Whoa! Here’s an Easy Way to Add 3.75% Onto Your Clients’ Returns

If your clients ever want to know why paying your fees are worth it to them… Vanguard Mutual Funds gave you the ultimate proof.  A report by Vanguard called “Putting a Value on Your Value: Quantifying Vanguard Advisors Alpha” makes the case that people working with advisors will make an additional 3.75%!  Thank you Vanguard!  It makes us look like a steal to the client.

The paper illustrates that the advice of a competent advisor increases an investor’s return by:

  • Making clients “stick to the plan” an advisor will, on average, add an additional 1.5% annually to a client’s return.
  • Appropriately distributing a client’s assets between taxable and tax-protected vehicles can add an additional 0.75% a year to a portfolio’s return.
  • Paying attention to product fees can add another 0.45% to the return.
  • Regularly re-balancing a client’s portfolio adds another 0.35% annually.
  • Laying out a well thought out income (spend-down) plan can potentially add another 0.7% to the annual return.

Add those up and you get 3.75%.  So any fee we charge seems like a steal in comparison!

Click here to read the paper

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If You Haven’t Done This First… every sale is going to be difficult

The definition of conviction is: a fixed or firm belief

So how much conviction do you have for the process or product you sell?  In other words, how many of the products that you sell do you actually own?

I know a couple of huge life producers and they own tons of life insurance.  I know some big money managers and they own the platform they sell.

They believe in it.  They have conviction.

I’ll just cut to the quick.  Own what you sell or you are never going to be completely believable!

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If You Sell REIT’s or Sell Against Them… you need to watch this video

Whether or not you sell REITs this video is a must see.  If you sell REITs you need to watch this so you know what you need to be disclosing to your clients, to keep you out of trouble.

If you sell against REITs, this video gives you an armory filled with data that could get your clients and prospects thinking differently about REITs and will absolutely get them thinking differently about any advisor that has sold a REIT and hasn’t disclosed this information.

Click here to watch the video

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Testimonials You Can Use No Matter How You Are Licensed

We’d all love to use testimonials… they are powerful.  However, the rules about testimonials depend upon how you are licensed.  So, let’s just talk about the potential ways to use testimonials regardless of whether you are an RIA, registered rep or insurance professional.

Non-testimonial… testimonials

  • Here’s the best testimonial that anyone can use.  I had annual summer barbeques and winter Christmas light tours for my clients and their friends… and at all of these I took HUNDREDS OF PICTURES!
    • I then took the pictures and created “collages” or murals with them.  You can do this yourself or use one of the many services out there to do it for you.
    • The only art on my waiting room wall were these murals of hundreds of happy faces.
    • Inevitably when someone would come in they would find at least two or three happy faces that they knew… can you beat that for a testimonial?
  • I have one advisor who is writing huge business off of her “town hall” meetings where she has a guest speaker and her clients bring friends to these morning get-togethers.  She had her first $100,000 income month in large part due to the people she’s met through these client-friend attended town halls.
  • Create mini-videos on topics of interest and put them on CD’s (you can put them on YouTube as well but you need them on CD’s).   The topic could be about how bonds work… or addressing something that’s happening in the economy right now. Then give them to your clients to hand out to their friends and relatives.  This is as solid a testimonial as there is!  And will generate solid business.
  • Get quoted in national magazines (we showed you how in the December 2013 issue).
  • Make sure you have your Better Business Bureau signage up.  It’s crazy but this really gives people a good feeling about your business.

So there you go, 5 ways to uses testimonials that will work… and will pass muster regardless of the licenses you hold.

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Do this 4 days a month and you’ll start filling your practice with HNW clients

We all want more High Net Worth clients, but do you have a system to get them?  Follow this plan and by the end of the year you will see a significant bump to the net worth of your new clients.

First thing to understand is that the wealthy in your town hang out together… they know each other.  So what we have to do is insert ourselves into their circle of acquaintances.  It’s simple, but requires a bit of work.  Here’s how you do it.

Find the places that attract HNW people…

Cultural Museums, Orchestras, Zoos, Library, etc.
Medical Hospitals, Disease specific orgs, etc.
Faith-based Churches, missions, organizations, etc.
Business Chamber of Commerce, Toastmasters, etc.
Alumni Your college, your kid’s college, etc.
Your city Planning committees, Issue committees, etc.
Country Club Enough said
Hobby Clubs Classic cars, model rail roads, wine, cigar, etc.

  • Join 4 organizations from four of the different categories above.  This will ensure you are getting in front of a much wider cross section of the High Net Worth community.
  • Make sure to attend at least one meeting, per month, per organization if possible.
  • Plan to meet at least 5 new people at each meeting.
  • Make sure to renew contact with all of the people you have met at previous meetings as well.
  • Keep it low key… DON’T EVER jump into a sales pitch.  Your goal is to get to know these people as people… before you look at them as possible clients.
  • However… always be ready with a killer elevator speech (which I’ve talked about in numerous previous issues of this newsletter) when they finally do initiate the conversation about what you do.  They must be the people to initiate the “what do you do?” conversation… and you must be prepared with your killer elevator speech.
  • This goes without saying… but I’ll say it anyway… always be groomed and well dressed.
  • Now think about the numbers
    • 4 monthly events… 5 new people… 12 months
    • 4 x 5 x 12 = 240 new movers and shakers a year in your circle. That equals new business and big business.

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A Picture Paints a Thousand Words!!!

We’ve all heard the phrase… “a picture paints a thousand words”… but do we use it in our business?

I’ve talked to two different advisors that have a different take on the same concept.  Both are “safe money experts” and want to convey risk in a way people can actually feel it.  They both effectively turned risk from an intangible, abstract idea into a concrete easy to understand idea.

One advisor has an actual crystal ball on his table that he hands to people when speaking about risk.  He asks them to look into the future and tell him what they see… they get the idea.  No one knows what is going to happen in the future.

The other advisor uses an idea that takes a little more work. He always has a house of cards built on a side table in his office.  When speaking about risk he talks about always having a strong foundation of safety… because without that safety… if the ground your house is standing on shifts even a little bit (and he’ll shake the table), what happens to what it took you years to build.

Both these are fun ways to make a point about risk without going into all the gobbley-gook, financial lingo that too many advisors throw around.  Simple stories and pictures beat out “standard deviation”, “alpha”, “beta” and all the other jargon we throw around… every time.

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Want to start closing more Do-it-Yourselfers?

Are you are sick of Do-it-Yourselfers taking your information and then refusing to move their money to you?  If so, watch this 50-minute video that walks you through exactly what to do to get Do-it-Yourselfers to give you at least $100,000 of their portfolio.

It is a script that you can use with whatever you are doing right now.  If you run into Do-it-Yourselfers, this is a must see. You can find it at this link:


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This is How You Get a Property Casualty Agent to Put You in Front of His Best 10 Clients

What was the #1 Halloween costume of 2013?  Flo.  Here’s how you use this to your advantage.

I created a 20 minute video that you show PC agents (see below).  It walks them through the both the danger they are in and the solution to that danger… YOU.  If you use the video with the right approach you will get the PC agent to put you in front of 10 of his clients at a time using Lunch and Learns.

These PC agent/advisor Lunch and Learns have been highly effective in generating 1 to 2 cases per lunch.


Cost: $80 (box lunch cost)

Profit: $8,000 plus (this your take home after the split with the PC agent)

Not a bad afternoon spent, eh?

Here’s a link to the video to get the ball rolling with the PC agent:


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Goals Are For Losers!!!

What!?  I bet you thought goals were a good thing, right?  Being January you might just be sitting down to make your annual goals… DON’T.

Here’s why as explained by Scott Adams, the Dilbert cartoonist in an interview in Bottom Line Magazine.

Goals take willpower and discipline… both of which can be undermined quickly.  Let’s say you have a goal of losing 10 pounds.  How easy is it to sneak that extra cookie or skip a workout?  Way too easy for most of us.

Instead of goals, focus on systems.  Instead of setting a goal of losing 10 pounds, create a system by making sure you never cross the threshold of your home with anything but healthy food.  I personally know of people with no will power when it comes to food (namely me) that have lost 10 pounds quickly with this method.  If it’s not around, I won’t eat it… if it is, I will.

So don’t set a goal for 2014… make sure you have a system to:

  1. Get you in front of enough of the right people with no upfront marketing cost
  2. Close at least 50% of every crappy prospect you get in front of. (NOTE: You are already selling the good prospects… it’s selling the crappy prospects that you are missing right now that will cause your income to jump.)
  3. Get attorneys, CPAs and Property Casualty Agents to refer their clients to you

There are systems that do all these 3 things. Give us a holler if you want to know more about #1 and #2… but here’s part of the answer to #3—Check out how the system below is getting Property Casualty agents to fill advisors calendars and bank accounts.

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Want More Referrals? Here’s My New Year’s Gift to You…

If you don’t currently have a referral “system” in place… I’ll give you the one I used very successfully for my own practice.  It must work because I generated over $350,000 in income on referrals alone my final year in personal production.  I hope you can put it to good use.

You can find the directions and letter templates here.

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