What makes an ideal advice prospect?
Are they the ones with the most money?
Is a client with $2M in assets more ideal than one with $1M?
For some advisers, yes. For most, it depends on other factors.
Financial advice revolves around money, but is the amount the most important factor?
What about clients with financial complexities?
Complexities are the heart of why people need advice.
Bunnings built a business model on solving the complexities surrounding our homes.
So, challenging complexities—like not outliving retirement savings—should be crucial for ideal clients.
But like Bunnings customers, once clients believe the complexities about their retirement, savings, or life transition have been addressed, do they continue to be ideal?
So, is the ideal client simply someone who can pay for advice?
It seems ridiculous to target prospects who can’t afford your services.
Or is it?
People buy things they can’t afford all the time: school fees, homes, holidays, weddings, and relationships.
Value always trumps affordability.
The Essential Factor.
Analysing adviser/client relationships for thirty years has led me to believe that the most essential attribute of an ideal client is respect.
Respect for you as their adviser and respect for your process.
No matter how much money they have or don’t have, regardless of unmet goals or unresolved complexities, whether they can easily afford advice, a client who doesn’t respect your approach isn’t ideal.
If a client assumes they know better, the advice process becomes order-taking. Is it too hard to perform an advisory role when the client is seeking you to fulfil their purchase like the team at Bunnings?
If a client continually questions your recommendations, your approach, your team, and your fees, it is ridiculous to attempt to serve their best interests.
Working with anyone, regardless of the amount of money involved, irrespective of the extent of their unmet goals, regardless of their complexities needing addressing, and irrespective of the ability to pay, without fundamental respect for your approach fundamentally affects your stress levels, your team’s confidence, your pricing power, and ultimately, your success.
Respect is the most essential element of an ideal advice client.
What do you reckon?
Jim
P.S. If you find yourself constantly justifying your fees, explaining your process, or feeling like clients don’t appreciate your value, you’re probably working with the wrong people. The right clients make everything easier. If you’re ready to explore how best to re-segment your clients, reply with “CLIENTS” for a 20-30 minute discussion about your best next steps.
Photo Credit: Clients_Shaking_Hands_with_Broker-Canva-photos-MAEW2rO7cDg