Simon Senek’s book “Start With Why” is a phenomenon.
Published in 2011, the book extolled that people don’t buy what you do.
They buy why you do it.
Sinek’s theory suggested that of the two methods of influencing behaviour, manipulation and inspiration, most influence defaults to manipulation using ‘carrot or stick’ incentives.
Sinek’s book became a sensation, and his September 2009 TEDx talk remains at the top most viewed.
He is onto something.
Isn’t he?
Maybe.
But his theories didn’t work for Mandy Newman’s “$10000-Man”.
“$10000-Man” was the prospect who contacted Mandy the day after she had presented him with her advice proposal.
He wanted to know why he should engage as his estimates showed he would be approximately $10000 ‘worse off’ within twelve months.
The “$10000-Man” lesson is familiar to advisers who start their advice relationships with why.
Start with Why usually comes at a cost.
But that’s the point.
START WITH WHY COSTS
Starting with Why can be more costly than starting with what.
That’s one of the reasons most advisers start with what they do.
Another reason to start with what rather than why is because adviser training is currently based on what they do.
Being certified in superannuation, tax, risk, mortgages, or investments means advisers are qualified to advise on those areas.
Therefore, It makes sense to start with their area of expertise when advising clients.
For some advisers, starting with why is a “fluffy” distraction from the actual advice of understanding clients’ situations, reviewing options, preparing plans, and making specific product recommendations.
When the majority of advice enquiries are specifically hoping for an answer to a ‘what’ question (e.g. what should I do with my super, my investments, my property, how do I better manage my tax, etc.), starting with why only seems to make the starting conversations harder.
An obvious benefit of starting with the what is the direct link to adviser remuneration as the majority of advice fees are still directly linked to the amount of superannuation, insurance, mortgage, hours, or investments involved, regardless of the quality or value of advice.
Most advisers get paid based on the what, not the why.
The why costs, because it is not what most clients are asking for.
They seek advice about what they want, not why they want advice.
Confused?
So was Mandy’s “$10000-Man”.
ADVICE COSTS
“$10000-Man”, like many others, has been led to believe that advice removes costs.
Manipulated by years of marketing promises of “great returns”, “cheap fees”, or “genuine savings”, $10000 Man does not consider advice to be a cost.
Whereas, if advice didn’t cost, you wouldn’t need it.
According to Mandy, “$10000-Man” really needs it.
He is the typical overspender and juggler of too many bright, shiny opportunities with unmanageable FOMO. On top of that, he is way too busy to make the time for his own plan.
He’ll never know how lucky he could have been working with Mandy.
By starting with his Why, she understood the value he wanted to achieve in this life and the powerful forces he had to overcome if he had any chance of realising what is of value to him.
The advice path Mandy recommended to “$10000-Man” may or may not have cost him $10000 after twelve months.
But even if it did, the cost and long-term consequences of living a life built purely upon hopes, not one built upon tough but solid plans surrounded by support, accountability, new habits, and mindsets, his end cost will likely be so much more—probably his dreams.
Thanks to years of manipulative marketing and distribution tactics from product providers that have skillfully sold consumers what they want rather than why they need it, it is no wonder that “$10000-Man” and many consumers like him believe that the best advice bargains can be found on real or virtual financial supermarket aisles.
Mandy Newman and advisers like her can’t help consumers like “$10000-Man”, whose paradigms about advice make him suspicious about the relationships he actually needs to best achieve what is significant to him.
Starting with Why costs.
That’s why it is so valuable.
What do you reckon?
Photo credit: Start With Why Book | Simon Sinek – Simon Sinek
ABOUT JIM STACKPOOL
Since 1989, Jim has influenced, coached, and consulted financial advice and accounting firms across Australia. His training firm, Certainty Advice Group, skills comprehensive advisory teams to price and deliver valuable, methodical, non-person-dependent advice relationships with their clients. He has built a collaborative community of firms aligned to his firm’s comprehensive advice model – Certainty Advice – Australia’s only Certification Mark accredited by ACCC and IP Australia for impartial financial advice. He presents at conferences, has judged professional advice awards, written industry white papers, chaired practice management curriculum for tertiary institutions, and authored four books on financial advice – his latest being What Price Value.