Get expert advice for new financial advisors on handling client questions, building trust, and proving your value—even without years of experience under your belt!

There is a lot of advice available to new financial advisors about how to find clients, advocating everything from engaging in professional networking to posting to social media. However, you may not find as much advice about what to do once you actually meet a potential new client, but the same is not true for prospects—there are dozens upon dozens of online resources alone, telling people the questions they should ask when interviewing a potential new advisor. You need to be prepared to answer them.

How qualified are you?

A prospect may not ask you this question directly, but rest assured, they will find a way to inquire about your qualifications; it’s only one of many ways they’ll use to assess your expertise and trustworthiness. People are rightfully cautious about placing their financial security in the hands of others, but if you can prove your worth, you’ll have them listening.

People are rightfully cautious about placing their financial security in the hands of new financial advisors.

There are several ways to respond to this query, and your best answer will incorporate some or all of the following:

• Your credentials and certifications: You can wow them with a string of acronyms, but you’ll garner more respect and trust if you explain what your CFP, CIMA, or Series 7 license actually means and what it qualifies you to do.
• Your experience and track record: As a newer financial professional, you may not have a lot of either, so leverage the support available to you from your colleagues where you work and even why you were sufficiently qualified to be hired in the first place. And where you can, talk about the number of years you’ve been in the industry, past success stories and case studies (without violating confidentiality), client testimonials and referrals, or your performance history managing assets and financial plans.
• Your record of compliance and ethical behavior: Where applicable, refer to your fiduciary status, SEC or FINRA registration, and that there have been no complaints or disciplinary action taken against you for questionable business practices. (This last one is an baseline expectation clients will have, so use your discretion about whether to introduce it into the conversation. Certainly don’t lead with it.)
• Your investment philosophy: Offer a clear explanation of your risk management strategies, including diversification and asset allocations. If relevant, discuss your holistic approach to financial planning (retirement, tax strategies, estate planning, etc.) and your commitment to their financial security.
• Your client-centric approach: Reassure prospects by discussing how you tailor strategies based on individual client goals. You can also help set expectations by referring to your communication style and how often they will hear from you about updates and the status of their portfolios. And let them know your availability for questions and commitment to ongoing financial education.

What services do you offer?

Many advisors have a set niche of clients that they target, and whether you primarily work with corporate executives, military personnel, or business owners and entrepreneurs, or your expertise is in retirement planning, wealth management, or early investment strategies, you’ll want to be honest with clients about the scope of your authority. But this doesn’t need to be a topic that derails the conversation. 

Even if the prospect sitting with you doesn’t fit the mold of the majority of your clients, your honesty can bridge the gap. By clearly explaining your specialization, you build trust and set realistic expectations. In turn, this opens the door to potential referrals and future opportunities with clients who align more closely with your specialized skills.

How much can I expect to earn?

New financial advisors can assess a prospect’s tolerance for risk, ease their concerns, and still help them meet their goals.

To be sure, this is a loaded question, and one you really can’t answer in a precise way. As a professional, you fully understand that the market has ups and downs and that, at times, the market has looked bleak—and it likely will again in the future. But you also know that in the long run, the average rate of return is “X” percent and that the stock market can be volatile but generally comes out ahead. You might look at this question and see an opportunity to discuss their tolerance for risk and the various investment tools and strategies you can use to ease their concerns and still help them meet their goals.

Beyond the questions

As a group, new financial advisors share a common challenge—how to convince prospects that, despite a lack of client experience, they can be trusted to help them achieve their financial dreams. As a member of this group, it helps to remember that people make decisions based on emotions and later justify those decisions with information. If you work to let prospects get to know, like, and trust you and if you can build a relationship with them, you may be surprised how often they will overlook your novice status and agree to work with you. For some assistance in building client relationships, check out this FREE e-book, “Getting Started with Relationship Marketing.” It’s just one of the many free resources we make available in our Resource Library, so spend some time looking around.

The takeaway

Building trust (and experience) as a new financial advisor takes time, but by confidently answering key prospect questions and demonstrating your knowledge, integrity, and commitment to their success, you can establish lasting client relationships. Remain focused on clear communication, transparency, and a client-first approach to encourage your prospects to know, like, and trust you. Download our free e-book, and check out the other helpful blogs you’ll find at the bottom of your screen. Here’s wishing you much success!