Witty Comebacks when a Prospect Balks

Rebuttal: “Actually I was going to try to sell you a car, not an IRA, because that pays a way higher commission. You drive Mercedes, right?”

Notice that in none of these cases I did I recommend saying the typical rebuttal that some sales coach came up with: “I’m not here to sell you anything, I’m here to educate you” or “I’m here to build a relationship.”

Oh please.

It’s simply not true. You are there to sell them something, not just hang out and be pals. It’s insulting to suggest otherwise to them – like they don’t know that? So forget this altruistic mumbo jumbo about how you want to save the world. If you really wanted to do that you would have gone to work for Greenpeace already.

You’re a capitalist. Face it.

Take your sales role seriously and don’t back down when you know they need you. I’m sick of people acting like selling is a bad word. It’s not. I can recall countless times that I was not sold a product that could have really changed my life because the salesperson failed to understand that in order to change my life they needed to work hard to get me to buy the product.

2. I’m not in the market for a new advisor. I just took the meeting because my friend Jane had such good things to say about you.

This is a brush off to relieve pressure. Nobody takes a meeting because they have zero interest; on the contrary, they’re curious. What’s missing is trust. Therefore they can’t tell you the truth.

That’s why all buyers are prone to lying to some degree. Ever heard that little adage before?

Take control by trying to understand their thought process. “Wow, I love a compliment and it’s rare I get one like that. Thank you! Tell me more – what was it exactly that Jane said that compelled you to meet me? Feel free to embellish all you want, by the way.”

Notice I don’t recommend addressing how they said they aren’t going to buy. That’s just a defense mechanism; don’t get into an argument about it before you’ve earned some trust.

3. I only want to work with [fee-only/flat-fee] advisors

I don’t mean to burst all your fiduciary bubbles on this one, but you know my stance. I do see the merits of pure fee-only advisors, but I also have seen dual-registered reps who run a tight ethical ship. In some cases, they’re more scrupulous than the fee-only people.

Sorry!

Fee-based advisors have every right to pitch themselves, too, as long as they are being transparent and honest. If you’re a commission-based advisor (commission only, fee-based, etc.) I would offer this as a rebuttal:

Because I am compensated by a commission for the recommendations that I make, you will not be liable for any ongoing fees. Clients have appreciated this in a down market where they have enjoyed the fact that they aren’t on the hook for paying me while their portfolio is losing money.

As a broker-dealer representative, my business is set up so that I am bound to follow suitability standards that ensure that what I’m recommending is a proper fit. Although it is not the fiduciary standard, if you check my background on the FINRA website you’ll see there have been (few, zero) complaints and that I’ve upheld this responsibility diligently over the course of my career. I could also refer you to several long-term clients who will describe their experience with my work.

4. I have to talk to my husband/wife before we go any further

Anyone who is married knows that barring the fact that you are having affair or extorting money from your spouse, married people tell each other everything. Don’t believe anyone who says otherwise.

Don’t let this coy little objection slip. Address it right away:

Just curious, what did your husband/wife say when you told them about this meeting?

So fill me in on what in all we discussed today you believe your husband/wife is going to like the least? The most? (Hint: they are going to respond with what they think, not with what the spouse is going to think. You’re playing along and allowing them to avoid telling you their objection directly…kind of like blaming it on the person who’s not here.)

I wonder, when do you think it would make sense to dial your husband/wife into this discussion?

Now, some people will still try to squirrel away by saying they don’t know. They’re blatantly lying because anyone who is married for sure knows how opinionated their spouse is.

Disarm them with humor: “No? You mean pillow talk doesn’t rule the road at your house? It does at mine!”

By the way, the best defense is simply to insist that the first meeting includes both spouses. If you can’t get them both to show up in person, then don’t meet in person. Don’t invest the time if they aren’t willing to do the same. Take a stand on this one.

It’s too easy for the absent spouse to veto the entire thing because they didn’t get the whole story. People always disagree about money; a meeting with one half of a married couple is a non-meeting and a waste of time.

Arrange for a 15-minute phone call if you can only get one spouse’s attention. If it goes well, at the end ask for an in-person meeting with both. If you can’t get that, there is a deeper reason. Perhaps they are getting divorced. Whatever the reason is, find that out before you spend any more time.

5. I’m not looking to make any moves until __.

If there were 0% chance of them buying today, they would never have taken the meeting. Come on, it’s how we humans work. Nobody likes meeting with financial advisors. If they showed up that far in advance it’s because there’s a problem. Like I said before, they just don’t trust you enough to tell you.

But you do have to play along to get to the truth. You can’t call them out on that.

“Wow. So you mean to tell me that even though you don’t have to worry about this for a year, you’re starting this far in advance. Holy smoke! That’s super-duper on the ball. So I guess retirement planning must be really important to you. Does that sound more or less accurate or am I missing the ball?”

Chance are once they start talking you’ll find ways to get them to move earlier than they thought.

6. What are your fees? I didn’t budget for this

Some sales coaches say that you can get people to pay for anything.

They’re wrong.

While most people are able to pay for things they claim they can’t, collection agencies exist for a reason. Use your judgement when you get this objection because as we all know, it’s no fun to find out after you do the work that the client just maxed out their last credit card.

When price objections are unsubstantiated, prove the value of what you have to offer is worth way more than the price in perpetuity.

“Cathy, most of the time people don’t budget for what I do and that is exactly why we should work together – to get more control so you can afford things like this. For example you said that you’ve paid over $10,000 in additional taxes that last two years. What if I could find a way to reduce that unwelcome tax bill – would buying my financial planning services make more sense to you then?”

7. I didn’t come with a specific question. Go ahead and tell me about you

This is again a diversion. The person is afraid to tell you why they are sitting there instead of home watching Dancing with the Stars, which is way more appealing than your GRAT versus GRT spiel. Don’t play into this by launching your elevator pitch – that’s going to take you a step further away from their trust.

“Well, Mario, people tend to come to me when they are in one of three situations: they’re about to retire, they’re about to go through a life event like a divorce, or they are just plain having anxiety about money. Do you think I have that covered or was there something I left off the list?”

See how you’re not evading their question – which irks people – but instead blending your pitch with gentle questioning that allows them to open up. It’s as if you are meeting them halfway.

Sara’s upshot

While it’s great to be prepared with rebuttals, understand that some buyers are not going to make a decision no matter what you do. I’m probably the only sales consultant who would say that, but it’s the truth. Know how to react to these objections. But recognize that the best defense is having a rich pipeline. A steady stream of leads coupled with these closing tactics are a killer combination. One is never a substitute for the other.

By the way, if you enjoy my actionable insights, I’m starting up a membership subscription service this winter. For an affordable monthly price, you’ll receive three on-demand videos about marketing. The program is still being designed but you can reach out to me through my website to be notified as it unfolds.

Sara Grillo, CFA, is a top financial writer with a focus on marketing and branding for investment management, financial planning, and RIA firms. Prior to launching her own firm, she was a financial advisor and worked at Lehman Brothers. Sara graduated from Harvard with a degree in English literature and has an MBA from NYU Stern in quantitative finance.

Read more articles by Sara Grillo