The Communicating Advisor

Correct it Now…or Pay Later

2009-09-25T14:04:00.000-04:00

By Katherine Vessenes, JD, CFP^®, RFC

For years, I have helped professionals in the financial services industry deal with the ever-present problems of compliance. To help identify the specific opinions and preferences of those in the industry, we surveyed 100 financial service professionals to gauge their thoughts, opinions and experiences. Needless to say, we received some very interesting information.

The most startling revelation was that nearly 20 percent of the respondents were aware of someone who had knowingly violated compliance rules and regulations. Imagine that. Twenty percent is an absolutely astounding amount. If twenty percent of the respondents are aware of someone who knowingly committed a violation, imagine how many violators they are unaware of.

The very frank, detailed responses from the participants were even more staggering. One participant said that these violations happen every day. “You can’t work in the securities industry and not violate an NASD or SEC rule every single day – it can’t be done,” said the respondent. This particular respondent has reached the mindset that violations are unavoidable. Once this mindset has been reached, something is definitely wrong.

These blunt responses are a direct reflection of the feeling on compliance currently shared in the industry. Advisors lack the time and desire to complete training. One respondent revealed that their reps have assistants, managers and other reps take the exams for them.

So what is the cause of this breakdown? Simply put, very few compliance officers “get it.” As an industry, we do a terrible job in training our reps in compliance and ethics. For example, let’s look at those dreadful computerized exams. First off, they’re very hard to read and boring. Looking deeper into the problem, these exams don’t focus on actual everyday scenarios. Worst of all, they’re begging, I mean really begging, for people to cheat on them. So we have a boring, difficult exam that’s easy to cheat on. This doesn’t sound like a very good process to promote learning.

In addition to the many problems in the training process, many advisors are forced to deal with inefficiencies in their office. Approximately 40 percent of the survey respondents had been told by compliance that they couldn’t do something that they knew was legal. So let’s get this straight, in an industry of tight rules and regulations, we’re now further confusing our advisors by incorrectly telling them they can’t do things that they actually can? Considering the previously discussed deficiencies in training, it’s easy to see how one could be confused.

Quite honestly, the industry is very discouraged over the current state of regulations because it eats into their profitability and time. Time is the most important resource of any organization, it’s always working against you and there is never enough of it. Consider that 13 percent of registered reps surveyed lose one entire day per week to compliance issues and paperwork. These reps are losing an entire day, in a world where we never have enough time! Well at least they’re putting forth the effort; 30 percent of the responding reps spend less than an hour a week on compliance. So we have reps either wasting too much time on the issue, or not spending enough time. Neither result is good for the advisor or the investor.

It would seem the advisors realize the seriousness of the issue, 45 percent of the respondents are concerned about facing an arbitration complaint or lawsuit. The truth is everyone should be concerned. Arbitration and lawsuits are not only financially costly, but very time consuming. To protect ourselves, these issues must be addressed to take the proper precautions. Visit www.vestmentadvisors.com for more information and to sign up for our eZine newsletter. Compliance concerns aren’t to be taken lightly, correct the problem now or pay later.

Katherine Vessenes, JD, CFP^®, president of Vestment Advisors in Shorewood, MN, is the country’s best known authority on the legal and ethical issues facing financial advisors. She provides advisors a bumper to bumper system to break down barriers and build up their business. She can be reached at Katherine@vestmentadvisors.com or 952-401-1045.

Creating a Strategic Communications Plan

2009-09-25T13:58:00.001-04:00

by Benjamin Lewis of Perception, Inc.

Some time ago I wrote that the summer months are the best time of year to sit down and decide on a communications direction for your company then create a comprehensive plan to help you achieve predetermined objectives. It seemed pretty straightforward when I wrote it. Then I got several emails from Communicating Advisor subscribers who reminded me that while it may be simple for someone like me who has been in communications for 17 years, it is not so easy for financial advisors.

So, to help my advisor friends out there who have never created a strategic communications plan before, I am going to take some time over the next several issues of this newsletter to lay out the vital components of a communications plan and how you can put one together with minimal difficulty. In fact, the most difficult part of the plan is step #1 which I am going to address today:

Determining what it is you want to do!

As business owners it is very hard for us to step back from what we are doing and take an honest assessment of where we are and where we want to go. It really is too hard sometimes to see the forest through the trees. I tell advisors all the time that they need to take a step back and identify those company goals and objectives for the upcoming 12 months. Think about your goals over the next year. Do you want to break into a new market? Do you have a new planning service you want to launch? Do you want to do more with the media or get some speaking engagements? There is no point in developing a communications plan unless you know what you want to do with it.

Now, the secret to creating your goals for the next 12 months is to not let yourself list off every goal under the sun, especially those goals that are clearly going to take longer than 12 months to achieve. You have to select goals that you know are 100% possible to achieve within the 12 month timeframe. Now that you have these goals in mind, you need to now develop “mini goals” that will help you achieve these primary goals. These “mini goals” are actually milestones you need to hit over the next 3, 6, 9 and 12 months.

For example, let’s say one of your 12 month goals is to launch a new website and integrate social media. That is one of your primary goals. In order to achieve that goal you need to have “mini goals” that ramp you up to launching that site. So, here are some mini goals that I would develop:

3 Month Mini Goals:

• Identify and hire web designer
• Create site map
• Develop website copy

6 Month Mini Goals:

• Have finished website completed
• Have website approved by compliance
• Create system for regularly updating website content

9 Month Mini Goals:

• Create an account on Twitter, LinkedIn and Facebook
• Create fan pages or groups for my business on LinkedIn and Facebook
• Create system for regularly updating content on the group pages

12 Month Mini Goals:

• Launch a blog that ties in the website and social media

This example is very basic and the mini goals need to be expanded even more because launching a website is one thing, but making certain it is dynamic and is driving traffic takes time.

So, the first step in creating a communications plan is to determine what you want to do. In the next issue we will discuss how you identify your mini goals and why you need to follow “front burner, mid burner, back burner” in the plan.

The Lucky Seven Keys To Conversation And Networking

2009-08-20T12:47:00.002-04:00

By Katherine Vessenes, JD, CFP - Vestment Advisors, Inc.

“It’s all about who you know.” I’m sure you’ve all heard this mantra before, possibly when it came to getting a recommendation, finding a job, or in this case, landing a prospect or account. Networking is essential to the process of prospecting, but how do you do so effectively?

To start with, always keep your eyes open for no-cost marketing events. Don’t know what I’m talking about? I’m willing to bet you often find yourself in situations when you can speak with of a lot of people, but simply may not recognize them. Your children’s sporting events, the waiting room at the doctor’s office and even time spent on an airplane all have the potential for interaction with prospects who share your interests.

Here’s a good example, last year I was in the locker room after working out when I noticed the pleasant-looking woman next to me was changing into a very nice suit. We struck up a conversation beginning about her workout but eventually changed gears to what she did. Turned out she also worked in financial services! After her prompting, I was able to give my elevator statement. It wasn’t long before we were discussing her firm, their challenges and more.

The next day I sent a nice, handwritten thank you note and my business card to her office. The note simply noted how nice it was to meet, congratulated her on her new position and expressed my hope to cross paths again. I closed the letter letting her know she could always contact me if she had any questions. Sure enough, one of her co-workers called me about six months later, to speak to her top 80 female brokers! The same person I had spoken to for only a few minutes in the locker room had passed along my information which led to a wonderful opportunity, all for only a card and a few minutes of conversation.

Now I know what your saying, “Katherine just going up and talking to someone you don’t know isn’t easy.” I disagree. Here are my Lucky Seven Keys to Conversation and Networking:

Key #1: Ask Q’s Receive An A+ – By simply asking questions and avoiding talking about yourself, you’ll find conversation is not all that difficult. Why? People love to talk about themselves! Get them talking about themselves and the conversation will get off to a great start. Try to ask open ended questions that force the other person to give you more than a simple yes or no answer.

Key #2: Networking Need Caring – It is essential that you show a genuine interest in the other person. If you come across as any less, they will see right through you. When talking with them, be honest and straightforward – this will demonstrate your genuine interest to the other person. Be sure to maintain good eye contact, as that is one of the keys to strong non-verbal communication. Most of all, listen. It’s easy to get wrapped up in thinking about what you’re going to say and stop paying attention to what you’re being told. Listen, always listen.

Key #3: Business Cards Still Work - Make sure you have plenty of business cards with you. In case you weren’t aware, never ask someone if you can give them your business card, ask for theirs. In giving you their card, it’s only good manners that they take one of yours in return. This is a nice way to circulate your card among others while collecting contact information from possible clients. If they don’t have a card on them, hand them two of your own so they can write their contact information on the back.

Key #4: Mingle Around – This is especially important at gatherings with large groups of people. The more people at the event, the greater likelihood you can find some real prospects. The key to Key #4 is that you have to meet them first. If you attend an event with a co-worker, try what my husband Peter and I do. Split up and work separately. That way you can cover more people and “prescreen” the prospects that may have more in common with your co-worker. Whether with a co-worker or flying solo, it’s essential that you circulate the room to meet as many people as possible.

Key #5: Be Ready With Your Elevator Statement – In meeting someone new, it’s only a matter of time before you’re asked the inevitable question, “what do you do?” It is this question that creates the opening for you to present yourself in the most compelling of manners. Delivering a strong elevator statement that compels the person to ask for more information is a powerful tool to increase your business.

Key #6: Handwritten Notes Matter – It is very important to follow up with a note, but not just any note – a handwritten note. A note that is handwritten on high quality paper can bring about a much greater impact than you may realize. Recipients appreciate the time and effort put into handwriting a note opposed to sending out an automatically-generated message. Sending the handwritten note also provides one more opportunity to send along your business card.

Key #7: Keep Contacting – As you meet more and more people and accrue more contact information, be sure to add the names to your drip marketing list. If you have a written or online newsletter, add your new contacts to the list to begin dripping on them. With each “touch” they will become more and more familiar with you and your brand. If done well, you won’t need to worry about calling them – they’ll call you.

Effective networking cannot be artificial; it must be from the heart. I’m not telling you to go take acting classes because that’s not what I’m implying. Don’t be pushy, doing in with the expectation of getting business out of it. Simply go in with the mindset that you’re getting to know other like-minded people who are prospects. You won’t always attract clients, but you will make a lot of new friends.

Katherine Vessenes, JD, CFP^®, is America’s best known authority on the legal and ethical issues of financial advisors. President of Vestment Advisors, she can be reached at Katherine@vestmentadvisors.com.

Forge Relationships with the Media by Going Above and Beyond

2009-08-20T12:38:00.002-04:00

By Benjamin Lewis - President of Perception, Inc.

The following is an excerpt from my book Perfecting The Pitch: Creating Publicity Through Media Rapport.

To truly develop a long-lasting, positive relationship with the media, you must be prepared to do more than present interesting pitches. Simply sending out information and fulfilling media requests will not be enough. If you can go “above and beyond” the call of duty, you will cement your credibility.

Journalists are excellent communicators. They can quickly absorb new facts and understand new situations. But this does not mean that they are experts in your industry. An automotive sector reporter, for example, can give his audience a description of how a car handles, and which features are attractive. Yet, that reporter may not know how, or why, those new features operate as they do. A financial for a national newspaper can write about the latest investment trends and investment products, but she is not working with real clients who are making the investments. You are in a special position to explain in detail how things work, and to show reporters the practical, real-world applications of technologies, products, and services.

Going “above and beyond” means making the extra effort to help the reporter understand that linkage. If you come across a statistic or a new study, share it. If you have a client or customer who is willing to be a real-life source, tell the reporter. If a reporter calls to bounce a couple of ideas off you because you are the expert, be helpful. Each of these will solidify the Foundation of Media Rapport.

How does going “above and beyond” help you? Here’s how:

Relationship Building – You want to be viewed as a resource willing to do what it takes to make the reporter’s job easier. A happy journalist will keep coming back.

Word of Mouth – Colleagues at newspapers or TV stations share sources, and the read articles or watch reports by their competitors. If you have developed a reputation as a good source, you will get more calls and e-mails for interviews. Rather than having one great contact at only one outlet, you may end up with three, four, or more!

Think of it as the equivalent of having a clients who become your advocates and refer all their friends to you. The better you can do for your media “clients,” the more business it will mean for you.

Example:

At Perception, Inc. we have had the privilege of working with thousands of journalists across the country. Often, our new contacts have come from members of the media with whom we worked successfully in the past.

For one of the major financial wire services, we have become in the informal “go to” public relations agency when their reporters need a rapid response by individual financial advisors to stock market shifts. This opportunity grew out of a relationship with one reporter, who then shared his positive experiences with his colleagues. They tested us, and found that we were reliable. Now, our clients benefit from this steady access to international reporters.

Friendships – Ultimately, you want to be viewed as a friend by the media. A friend won’t steer you wrong, won’t take advantage of you, and will always be there when you need them. Going “above and beyond” not only creates a working relationship, but a friendship. The first time you can pick up the phone and just have a conversation with a member of the media, whether it’s about the weather, family, or some other non-related industry topic, you know you will have created a friendship.

Tip/Idea

We are strong believers that members of the media need to be recognized for a job well done. Reporters appreciate knowing that people are reading what they are reporting on (or watching their reports). We encourage all of our clients to send “Thank You” notes to journalists from time to time, referencing a specific article or observation that they found to be valuable.

A handwritten note is a powerful tool in your rapport-building arsenal. It shows you are paying attention, it shows you care, and it keeps your name front and center.

First is a note you might sent to a reporter who did not speak to you, but who covered a topic related to your business:

Dear Steve,

I just wanted to take a moment to thank you for writing the story on the growing problem of leaking underground storage tanks. The problem is more serious and more widespread than most people realize. My company has been working with large chemical developers to advance clean-up procedures for several years. If we can help you in the future, please do not hesitate to call on us.

Thanks again,

Roger Sanders
Environmental Clean-Up, Inc.

Here is a thank-you note that you might send to a reporter who interviewed you for an article:

Dear Melinda,

Thank you for the opportunity today to let me share my observations about the growing need for 401(k) advice services in top corporations. This is a really important issue for all the retiring baby boomers who don’t have pensions to protect them. Your work will help people understand the options they have a little better.

If I can be of assistance to you in the future, please let me know. I will make myself available to you whenever you need a resource on this important issue.

Warm Regards,

Betty Jones
401(k) Advisory Services, LLC.

Business Opportunities – Reporters know people. In fact, they know many people. If they are impressed with you, your company, and your product or service, they will recommend you to others they come across. We hear members of the media tell us stories about how they use a financial advisor we work with because they had a good experience working with them on the stories they are covering. We have had reporters tell us they have recommended specific financial advisors to their family, friends, and audience members. The same story applies to any other service industry.

Going “above and beyond” should never be forgotten. Professionals, business owners, experts, and others who just do the minimum will fade out eventually. Doing everything you can to help them do their jobs a little bit better will keep you top of mind.

Planning Ideas—CLATS Couldn’t be Better

2009-07-31T11:25:00.007-04:00

By Cannon Financial Institute

Planning Ideas—CLATS Couldn’t be Better

With interest rates at historic lows, it may be an opportune time for your clients to take advantage of a Charitable Lead Annuity Trust.

How it Works

A CLAT is a charitable trust under which a public charity receives a fixed annuity interest for period measured by a term of years or a life or lives. Following expiration of the charity’s interest, the non-charitable beneficiaries, most often the donor’s heirs, receive the trust property.

The mechanics of a CLAT are illustrated in the following example and diagram.

Dave W. owns commercial property valued at $10 million. The property generates $1 million in rents annually. David has sufficient income from other sources to meet the needs of him and his wife. He would like to transfer the commercial property to his two adult children outright, but is wary of gift and estate taxes. Furthermore, Dave wishes to benefit his favorite charity, a nationally known organization dedicated to the prevention and treatment of cancer. He’d prefer to donate to the charity during his lifetime, so that he can see the impact of his contribution.

Dave’s financial advisor, Charlene, recommends a CLAT. Under the terms of the CLAT, the charity receives 10% of the initial value of the gift ($10 million) semi-annually for 15 years. Assuming an Applicable Federal Rate of 7%, the value of the charitable interest is approximately $9,265,000. The value of the e remainder interest to children is only $735,000. However, if the underlying property has appreciated to $20,000,000 over the 15 year term of the, Dave will have passed over $19 million outside of the transfer tax system to children.

The CLAT is an especially effective way for a donor to transfer appreciating property such as a closely-held business interest or commercial real estate, to his or her heirs at a discounted transfer tax cost. The value of the gift to heirs is the current value of the property less the value of the charity’s interest. Appreciation over and above the annuity payments made to charity pass to the family free of federal transfer tax.

Federal Income Tax Considerations

If the trust is structured as a grantor trust, the grantor is taxed on the income each year, but receives an income tax deduction in the year of the gift equal to the value of the charitable interest. If the trust is not structured as a grantor trust, the donor is not entitled to the income tax deduction.

Whether or not to structure the trust as a grantor trust depends on several factors:

Limits on charitable contribution deduction limits—Charitable contributions to a CLAT are considered “for the use of charity” rather than “to” charity. Consequently, the deduction limit in the year of the gift is 30% (or 20% in the case of appreciated property), rather than the usual 50%. Although amounts not deductible in the year of the transfer may be carried over to future years, the amount of a donor’s income in the future may not sustain the deductions.

Taxability on trust income—The donor is taxed on trust income for the duration of the trust, not just the first year when the charitable deduction is available to offset trust income.

Consequently, most practitioners agree, grantor CLATs are most appropriate for donors whose income in the year of the gift is expected to significantly exceed anticipated income in future years.

Federal Gift Tax Considerations

Regardless of whether the CLAT is a grantor trust for income tax purposes, the value of the charitable interest qualifies for the gift tax charitable deduction. Furthermore, the gift of the remainder interest is the value of the entire gift, less the charitable interest, rather than the entire value of the property. The gift of the remainder interest does not qualify for the gift tax annual exclusion, because it is a gift of future interest. However, any unused gift tax exclusion equivalent is available is available to shelter any gift tax payable. The amount of the gift tax exclusion equivalent in 2009 is $1 million per donor.

Federal Estate Tax Considerations

No portion of the transferred property including future appreciation is included in the donor’s estate for federal estate tax purposes.

Federal Generation Skipping Transfer Tax Considerations

In general, a CLAT is not recommended for transferring property to heirs beyond the donor’s children’s generation. This is because the GSTT exemption is allocated not against the initial value of the remainder interest at the time of the gift, but rather against the appreciated value of the trust property upon termination of the trust. The current (2009) GSTT is $3.5 million per donor.

Financial Considerations

As the AFR declines, the value of the gift to charity increases and the value of the remainder interest decreases. This is because with a lower AFR it is assumed that a larger amount of property is required to generate the payout to the charity. However, if the income and appreciation on the transferred property exceeds the AFR, the non-charitable beneficiaries win. The income and appreciation over and above that necessary to make the required payout passes transfer tax free to the heirs.

Figure 2 illustrates the benefit of a lower AFR rate. The value of the transferred property is assumed to be $1 million, the term 20 years, and the payout rate 5%.

AFR	Value of Remainder Interest	Value of Charitable Interest
11.2%	$606,990	$393,010
3.6%	$296,770	$703,230

Returning to the earlier example involving Dave W., if the current AFR (June 2009) of 2.8% were used, the value of Dave’s current gift to his children is effectively reduced to zero. At a 7% AFR, the gift to heirs was $735,000. Assuming a 45% gift tax rate, federal gift taxes saved, due to the lower AFR, equal $330,750.

Bottom Line

The more services you provide to your clients, the more loyal they are to you and the more insulated they are from your competitors.

Cannon’s Certified Wealth Strategist (CWS) coursework contains ideas on how to gain insight on your clients’ charitable goals. The CWS coursework also contains extensive training on the use of charitable trusts to benefit your clients and the charities they value.

Disclaimer: The materials and information contained herein are intended for educational purposes, to stimulate thought and discussion so as to provide the reader with useful ideas in the area of wealth management planning. These materials and information do not constitute and should not be considered to be tax, accounting, investment, or legal advice regarding the use of any particular wealth management, estate planning, or other technique, device, or suggestion, nor any of the legal, accounting, tax, or other consequences associated with them.

While the content herein is based upon information believed to be reliable, no representation or warranty is given as to its accuracy or completeness. For this reason, the program of study should not be relied upon as such. Although effort has been made to ensure the accuracy of these materials, you should verify independently all statements made in the materials before applying them to your particular fact pattern with a client. You should also determine independently the legal, investment, accounting, tax, and other consequences of using any particular device, technique, or suggestions, and before using them in your own wealth management planning or with a client or prospect. Information, concepts, and opinions provided herein are subject to change without notice.

The strategies contained within these materials may not be suitable for all clients. For many concepts discussed herein, clients are strongly urged to consult with their own advisors regarding any potential strategy and will need to discuss their particular circumstances with their legal and tax advisors beforehand to determine whether a particular strategy described herein is suitable for their particular circumstances.

Examples, provided throughout these materials, are for illustrative purposes only, and no representation is being made that a client will or is likely to achieve the results shown. The examples shown are purely fictional and are not based upon any particular client's circumstances.

43 Websites to get FREE Images

2009-07-31T11:19:00.001-04:00

By JD Smith of Ninety Degrees North Design

The perfect image can help keep your reader interested in your writing. It can help explain and drive your point farther than your words alone. In the past, purchasing stock photography required at least $300 to order a CD where there was only one or two images that you could even use.

Times have changed and now when you are you looking for the perfect photo for your latest presentation, proposal or newsletter you can get it for really cheap or even free!

We have generated a list of 43 websites who offer free images. They run the gamut on the quality of their photography, but overall the vast number of them will probably have something to help you spruce up your next marketing piece. Although this is in no way an endorsement on our behalf for any of these companies, we would like to provide this list to you as a reference for your next design project.

1. http://www.123rf.com/freeimages.php
2. http://www.abstractinfluence.com
3. http://www.adigitaldreamer.com/gallery/index.php
4. http://www.animationfactory.com/en/
5. http://www.artfavor.com/
6. http://www.burningwell.org/
7. http://www.cepolina.com/freephoto/
8. http://www.clker.com/
9. http://www.dreamstime.com/free-photos
10. http://www.energy.star29.net/store/
11. http://www.everystockphoto.com/
12. http://www.freedigitalphotos.net/
13. http://www.freefoto.com/index.jsp
14. http://freeimageslive.co.uk
15. http://www.freejpg.com.ar/
16. http://www.freelargephotos.com/
17. http://www.freemediagoo.com/
18. http://www.free-photographs.net/
19. http://www.freephotosbank.com/
20. http://www.freepixels.com/
21. http://www.freerangestock.com/
22. http://www.freestockimages.net
23. http://www.freestockphotos.com/
24. http://www.graphicsarena.com/
25. http://www.imageafter.com/
26. http://www.imagetemple.com/
27. http://livepict.com
28. http://www.morguefile.com/
29. http://office.microsoft.com/en-us/clipart/default.aspx
30. http://www.openstockphotography.org/
31. http://www.photocase.com/en/
32. http://photoeverywhere.co.uk
33. http://www.photoxpress.com/
34. http://www.photogen.com/
35. http://www.photorack.net/index.php
36. http://www.photoree.com/photos/start
37. http://www.pixelperfectdigital.com/free_stock_photos/
38. http://www.stockvault.net/
39. http://www.sxc.hu
40. http://www.tofz.org/index.php
41. http://www.turbophoto.com/Free-Stock-Images
42. http://www.vintagepixels.com/
43. http://www.woophy.com

How Your Assistant Can Be The Key To Bringing In More Business

2009-07-31T11:13:00.001-04:00

By Katherine Vessenes of Vestment Advisors, Inc.

What if I told you the key to your success, the lightning rod to bringing in more business and building your practice is already in your office… and it’s not you. No, it’s actually your assistant! While your scratching your head, let me go farther to explain that your assistant should totally run your client service operation. You heard me right. It all begins by making your assistant your Client Service Manager (CSM).

What’s a CSM you ask? Your CSM takes the responsibility of tasks and responsibilities in non-revenue-generating tasks. This opens up more time for you to increase business! Your income potential will swell by hiring the right support staff, and your CSM is at the top of that list. Adding the right support staff is critical to generating more money for your business.

To optimize the use of your CSM, you cannot look at them as “just an assistant.” This person becomes the Chief Operating Officer of your business, enlisting a great deal of responsibility. The CSM controls your time, prepares you for meetings, intercepts interruptions, handles all service requests, sets appointments, and does whatever else it takes for you to concentrate on increasing business. Your CSM is at the heart of your operation.

So who should be my CSM you ask? Well, the role requires a capable individual who is committed and dependable to your business. Your CSM should be organized, social, and a strong researcher. You’ll want to be certain the person is appropriately licensed with adequate experience in the industry. This is important to maximize the freedom the CSM provides to you.

In hiring the right CSM, it’s critical that you develop a strong job description that clearly outlines the functions and expectations of the role. Try this: "Successful financial advisor needs Chief of Staff. You: Great with clients, very organized, can manage/supervise multiple projects and never let anything slip through the cracks. Base pay plus bonuses for helping me reach my goals. Securities and insurance licenses a big plus."

The type of candidate who best fits this role tends to require stability, not risk, in their income. The personality traits linked to being an effective CSM (attention to detail, organization, systematic) also lead those individuals to be wary of commissioned-based payment. The right person will be attracted to a set salary and bonus incentives so it’s important to factor that into the compensation that you’ll offer.

When searching for the right candidate, don’t discount a junior rep. If you are so busy with clients that you need another advisor to meet with them, a junior rep is a great choice. If you’re looking for the support that requires a license to fulfill the responsibilities associated with fulfilling your recommendations and strategies, you are better off transitioning an assistant into the role. A junior rep is more likely to exhibit similar character traits as you, something that can easily lead to conflict. Don't make the move unless you know its right for your situation.

If you choose to transition an assistant into the CSM role, you must assure them that you are empowering them for the long term. They need to know their position isn't a new one but rather an expansion of their former role. Also, you should make sure to supply a base salary that creates a sense of stability. It is only natural for a person with the personality traits of a good CSM to look for stability before accepting the change.

As with many new or unconventional practice methods come questions of why this isn’t a regular practice across the industry. The two main factors are a fear of loss of control and fear of financial repercussions. We’ll first look at the loss of control: advisors often have a hard time sharing authority with other members of their teams. In enlisting a CSM, you are delegating a great deal of influence over to someone other than yourself. That said, you are only one person, and in order to transition your practice into a business, it is vital that you delegate authority. A CSM is a great place to do so, as it opens up so many opportunities for you to grow your business.

The other detractor was money. It’s easy to see why some advisors may not feel comfortable investing in the payroll necessary to attract a quality candidate. Peter and I recommend paying around $30,000 to $45,000 annually including performance bonuses. That may seem like a large investment, but the lesson here is that hiring someone is going to help make better use of your time in bringing in money.

Over the long run, the investment you make in your own time will pay large dividends. Developing your assistant into a CSM will help to provide relief from the stress and frustration of tasks unrelated to the growth of your business. It’s important to realize that great employees are assets, not expenses. By empowering your assistant to become a great CSM, you improve your business by way of creating a strong system built on great employees; a system designed to bring in more and more business over time!

Katherine Vessenes, JD, CFP®, is the country’s leading authority on building the multimillion dollar practice. A popular coach, attorney, author and speaker, she can be reached at: Katherine@vestmentadvisors.com, www.vestmentadvisors.com or 952-401-1045.

It Takes Passion

2009-07-31T10:24:00.001-04:00

It Takes Passion

By Benjamin Lewis of Perception, Inc.

The following is an excerpt from Ben Lewis' book, Perfecting The Pitch: Creating Publicity Through Media Rapport (www.MediaRapport.com)

Your competence is at the core of building respect and rapport with the media. But it takes more than competence. Passion is the other key ingredient to a mutually beneficial relationship with the media.

Fortunately, as a business owner and entrepreneur, you probably already have great passion for what you do. In working with owners, entrepreneurs, and other professionals and experts, I have seen the power of the passionate approach. Without exception, these leaders are passionate about what they do (why else would they be doing what they are doing?!). Their passion is infectious. Leaders get people believing in what they are saying and selling.

Deepak Chopra, Tony Robbins, and Zig Ziglar have developed cult-like followings because of passion. Sure, their ideas and belief systems resonate with people; that’s the substance of their message. But if you see them speak, you quickly realize that their passion creates the real connection with their audience.

Your passion sells your products, services, and ideas. Think about the last time you were presented a sales pitch for a product or service you may have been considering. Was the person presenting to you passionate, excited, and informed? Did he or she make you feel that the product was the best possible solution for you and your needs? How the person presented the product was as influential as the product itself.

I am in my second decade as a public relations profession, and I have dozens of clients in the financial services business. My clients and I have endured enough changes in market conditions to last a lifetime. We rode high during the dot-com bubble economy of the late 1990s; we struggled with panicked investors when the market downturn began in 2000 and was worsened by 9/11; and we tried to explain the origins of the rebound of the past few years.

Through these business cycles, I have seen the media adopt and discard hundreds of story lines. Boom and bust. Exuberance and collapse.

For each era, we developed a specific message, or set of messages that spoke to the issues foremost in the minds of investors. During the dot-com boom, we reminded people that the extraordinarily good times could not last forever. During the market correction, we focused on making good long-term decisions. During the remarkable resurgence, we praised America’s economic resiliency, but we also warned that the housing market was showing some of the same signs of a bubble that the dot-coms did just a few years earlier. Each of these messages was consistent with the big-picture principles of responsible investing that my clients wanted to portray.

Through it all, I have counseled my clients that, while they cannot control events, they can control how they want to present their story. They need to be consistent in their approach and honest at all times. The must develop their storylines (their brand identity), and stick with it. Make sure that the media and the general public knows what they stand for, and that they are passionate about their beliefs.

My clients approach the art of selling every day. Good ideas and deep knowledge are critical. But it’s just as critical that they come across as excited about what they are doing. The business owner who is passionate will generate passion in the media (and in his or her clients, as well).

Keep this in mind…content is important, but passion sells. It doesn’t matter if you are presenting an idea, a product, or a service. It doesn’t matter if you are talking to a client or customer, a prospect, a business partner, or a member of the media. If you are passionate about what you are offering, your audience will buy in to it.

This is what separates people like Kato Kaelin from Tony Robbins. Knowledge, experience, content, and passion give people staying power. They grow their opportunities with the media into effective, long-term relationships. The ideas in this book are only going to work if you have the passion.

Make members of the media believe in you, and you can go beyond your 15 minutes of fame!

Tips for Developing Your Logo

2009-07-15T08:38:00.001-04:00

By Jessica Smith, 90 Degrees North Design

Think of some of the nation's largest and most recognizable companies. One of your first thoughts (if not the very first) is likely that of their company logo. While developing a strong verbal brand to differentiate your business is essential, manifesting that verbal brand visually is equally important.

In creating a visual brand, the company logo takes center stage. It will obviously be featured on everything your business produces – from letterhead and business cards to your website and the front door of your building. Since the logo is going to be everywhere it is vital to have it not only professionally developed and visually appealing, but a proper and recognizable representation of your business and your brand.

Here are a few tips to consider when creating your company logo:

Different - Just as your business needs to stand out from the crowd, so does your logo. You don't want a logo similar to what everyone else is doing. You want your logo to be you.

Understandable - Who wants a logo that no one can understand? While your logo should be unique, others shouldn't struggle to read or interpret its meaning.

Message - The message behind your logo should resonate with the clients, prospects and media you are hoping to attract to your business. Understand the core messages and mission of your business and ensure your logo reflects it precisely.

Color - A full-color logo can add a great dimension to your marketing materials, but remember that the logo should function well in black and white as well. When picking colors make certain they reflect the message you are trying to convey and be consistent with the colors throughout your marketing.

Simple - Your logo isn't a novel, keep it simple and clean. Not only will it be more visually appealing and easier to apply throughout your marketing, but those in your audience will be able to connect with it more.

Once your logo is finalized, it must follow your tagline everywhere your business goes. Doing so not only familiarizes the name of your business but continues to reinforce the message of your brand and differentiation.

Five Steps to Creating Your Own Red-Hot Elevator Statement

2009-07-15T08:20:00.001-04:00

By Katherine Vessenes, JD, CFP®, RFC

Have you ever been asked what you do and found yourself mumbling “I am a financial advisor,”? It shouldn’t come as a surprise when your listener smiles and walks away. You just missed a great, no-cost, opportunity to gain a new client. The key is to have a well-prepared description of your business, motivating the listener to do business with you. You need an elevator statement.

In case you missed Advertising 101, in marketing lingo, an elevator statement is a punchy description that answers, “What do you do?” Your mini-commercial is so short you could spit out the answer on a short elevator ride.

Your elevator statement should be so compelling, the listener asks for more information. You want a response like, “Wow. That sounds interesting. Do you help people trying to put their kids through college?” If your listeners are only smiling and changing the subject, the statement needs work. You must capture their attention early, and let them know you understand and can solve their problems.

Rushing the process yields lousy results. The process can take an entire day working with experienced professionals, or even longer. I know because we have developed dozens of these over the last few years. Also, most people need outside help. Even we hired a public relations consultant to help with ours. We were so close to our own story, we couldn’t see the forest through the trees.

Here are the steps to creating your own red-hot elevator statement:

Step One: Put yourself in the client’s shoes

Your client is “the marketing genius.” An effective elevator statement comes from their perspective, dealing with their problems. The statement should paint a picture of their ideal future.

Pull together your staff, spouse and good friends to list every reason that answers: “Why do our best clients like working with us?” Using flip chart paper, fill up three or four pages and then vote on the top three-to-five key phrases that describe what motivates your clients to work with you. Then, get feedback from your best clients and a few centers of influence, people who weren’t at the original brainstorming session.

Step Two: Identify Your Target Market

No successful business is all things to all people. It is important to identify your target audience, as it helps the listener decide if they fit into your target group. You should include your target market in your elevator statement.

One of the most powerful elevator statements ever created was by Volvo: “For safety conscious car buyers, Volvo is the automobile provider that keeps you and your family safe.” It quickly identifies the target audience: safety conscious car buyers. Those concerned about driving safety won’t want to miss the information because it pertains to them. Also notice the elevator statement painted a picture of their future: a safe family.

I reworked the statement a bit, “For the safety conscious investor, we are the planning firm that keeps you and your family safe.” Most compliance departments will have a problem with this, but you might get lucky; give it a try!

Step Three: Create your statement using a template like this

Using your top factors, fill in the blanks as a starting point to create your own elevator statement. “We provide ___ (benefit), ___ (benefit) and ___ (benefit) for ___ (target market), so they can ___ (paint ideal picture).”

Our first draft was, “We have a team of experts who help Boomers reduce their taxes, so they don’t run out of money in retirement.” After refining: “Most of our clients are Boomers and pre-retirees concerned about running out of money in retirement. Because this area is complicated, we use a team of experts to help them reduce their taxes so their money is working harder and they can retire with confidence.” The gutsy can go one step further and add: “So, is running out of money in retirement something you have thought about?”

Step 4: Memorize it

Everyone in your business needs to memorize the statement. They are ambassadors for your business and must be able to recite the statement with confidence and grace.

Step 5: Test it out on your key stakeholders and your best clients

Let them tell you if it is compelling and motivates them to want to do business with you.
Final tip: Think like Tony Robbins:

If you ran into Tony on an elevator and asked him what he did, you would get an enthusiastic response. Learn a lesson: Be enthusiastic! If you’re not excited about what you do, why will anyone else be motivated to work with you?

Here’s a great intro: “I have the greatest job in the world; I get to help Boomers acquire and protect their wealth so they can live the life of their dreams.”

You Talkin’ To Me?

2009-07-15T08:15:00.001-04:00

By Benjamin Lewis, Perception, Inc.

You have a great story idea in mind that you want to turn into a media pitch that you just know will help increase the awareness of your business. You've thought the idea out and know exactly how you want to craft the pitch to garner the best possible reaction from the media. But before you sit down and put pen to paper you must answer one simple question…"Who are you talking to?"

While your message may be a great fit for one outlet, it could be a terrible fit for another. Before you decide which outlet you are going to pitch, it is absolutely critical to define the audience you are intending to reach. If you are looking to gain publicity for your business through media rapport (which you can learn more about at www.MediaRapport.com), you'll need to write a pitch that appeals to the people who read the newspaper or watch the program you are planning to pitch!

You want to avoid pitching technical and detailed ideas to general, consumer-oriented programs. Why? Quite simply a majority of their audience won't understand it. When developing your message for this type of outlet, your idea must identify with their common viewers and readers by discussing topics important to them, using language they can understand. That’s not to say every consumer outlet is simplistic in content. Worth and Fortune magazines are consumer publications but the information they provide is much more technical.

To create a pitch for a media outlet that focuses on your industry, develop a message that will appeal to your peers who read and watch those various publications and programs. Discuss ideas and topics that will be relevant to them. This is your opportunity to be more technical as the audience will understand what you're talking about.

Pitching various outlets is like speaking different languages. If you speak French to someone who only understands Spanish, your message will not be understood. The same goes for crafting a story idea for the consumer-media or industry-media. If your pitch uses terms and discusses topics that don't affect that outlet's audience, you might as well be speaking in a foreign language. Know your audience, and write to them in every pitch you create.

Communicating with Gen X and Y: Some Guidelines for the Baby Boomer Advisor

2009-06-30T08:27:00.003-04:00

By F. John Deyeso, CFP, CFA

Every generation has unique traits that define them; these traits can run from the complex, common experiences, attitudes and beliefs, to the simplistic, fashion and music. If Boomer advisors are to successfully communicate financial advice with this younger generation these generational differences and their influences must be understood.

The mathematics of financial planning does not change, regardless of generational differences. If you want to buy something in the future, you have to save for it today. The key for the advisor is to communicate actions around finances in such a way that the individuals move from theory to implementation. Let’s start by examining the largest hurdle any Baby Boomer advisor will face.

“You’re our parent’s age.” Gen X and Gen Y clients have parents, and if they wanted to be lectured to, they could do that for free by simply calling their parents. Gen X and Gen Y clients will not stay clients if they feel they have just paid for a lecture by their parents. Prove to your Gen X and Gen Y clients that you understand them, their unique needs and that you have solutions tailored for them, not simply modifying what you use for Boomer clients to fit them. They do not want their parent’s financial plan.

The Boomer advisors are best served by understanding their young client’s problems and have solutions. State that from the outset of the engagement, Gen X and Y clients want to know you’re there to help them, and that this is not simply a favor to a wealthier client. How do the Gen X and Y clients differ from their parents?

Student loan debt, credit card debt, poor credit score, or building a budget. Any one of these items may be the driving force behind what have brought them to seek financial advice. Once again, this is not lecture time, rather solution time. Don’t make them feel bad about where they are, have a set of tools and procedure that can help them get what they need
Retirement, job hopping and “free agent” status. This is the generation that grow up watching our parents lose their jobs and where coming from the divorced home is more common than not. Unlike our parents, we do not believe that Social Security will be there for us, and the notion of a pension or employer loyalty is the stuff of a bygone era. Help your young clients by the ability to evaluate 401(k) investment choices, and how to holistically use the IRA to offset investment gaps in the 401K. Lastly, be comfortable with the 401(k) rollover process, the younger generation will have more employers than their parents and his generation wants an advisor who knows how to handle job transitions
Complex solutions seem far away. While it is a comfort that can assist with estate planning and complex tax issues, for the most part, the Gen X and Y generation is not in need of these items yet. They want to know that you can help them get out of debt, buy a home some day and help them with retirement, while understanding that retirement seems so far away. Make sure your plans mention estates and tax, so it does not appear to be forgotten, but also that their action items focus on what they need most.
Information Generation and the perception of time. The younger generation invented Google and grew up with texting, e-mail, and the internet. Most of them a Blackberry-like device. Make sure you ask them what is the best way to communicate, and do not be surprised when the answer is e-mail. Communicate your procedures for returning e-mails. And how you use e-mail to keep clients updated through the creation and implementation of their financial plans

If you are going to advise Gen X and Y clients, understand they have a unique set of problems and need a unique set of solutions that are presented, not as a lecture from their parents, but as real advice they can relate to.

_____________________________________________

F. John Deyeso, CFP®, CFA is principal of Financial Filososophy, a financial planning firm based in New York, NY. To learn more about John and his practice, visit him online at www.financialfilosophy.com.

Five Simple Steps to Help Avoid Sleepless Nights

2009-06-30T08:09:00.002-04:00

By Katherine Vessenes, J. D., CFP®, RFC

With the wonderful success we enjoy from time to time, it’s easy to believe that all of our clients love us. In actuality, lawsuits, arbitrations, and complaints track the market. The key event that triggers a trip to an attorney’s office is a client losing money. Now, clients cannot sue you just because they lost money; as our investments have no guarantees. A client merely alleging they lost money will not succeed in court, meaning investors must have some other legal ground to succeed in their suit. Although there are many grounds investors can use to sue, the main ones are:

Unsuitable investment
Failure to disclose risk
Failure to disclose sales charges

To help avoid sleepless nights in the future, here are five practice management rules to “litigation-proof” your office:

Rule #1: Happy clients don’t sue you

My years in this business have taught me that clients are amazingly forgiving if you communicate with them. Clients will stay happy, even if their investments have taken a loss, if their expectations are met and exceeded. My research has shown that clients are far less interested in performance than ethical trust. Trust is built by asking clients what they want from the relationship. Some open-ended questions are:

“After one year, what will make our relationship a successful one?”
“What will make our relationship worth your money and my time?”
“What are the most important qualities you want in a financial advisor"
“If there is one thing you would never want to experience with your agent or broker, what would it be?”

Rule #2: Document, document, document

One of the first things taught in law school is that clients love paper work. Never pass on an opportunity to let your clients know what you are doing for them. After every meeting or phone call, print a report and include a copy of your notes. Also enclose a handwritten note with the status reports, clients absolutely love it.

Your personal memos can be a lifesaver in tracking your client’s activities. After each recommendation, include a statement on why the investment or insurance product was suitable. Be sure to note that you disclosed the risks and sales charges in addition to the insurance company’s ratings.

Even if the market does go down, it will be very difficult for an investor to successfully sue you because your files will supply the perfect defense. The investor will have no legal grounds to press their claims and your suit should evaporate.

Rule #3: When in doubt, disclose

Initial meetings and annual reviews are good times to disclose risks and sales charges to your clients. Never promise specific returns; clients need to know the risks up front and be reminded there are no guarantees. Use a disclosure form when beginning the relationship to describe your background, licenses, and compensation. A study showed that 98% of all clients wanted this information in advance and in writing.

Use another type of disclosure every time you propose a new investment or insurance product. It should include information regarding sales charges and risks, as well as a prospectus receipt stating the client has received and read the prospectus. This insures a client cannot claim they were unaware of any risks or sales charges as they have already read and agreed to them.

Rule #4: Conduct a client satisfaction survey

Always stay on top of your client’s level of satisfaction with your services. Use the information learned in Rule #1 to construct a simple client satisfaction survey to distribute at the beginning of the relationship and at the annual review. You’ll find most clients want to trust you and believe you have their best interests at heart. Your survey should have a rating system (1 to 5) in these areas such as these:

My advisor accurately explained all investments and confirmation statements
My advisor thoroughly understands my financial goals and temperament
My advisor is accessible to answer questions
My advisor handles my affairs in a timely manner
I feel comfortable with my advisor and his/her recommendations

Tell your clients you’re not happy unless they are completely satisfied. Obtain their assurances that any dissatisfaction will be communicated to you first. The survey will let you know when clients are unhappy, so you can address the problems early. The survey also creates a paper trail that can assist your ability to defend any client complaints.

Rule #5: Get feedback from your clients and act on it

If you can afford to hire a college student to follow up on the survey, you will get more candid results. If not, call personally until you are getting a perfect score in every area. The purpose of the call is to get feedback on to serve them better, not promote another fund. Throughout the year, call the client even if you have bad news. Ask the client if there is anything you can do to improve the relationship. Getting clients to talk about their frustration with you is crucial to keeping them happy. Most clients will be thrilled that you are taking the time to address their needs. If you find one who is unhappy, work diligently to satisfy their concerns, and keep records of the conversations.

Conclusion

If you follow these rules, it is unlikely that your clients will be unhappy, even if their investments go down. If they do become unhappy, you should be able to detect it early enough to ward off disasters. In the event you are sued, your records will show how hard you worked to communicate and disclose information. Those records would a long way to helping you win your case, but hopefully you’ll never have to worry about it.

The Pros and Cons of Doing Radio: Is Radio Right for You?

2009-06-30T07:49:00.003-04:00

By Dr. Kevin Skipper

You will want to consider the benefits and detriments before you jump into radio. What are some of the things you should consider?

Pros of Doing a Radio show:

Prestige Hook: If given the choice between two advisors with similar experience and similar credentials, the perception by prospective clients is that the advisor with the radio show has more knowledge and will likely be the advisor of choice. In my fifteen years on the radio, I have seen that the perception the radio gives has helped me obtain clients. For whatever reason, many clients still see the media status with a slight "celebrity" quality that has appeal.

Credibility: The credibility factor is another plus derived from radio. Clients and potential clients hear you on the radio and, if you do an adequate job, they will perceive you as being more credible. I also believe that the daily or weekly preparation to do radio will set you in another class as far and your credibility in the minds of clients and prospects.

Force Learning: I have been a student of the financial services business for the past eighteen years. I believe that the "forced learning" of preparation for radio has made me a more knowledgeable advisor. If I didn’t know an answer to a question from a listener or an email question, I am forced to study. From the telephone calls on the radio to the emails from listeners, the learning has a compounding effect. You will build your knowledge faster, broader and deeper by having a radio show.

Networking with Centers of Influence: Through my sponsorship relationships on the radio, and through the guests on the radio show, I have developed a number of relationships which have been very meaningful and helpful to my business. When I need answers or need a quick solution to a clients question or problem these relationships are very important.

Name Recognition and Branding: Through fifteen years of being on the radio, the brand has been established in the minds of many. I can't tell you how many times prospective clients have come to a first meeting and said, "I feel like I already know you because I have been listening to your show for so many years." Often the prospect is a client before I even open my mouth. I have often felt, "This is the power of radio… this is why I do it." It will take you some time to establish this in your market, but I think recognition and branding are an important outcome from doing radio.

Cons of Doing a Radio Show:

Time Commitment: When an advisor decides to do radio on a weekly basis or in my case, on a daily basis, he or she will want to do an assessment of the time commitment. From phone calls, to sponsors, to radio preparation, to the on-air time, radio can be quite a time commitment. An advisor who does not calculate the time commitment will quickly be discouraged with doing radio.

Cost: The cost of a single hour of airtime depends on the inventory of the station, the ratings of the station, and several other factors. I have seen some hour prices from $10,000 per year to $80,000 per year depending on the market. This bill can be paid as an advertising cost of the financial firm or sponsors can be obtained (I will explain in a future article how I have done radio and have not used my own money for the past fifteen years).

Compliance: One of the biggest issues facing many advisors will be their compliance department. Don't be surprised if you work with a broker/dealer if you get a negative response from compliance. You may have to do what I did. My first 12 years on radio was with a large insurance based company. The compliance department was determined to get me off the radio and out of media. I switched to a firm that allows me to be in media by guiding, monitoring, and teaching me the proper way to do radio and television. You may have to d the same.

Ideas: When you are in radio you will be constantly looking, thinking and seeking new ideas for a radio show. Which book, topic, angle, or ideas can I cover on the radio? For the advisor who likes to turn it off and chill, doing a radio show may not be for him or her. For many in media it seems like the preparation and research never stops. Some enjoy this; however, some may want to stay away from it.

I am sure that there are other pros and cons when considering radio. The key is the fact that using radio to build your financial practice is not for every advisor. For some, the challenge, learning, prestige, and opportunity might be what they need to take their practice to the next level.

_____________________________________________

Dr. Kevin Skipper, ChFC and Dan Taylor are owners of Media Coaching, LLC. They work with advisors throughout the country to assist them in getting onto TV, radio, and in the printed press. For more information, call 803-788-2030.

Don't Get Lost in the Clutter and Chaos

2009-06-29T15:55:00.005-04:00

By Benjamin Lewis
President, Perception, Inc.

As an independent financial advisor think about what you’re up against. A struggling economy, slumping financial markets, scandals in financial institutions, Madoff’s Ponzi Scheme, bailouts for banks and auto makers, rising home foreclosures – all have made life miserable for honest, hardworking advisors who are trying to provide a much needed service to consumers.

What’s worse is that no matter where you are in the financial services industry, you are being viewed as part of the problem. Sure you may not be ripping off your clients like Madoff, but simply having him pose as a professional like you has adverse effects on your ability to do your job and be recognized for the professional YOU are.

So, what can you do? What options do you have to stand out from the chaos and ensure your good name is not tied to one of the worst times possible to be a financial advisor?

If you’re like many other advisors you have probably thought about holding a seminar for the public or considered sending out some kind of mailing to people in your community. Both ideas are fine and have merit if you are simply trying to market your business (let’s face it…there are plenty of people out there looking for a new advisor), but it does little to enhance your name and separate yourself.

To enhance your name, consider making yourself a sought after resource by the media. By appearing in the media as an expert in personal finance, you are able to enhance your credibility and standing in the public without the expense and without looking like a salesman looking to get new clients. But to be sought after by the media you can’t send out empty press releases that promote you and your business. You can’t just place a call and say, “Use me as a resource because I am a financial expert.” These two “PR sins” will hinder your ability to appear in the media…not help. What you need to do is forge relationships with journalists.

This is an excerpt from a new white paper by Ben Lewis called "Don't Get Lost in the Clutter and Chaos". To get your FREE complete copy of the white paper, please email Ben at benjamin.lewis@perceptiononline.com.

How to Use Radio to Build Your Practice for Free

2009-06-11T08:27:00.001-04:00

By Dr. Kevin Skipper

An old Ford commercial presented the slogan, "Quality is Job One." In the financial advisory business "prospecting is job one." As advisors we must ask a series of questions.

What do I pay in marketing to acquire a new client?
Is there a more effective and efficient way to spend my marketing dollars to obtain a new client?
How can I afford the use of radio or media to build my practice?

When I began in radio in 1994, I started on a no name station in my market. The station had virtually no listeners and few ratings. Back then I would have to call clients to call in on the station to make it sound like a real show. The cost was not high, but it was a place for me to start and learn how to do an effective radio show. The cost at that time was about $10,000 per year. Starting a show today can cost between $15,000 and $100,000 (including air time and promotion time). The price is determined by the number of listeners in your market.

How to pay nothing for radio:

When you purchase an hour of radio, you usually have twelve to fourteen minutes of the show devoted to commercials. It will depend on the station’s time clock and news company. With many stations, they may give half of the inventory to the host and the station maintains half of the inventory for them to sell on your show. The trend in the past few years in talk radio has been to run30-second commercials instead of one-minute commercials. Often when you do an hourly show, the station will give you 15 promotional 30-second spots to promote the upcoming show. In my case I do four, three-minute segments each morning Monday through Friday.

Once you know your inventory (how many spots, promos, or tags that will air each week) you can then begin to put a package together to sell to advertisers. I currently have a CPA firm, attorney, property and casualty, mortgage company and several others who are sponsors for my financial show. So if you have a radio bill of $25,000/year and each sponsor pays you $300/month, you will need seven sponsors to run the show at a breakeven point. I have run my show now at a net profit for over 15 years. It is a great way to market at no net cost. Which part of free do you not like? Oh, and did I tell you that I picked up a $3,000,000 account today from a long time listener? But let me temper that by saying that it takes time to build an effective radio program with results. So don't over inflate your expectations in the beginning.

Compliance and making money on radio:

If you have your FINRA registrations and you are a registered representative you know that any outside money made has to be declared on your U-4 and approved by your compliance department. If you have a compliance department that understands media, they will allow you to set up an outside business activity. This will allow you to pursue, bill, and collect from sponsors through that entity instead of through your financial firm. If your compliance department will not allow this....well....you might have to do what I had to do...find another broker/dealer.

I wish I could say that my early years in radio were amazingly successful, but like anything without a mentor or a coach it took me several years of trial and error to learn to effectively use radio to build my practice. It does take time and commitment to build a name, brand and presence on the radio. Today, it is great to have new clients come into the office and say, "I feel like I know you because I have listened to you for years on the radio."

Creating an Effective Brand

2009-06-10T13:51:00.002-04:00

By JD Smith, Ninety Degrees North Design

What does your company stand for? Maybe it stands for quality service, expert advice, family friendliness, or even tradition. Do you think your brand supports what you stand for? Do your clients and prospects recognize “your stuff” when they see it?

Your product or service must have a profitable relationship with your customers. Your brand must stand for something distinct, relevant and desirable to them. A strong and consistent brand is necessary to foster this relationship. Most people are visual, so if your clients and prospects can’t remember your company by your image, they may not remember your company at all.

There are many elements that come together to create the anatomy an effective brand. These elements include color, logo marks, messaging and most importantly consistency.

Standard Color Palette

When you have a standardized color palette you will almost instantly create a feeling. Studies have shown that different colors have a tendency to evoke different emotions, so it is important to choose your colors wisely. You should consider having two types of colors, primary corporate colors, which include the main colors that are present in all of your materials, and secondary supporting colors, which should be used as accents.

Consistent Logo Use

Your logo is your most important branding asset. Is should be a unique mark that represents your company and what it stands for. It should be your main identifier, one that your clients and prospects associate as being your company. Your logo should be on everything that your clients and prospects receive from you.

Coordinated Messaging

Not only is it important to look coordinated, but you must sound coordinated. Everyone in your company must use the same language when talking about the business. If you choose to have a tagline, everyone in the company must use the same tagline. This unified message should help tie together all of your external collateral.

The Bottom Line: Consistency. Consistency. Consistency. It is imperative that there is a unity among all of your client and prospect touch points. Whether the client or prospect is looking at a letter, postcard, brochure, webpage or anything else from you, your marketing materials and communications must have your brand in order to ensure it is remembered.

Do You Like Me?

2009-06-10T13:41:00.001-04:00

By Katherine Vessenes, JD, CFP®, RFC

The first stage of any successful sales process, including the No-Sell Sale™, begins with “like me/trust me.” Few will use your services, especially financial services, if they don’t trust you. It’s much easier to trust a person you like.

Here are four steps to improve your likeability factor and build trust with new prospects and clients.

First impressions

Yes, you never get a second chance to make a first impression. Although most financial advisors dress the part, many have not considered the importance of their body language. Many experts believe over 50% of all communication is conveyed from your face and body language.

It is imperative to communicate to prospects that you are approachable, warm, friendly, confident, and trustworthy. I recently watched a vendor try to promote his services to one of the country’s premier financial advisory firms. Most of the firm’s top guys were pulling down $2 to $4 million dollars a year… and it showed. Everything about their clothes and mannerisms screamed, “We are at the top of our game.” Their closing ratio was over 90%.

Contrast that with the vendor. He walked in with bad posture, a weak handshake, and clothes that were significantly more casual than the successful advisors. He was constantly fidgeting with his hands. He had a nervous laugh and desperate look about him. The result: most of the communication during the meeting was directed at me. He was largely ignored which was a shame, because he had a lot to offer.

Things you can do to make a better first impression:

Watch your eye contact. Don’t wander, look your clients right in the eye.
Use a strong, thumb to thumb, handshake. Weak handshakes are a major turn-off.
Smile. It takes years off your face and builds rapport.
Ask questions that show you’re genuine interest in your prospect.
Mirror your prospects body language. If they lean forward, you lean forward. If rest their hands on the table, so should you.

Be empathetic

Have you ever wondered how Oprah Winfrey or Larry King can get a person to expose their deepest feelings on national TV? Both check their own egos and focus the attention on their guest. Unlike other interviewers, they avoid making the guest feel uncomfortable or judged. It amazes me how much information total strangers will release to the world about their lives.

For this reason, I make a constant effort to display genuine interest in what the other person is saying and offer no judgment for their behavior. I attempt to convey a feeling of affirmation and unconditional acceptance. I want them to recognize that I empathize and understand them, and appreciate their problems.

Be humble

One of the most powerful statements I have heard from numerous multimillion dollar advisors around the country goes something like this: “It is easy to stump me; I’m just a poor farm boy from Iowa. But I know where to go to get the answer for you.” This comment tells the listener while you don’t know it all; you do know where to go to get them help. The end result is they appear approachable, modest, and self-effacing.

Contrast that with another advisor I know that berates his prospects in the first interview. I have heard him say, “You have done a terrible job managing your money. I would give you a D on this portfolio!” Another advisor said, “We don’t work with anyone unless they have at least one million dollars to invest.” While this may be true, it makes him seem arrogant and unapproachable.

Send a good bio in advance of the first meeting

A one page bio about you and your background is an important step in improving your likeability factor. Send it out prior to the first meeting so your prospects can get to know and start to trust you. Take the time to write it well or get some help. It should obviously include your professional background, but also personal information as well. For example, mine reads: “Katherine has three grown children and likes to search for antique Japanese wood block prints. She loves to cross country ski and take her two Springer spaniels pheasant hunting.”

Your photo is also an important part of the building trust through the bio. You should be smiling and looking directly into the camera lens. In photos which the subject is looking away, that subject tends to look shifty and untrustworthy. Shift and untrustworthy are the last impressions you want your photo to convey.

These four steps will help build and improve your likeability factor. Hopefully, you can receive the same reaction I did when working with a group of investors. At the end of the first meeting, I would ask if they had any questions about me or my background. The overwhelming response was “No, we know everything we need to know about you.” At that point you’ve improved your likeability factor and built trust with new prospects and clients.

Fear, Terror, Panic and the TV Interview

2009-06-10T13:36:00.001-04:00

Simple advice on preparing for an interview, and calming your nerves

By Benjamin Lewis

For many people, public speaking is a greater fear than death itself. Fear of public speaking, or glossophobia, often rears its ugly head as people prepare to be interviewed. While a level of anxiety is to be expected any time you will be the focus of attention, there are a few steps that can be taken to prepare and help ease your nerves.

First and foremost, preparation is key. The better you know the material, the more comfortable you will be in discussing it. Obviously, you need to know the length of the interview, the topic, and the angle; but it’s important to know your stuff. If you’re an accountant being interviewed about recent tax law changes, you better know those tax law changes and how they’ll affect the audience.

In addition to knowing the subject matter, learn as much as you can about the interviewer; it will help you prepare for their questions. Do your research. What’s their name? Do you know their beat? Do they take a certain angle in their reporting? What is their background? Having knowledge of the interviewer will help reduce any awkwardness when you meet the person at the interview.

Once you know a little bit about the interviewer, try to determine why you were selected for the interview. What drew the media outlet to you? Was it a specialty or special skill you have? If so, you will certainly want to play that up during the interview. Are they responding to a pitch you made? If they are, what did they like about it? These answers will help you understand what the reporter is hoping to get out of your interview.

By following these steps, you should be able to think out some possible questions, if the reporter hasn’t provided them in the first place. As with any activity, practice makes perfect. Practice answering questions out loud with a clear voice inflection, good posture, and strong eye contact. Practicing your responses to potential questions and follow-up questions will help you get ready to answer those questions during the actual interview.

In structuring your answers, be sure to know your audience. That means understanding that an interview with Financial Advisor requires different answers than an interview with The Today Show. An industry-specific outlet that will be read by your peers provides more leeway to use technical terms and industry-common vocabulary and anecdotes. In contrast, speaking with a consumer media outlet means an overwhelming majority of your audience has little-to-no knowledge on your subject. It’s your job as the expert to paint a picture for them using simple language and vibrant anecdotes.

By following these simple steps, you will find yourself much more relaxed heading into your interview. Beyond your preparation, follow the age-old advice of getting a good night’s sleep, eating a healthy breakfast and giving yourself plenty of time to travel. No amount of preparation will completely alleviate your anxiety, but by simply doing your homework, you put yourself in the best possible position to look and sound professional and confident.

The Pros and Cons of Doing Radio: Is Radio Right for You?

2009-05-29T08:55:00.001-04:00

By Dr. Kevin Skipper, PhD

You have heard the saying, "I get to do something...or dreadfully...I've got to do something." Many have the first thought that radio would be a thrill or something “I get to do." You will want to consider the benefits and detriments before you jump into radio.

What are some of the considerations?

Pros of Doing a Radio show:

Prestige Hook: If given the choice between two advisors with similar experience and similar credentials, the perception by prospective clients is that the advisor with the radio show has more knowledge and will likely be the advisor of choice. In my fifteen years on the radio, I have seen that the perception the radio gives has helped me to obtain my clients. For whatever reason, many clients still see the media status with a slight "celebrity" quality that has appeal.

Credibility: The credibility factor is another plus derived from radio. Clients and potential clients hear you on the radio and, if you do an adequate job, they will perceive you as being more credible. I also believe that the daily or weekly preparation to do radio will set you in another class as far and your credibility in the minds of clients and prospects.

Force Learning: I have been a student of the financial services business for the past eighteen years. I believe that the "forced learning" of preparation for radio has made me a more knowledgeable advisor. If I didn’t know an answer to a question from a listener or an email question, I have been forced to study. From the telephone calls on the radio, to the emails from listeners, over the years the learning has a compounding effect. You will build your knowledge faster, broader and deeper by having a radio show.

Networking with Centers of Influence: Through my sponsorship relationships on the radio, and through the guests on the radio show, I have developed a number of relationships which have been very meaningful and helpful to the business. When I need answers or need a quick solution to a clients question or problem these relationships are very important.

Name Recognition and Branding: Through fifteen years of being on the radio, the brand has been established in the minds of many. I can't tell you how many times prospective clients have come to a first meeting and said, "I feel like I already know you because I have been listening to your show for so many years." Often, the prospect is a client before I even open my mouth. I have often felt, "this is the power of radio… this is why I do radio." It will take you some time to establish this in your market, but I think recognition and branding are an important outcome from doing radio.

Cons of Doing a Radio Show:

Time Commitment: When an advisor decides to do radio on a weekly basis or in my case on a daily basis, he or she will want to do an assessment of the time commitment. From phone calls, to sponsors, to radio preparation, to the on-air time, radio can be quite a time commitment. An advisor who does not calculate the time commitment will quickly be discouraged with doing radio.

Cost: The cost of one hour on radio depends on the inventory of the station, the ratings of the station, and several other factors. I have seen some hour prices from $10,000 per year to $80,000 per year depending on the market. This bill can be paid as an advertising cost of the financial firm or sponsors can be obtained. (I will explain in a future article how I have done radio and have not used my own money for the past fifteen years.)

Compliance: One of the biggest issues facing many advisors will be their compliance department. Many of them have an attorney whose job is to justify why he is on the payroll and to protect the company from you, the advisors. This model is about telling the advisor what he or she "can't do, rather than knowing the law and seeking to help the advisor build his or her financial practice. So, don't be surprised to get a negative response from your compliance department. You may have to do what I did. My first 12 years on radio was with a large insurance based company. The compliance department was determined to get me off the radio and out of media. I switched to a firm that allows me to be in media by guiding, monitoring, and teaching me the proper way to do radio and television. You may have to change firms if your compliance department does not want you to be on the radio or in media.

Ideas: When you are in radio you will be constantly looking, thinking and seeking new ideas for a radio show. Which book, topic, angle, or ideas can I cover on the radio? For the advisor who likes to turn it off and chill, doing a radio show may not be for him or her. For many in media it seems like the preparation and research never stops. Some enjoy this; however, some may want to stay away from radio.

No top station available: For someone starting in radio, the "big advisor" in town may already be on the top station in your market. This was the case for me when I started. The "other advisor" had the name and the best time on the number one station. So I found a no name station to get started on. I learned, I practiced and I marketed my program. After about three years, I was on the number one station and the other advisor was off that station and now is completely off the air.

I am sure that there are other pros and cons when considering radio and the media. The key is the fact that using radio to build your financial practice is not for every advisor. For some, the challenge, learning, prestige, and opportunity might be what they need to take their practice to the next level.

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Dr. Kevin Skipper, ChFC and Dan Taylor are owners of Media Coaching, LLC. They work with advisors throughout the country to assist them in getting onto TV, radio, and in the printed press. For more information, call 803-788-2030.

What Can A Strong Brand Do For Your Firm?

2009-05-27T15:24:00.004-04:00

By Jessica Smith

Your firm’s visual brand can be an effective marketing tool. It can help you stand out in a crowd, provide support in what you say about yourself and leave a lasting impression on both clients and prospects.

Setting Your Company Apart From Your Competitors

A solid company brand can set you apart from your competitors. It can help create a feeling, evoking trust and quality while subliminally providing a client or prospect with an unspoken emotional attachment to your firm.

Word of mouth can be an excellent marketing tool. One of the best things you can do for your firm is to provide your clients and prospects with a brand that they can easily distinguish and remember. It is important that when someone is involved in a conversation around your industry, your company is on the tip of their tongue. Once you have mind share, your clients will think of you first when they think of your industry. A strong brand can reinforce your firm’s name recognition and help you build a niche to succeed in.

Looking the Part

It is important that your outward visual message is supported by your verbal branding. What you say about yourself is equally as important as how you present yourself. A solid branding strategy should communicate a consistent message about the value of your company and your services. A strong brand can help you visually articulate your firm’s values and explain why you are competing in your market.

Leaving A Lasting Impression

It isn’t just about the colors you choose, the logo you use or the way you describe yourself. It is about your “image” as a whole, the tone it sets and how outsiders react to it on a first encounter. A strong branding campaign can show that you are serious about marketing and that you intend to be around for a while, which is important in these economic times. A brand impresses your firm's identity upon potential clients and can build a lasting impression of you and your products.

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Jessica Smith is owner of 90 Degree North Design, a full-service graphic design firm in Maryland. Learn more about Jessica and her firm at www.90NDesign.com.

Cheerleading: The Thirty-Second, No Cost, Sales Secret

2009-05-27T15:08:00.002-04:00

By Katherine Vessenes, JD, CFP®

I bet you thought Cheerleading is just for high school students in short skirts. In fact, Cheerleading could be a quick way for you to close more business, improve staff morale and (I am going on a limb here), strengthen your marriage…all in less than 30 seconds.

Cheerleading is a short, spontaneous, third-party endorsement, or, as we like to call it, a rave review. It is the art of building one person up by saying something positive about them that is honest, sincere and affirming to a third-party.

Why this works: I believe this technique is effective because it appears to be exactly what it is: In 30 seconds or less, the listener’s fears are dramatically reduced because someone else is giving them an unscripted testimonial. It breaks down the fear barriers and starts building trust.

How it works: Here is a personal example of how cheerleading completely changed my mindset. Last winter I decided to visit a doctor in Chicago to get help on a long-standing health problem. Based on my past experiences, I was not very optimistic. In short, I was feeling exactly like many of your clients are feeling when they visit with you for the first time – discouraged, skeptical and very low on the trust scale.

Shortly after meeting with Dr. G, I was asked to schedule a phone interview with her chief dietitian, Mark. During the first call with Mark he spontaneously stated: “You are going to love working with Dr. G. She is the best endocrinologist in the Midwest.” I almost laughed out loud, because I knew he was cheerleading me. Now don’t get me wrong—he was not doing it for ulterior motives or in a calculated way—he truly believed Dr. G is the best physician in this area and was very happy to give me a personal testimony to support his belief.

The result? Before the conversation I was at a 2 on the trust scale of 10. One little sentence from Mark, and I could feel my discouragement and skepticism disappear as my trust level moved into the 6 range. Yes, Dr. G would still have to prove herself to me, but my heart and mind were much more open to taking her advice.

This is the state we want all of our clients to be in—the trust level is so high, at least a 7, that their hearts and minds are open to hearing what you have to say. This is a great start to your sales process.

Some guidelines about cheerleading:

Never say something unless you truly believe it. Make sure it is honest, true and from the heart.
Cheerlead others before you expect others to cheerlead you. Practice on your spouse—they will love it and it can really strengthen your relationship!
Cheerleading should never sound scripted. It is best spontaneous. If your staff can’t do that—have them practice until it sounds spontaneous.
The younger your staff, the more likely they will need some scripts and practice.

How to start cheerleading in your office:

One of the best ways to get your clients to call your staff first, before they call you, is for you to show the confidence you have in your own employees. It increases your clients’ trust in your office and they feel comfortable having someone other than you handle the day-to-day work of managing their money. It frees up your time, too.

Here are some sample scripts that show how much confidence you have in your support team:

“Paul, you are going to love working with my Client Service Manager, Jim. His job is to make sure all of your affairs are handled in a timely manner. Jim does not let anything fall through the cracks! In fact, most of our clients would rather talk to him than me!”
“Frank, you are going to enjoy working with Jim. We are so lucky to have him in our firm. He is one of the best estate planning attorneys in town.”
“Bonnie, let me introduce you to my assistant, Jim—the real brains in our organization. Jim makes sure everything runs smoothly here including all of your transactions. He has been with me for years and I couldn’t do anything without him.”

Once you get comfortable with this and your family and staff have heard you cheerlead them, it is time to ask them if they will cheerlead you.

One of our advisory clients was a large financial planning firm that was so big there were at least four people in the marketing department and two receptionists. I tested out all of our marketing and sales processes there by working directly with their investors. Before I started working with them, we spent time teaching the marketing department how to cheerlead. They were taught a script about me for when anyone called in for an appointment. Here are a few samples:

“We are so lucky to have Katherine here. She is a nationally known CFP®, was on the CFP Board of ethics and is one of the best planners in the industry.”
My own personal assistant might say: “I am so glad you are coming in to meet Katherine. She is such a great boss, that I know you are going to find her to be a great advisor, too.”

The difference these 30-second commercials made in my sales process was most notable when the prospects walked into my office. Now they had not even heard of me before they called the office to schedule an appointment with the big cheese. The staff was taught to use the cheerleading message to have them book an appointment with me, rather than the big guy. But after hearing this great cheerleading message, the prospects were actually looking forward to meeting me. They weren’t cold leads any more. They were moving from warm to hot. I found my closing ratio went through the roof, over 90%! Sales were much easier than they had ever been before because the client was warm, not cold, and their hearts and minds were open to me helping them.

Now, let me cheerlead you: You can do this!

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Katherine Vessenes, President of Vestment Advisors (www.vestmentadvisors.com) is a nationally known speaker and author. She co-authored, with her husband, Peter: Building Your Multimillion Dollar Practice. She can be reached at: 952-401-1045 or Katherine@vestmentadvisors.com.

Paint a picture during your next media interview

2009-05-27T15:03:00.002-04:00

By Benjamin Lewis

President of Perception, Inc.

So, you have an interview coming up soon and you want to make the biggest splash possible. You have thought through your anticipated questions and begun to create responses. However, is simply answering questions with facts and stats enough to make the impact you want? If you are being interviewed by a consumer media outlet, probably not.

Financial professionals have the potential to be interviewed by two different types of media outlets — industry and consumer. If an advisor is to be interviewed by an industry publication or outlet, the best way to communicate is through statistics and facts to back up your assertions. However, it is a different story when working with consumer media.

Interviews in mainstream consumer media require financial professionals to “paint a picture” for the outlet’s audience. The financial industry, for many people, is a convoluted world of jargon and technicalities that they would just assume avoid. If information is shared in a way that adds to that confusion of the consumer, the impact of the interview will be lost. This is where painting a picture is so important.

A survey of 100 journalists from a variety of backgrounds was conducted to identify their opinions on how professionals can become trusted experts. One of the common themes that came out of the project was the requirement of professionals to “paint the picture” effectively for their audiences. How can be done effectively? Through real stories and anecdotes heard, or experienced by financial professionals.

People relate to people. They learn from the successes and failures of others. When reading an article or watching a report on the news, people can relate to “real people” they see and hear, not necessarily the professional or expert.

What can you do to paint the picture effectively? Try out these tips:

1. Relate — In advance of the media opportunity, you will know the topic and angle for the interview. Sort through your previous experiences in dealing with the situation and during the interview tell a story. Find a good opportunity to discuss a specific challenge a client may have had and how you addressed it. This will be more memorable than anything else you will say.

2. Identify — Consumer media loves it when you can help arrange an interview with a real person who is willing to be interviewed. If you believe a client has had an experience that relates well to the story, ask your client if he/she wants to be interviewed. If they are willing, let the reporter, editor, producer know. Whether or not they take you up on the offer, you are showing the media how helpful you can be — therefore increasing your rapport with that outlet.

3. Offer — Many consumer publications and outlets may already be using a real person or couple to paint the picture. If that is the case, offer to develop a complimentary plan of attack for addressing the situation or problem. Your proposed plan can then become part of the story to help paint the picture the media desires.

A good example of this is the money makeovers many publications will do from time to time. For example, Money Magazine does regular feature money makeovers where a real situation is passed along to a financial advisor who then recommends changes to the portfolio. The recommendations are published by the magazine along with a feature article on the consumer’s situation. This always ends up being one of the most popular articles in the magazine.

The bottom line is that it’s quite simple to paint the picture — you just have to anticipate the questions you are going to be asked, and identify a way to work in the situations you and your clients have faced. By doing this, you will make a definite impact on consumers and the media.

Should I Use Radio To Market My Financial Practice?

2009-05-07T08:16:00.000-04:00

By Dr. Kevin Skipper, PhD

As I meet financial advisors around the country they frequently ask me: "How did you get into radio?" with the underlying question, "Could I do it and could it be right for me?" With the need to differentiate, many advisors are looking for ways to see if media can be the element or strategy to launch their practice to the next level. In these next few issues we will explore some of the questions about whether you might consider radio and media in your practice.

How I got into Radio:

I began my career in financial services in the summer of 1991 with John Hancock Financial Services. During my first few years in the business, I used seminar marketing as one of my primary tools to obtain clients. While at the South Carolina State Fair in October of 1994, I approached a radio station booth that I had never heard of in the Columbia, SC market. They said, "We need a financial guy to do radio." This translated into "We have an hour of time we need to sell."

I then began to ponder the logistics of how I could actually do an hour financial radio show. I contacted my legal department and began to ask what I needed to do or avoid doing on the air. They assisted me with disclaimers and disclosures that needed to be used. After several weeks of preparation, reading, and practice, I went on the air. Little did I know, that nobody listened to that station. But it was a beginning point and a place to learn to do radio. I would practice, involve clients, and send out several hundred postcards per week promoting the show. After three years, I then moved to the number one talk radio station in Columbia SC. I do four three minutes daily segments and two one hour shows on Saturday.

There are several consideration before you launch into a radio show.

Compliance

One of the first concerns would be compliance considerations. This could be the single biggest issue that would need to be addressed. For some broker dealers the answer about doing a radio show would be a resounding "no." You as an advisor will have to have an ability to not take "no" for an answer. For some this will result in moving forward to do radio, for others, it will require you to change broker dealers who have a broader interpretation of FINRA rules and regulations.

Time Commitment

Doing radio is a time commitment. It should not be pursued as a key for instant success. Doing radio will take practice, persistence and a large commitment of time. However, radio as a tool can be a great marketing tool for prestige and marketing.

Stations Available

Once you determine to do a radio show, you will have to see what stations are available in your market. You, like me, may consider starting on a less popular station to learn how to do radio, before approaching the larger more popular stations. Plan B would be to have an Internet based radio show that you can market to build an audience.

In the weeks ahead will look at "How to Make Radio Work for You" and "How to do Radio for Little or No Cost"

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Dr. Kevin Skipper, ChFc and Dan Taylor are owners of Media Couching, LLC. They work with advisors through out the country to assist them in getting onto TV, radio, and in the printed press. For more information, call 803-788-2030.

4 Things You Can Do To Improve Your Likeability Factor

2009-05-06T17:11:00.000-04:00

By Katherine Vessenes, JD, CFP®, RFC

The first stage of any successful sales process, including the No-Sell Sale ™, begins with “like me/trust me”. Few consumers will buy your services, especially financial services, if they don’t trust you. It is a lot easier to trust a person you like.

Take these steps to improve your likeability factor and build trust quicker with new prospects and clients.

First impressions: yes, you never get a second chance to make a first impression. Although most financial advisors dress the part, many have not considered the importance of their body language. Some experts believe over 50% of all communications are conveyed from your face and body language.

It is imperative to communicate to prospects that you are approachable, warm, friendly, confident and trustworthy. I was recently watched a vendor try to promote his services to one of the country’s premier financial advisory firms. Most of the top guys were pulling down $2 to $4 million dollars a year—and it showed. Everything about their clothes and their mannerisms screamed: “we are at the top of our game.” Their closing ratio was over 90%.

Contrast that with the vendor. He walked in with bad posture, a weak handshake and clothes that were significantly more casual than the successful advisors. He constantly fidgeted with his hands. He had a nervous laugh and a desperate look about him. The results: most of the communications during that meeting were directed at me. He was largely ignored. It was a shame, because he had a lot to offer.

Things you can do to make a better first impression:

• Watch your eye contact. Don’t let your eyes wander. Look at your clients right in the eye.
• Use a strong, thumb to thumb, handshake. Many people don’t know how to shake hands. A limp handshake that is just fingers is a big turn off.
• Smile. It not only takes years off your face, it builds rapport.
• Ask questions that show you have a genuine interest in your prospect.
• Mirror your prospects body language. If they lean forward, you lean forward. If they put their hands on the table, you put your hands on the table.

Be empathetic. Have you ever wondered how Oprah or Larry King can dive so deeply into a person’s heart and get them to expose their deepest feelings on national TV? Both of them have a reputation for checking their egos at the door and focusing all their attention on the guest. They want the guest to look good. Unlike other TV interviewers they avoid making the guest uncomfortable or feel like they are being judged.

This quality is invaluable in our business. It constantly amazes me how much information total strangers will give me about their lives. After thinking about it for years, I think the reason is I make a constant effort to not only be genuinely interested in what the other person is saying, I also offer no judgment for their behavior. I make an effort to convey a feeling of affirmation and unconditional acceptance. I want them to think (rightly) that I empathize with them, understand them and appreciate their problems.

Be humble. One of the most powerful statements I have heard from numerous multimillion dollar advisors around the country goes something like this: “It is easy to stump me—I am just a poor farm boy from Iowa. But I know where to go to get the answer for you.” This comment tells the listener you don’t know it all, but you do know where to go to get them help. The end result is they appear approachable, modest and self-effacing.

Contrast with another advisor I know. He berates his prospects in the first interview. I have heard him say something like: You have done a terrible job managing your money. I would give you a D on this portfolio!

Another one, on a local radio station said “We don’t work with anyone unless they have at least one million dollars to invest.” That may be true, but it sure sounds bad and makes him seem arrogant and unapproachable.

Send a good bio in advance of the first meeting. A one page bio about you and your background is an important step in improving your likeability factor. Send it out prior to the first meeting so your prospects can get to know you and start to trust you.

Take the time to write it well, or get some help. It should include your professional background, but also personal information about you. Information on mine included: “Katherine has 3 grown children and likes to search for antique Japanese wood block prints. She loves to cross country ski and take her two Springer spaniels pheasant hunting.”

The photo is also an important part of the building trust through the bio. It should be a smiling one, where you are looking directly into the camera lens. Ones where the subject is looking away, make them look shifty and untrustable—the exact opposite of the impression you want to convey.

Take these four steps to build your likeability factor and you will get the same reaction I did when working with investors: I would ask them at the end of the first meeting if they had any questions about me or my background. Almost always they would say “No—we know everything we need to know about you.”

Do Your Homework: Developing a Media List That Works

2009-05-06T17:01:00.000-04:00

By Benjamin Lewis - Perception, Inc.

Letters, faxes, press releases, story pitches, seminar invites – there are many types of communications financial professionals send out every day to reporters, editors, and producers. But how many of those communications are getting into the ‘right’ hands? Before you send any information out to the media, you need to first do your homework. You must answer the following questions about the media outlet you want to target with your information:

1. Does the outlet usually cover the issues I am an expert in?

2. Who at the outlet is the right person to contact?

3. What mode of communication does that contact person prefer (email, fax, phone, mail, etc)?

OnlineNewspapers.com – This is a terrific resource for identifying what newspapers are in your area. Links are provided to you so you can view the papers online. Provides links to smaller, community-based papers as well.

NewsDirectory.com – Another great resource for finding newspapers and magazines throughout your state. The site also provides the option for you to search college papers, business publications, etc.

MRC.org – A site providing users with detailed contact information for various major metropolitan publications and national media outlets. A terrific site to find information fast!

NewsLink.org – A great website for finding any type of media in your area. Has a thorough listing of newspapers, magazine, radio stations, TV stations broken down by state.

Although many of these websites will direct you to what outlets are in your area, it is still imperative that you identify the right contacts at each outlet. The best way to do this is by placing a simple phone call to the main information line at the specific outlet and asking who covers the issue you want to discuss. The other option is to pay for access to an Internet-based database, like CisionPoint, where you pay a yearly membership fee to access a constantly updated database of media contacts throughout North America.

No matter what you choose to do, be sure you are contacting the right members of the media. Otherwise, you may hurt your chances at publicity while burning valuable bridges.

Benjamin Lewis is president of Perception, Inc., a public relations firm providing communications services to financial professionals. For more information call us at 301-963-7555 or visit us online at www.perceptiononline.com.