What is the sixth huge mistake advisors are making today?

By Lew Nason

Insurance Pro Shop


So far, we have covered five huge mistakes that are keeping most advisors from reaching their full potential in this business. Have you really looked at what you are doing? Are you making any or all of these huge mistakes? What are you doing about fixing these problems?

Mistake number one: Believing that your IMO, insurance company, organization, manager, recruiter or broker/dealer is going to provide you with the tools, tips, training and coaching they need to be successful in this business.

Mistake number two: Relying on someone else for your sales leads.

Mistake number three: Not staying in constant contact with your current clients, friends, neighbors, family, prospects and everyone you know.

Mistake number four: Jumping into providing the solution before the client recognizes and truly understands the problems they are facing.

Mistake number 5: Believing the hot, new sales ideas and programs are going to make you an overnight success. Think about it. If this business were really about having the best products and/or hot new sales ideas, like people are telling you, then why are 90 percent of new advisors still failing? And why is the average income for advisers still only $40,000 to 60,000 each year?

However, that doesn't have to apply to you. You have the choice to be either ultra-successful or just average. It's entirely up to you. You can sit back, do nothing and hope that things will change. Or, you can take action right now to make things change. What have you done in the last 60 days to increase your sales and income?

Are you ready to learn the sixth huge mistake?

The sixth huge mistake advisors are making today is not conducting a complete annual review with their existing clients.

In today's highly competitive marketplace, you'll never be able to significantly grow your business if you're losing clients. More than ever before, firms are growing their businesses by going after people who are dissatisfied with their current advisors.That's why, in order to succeed today, you must focus on cultivating client loyalty and developing lasting relationships.

Trust fosters loyalty and builds relationships, but how do you build that kind of trust with your clients? The client annual review is one of your best opportunities to start building trust. And yet, most financial advisors routinely downplay its significance.The main purpose of the annual review is to assess unmet needs, identify changes and discover areas of dissatisfaction. Then, you’ll want to use this knowledge in ways that strengthens trust and deepens the relationship.
Why is the annual review so important?

Peoples’ lives change; they marry, they divorce, they die, they have babies, kids go off to college, they win the lottery, they get sued, they retire, they start businesses and they buy houses. And they lose focus on their goals. Every one of these events generates a reason for updating a financial plan. Without seeing your client at least yearly, you will never know of these changes and never get the business.

There are four key truths in this business:
  • No matter how good you are, you’re not going to get all your prospects' business during the first sale.

  • There is always more business to write (disability insurance, LTCI, wealth transfers, IRAs, 401(k) transfers, Roth conversions, life insurance, etc.).

  • Somebody else is trying to sell your clients and replace your business. When your business is replaced, not only do you lose that sale, but future sales, renewals (trailers) and referrals.

  • People are not really clients until they buy from you three or more times. The more people buy from you, the more loyal they become and the more they’ll refer you to the people they know.

  • People’s situations do change. New jobs, dependents, homes, attitudes and concerns provide you with more sales opportunities
Most advisors are so focused and busy with bringing in new clients, they are totally neglecting their existing clients. And then they wonder why they aren't getting any calls from their existing clients.