stylized radar screen in black with green dollar sign and radar sweeping line

Sometimes, we believe the wrong things and jump to the wrong conclusions. For example, when we prospect, we might think: "Is this prospect going to become a client? If not, why waste the energy?" Other times we might think: "They work with someone already. They will never move."

Why not establish yourself as the alternative instead?

Some people might think their advisor isn't perfect, but inertia is as powerful as gravity: They won't move. But if you are competing for business accounts, they are periodically put up for review and competitive bids.

Insurance professionals have several advantages over financial advisors. Many products are funded through cash flow. You don't need to pull money away from one advisor if you want to do business with another. There are different specialties in the insurance universe. People might work with one provider for some and a different one for others.

What does establishing yourself as the alternative mean?

An advisor in Northern California put it best. One day he got a call from a business owner letting him know they were setting up their business retirement plan with him. In these situations, he asks: "Why did you choose me?" They explained he kept his name in front of them, but wasn't intrusive. When it became time to make a decision, his firm was the logical choice.

How do you stay on the radar? Become a surrogate advisor of sorts. Don't expect much competition. Many people are resistant to handing out free advice. Here are a few scenarios:

Shopping for health insurance. A friend sees ads on TV. They are confused. They call their agent. After getting an explanation, they are even more confused. They know you are in the business. One night at a party (remember those?) they ask you for advice. You explain basic principles, how features vary and why that makes a policy cost more or less money.

Stock market volatility. They work with another advisor. Getting nervous with the ups and downs, they ask what the market will do. Aware they are unable to accurately predict the future; their advisor offers no opinions, is incredibly vague. So they ask you. You share the outlook provided by your firm or marketing partners. You are careful to use if/then examples, yet your friend can see why certain outcomes might be likely.

Why you are so busy. They work in a different industry. It's spring. They want to play golf this weekend, since their state has started to ease pandemic restrictions. You say no. Why? Because your weekend is consumed with preparing client reviews, tracking progress to goals and going over financial plans. You share an anonymous example of questions a client in a similar position to theirs should be asking their advisor. They wonder why they aren't getting this kind of service.

They have a paperwork problem. Maybe it's researching a cost basis on a stock they own or figuring out dividend reinvestment. Their advisor and their assistant put this on the back burner. You learn about their problem, do some research and tell them how to find the answer. Isn't that what friends are for? They wonder why their advisor wouldn't make the same effort.

They are in the dark concerning fees. They are thrilled they can put their money to work and not pay anything. You explain that not seeing fees isn't the same as not having fees. They might be raving about no load funds. Learning the name of the fund, you show how they can research built-in fees online. You explain when a client buys something, you tell them: "This is how we make money…" Why doesn't my advisor do that?

You are planting seeds. Over time, relationships get strained. By being a helpful friend and demonstrating your professional ethics, you have established yourself as the alternative. In some cases, your phone rings. In the others, you tactfully ask: "How are things going with your advisor?"

Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, "Captivating the Wealthy Investor" can be found on Amazon.

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The surrogate advisor's role

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