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A reader of my books called to get a recommendation for an investment advisor. I asked him why he was switching advisors. Here’s what he told me:
My advisor kept harping on how he always acts in my best interest. He made it seem like there was nothing in this relationship for him, which I knew wasn’t true, since I was paying hefty fees. It felt disingenuous.
I’ve heard similar stories before.
Here’s how to avoid being misunderstood by a prospect or client.
Your prospects have a superpower
Humans have a remarkable sixth sense (I call it a “superpower”) to detect insincerity and self-interest.
In one study (discussed here), students were recruited to record a video for the purpose of soliciting charitable donations. They were randomly assigned to two groups.
In one group, volunteers were promised 10% of the amount of contributions generated from their videos. No financial incentive was offered to the other group.
When the videos were shown to potential donors, even though they didn’t know which group was incentivized, they could sense it. Donors gave less money to the incentivized group, somehow correctly perceiving them as being more self-interested than those who weren’t.
This study has scary ramifications.
The perception of insincerity
Why was the non-incentivized group more successful? Donors perceived the incentivized group as less sincere.
The donors made this judgment solely from the tone of the voice of the two groups. The substance of the solicitation was identical.
The easy way to avoid the perception of insincerity is to be acutely aware that the listener is highly attuned to it. You won’t fool them. Don’t try.
Own up
You charge a fee for your services.
Instead of presenting yourself as solely focused on the well-being of your clients, own up to the fact that you’re running a business. Don’t hide it.
You can learn a lot from an example of prominent attorneys from Chicago who represented a victim of traumatic brain injury suffered in a trucking accident. The trial was held in a small town in South Dakota. The defendant (the trucking company) was represented by local lawyers, who emphasized to the jury that the plaintiff (the injured person) was represented by “big city” lawyers.
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Instead of trying to downplay or avoid mentioning their “big city” status, the plaintiff’s lawyers embraced it. Implicit in their “big city” status was the fact that they were well-compensated.
They told the jury their client deserved the same top-drawer legal representation someone from a big city would receive. If jurors thought someone from a small town deserved less, they could reduce the award.
The jury returned a huge verdict for their client.
The lawyers didn’t just dress the part. That would be catering to the appearance of sincerity.
They owned up to their status as well-compensated, highly competent lawyers. They didn’t try to hide it.
When you meet with prospects, be fully transparent about your fees, while also explaining your fiduciary status and why that should be important to them.
For more information about marketing and branding opportunities with Dan’s book, Ask: How to Relate to Anyone, click here.
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Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
