett 4. Re-explain to then what controls the market 5. Re-confirm the disciplined process that you have taken them through to determine their needs and the unique solution that they have working for them currently.

Do not try to call or contact each client personally, use mass communication tools like email, broadcast fax, letter, podcast, or conference call. The exception to this would be your Top 25 Clients who you should call after you have sent the mass communication information.

FOUR NEXT ACTIONS 1. Capture All Tax Credits The tax credit is cash captured now guaranteed.

1. Letter to Clients Send a letter to all your clients reminding them of the steps that have been taken to protect them. Offer them the opportunity to reassess their risk profile Most Important: Include a paragraph

2. Contact All Old Prospects Make sure they are not worried. Offer analysis, at no cost, and no obligation. If they say no in this situation, they are either well serviced or not interested in working with you. Either way remove them from your prospect list. They are not prospects.

3. Call Top 25 Partner up with them to make a positive difference in the live of someone they value and respect.

Example script for call Mr. Client over the past several weeks we have talked to many people who are worried and fearful. They had no one to help them understand their situation. If you know someone you respect and value who is worried, there is no need from them to be in that situation. We’ll be happy to take them through the same analysis we use with each of our clients, at no cost or obligation, to make sure that they know where they are today, where they want to be in the future, and have a plan of action to get there. We do not what someone you care about to be afraid.

Introduce us to each other. Send them an email and copy us. Simply same Bill, I want to introduce you to Sally. Sally I want to introduce you to Bill. Here is the contact information for each of you. You should talk together.

The conversation is just that easy.

Call Top 25 1st week, then the next 25 the next week, then back to the Top 25 the following week, and then back to the next 25 the last week.

For more information see: -Sample Letter to Clients -Mastery Habit: Crisis Management -Mastery Habit: In Good Times Focus on Your Clients, In Bad Times Focus on Prospects -Mastery Habit: Never Follow Institutional Managers During the Extremes in the Market -Notes from the last conference call -Link to Fed Chairman Bernanke’s Speech to the Economic Club of NY -Link to Warren Buffett’s letter to the NYT To conduct a conference call with your clients contact: Ed Shea from Audio Podium Email: coachimago@aol.com

If you have found this of value, forward this page to someone you respect and value who is worried.

Example script for call to Top 25

Mr. Client over the past several weeks we have talked to many people who are worried and fearful. They had no one to help them understand their situation. If you know someone you respect and value who is worried, there is no need from them to be in that situation. We’ll be happy to take them through the same analysis we use with each of our clients, at no cost or obligation, to make sure that they know where they are today, where they want to be in the future, and have a plan of action to get there. We do not what someone you care about to be afraid.

We will post the audio file and notes from the conference call next week.

There are times when the biggest difficulty you face in business is getting clients to commit their funds to an investment choice. Perhaps they agree with the concept of fee-based assets and even go so far as to say they want to place their money with professional managers, but then the question becomes not so much what to do or how to do it, but more importantly when. When is the best time to make the change and move the assets?

When asked about the best time to invest in the market, Warren Buffet said, “Whenever you have money.” Most of the time the market will be higher in the future from a present point in time; 60% to 70% of the time the market will be higher 18 months out than today so Warren Buffet is correct. The best thing you can do whenever you have money is to invest it.

That said, there are two types of money: money at risk in the past and money that was not at risk in the past. If we all had the risk profile and confidence of Warren Buffet to say, “I am setting these funds aside for an unlimited period of time and I will not worry because I will buy good companies and just hold,” then we could invest whenever we have the money. Unfortunately, this is not usually the case and we find that many investors are anxious. The stock market is a scary place for them. The funds they invest may never have been in the market before - a rolled over CD or GIC, or funds received from a business sale or real estate sale. These funds may also represent a large portion of a client’s total asset base. Therefore, prudence may encourage us to move into the market gradually. Some people like to put their toe in first and test the waters then gradually move in, while others are fine diving in. For “divers” the best thing to do is invest fully whenever they have the money. However, for the ones who want to wade in gradually, we created a model that assists your clients in adding funds to the market on a systematic basis.

I believe there are four important dates for the investment of new funds into the stock market. These dates are March 15th, June 15th, September 15th, and December 15th.

The dates are significant in that they precede the last two weeks of each quarter.

Something significant happens in the market during the last two weeks of a quarter called window dressing. When managers, investment advisors, mutual funds, and institutions liquidate underperforming positions, selling is the order of the day. This practice presents an ideal time for investors to add funds to the market as the institutions are in sell mode.

The dollar-cost averaging model starts with today’s date. If the client agrees the investment is a good thing to do, then they put 50% of the money in the market today. Then you determine future investment dates. For instance, if today’s date is February 20th, then select March 15th and June 15th as the remaining two date lines. Half the remaining assets, 25% of the total, will be invested into the market on each of these two dates.

Three scenarios can occur in the market after the initial investment of half the assets. Historically, over an 18 month period, the market tends to be up about 70% of the time. The other 30% of the time, the market could be down or flat. If we are bullish and think the market will be up in the future, it would be foolish to hold back part of the funds and wait to invest them later at a higher price. But what if we take a large portion of a client’s assets and invest today and then, in 2 months, the market drops significantly? The investment timing seems imprudent and the client might be upset. By using the Dollar-cost Averaging model a disciplined approach to making the investment decision of adding funds to the portfolio is established.

In my practice, when a pool of money accounts for 25% or more of a client’s existing assets, the Dollar-cost Averaging model was presented to the client as an alternative to investing all funds at once. If the client agreed, we immediately invested 50% of the assets in the market that day. We then determined the next two investment dates and allocated 25% of the total to be invested on each of those days. The client gave us a market order for those specific dates. My team wrote the order tickets for those dates, but the tickets were not dated for reasons I will explain shortly. My service assistant kept a folder for each of the four important dates: March 15th, June 15th, September 15th and December 15th. When a predetermined date arrived, all order tickets in that folder were executed.

Assume a client has $100,000 to invest, a large portion of their current assets. They agree to invest 50% today, 25% on March 15th, and 25% on June 15th. However, during the period between today and March 15th, the market pulls back and drops 9% below the previous quarter. That means the designated funds can buy at a 9% lower price than originally paid. It is not March 15th yet, but because the market is down 9% from the previous quarter, the folder of order tickets for the next important date are executed now. It is important to note that we never took discretion and contacted clients by phone to explain the opportunity to buy in earlier at a reduced price and to obtain their authorization. If you take discretion in client accounts, you can explain this possible scenario to the client up front.

Along comes March 15th. Since we already invested the funds, we do not do anything until the next quarter’s investment date. The market continues to go up. By June 15th, the market is higher. That is alright though because the client understood in advance that 70% of the time they would pay higher prices.

On average, the market may drop 9% inter-year about once every 18 months. If the market drops 18% inter-quarter, take the next two investments, the remaining 50%, and invest them both early. Over the last decade we invested near lows of the cycle by using this model.

When an investor is nervous, the Dollar-cost Averaging model is the best way to get their money into the market. Dollar-cost averaging renders a disciplined approach and the potential to pay significant benefits by investing at or near lows of the period. Even if you do not reap the additional benefit of investing at a lower price, the client still benefits by investing over time without missing the opportunities of a market that on average is up more often than down.

The notes for this Podcast are here.

Be positive. Clients do not need you to parrot the negativity of CNBC or the local paper. They need hope in a times of crisis, not someone to shout “the ship is sinking.” If the market is going down stating the obvious is of no value. Your job is to be a valued added strategic partner. You help them achieve their dreams. In difficult times clients are distracted from their dreams and you must first deal with the distraction before you can refocus them on their dreams.

Two Great Resources We are lucky today to have two great resources from knowledgeable experts to help in refocusing our clients.

Fed Chairman Bernanke’s Speech to the Economic Club of New York, NY on October 15

Click here for the speech.

1. The speech is good, but the important information is in the answers he gave during the Q&A.
2. This is not 1929-32 - we learned from our mistakes. Hover waited three years to respond and then tightened money. Fed acted immediately and loosened.
3. Fed Reserve has doubled in size, giving it a greater ability to impact the economy positively.
4. Everything hinges on the banks lending money again.
5. Therefore the Fed’s money will be used to stimulate the economy, if a bank does not lend money they will not be given money. They will learn quickly to start lending.

What controls the market? What makes the Market go up? Cash flow. What makes the market go down? Lack of cash flow. Cash flow into the economy is cash into the market. The infusion of $800 billion into the economy will be a stimulus

See Mastery Habit - Never Follow Institutional Managers During Extremes in the Stock Market

SO WHAT DO YOU DO NOW IN YOUR PRACTICE? First, realize what is happening - you are surrounded by a crisis situation. People are panicking and need your help. Second, respond properly to the crisis - with a calm, clear head. Third, act quickly - great leaders do not delay. Rarely does delay improve a situation, it just postpones the problem. Be decisive.

See Mastery Habit - In Good Times Focus on Clients, In Bad Times Focus on Prospects

To review:

1. Prepare yourself
2. Settle clients’ worries through a rational argument using mass communication
3. Ask if they feel a need to reassess there risk and comfort level
4. Offer an opportunity to help others they know who are not being communicated with properly
5. Focus on prospects

How to Focus on Prospects

1. Add paragraph mentioned earlier to the bottom of your mass communication.
2. Contact every existing prospect, even those who told you to call them later. Offer them a “no cost, no obligation” analysis.
3. Call your Top 25 and ask for an introduction to other they know are worried. This is the only time you can do this without risk.

Investing is counter intuitive. One of the great counter intuitive investors is Warren Buffett. Read his letter to the New York Times here.

Forwarding this letter to clients might be a good way to comfort them in these difficult times.

Date: October 27, 2008

Time: 2:00 PM Eastern

Call in number: 646-519-5883 (note please mute your phone)

PIN: 1027#

Bridge Instructions: The bridge will open up 5 minutes prior to the start time.

Functions for Callers: To place oneself in mute, enter *6 To remove oneself from mute, enter *6

NOTE: The bridgeline is limited to 500 callers. If you call in after the max is reached you will recieve a busy signal. Branches please use conference room with speaker phone on mute.

Please read Lloyd’s Mastery Habit post titled In Good Times Focus on Clients, In Bad Times Focus on Prospects (click on the link)

During difficult times, first prepare yourself, see earlier Mastery Habit: Crisis Management. Then settle your clients worries quickly. Remind them that times like these have occurred in the past and will occur in the future. Help them establish a long view of the economy. They have no need to worry. Reconfirm the disciplined process that you have taken them through to determine their needs and the unique solution that they have working for them currently. Do not try to call or contact each client personally, use mass communication tools like email, broadcast fax, letter, podcast, or conference call. The exception to this would be your Top 20 Clients who you should call after you have sent the mass communication information.

Your mass communication email or letter should include the following:

1. A clear, positive, reasonable response to what is happening currently
2. A statement to calm their worries about the future
3. An opportunity to reassess their risk or comfort level
4. An offer to others they know who are scared or worried and do not have someone like you in their life to help them assess their situation. This offer should be a “no cost, no obligation” offer to assess where they are today, where they want to be in the future, and an action plan to get there.

The last part of your mass communication is most important. This is one of the rare opportunities when you can ask your clients to introduce you to others without any risk. Your clients know others who are scared in times like these and they may not have someone who is returning their calls. You will be surprised at the number of introductions that are only available during difficult times.

Your last action is to renew contact with every prospect you have. They are more open to change during difficult times than any other time.

One important point. This opportunity to focus on prospects is for a limited time only. Once the economy strengthens and the good times return prospects are difficult to move because they are once again happy with their current relationship. Do not miss this opportunity when it comes around. The greatest new growth for a business occurs in difficult times and is exponentially leveraged when things improve.

To review: 1. Prepare yourself 2. Settle clients’ worries through a rational argument using mass communication 3. Ask if they feel a need to reassess there risk and comfort level 4. Offer an opportunity to help others they know who are not being communicated with properly 5. Focus on prospects