I prospect for new individual 401(k) advice clients almost every day. Phone calls, e-mails, blog posts, and LinkedIn InMail’s. I use most all the tools I can manage myself.
One element seeking new 401(k) advice clients never changes. The initial resistance to a new idea. A new way of thinking about their 401(k).
Not willing to listen. Or think for one minute. A knee-jerk reaction of “not interested.”
So, I have had to change prospecting tactics in recent years.
Traditional selling is what I grew up with in the financial services industry. My generation of investment advisors valued “closing.” Always on the offensive. Always pushing products. Always trying to make the sale. Always trying to generate a commission.
“I know what you need. And I have what you need. Sign here.”
I will admit it has been an easy habit to break. But I have finally figured out a better way of approaching individual 401(k) participants. With my 401(k) investment advice service.
I no longer “go for the close.” Today, I will focus on the opening. Opening a conversation with the individual 401(k) participant. About a problem they might not know they have. Or a solution that they did not know about.
Opening conversations. Asking questions never considered before. Providing awareness of problems not known to exist. Providing outside resources to improve investment management decisions.
The improvement in investment management technology over the last few years is staggering. For both professional and do-it-yourself investors. Not enough individual 401(k) investors are aware of these changes. And how they can improve their 401(k) investment management decisions.
I no longer persuade. I ask questions. I gage interest and priority. I let the individual 401(k) participant decide if more conversation is necessary. Or sharing information.
Some 401(k) investors pay no attention to their retirement accounts. I met with a 64-year-old company executive a few weeks ago with a $1.2 million balance. She did not remember her login and password information to access her 401(k).
My 401(k) advice is not for that type of 401(k) investor. So, I do not push the issue.
I work best with a 401(k) investor who wants more and better information. With no product to sell. To better preserve 401(k) principal. And to improve his or her 401(k) mutual fund selections.
If this description reads like you want more information, comment below. Read again the elements listed above. At least you know our conversation will not be a waste of your time.
Ric Lager
Lager & Company, Inc.
I have spent years trying to improve my social media skills. Trying to find the best way to share my 401(k) expertise. Twitter, Facebook, LinkedIn Groups, blogging, etc.
I may have finally figured it out. Nothing beats a well-crafted newsletter delivered to your inbox once a week. With independent, fiduciary-level content specific to your 401(k) investment management decisions.
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