The inner-most circle is your product. We use variable annuities as the example here, but it could just as easily be LTC, life insurance,401(k)or any other product. If a variable annuity is your product, chances are slim that you will find consumers proactively looking to talk with you about them. But, chances are pretty good that you can find people wanting to talk about the middle circle -income solutions. For Boomers, that’s a big topic. It is a point of relevance to them, where variable annuities probably is not.Next, look at the outer-most circle. Virtually ever person in America has some kind of a financial problem. From having too much cash to needing a tax-effective retirement distribution plan- every financial need falls into the “Financial Solutions” category.

Where do most producers make their presentation Right in the fat middle of the product. They go for the throat. They try to engage the prospect in a conversation about the product, rather than the next level up. Look at the difference between these questions 1. Have you heard about the new generation of variable annuities (That’s “hammer mentality.”)2. Has your financial advisor talked to you about income solutions (That’s a connection question.).

If you are an advisor, and want to show yourself as relevant, your job is to learn how to use the Circle of Relevance. For the client, it’s not about the product – it’s about the problem and the result the product brings. And, in order to make it work, you must understand which problem he has and which result he wants.

If you’re a wholesaler, your job is similar. You need to show that you understand your prospect’s situation – his business model, clients, corporate mandates. Show that you are able to offer insights – then introduce relevant solutions. Again, you need to know which problem he faces and which result he wants.

Quick Story. During a recent coaching call with a Canadian securities firm, I was helping a group of advisors demonstrate their relevance. They were role playing by interviewing each other. It was very painful. These guys meant well, but had absolutely no idea of how inept they sounded to the person on the other end of the line. As bad as they were, they were very similar to most advisors and wholesalers we’ve met. They made the same mistakes.

Here is the biggest mistake. See if you recognize anyone: Mistake #1. Diving into detail. This is without a doubt the biggest mistake that financial advisors make. It sounds like this, “Hello, might I interest you in a tech stock that has shown great promise for growth through market fluctuation” or “Hello, how would you like to capitalize on stock market gains, while protecting against downturns” Those approaches are very obviously based on what that person wants to sell. They have zero to do with the client.

What can you do better Decide in advance what the goal of the call is. I know, it sounds remedial, but most people do not do that. So, they get nothing.

As people who apply psychology to generating business in the financial industry, we’re asked on a daily basis to help advisors generate referrals. So, we developed a system. If you follow the advice in this issue of InnerCircle, you will take a giant leap forward in getting more referrals. Mind you, this is just the first step. If you want to learn the other steps, just let us know.

 

James E. Cayne, CEO of Bear Stearns – did you see him on TV as he announced that Bear Stearns had no liquidity problems?

Pam and I watched fascinated as he made up answers and improvised his way into history. What we were looking at was where his eyes went. Mainly, he looked straight ahead to answer questions. That’s exactly what Idaho Senator Larry Craig did. Both were delivering memorized answers. Then, Cayne would look off to his right. He looked up-right and then level-right. What was he doing? He was creating his answers. They were off the script or away from the talking points.

In the study of Neuro-linguistic Programming, we learn that where a person looks tells you the type of information he or she is accessing. up-right is where people go to create a visual. level-right is where they go to create a sound.

The other thing Cayne did was the “stuck blink.” That’s when you seem unable to raise your eyelids, as though they’re stuck. The person starts giving an answer and then blinks. If the blink gets stuck, you can tell that the person is unsure about what he’s saying. The “stuck blink” is like President Bush’s stammering. He’s just not sure of the answer, or he’s not sure how the reporters will accept it. Either way, he’s not sure.

Pam and I have been studying facial cues for a long time. Normally, we just pay attention to the facial lines and movement that show us what that person’s personality type and values are. But, lately, we’re just having too much fun watching the CEOs stammer during CNBC interviews.

Want to learn how to do this? Just contact us via our website: www.aboutpeople.com

The Credibility Process – why bother?

Pam and I have the unfortunate experience of getting called by people who do not care about building client relationships. Why they would call us is a puzzle, considering that everything we teach leads to enhancing or improving credibility, which directly affects client relationships.

After discussing it at length, we recognized that you could actually develop credibility without ever being liked by the other person – or developing relationships with them. Politicians and law enforcement officers have that kind of association with people – their constituents. Attorneys and CPAs often do, too. Some professionals can get away with it. Those people are acknowledged experts. You call them in to perform a highly specialized job because they are experts in that niche. You want them to perform brilliantly and then go away. Typically, you don’t want a relationship with them.

However, if having a relationship with someone is important to you, you will have to prove yourself at each stop along the way, proving yourself as both likeable and credible simultaneously. Who would this relate to? Coaches, consultants, leaders, motivators and sales people who also serve as consultants, such as financial advisors.

Credibility is the set of steps that you take to solidify your relationship, systematically proving your value and reinforcing it. If you do not know the specific steps, you’re kind of at a loss. Doing business without knowing the Credibility Process is like being a fan of the Texas Two-step and then entering yourself in a samba dancing contest. You’re in over your head and you’re likely to be doomed to repeat your mistakes over and over and over. As you should be, because you can’t fix anything when you don’t know what’s broken.

Want to learn how to build your Credibility? Just contact us via our website: www.aboutpeople.com

– Michael Lovas

After discussing it at length, we recognized that you could actually develop credibility without ever being liked by the other person — or developing relationships with them. Politicians and law enforcement officers have that kind of association with people — their constituents. Attorneys and CPAs often do, too. Some professionals can get away with it. Those people are acknowledged experts. You call them in to perform a highly specialized job because they are experts in that niche. You want them to perform brilliantly and then go away. Typically, you don’t want a relationship with them.

However, if having a relationship with someone is important to you, you will have to prove yourself at each stop along the way, proving yourself as both likeable and credible simultaneously. Who would this relate to? Coaches, consultants, leaders, motivators and sales people who also serve as consultants, such as financial advisors.

Credibility is the set of steps that you take to solidify your relationship, systematically proving your value and reinforcing it. If you do not know the specific steps, you’re kind of at a loss. Doing business without knowing the Credibility Process is like being a fan of the Texas Two-step and then entering yourself in a samba dancing contest. You’re in over your head and you’re likely to be doomed to repeat your mistakes over and over and over. As you should be, because you can’t fix anything when you don’t know what’s broken.