I have been speaking to many sales folks in the asset management business for the past few months and here are the top 5 common themes that keep popping-up in these conversations:
- It is challenging to get face-to-face appointments
- It is nearly impossible to get meetings with prospects
- My management team is not providing any valuable insights on how to approach these problematic markets
- I have long stretches (days) where I am being unproductive and am basically doing nothing
- I’m nervous that I will be “exposed” and eventually will be laid off
Some of the most honest conversations I have had are wholesalers telling me they have empty calendars and are simply using their expense account to take their best clients (friends) out to lavish dinners and golf outings. Others have complained about their drop in income but justify their “hourly wages” given their lack of engagement. One wholesaler even told me they are simply playing a game, “my goal is to extract as much as possible from my firm given they have shown no compassion to what I am going through.”
If you are in sales, I hope you are sighing a breath of relief, realizing that you aren’t the only one experiencing these issues. Most likely, you have formed some type of “survivor” coalition with your coworkers in an effort to provide a united front in messaging how difficult the current situation is… hoping that management will grant some sympathy until “normalcy” returns to the marketplace.
The problem we face is that “normalcy’ is not gonna return anytime soon. We are entrenched in a prolonged bear market and have built our careers on selling diversification…which is currently not working. “Buy and Hold” has been replaced by “I have a few good short-term trades.” I have talked to many Financial Advisors that are getting more tactical in their investment approach and, I believe, these actions result from them trying to create a perceived value to their clients. While we can debate whether this is right or wrong, we do have to acknowledge that we are not aligning our activities with their priorities. And to make matters worse, your respective firms and not arming you with the right collateral that helps you distinguish yourself.
No one wants to hear you spew the benefits of diversification. And for that matter, handing out materials about how you can’t “time” the market or a chart highlighting the longevity and frequency of bear markets is not helping yourself at this point. Just type in any asset management firm’s website, and you will find the same marketing collateral, but you probably know this already. I am not saying this type of marketing collator is not useful. On the contrary, I have used them for decades in an effort to educate and form relationships. What I am stressing is that they are not distinguishable, especially in this environment. Trust me, I have spoken to enough sales folks that are begging for new, useful, insightful marketing material.
There are three stages to your relationships with Financial Advisors: Prospects, Producers, and Proponents. While the first two are obvious, a Proponent is someone who advocates for you and your firm to other FAs. How are you distinguishing yourself to these relationships in an effort to leverage them and become part of their inner circle? Given your firm’s lack of distinguishing collateral, you must take control of how you and your brand are interacting with your prospects and clients
In previous posts, I have highlighted that there are three pillars to facilitating solid relationships:
- Visibility – What is your strategy to stay in front of your Advisors?
- Content – How are you adding value to the relationship?
- Recognition – How are you making them feel special?
Given it is mid-December and business is slow, this is an excellent time of the year to reach out to your Advisor community and stay relevant as you head into 2023. My prediction is that 2023 will be an exceptionally difficult year for the asset management business – on all fronts. Your success will ultimately be driven by your ability to stand out in this difficult and crowed environment. You are the brand they are buying and make sure your interactions differentiate yourself.
Happy Holidays!!!