A 3-Step Sales Process To Clearly Demonstrate Financial Planning Value To Prospects

Nerd's Eye View | Kitces.com

Over the past decade, a growing number of advisors have expanded into offering comprehensive financial planning services, reflecting a shift that not only helps them stand out from (increasingly commoditized) portfolio management offerings but also supports clients' broader financial goals. However, comprehensive planning is an intangible service, which can make it challenging for advisors to convey its value – especially when meeting with prospective clients who may be unfamiliar with what 'financial planning' entails. This can be particularly challenging when advisors work with clients who have diverse planning needs.

In this guest post, Taylor Schulte, founder of Define Financial, an independent RIA based in San Diego, CA, shares his approach to overcoming these challenges by selecting a client niche and implementing a 3-step sales process. Together, these strategies have enabled him to clearly demonstrate his value to prospective clients contributing to a remarkable $1 million increase in recurring revenue over just 4 years.

To start, Taylor refined his ideal client profile to focus on those he could best serve: diligent savers over age 50 with a retirement nest egg between $2M and $10M. These clients, typically in or near retirement, face key challenges like reducing taxes, managing investment risk, and maximizing income. With a clear niche, Taylor developed a client-centered sales process focused on value, not on pressure to become a client.

Taylor's process starts even before the first meeting, introducing prospects to the firm and its "Free Retirement Assessment Process". Those interested can then schedule a 20-minute introductory phone call, where Taylor uses a script to determine a potential fit to work together. If both parties agree, they proceed to a 60-minute discovery meeting to explore the prospect's goals and reasons for seeking advice.

After this meeting, Taylor waits 2 weeks before the final review assessment meeting. This timeline not only allows for the prospect to provide their information and Taylor's team to complete the analysis, but also gauges the prospect's commitment to a long-term relationship. In the final 60-minute review, Taylor presents the Retirement Assessment, covering 3 key questions: how to maximize income, lower taxes, and optimize investments in retirement. He also discusses fees and the onboarding process but encourages prospects to "think about it" before deciding – focusing on long-term value over a quick close.

Ultimately, the key point is that developing a structured sales process tailored to the specific needs of a well-defined client niche not only enhances operational efficiency but also builds trust and rapport with prospects. This approach can lead to higher conversion rates while driving substantial revenue growth and profitability. And by aligning services with the priorities of a targeted clientele, advisors can create lasting relationships and build a thriving, sustainable business!

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