In his book "The Speed of Trust
," author Stephen M. R. Covey explains that in business, trust can act like either a tax or a dividend. More specifically, if your clients and prospects have a low level of trust in you, trust acts like a tax on your business. It
takes more appointments to persuade current clients to act on your recommendations. You have to invest more resources in marketing, advertising and other efforts just to convince prospects to give you an appointment. Low trust costs you more time, and it costs you more money.
Conversely, a high level of trust
between you and your clients and prospects acts more like a dividend. Everything goes smoother.
Decisions come faster. Actions are taken swiftly and confidently. Smooth is efficient. Smooth keeps things flowing, and enables you to help more people. High trust doesn’t just reduce cost; it actually earns you time and money.
Unless you’ve been sequestered in a Malibu mansion as part of a reality TV show, you are well aware that the markets have come back with a roar
. The Dow and S&P 500 have both recently logged new record highs.
You know what that means. Your clients are going to find it harder and harder to resist the temptation to jump back in with both feet. In classic “buy high-sell low” fashion, even clients just a few years from retirement will start getting the itch to take more risks with their retirement dollars. Their friends, family and probably your competitors are already in their ear, telling them what they should be doing with their money.
Who are they going to listen to?
If you’re the holder of a hefty trust dividend, it will be you. If you have proven over time that you put their interests first, it will be you. If you have helped them ride out prior financial storms and minimized the damage, it will be you. If you have a track record of delivering on your promises
, it will be you. If you are proactive with your message and don’t wait until you find yourself playing defense, it will be you.
It’s time to cash in your trust dividend.