By Justin Bennett
As Baby Boomer agents near retirement, our industry is increasingly relying on a younger sales force to sell its products and services. While the Boomer market is attractive, reaching this group can be daunting for young producers charged with making a convincing case to a discerning client who is 30 to 40 years his senior. As difficult as this task is, though, it can be done. The following tips can help you tap this market successfully.
Find a niche
One of the first things you can do is to choose a niche. Many older and more established agents are focused on high-net-worth clients and have tended to neglect the middle- and upper-middle class markets, who represent a substantial opportunity for young agents. While people in these markets may have had “transactional” relationships with a broker or agent, few have had the opportunity to review all of their finances with an advisor.
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Managing the meeting helps overcome the age gap and keeps prospects focused. |
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When I first started out, I was handed the account of a single woman in her late 40s who had managed to save $1 million in a 401(k) plan. I called her to get acquainted and found out she was about to lose her job and desperately needed help in rolling over her money and setting up a safety net to cover her on the road to retirement. Since then, she has become an important client for us.
Choreograph your meetings
Be prepared and choreograph your meetings with clients and prospects. Given the age difference, it’s sometimes easy to be intimidated. Over the years, I’ve learned to stay in charge of the meeting. When you stay in control, the focus remains fixed on your services and products, and conversations are far less likely to veer off into the personal.
During my first months in the business, I got a referral from a friend to meet with his parents, a couple in their 50s. Because of my relationship with the family, I agreed to a meeting at their home. I went prepared with visuals and felt confident about my presentation. However, when I walked through the door, they set the scene. The result was an uncomfortable meeting space that didn’t allow for the presentation I prepared. The conversation led to a discussion of other friends of their son, leaving little or no time for what the meeting was intended for.
As a younger agent, you should be very serious when you meet with older clients. While referrals are the lifeblood of any advisor who is starting out, it’s difficult to be taken seriously by referred prospects. Managing the meeting helps to overcome the age gap with older clients and helps keep potential customers focused. Remember that your job is to take stock of your prospects’ financial picture. If you’re not careful, they can get sidetracked, and you can miss important opportunities.
Involve the influencers
I once had what I thought was a very productive meeting with a Boomer client. We talked candidly, reviewed his entire financial picture and mapped out a plan to suit his needs. However, when I called later to follow up, he told me that he had discussed my plan with a friend and was receiving different advice. Lesson learned: It’s important to meet not only with your client but also with anyone else he trusts for financial advice.
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Referring clients to other financial professionals who offer complementary services will benefit your clients. |
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On another occasion, I was referred to a client in her 20s who brought her inquisitive Boomer father along to our first meeting. In the end, I had won over not only his daughter but him as well. A few months later, he suffered a major disability, and I was able to transfer insurance coverage to a policy with an affordable premium. Perhaps days before, he would have lost it altogether.
Many of our clients are facing new challenges not seen with previous generations—simultaneously preparing for retirement, taking care of children, and in many cases, aging parents. Boomers want and need advice as they face these new realities and are looking to trusted sources, including friends and family members. Involving their influencers will help them feel at ease—and can also generate important leads for future business.
Lead with a “giving” arm
While we work with clients one-on-one, we are backed by a team of investment and financial professionals who can assist in helping them create a plan that addresses all of their needs. The most important thing in our relationships with clients is to be honest and to make sure that honesty resonates with them. Acknowledge your limitations. We are backed by legions of analysts, strategists and portfolio professionals who bring expertise and knowledge to everything we do. We essentially function as relationship managers. Referring clients to other financial professionals who offer complementary services will benefit your clients.
Remember that opportunities abound
Starting out is tough in this business. There is a learning curve that even the best and brightest must scale. Then, there is the experience that comes only from working in the field with clients and thinking on your feet. But if you have a positive attitude—backed up by dedication and hard work—clients of all ages will value your work.
Justin Bennett is a financial representative with New Jersey-based Northeast Planning Corp., a general agency of The Guardian Life Insurance Co.
(Registered Representative of Park Avenue Securities LLC (PAS), 1150 Raritan Road, Cranford, NJ 07016. Securities products and services offered through PAS, 908.709.0020. Financial Representative, The Guardian Life Insurance Company of America (Guardian), New York, NY. PAS is an indirect, wholly owned subsidiary of Guardian. Northeast Planning Corporation is not an affiliate or subsidiary of PAS or Guardian.
PAS is a member NASD, SIPC).
November/December 2007
The Art of Persuasive Selling
Divide and Conquer
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