Selling

It's client-centered. It's about the buyer not the seller.
Specific products and services are provided. The prospect has a discernible problem that needs to be solved.
The advisor typically has a sales "track" to run on. The seller has a good deal of control over the selling process (if not the outcome). The sales track is predictable and can be practiced.
Sales support is often available from sales trainers, managers or colleagues. Sales training is often provided, allowing you to sharpen your skills.
A substantial amount of sales support literature is available to help solve problems. An advisor accepts that not everyone will buy, allowing him to be more relaxed.

Prospecting

It's seller-centered. It's about the seller not the buyer. (Do you feel you are worthy of referrals?) Referrals provide no obvious benefit to the referrer. In fact, they may be burdensome.
The referrer has no discernible reason or need to give referrals. It's the seller who is in need.
The advisor may not have a good prospecting track to run on. The most typical one is to ask "Who do you know?" A typical answer: "No one." As a result, the advisor has no sense of control over the referral conversation.
Advisors often have little support or training. There is relatively little prospecting literature available.
If the advisor doesn't have a well-defined target market or doesn't yet know the names of the referrer's contacts to prime the referral conversation, the conversation may prove unproductive.

See also: 10 steps to better prospecting

Instant Insights /

The difference between selling and prospecting