I get this question a lot from people interested in becoming a financial advisor. There are a few major roadblocks that hinder most people when beginning their journey. I call them The Three Blocks, which are:
- Learning how to solve problems and not just sell products
- Figuring out how to generate leads
- Learning how to close deals
Interestingly enough, a lot of veteran advisors still struggle with these. That’s why I’m going to give you an overview of how you can break through those blocks and see how easy this business can be.
If you’re already an advisor and you’re struggling, today’s post is for you as well. It might spark an idea and help you overcome mental barriers that could be preventing you from leveling up; so read on.
I recommend that if you’re seriously interested in getting started, that you get a bachelor’s degree. It’s a requirement if you eventually want to get a professional certification such as a CFP or CFA.
Before attaining a certification focus on getting experience! Get your feet wet by taking an entry-level job with a bank or brokerage.
Look for a training program to prep for your exam to get your license. Typically, the cheapest/quickest/easiest way to do this is to find a local agency that’s hiring. Most of the time they’re willing to pay for your classes and testing fees as part of your employment agreement.
Solving Problems and Not Just Selling Products
The road to becoming a financial advisor can be stressful, but those that stick it out for the long haul can become quite successful (many advisors I’ve worked with now make more than comfortable living and own flourishing practices).
Providing impeccable service. Achieving success as an advisor isn’t just about learning the ropes and getting licensed (although that is a HUGE part of it). It’s about ethically solving the problems of your clients and not just pushing a product for the sake of the sale. Do what’s best for your customers, and that’s how you excel. Only make recommendations that you truly stand behind.
Focus on creating and perfecting a funnel that drives you inbound leads; so you only spend time talking to people that have a genuine interest in what you’re selling. Not everybody deserves to be your client. Perfecting your lead generation process can take a while because it’s all about testing and iterating. Consider using a combination of both online and offline methods to generate leads. Take a look at this article we wrote about how insurance agents can generate leads online.
Fact finding is a skill and art form that you need to master; it’s why the top financial advisors close larger cases. They can effectively understand their client’s objectives, motivations, and expectations, which are key factors in framing comprehensive, integrated solutions. If you can ask the right probing questions, you should have no problem with the close.
Keep in mind that when it comes to insurance, people buy for one of two reasons:
It is important to determine which of the two your client needs to construct the proper solution. In my need vs. greed video I explain the difference in approach. However, closing deals requires tact and not just going for the emotional sale, because that can come off as pushy and disingenuous. It’s important to understand the psychological triggers behind why people buy and combine that with listening to your prospect so you can provide a solution that will genuinely help them.