I Carry The Bag - Summer 2012 by Wholesaler Masterminds®

I CARRY THE BAG | SUMMER 2012 | 3

3rd Quarter | SUMMER 2012 ISSUE NINE

Table of Contents

Editor-in-Chief/Publisher Rob Shore

Art Direction & Design Edward Arwine | Arwine Media www.ArwineMedia.com

Contributing Writers Mary Allen Bill Cates Kathy Freeman Godfrey Kip Gregory Shep Hyken Rubesh Jacobs/kasina Sara Keagle Maribeth Kuzmeski Frank Masseli Scott McKain John Miller Ivy Naistadt

3 Part Guide to Create A 16 Seven Ways to Financial Captivating Opening Advisor Loyalty By Ivy Naistadt By Shep Hyken 7 Steps to Cloning Your Best 18 8 Questions Advisors Are Clients Asking About LinkedIn and By Bill Cates How to Answer Them

I Carry The Bag is a registered trademark of shorespeak, L.L.C. All content in this publication ©2012 shorespeak, L.L.C. and is protected by international copyright law. All rights reserved. Reproduction in whole or in part without permission is prohibited. Library of Congress ISSN 2157-1155 (print) ISSN 2157-1155 (online)

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5 Ways Wholesalers Can Enhance Connectivity With Financial Advisors

Outstanding Wholesalers Know “The Why” By Scott McKain By John Miller

Please visit www.icarrythebag.com or call us at: 888-508-5010

I CARRY THE BAG® is published quarterly 514 San Bernadino Avenue Newport Beach, CA 92663 tel 888-508-5010

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By Kip Gregory

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5 Ways to Crack the Corner Office 19 He’s Just Not That Into You! 4 By Frank Masseli Ways to Connect More Quickly with Prospects 10 Inside The Bag By Maribeth Kuzmeski

21 Nine Ways to Invigorate Your Career in the Midst of the Summer Blues

By Kathy Freeman

Advisor Insider

By kasina and Horsesmouth

A Flight Attendant’s Guide to Jet Lag

By Sara Keagle

Three Trends That Are Transforming Wholesaling

By Rubesh Jacobs & kasina

16 Tips to Find Balance in the Wholesaling Chaos

By Mary Allen

A Summer Refresh When was the last time you took a good look at your business in the most objective way possible? Especially for tenured wholesalers, this ‘time out to analyze’ may not happen as frequently as need be – and it’s a critical element to keeping you relevant and on top of your game. And so it is with I Carry The Bag. As this is the first issue of our 3rd year in business we have refreshed our look by hiring a new art director who is going to bring his artistic style to the publication – we hope you like it.

letter from editor

Editorially, in this issue we have some heavyweight content providers: Scott McKain speaks globally on the Ultimate Customer Experience and brings you insights into how you can create greater connectivity with advisors, and in doing so generate more business. John Miller has become synonymous with QBQ and helps us understand the accountability that comes with knowing the Question Behind the Question. Shep Hyken, who has been informing and entertaining audiences with his keen insights about customer service for years, tells us how to increase loyalty from our advisors. Bill Cates has established a well-earned reputation as The Referral Coach and teaches us how to get more referrals from the advisors that we serve. Frank Maselli brings his 30 years of experience in both retail and distribution to provide ideas on ways that we can get more access to the literal or metaphorical corner office producer. All of that and more in this refreshed edition. We hope you have a terrifically productive summer 2012!

I CARRY THE BAG | SUMMER 2012 | 5

Presentation Skills

By Ivy Naistadt

Part Guide to Create A Captivating Opening

f you’ve ever heard the overture of a Broadway show, you’ll understand what I mean when I say it can be a thrilling experience. You take your seat (and nowadays, turn off your cell phone, iPad and electronic devices). The first few notes of the orchestra tuning up signal you’re about to be transported to another world. If what you hear excites your senses, you settle in for a great ride. If what you’re listening to doesn’t captivate you, you lose interest before the curtain has even been raised. A question I’m frequently asked regarding presentations is, “How do I open my presentation? How do I begin my talk?” Or, “I’m not a good story teller, I can’t tell jokes and I’m so nervous in those first few minutes - what do I do?” These are reasonable questions to ask yourself. The opening of your presentation is a critical element and requires careful consideration. Done well, you engage your audiences and get them on your side from the get-go. Mess it up and your audience may tune out and head for their smartphones! Even though you don’t have the advantage of a full orchestra to send up your presentation, here are the three elements you should include to ensure that you create a Captivating Opening.

1. The Grabber

If you can come up with a creative device to stimulate thinking right off the bat, so much the better. Keep in mind that your “grabber” must be appropriate to the occasion, tied to your topic, and suit your style. Consider the following:

Jump into a story.

One of my favorites is a short story or anecdote that specifically relates to your topic and can help the audience get to know you. I recently began a keynote speech to a women’s mentoring group by crafting a story about my mother, a professional violinist who also struggled with performance anxiety. At the end of her life when she was honored by the National Organization of Women as the Trailblazer for Women in Music, she had to step up to the podium and “say a few words.” She

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admitted to me later that she was terrified. Like my mother, the women in the audience were also highly accomplished people in their professions and yet, many were terrified of public speaking.

Ask a powerful question.

to this event. What was going on right now in his industry? If he could create a transitional framework connecting the recent challenges and how they led his management team to take this new approach, his audience would be engaged.

Has this ever happened to you? How many of you…? Have you ever thought...? The idea here is to pique interest in your topic and demonstrate how it relates to your listeners and their world so they want to hear more.

By creating a context for his position in his opening remarks, he was able to move his audience from past events into the present, and then paint a hopeful direction going forward. They were eager to listen to what he had to say.

Answer the question - Why are we here? In a recent Join the ‘Ivy’ League coaching

A Grabber is optional, yet it can be powerful. Choose what works best for you. The key is to think about whether it’s appropriate for this specific occasion and tees up your message. The next element, however, is not optional.

session with a client who would be addressing some sensitive issues for his audiences of financial advisors, I suggested that he think about how he could set the stage for positive communication in his series of upcoming talks. I encouraged him to think about what happened prior

parts 2 & 3 continued page 27..

Building Relationships

By Bill Cates

here are two basic ways for you to grow your business: 1. More clients that write big tickets. 2. Bigger tickets from your existing clients.

This article is geared toward helping you get new clients, and indirectly, will contribute to you getting more business from your existing clients. Here are seven specific steps you can take to start cloning your best clients – creating high-level introductions from your current top producers to new top producers.

#1 – Develop an Ideal Client Profile (ICP)

One of the quickest ways to expand your business is to get laser clear about whom you serve the best and who serves your business the best. Who are your best clients? I suspect they know the value of having a relationship with you. They appreciate the knowledge, experience, and value-added programs you bring to them. They meet the production levels necessary to write the types of tickets you want. They are well respected by their colleagues, so their referrals carry more weight. And they trust you implicitly. Because of that, they are also happy to take a stake in your success. What else would you add to this list? This simple exercise is the beginning of attracting the types of reps you want.

Steps to Cloning Your Best Clients Clients Clients

But don’t stop there. Write your profile down in a format where you can share it with selected clients and centers of influence. I’ve found that showing people your ICP is much more effective than just telling them.

#2 – Request an Interview with Your Best Clients

Why do you want to interview your clients? It’s a combination of wanting to know what’s working in your relationship and what they find valuable, and then brainstorming how you might approach others like them. Your “script” might sound a little like: “I’ve been taking a look at my business and want to focus most of my energy serving advisors much like yourself. I’m doing a little research and I really value your help. I’d like to get together for about an hour to do two things. First, I want to make sure I’m on track with you. I want to see what you value in our relationship and see if there’s anything I could or should be doing differently to serve your

Clients

needs. Second, I want to brainstorm about how I might reach more people like you. I’d be happy to do this at a time most convenient for you.” Start with clients that love the work that you do, as they’ll be most likely to grant you the hour you request.

#3 – Determine the Value

It’s critical for you to determine the value you bring to your client relationships. Here’s a gusty way to start the interview: “On a scale of 1-10, where am I with you right now?” It is important to clarify that this is not about the performance product. Make this about your relationship. Bottom Line: Ask them why they do business with you; what attracted them to you in the first place and why they continue to work with you (and your firm). This value discussion will help your clients clarify the value you bring to them. This conversation alone can generate referrals without even asking, and it will teach you what people value about you, your process, and your service.

#4 – Brainstorm for Introductions

Now you move into the area of getting introduced to other top producers. Start off “specific” and then become more “general.” Begin this step by telling your client you want to meet more people like them – people who fit your ideal client profile. Show them your profile. Then say, “Would you be willing to introduce me to Frank Jones down the hall? Does Frank fit in this profile?” Even if the rep doesn’t feel comfortable introducing you to Frank, it will get the ball rolling on this brainstorming. Then you can move into broader questions like, “If you were me, who would you be trying to meet?” At Referral Coach International, we teach a very effective and professional way to ask for referrals. It’s called The VIPS Method™ for Asking for Referrals. To get a detailed report on the VIPS Method™ that you can also share with your advisor clients, go to www.ReferralCoach.com/ wholesalers. steps 5, 6 & 7 continued page 9...

I CARRY THE BAG | SUMMER 2012 | 7

Building Relationships

Crack 5 Y Ways to

the Corner Office

ou’ve seen them...but only from a distance. They rarely gather with the herd and their protectors are skilled at fending off intruders. This is an elusive group…the Corner Office Advisors...the COAs...the rarest prey in the jungle! The term “COA” may be a bit outdated since many top performers have gone independent recently, but these big dogs swing a huge asset bat and can make your year in one stroke.

A few assumptions:

First, you have the weapons to hunt this game. Your products or “solutions” must be viable, intelligent, and intriguing to the COA. Go in too lightly armed and you risk a painful death.

Second...this isn’t your first safari. You’ve been able to bag something bigger than the squirrels and gazelles that gather at the lunch and learns. Third, you have the courage to pursue this dangerous creature. The COA may seem disconnected from the herd, but their angry roar can alert everyone to your unworthy presence. The standard advice for COA hunting involves a lot of time devoted to building a relationship, learning their business model, asking a lot of great questions, building trust and confidence and helping them find the right solutions for their clients. This is all true and it’s the core message I would tell any wholesaler. But you already know this…so let’s take a different approach. Special Operations Tactics As an NSM, I trained a small group of my best wholesalers in “Special Operations Tactics” designed to get penetration more quickly. These “high beta” strategies have some risk, so if you’re hesitant to use them…I understand. The Navy Seals reject 90% of their trainees.

1. Isolate the Target

The COA is well-guarded, so find ways to get them alone. The parking lot is an opportune moment. Find out what they drive and wait in the lot before office hours. Time it so that you walk into the office with them and introduce yourself. “Hi…you’re Bob Smith from XYZ aren’t you?” “Yes.” “I’m Frank Maselli with ABC Funds and I would love to buy you a cup of coffee.” “Sorry, Frank, I don’t have time right now.” “Bob…every wholesaler in the city wants to work with you…but I’m the only one who has ever waited in a parking lot for three hours just so I could walk in with you. That kind of persistence has to be worth something. I know you’re busy but I really want to set up an appointment to see you. Can I call Debbie today and get on your calendar?”

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Switching to the appointment takes the pressure off this interaction; it says you are willing to play by the rules but that you wanted to make an impression. Knowing that Debbie is her assistant also says you’ve done your homework. When and where does he go to lunch? Be at a nearby table and pick up his check. Have the waiter deliver your business card instead of the bill. It’s probable he will stop by to say thanks and then you can go into appointment mode. What time does he leave for the day? Does he have any favorite restaurants? Where does he hang out on weekends? A casual meeting at the gym, the dry cleaner or the golf course can be the ticket into his world. Some of you may think this feels a little like stalking. Maybe. Special Ops are not for everyone.

2. Work though the Manager or Product Coordinator Managers and Product Coordinators bypass the COA’s guard with ease. Being introduced by one of these allies can give you significant added stature.

Building relationships with the managers and PCs in your region is standard practice and there are many ways to become valuable to them. Advisor training, supporting events, doing a great job for their people…all are core elements in your wholesaling model. Sharp managers or PCs know they have power and will use it sparingly. They’re unlikely to go out on a limb with a COA until they trust you. Before you can expect help, you should have had some success with other good people in their office. Make sure that your best advisors spread the word about you to their manager and PC. And you should e-mail any success stories as well. They love success stories! Most important…if something goes wrong, step up and fix it! How you handle mistakes says a lot about you as a professional.

3. A Thoughtful Gift

Despite restrictions about gifts, giving something creative and simple that taps into a COA’s personal interests can break down barriers. My favorites include magazine subscriptions, an author-signed book, a framed map of their favorite vacation spot, or an audio/video training program to help them grow their business. Event tickets work as well, and they are an opportunity to meet outside of the busy office. Gifts to the COA’s staff are huge! Fill some candy jars, tie them with ribbon and give them to the COA’s (and manager’s) assistants. Every time you’re in the office, re-fill the jars. It’s a regular touch that leaves folks feeling good and will get you in many closed doors. And if you’re worried about how to expense these kinds of gifts… you probably still don’t get the whole “Special Ops” thing. Speaking of assistants…treat them like gold! A professional wholesaler recognizes the awesome power an assistant has and strives to build a relationship with everyone on the team.

By Frank Masseli

4. Attach Yourself to a Guru

There are industry professionals who bring real value to top producers. I’ve done thousands of meetings with wholesalers and often managers come up to me and say, “You’ve got the best advisors in the office here today. They NEVER come to meetings!” Afterwards, set one-on-one appointments with the guru. My colleagues and I can open any door for you. It’s not cheap, but you will gain massive prestige and credibility by bringing in someone who can truly help a COA.

5. Use Kolbe®

One of the greatest tools I’ve ever used in my career has been the Kolbe A Index®. A wholesaler who knows an advisor’s Kolbe scores forever knows how to work with that advisor. It can make a monumental difference in your success as a wholesaler. Contact me for more information. Final Thoughts Working with COAs is not always easy, but the rewards are worthwhile. Ultimately the best relationships will take time, but incorporating some Special Operations Tactics may accelerate that process and improve your life a lot sooner. Frank Maselli is one of the most inspiring trainers in our industry. The author of two best-selling books, he’s an expert in helping advisors grow their business. His training programs are filled with insight, humor and passion that have earned him Top Speaker awards for fifteen years! Frank’s unique experiences as an advisor, a top branch manager and NSM of one of the largest money managers in the world imbue his messages with a rare understanding of our business that resonates with the best advisors in the industry.

Frank is a member of IMCA, The National Speaker’s Association & MENSA. Contact: frank@maselligroup.com Phone: 800-231-5272

7 Steps to Cloning Your Best Clients by Bill Cates continued:

#5 – Get Introduced

You don’t just want a referral – you want a quality introduction. You want your referral sources putting in a good word for you with their colleagues. Here are a few effective questions to help you customize your approach to a new prospect: • •

•

“How would you like to introduce me to Frank?” “What do you think you need to say to Frank to get him interested in taking my call?” “Once I meet Frank, what do you think I need to say to capture his attention?” “How do you think Frank will react to this introduction?”

The more you talk through the introduction with your referral source, the better introduction you’ll get. The best introduction is usually face-toface. If you and your referral source can

meet over a meal, a round of golf, or other social activity, this is ideal. If they can walk you down the hall to introduce you in person, that’s good too. Of course, a phone call or email on your behalf can work as well, but try for the in-person introduction first – if it fits your business model.

Step #6 – Receive Referrals Properly 1.

Contact any new referral prospects right away. When the ball is in your court, pick up and play immediately. Don’t sit on referrals.

2. Keep your referral source in the loop. Let them know how it’s going. If you’re having trouble connecting with your new prospect, let them know. 3. Send a thank you note and very small gift to your client for meeting with you and for providing the introductions. Don’t wait for the new advisor to drop a ticket with you before you send the small thank you gift. Reward the giving.

#7 – Become a Student and Teacher of Referrals

This last step will turbo-charge your referrals to more top producers. Become a student of referrals and teach reps what you know. When you teach reps how to get more referrals for themselves, the referral conversation becomes totally transparent and they start giving you referrals without even asking. And, of course, when they acquire new clients, some of that new money will come your way. Bill Cates is the author of Get More Referrals Now! and Don’t Keep Me a Secret! He specializes in helping financial professionals of all types grow their business through referrals and other relationship marketing strategies. Bill is often sponsored by wholesalers in their efforts to bring value-added programs to their advisor clients. To learn more about Bill Cates – how he can help you and how he can help your advisor clients, go to www.ReferralCoach.com/ wholesalers. To contact Bill directly, email him at BillCates@ReferralCoach.com.

I CARRY THE BAG | SUMMER 2012 | 9

Inside The Bag

Robert Behan, CFA Senior Vice President, Head of U.S. Intermediary Distribution Calamos Investments

The base information a wholesaler can provide is no longer relevant. So the cream of the value-add is still – and always will be – relevant. ICTB: You’ve been in our business almost 25 years, Bob, and you started by carrying the bag. How long ago was it and for whom? RB:

I started carrying the bag in 1987 with Manulife Financial. I was selling defined contribution investment only, as it was known back then, in addition to fullservice retirement in the advisor channel and in the wires, as the agreements became more formalized. Since it was 1987, it was the infancy of the retirement business.

ICTB: Do you think that the wholesaler’s role today has been made that much more difficult by the proliferation of product – for example the explosion of the REIT space and the number of even the smallest RIAs distributing investment management solutions? RB:

Well, of course. There’s always been competition for the dollar.

But the paradigm has changed. We have been working for the last 10 years on technology which is revolutionizing the industry and which wholesalers need to embrace - the notion of segmentation and targeting through CRM systems.

The idea that a wholesaler within a territory (covering 3,000 advisors) can possibly know who to target, and how to sell what to whom, is pure folly. It’s just impossible to know. With the proliferation and better transparency of data, I believe we’re going to look back and say we were in the Dark Ages five years from now.

RB:

Now we’re using intelligent distribution, becoming what is more analogous to the investment ‘process,’ to enable us to become smarter about who we target and who we can be effective with. So while it’s incredibly important and incredibly difficult in terms of proliferation around product, I still think that means there’s a lot more information to saturate. That fits well within what I think is the future of the industry, which is certainly more of an institutional sales approach.

ICTB:

What do you believe advisors want from wholesalers today?

RB:

The number one value you bring to a potential client is extreme in-depth knowledge about your own product.

ICTB: How many wholesalers are in your shop presently? RB:

Our terminology is Investment Consultants; we don’t really like the term “wholesalers.” We have 26 external Investment Consultants, of which six perform the inside/ outside duties.

ICTB: As you look back at the nascent years of wholesaling, the ‘80s, and you think about the greatest challenges that your folks have today, what are some of the greatest differences that you see? RB:

For starters, I believe the core base is the same, which is: 1) connecting with the customer; and 2) finding a solution to deliver on a personal basis. So I don’t think the essence of selling has actually changed very much. That said, I do believe the competition and wholesaler skill levels are much higher today.

In 2012, providing a solution or an idea and becoming a trusted partner and consultant are still highly relevant. But I think the skills and the necessary requirements have gone up dramatically, as they should, because the base level of information (i.e. performance numbers) has been taken over by technology.

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with Robert Behan

That’s one they value; number two is extreme in-depth knowledge about the capital markets to help them connect with clients; and number three is extreme in-depth product information about your competitors’ products and what differentiates you.

I should note that when I mention capital markets, I’m talking about asset allocation; about how things fit; about building a business. There are just so many things that we have to talk about with advisors. The way Calamos sees it, the best thing we can provide is in-depth information on asset allocation, about capital markets, about our products, about competitors’ products, and how all of these fit into an advisor’s book of business.

for penetration.” In the past we didn’t have any way to know that there wasn’t any business to be done within the products that we have - other than taking the wholesaler’s word for it.

Now that we have that information intuition becomes less important, the excuses become less prevalent, and we now get to a business conversation of saying, “What can we do to help you penetrate that branch?”

ICTB: Do you think that the level of transparency created, by virtue of this data that’s now available to any management team, at some level freaks wholesalers out? RB:

Of course.

ICTB: Bob, let’s go back to this notion of intelligent distribution.

ICTB: It’s kind of Big Brother-ish, isn’t it?

Virtually every firm I talk to of any weight has invested in technology that allows them to better parse the data and get directly at the right producer for the right product. What sorts of platforms does Calamos purchase to make that data parsing more effective for the wholesaler?

RB:

We also evaluate and purchase a vast number of data sources and put those into our CRM system, and we continually build our database so that we can parse it down.

Yes. And, candidly, what I tell my wholesalers is first, anybody who told you you’re in your own business and you work for yourself did you a disservice. Because we pay you a salary, we pay you a bonus, and we pay you sales commissions, so anybody that told you this is your own business where you put no capital into it is doing you a disservice.

Second of all, I tell them to get over it. This is 2012. Big Brother is gone. We’re not trying to control what you do. We’re trying to increase productivity for the business.

The first trick is to have the information. But the second trick is to convince wholesalers to demonstrate the tools in the territories and show how these will be a help to them to their business. It’s also about letting go of the old business model, which is “I’m in my territory and I know everything about who’s doing business in my territory” to having guidance and a partnership with the home office.

These technologies are still evolving and the information is still far from perfect, but I think five years from now the information is going to be even better. In addition, there will be things that further assist that are adopted from other industries, such as trying to understand buying patterns, behavior, and predictive analytics – there are many things that have yet to be applied.

I believe that without intelligent distribution you’ll fall behind. There’s just no question about it.

ICTB: As a senior leader in our business, how are you inspiring, inciting, or 2-by-4-ing your wholesalers to get with the program and come out of the Dark Ages? How do you take them out of 2005 and bring them into 2012? RB:

It’s partially self-selecting. What I have found is that the folks who take their traditionally great skills and then marry them with these types of tools have just been able to excel far past the others, so I believe you use all three. It’s just a matter of showing them that this will help your business. It’s also a matter of us saying, “We have advisor offices in your region that we don’t have any business in, and we can measure it and we can show you we don’t have any business. So, let’s sit together and figure out why we don’t have any business and come up with a plan

ICTB: Tell me about your mentor(s) in this business. RB:

I’ve been very lucky to have many. But I would say two stand out to me.

One is the person who hired me, my first sales manager who was an old insurance producer. He left me with the concept that if you were to provide somebody a solution, an idea or something that’s interesting, they may not buy from you but you’re always welcome to have the dialogue. I’ve never forgotten that. I always encourage our folks before they go into an office, don’t just do it; have something to say that is meaningful and you will always be invited back, even if they don’t buy from you. That’s number one.

Number two, being at Calamos now, I’m fortunate to have John Calamos as a mentor in so many ways. He’s a distribution wizard and he’s got great ideas, so just learning from his ideas and putting them into action has been great, to be honest with you.

ICTB: When you look to the future, do you think wholesaling will always be here or is part of the evolution leading to the demise of the toe-to-toe, guest chair conversation with a financial advisor? Are we headed down that path? RB:

I don’t think so. I think we’re headed down the path to having fewer wholesalers with more impactful conversations. I still believe, and I think the markets of 2008 and 2009 really showed this, that at the end of the day there’s still a connection at a human level. Whether there’s anxiety about the portfolio or there’s information sharing, there’s encouragement that the advisors need that they’re doing the right thing, vis-à-vis ideas or thinking.

I CARRY THE BAG | SUMMER 2012 | 1 1

Purposed Psychology

By John G. Miller

Outstanding Wholesalers Know “The Why”

lmost anyone who sells stuff for a living has been trained on the concept that it’s important to understand why someone buys their product. Whether the salesperson is offering a car, house, fine suit, or investment vehicle, a sales manager or trainer has said, “You’ve got to know why people take action!” and “You must work to discover what motivates the buyer!” And it’s true. Without knowing why a potential customer might want what I’m providing, I’m truly shooting in the dark, hoping against hope they purchase my wares.

But what’s often not understood is how important it is for the salesperson—the wholesaler—to be clear on his or her own personal “why.” Without knowing the purpose for existence, a wholesaler is really just “selling stuff.” When my son, Michael, was eight, I took him to a youth wrestling program. As local college stars demonstrated complicated wrestling holds and maneuvers, I noticed Mike and his mat partner getting confused and frustrated. They just didn’t get it and Mike started to cry. I called him over and said, “Mike, let’s head on home, okay?” He was most agreeable. As we hopped into the car, still baffled over why the coaches had taught sophisticated moves to such young children, I grabbed my cell and called my dad, E. J. “Jimmy” Miller, Jr., who was Cornell University’s wrestling coach for more than twenty-five years. “Dad,” I asked, “if you were going to instruct eight-year-old boys in wrestling, what’s the first thing you’d teach them?” Without a second’s hesitation he replied, “I’d teach them the purpose of the sport, son.” Sounds good, I thought. He went on to explain, “I would help them know before learning anything else that the purpose of wrestling is to put the other man on his back.” “That’s great, Pop,” I said. “What would you teach next?” He smiled through the phone, saying, “I would then teach them to stay off their own back!”

Purpose—it comes first. What a great lesson for all of us. Much has been said about the importance of purpose in people’s lives, but it is especially critical for any sales professional. The reason is this: Wholesalers are swimming upstream every day fighting the current of prospect indecision, product changes, the competitions’ features and pricing, and sometimes poor sales management. Not to mention the family member who says, “When are you going to get a real job?” If a wholesaler can’t answer the question “Why do I exist?” how effective will he or she be in keepin’ on keepin’ on? And if we don’t know why we exist, we’ll work for all the wrong reasons. While checking out at our favorite grocery store, I was caught off guard when the cashier asked me what I thought was a random question: “Stamps or ice today, sir?” I looked at her quizzically and responded, “Stamps or ice? With thousands of items in this store, why do you ask me if I want stamps or ice?” Continued on page 26...

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Career

By Kathy Freeman

Ways to Invigorate Your Career

in the Midst of the Summer Blues

ummer has got to be the most challenging season for a wholesaler! Many of your clients are on vacation, and if they are in the office, they aren’t in the mood to work. The weather is nice, and we are all tempted to head off to the lake or the golf course instead of to our clients’ offices. What can be done to get ourselves refocused to move our careers and business forward as if it were prime time? How do we get back to waking up each morning, doing what we love doing, achieving our goals, making an impact, making money, and getting recognized for our accomplishments? Sometimes we need a seasonal adjustment to our mental game. Sometimes we are affected by tactical challenges, and sometimes there are bigger and more market-driven issues that get us down. As a matter of fact, recent research* conducted by Kathy Freeman Company indicated that, even among the senior leadership ranks of sales and marketing talent within the investment industry, the last four years have taken a measurable toll on the passion these executives are feeling for their own careers. So the question becomes, when we aren’t operating in an ideal world, what can we do to shake off any doubt and frustration and get our careers and career satisfaction back on the right track? 1. Analyze – Take the time to do a Ben Franklin analysis on the pros and cons of your career right now. Make it as comprehensive as you can; list all the components of your role that you enjoy and that you’d like to do more of. Next, list those components that you don’t like to do at all or could improve upon and, as a result, become more comfortable with. 2. Confront – Take the items on the cons side of the list and confront your demons. Item by item address what you don’t like. Even if it’s a market-driven dissatisfaction, i.e. your product is out of favor, list that as well. Identify and rank which of the components would most likely add the biggest positive benefit to your career if you could overcome this negative component on your list. 3. Connect – For those things that you don’t do well, identify people within the industry that you recognize for being outstanding in that specific area. Reach out and connect to them, take them to coffee and propose some questions that they could answer to get you past your obstacle or your dissatisfaction with this element of your career. 4. Emphasize – On the positive side of the Ben Franklin list, pick and rank the components of your business that you are excited about and where you feel most confident in your ability. Give those areas additional emphasis. Reorient your business plan around an emphasis on the strengths of your personal capabilities. 5. Experiment – All the answers haven’t been created. Take some time to try new approaches to old problems. One of the trends we identified in our recent research was that successful sales and marketing execs need an outlet for creating and building something new. If that’s the case with you, start thinking around the corners. Is there a new application for the iPad that you could effectively leverage for increased impact with client presentations? Experiment and let others benefit from your creativity! steps 6, 7, 8 & 9 continued page 17...

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ADVISOR INSIDER: STATS YOU NEED TO KNOW 8.34: Average number of years that advisors have been using products from an asset manager

Recommendations

100%

35.0: Percent of advisors who have met with an external wholesaler who would recommend them to a friend or colleague

22.8: Percent of advisors who have interacted with an internal wholesaler who would recommend them to a friend or colleague

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Source: kasina and Horsemouth kasina’s FA Vision (in partnership with Horsesmouth) is the industry’s most comprehensive and frequently conducted survey of financial intermediaries. Our data-driven analysis of the behaviors, preferences and opinions of financial intermediaries helps firms make tactical improvements to their brand, product and distribution. To learn more about FA Vision, visit www.kasina.com or call 212.349.7412

37.1%: Have two or more meetings with an external wholesaler from a firm with which they do business with

29.9%: Say the wholesaler with whom they have the strongest relationship is the primary reason for choosing between products with similar characteristics

15.9%: Say familiarity with the provider’s brand is the most important selection criteria for choosing products for downside protection; only 2.5% say that fees/expenses are the most important

17.0%: Indicate that home office recommendations/ models are the primary selection criteria used for market/sector exposure products

34.6: Percent of assets that advisors indicate they allocate to market/sector exposure strategies

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Advisor Loyalty

7 Ways to Financial Advisor Loyalty

hen I graduated from college, a friend came up to me after the commencement ceremony and asked me what I was thinking. I remember telling him, “Wow, it is finally over!” He then asked me if I knew the meaning of the graduation ceremony and of the word “commencement.” Before I could answer he said, “This is not the end. Trust me when I tell you, this is just the beginning.” How right he was! Sage words for a young man coming out of college into the real world. As I think back on this, I can’t help but see similarities between going to college and the sales process. You work hard in school, and then you graduate. You work hard to build a relationship with someone, and then he/she becomes a customer, which is just the beginning - commencement. (Note: Throughout this article the word “customer” is used to describe a financial advisor, broker, agent, etc. It is a catch-all phrase to describe those with whom you do business.) My friend, Dr. Larry Baker, says, “The most abused customer is the sold customer.” This quote reminds me of an old story I once heard. It’s one of those “a man died and went to

heaven” stories. Now, don’t worry, I’m not going to get religious. You don’t even have to believe in

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Heaven, the Pearly Gates, etc. I think you’ll get the idea.

every business. It is no different in the financial services distribution business.

A man died and went to Heaven. At the Pearly Gates St. Peter said, “We are doing things a little differently than we used to do. Even though you qualify for Heaven, you get a choice. You can stay here, or go downstairs to Hell. It’s your choice and you can even spend a day in each.”

There is a cliché that says, “People want to do business with people they know, they like and they trust.” While an old saying, it is true. There is much competition vying for very similar products that you sell. How can one wholesaler of a mutual fund differentiate him/herself from another? It’s the combination of customer service and the relationship. By focusing on the long-term relationship with the advisors that we already know, we will sell more, retain business, and grow business as our advisors refer us to other advisors.

The man spent that first day in Heaven and enjoyed himself. It was quiet and relaxed, and there always seemed to be soft harp music in the background; a nice, serene and tranquil place to spend eternity. The next day he visited Hell. One of Satan’s helpers showed him around. This was quite a wild place and everybody seemed to be having a great time. They were drinking, dancing and having a ball. It was a non-stop party. The next day the man made his decision. He told St. Peter, “As much as I always thought I would end up in Heaven, those people down there know how to have a really good time. I’ve always been a little rowdy, so if it’s no offense to you, I would rather spend eternity down below.” “As you wish,” replied St. Peter. With that, the same man that had showed him around Hell appeared and ushered him downstairs where he was immediately taken to a brick cell and shackled to the wall. “It is here you will spend your eternity,” the man was told. The man cried out, “Wait, you can’t do this! Yesterday when I was here everybody was having such a good time. What happened?” The little devil turned around and replied, “Yesterday you were a prospect. Today you are a customer.” This short article is about the exact opposite of the above story. Once a person becomes a client, the service side of the equation kicks in. Knowing how to keep existing clients happy is a key ingredient to the success of your career. Dr. Ted Levitt, senior professor at Harvard Business School, says that the function of every business is to get and keep customers/clients. Keeping customers long-term is key to the success of virtually

While there are many ways to build customer loyalty, here are a few common sense strategies, ones that will prove that you are focused on enhancing the relationship, versus abusing the relationship, as in the above story. How can we build client loyalty - to get that client to stay with us long-term? As long as you do what you are supposed to do, which is to manage your clients’ portfolios and keep up with, if not stay ahead of, the market and your competition, you are headed in the right direction. Add to that the element of outstanding service, and client loyalty takes place. Here are eight strategies that will apply to our business. 1. Don’t ever forget to say THANKS! It can be face to face, via written thank you notes, etc. Customers like to feel appreciated. It isn’t a one-time thing. It needs to be ongoing. You may send holiday cards, short handwritten notes, news articles of interest, birthday cards, etc. It is the ongoing reinforcement of the message that says, “I appreciate working with you.” 2. Find out if you are doing a good job, and react quickly if there are problems. First, you should know that your customers are not likely to tell you if there are problems. As mentioned, there are many wholesalers who sell similar financial products. If for some reason you have an unhappy customer, you must find out. How do you find out? Just ask them. 3. Make sure your customers know they made the right decision to do business with you. Educate and reinforce that they have made a good

By Shep Hyken

choice. If you do something different than others, make sure your customers know about it. Is your research better? Do your managers or analysts consistently beat the market? What makes you different? Whatever it is, make sure your customers know. These competitive differences need to be emphasized. It is your opportunity to stand out, and it reinforces your customers’ decisions to do business with you. 4. Guarantee your level of service and commitment. It is impossible to predict the market, but you can predict how you are going to take care of your customer. Personally stand behind your service. A customer just doesn’t do business with your company. They do business with you. Should there be any type of problem or concern, don’t just push it off to someone else, better referred to as the It’s Not My Department reaction. Don’t blame others. Take responsibility. Be accountable. Your customers will pick up on this level of commitment. And, it reinforces the third point of this article; that the customer made the right decision to do business with you. 5. Stay in regular/frequent contact with customers. Establish how often your customers want you to keep in touch. It may be monthly, quarterly, etc. However, an economic or major national/international incident that has influence on financial markets’ performance dictates that we contact our customers even more frequently. Take your company’s research and use it to build trust and confidence. 6. Create a partnership. A partnership is loyalty on steroids. If your customer is willing to bring you in to work on a case with one of his/her clients, then you

know you have a great relationship. Help your customers be more successful with their clients and they will be more loyal to you. 7. Create Moments of Magic! In 1986 Jan Carlzon, the former president of Scandinavian Airlines, wrote a book, Moments of Truth. He says, “Anytime a customer comes into contact with any aspect of your business, however remote, they have an opportunity to form an impression.” These points of contact are the Moments of Truth in business, and they can make or break you. The goal is to have all good Moments of Truth, which I call Moments of Magic. Sometimes Moments of Magic are “Wow” experiences, but most of the time they are just a little better than okay. Although sometimes you have bad ones (complaints, problems, etc.), make sure they are rectified and renew the customer’s confidence to do business with you. Manage every Moment of Truth and create Moments of Magic. There you have it; seven ways to build client loyalty. You may or may not agree with all of these ideas, or you may feel the list is short and there should be more. If so, add to it, change it or whatever. Just do it! Work toward implementing these strategies and you will find you won’t just have satisfied customers, you will have loyal customers! Shep Hyken, CSP, CPAE is a professional speaker and New York Times and Wall Street Journal bestselling author who works with companies and individuals who want to build loyal relationships with their customers. For more information on Shep’s speaking programs, books and tapes contact (314)692-2200 or Shep@ hyken.com. (www.hyken.com). Copyright © 2011 Shep Hyken, Shepard Presentations Used with permission. All rights reserved.

Nine Ways to Invigorate Your Career in the Midst of the Summer Blues by Kathy Freeman continued: 6. Energize – Get pumped! No one crafted super success from lethargy. Even though the markets have been tough, they are climbing upward. Whether up or down, backward or forward, chaos invites knowledgeable people with solutions. Be one of those people! If you start each day energized and positive, you’ll be on the right road to building your success for tomorrow. 7. Innovate – Do you look around you and see what isn’t being done? Are you into social media? How could you leverage that to build your business within the confines of your firm’s compliance? What about a blog? Are you full of great ideas or naturally successful? Break down some pieces of your success and start a blog for others. You might find yourself crafting your own following among colleagues or clients based on non-product related insights. 8. Illustrate – Make it clear for yourself

and others… connect the dots. Don’t assume that everyone speaks your language and thinks the same way as you. Whether with clients, colleagues, or even your boss, be sure to articulate with color your ideas and accomplishments. The greater your gift of illustration, the greater your likelihood of success. 9. Impact – What is impact? Impact comes when people notice you’ve made a difference. Guess what…people aren’t great at noticing others’ accomplishments or great ideas. Make sure that you are your own best champion. You want to learn to be subtle about this, but definitely be proactive in sharing how you’ve made a difference in the lives of your clients, your clients’ clients, or in helping out your colleagues. Solicit stories that you can share with clients during sales meetings or weekly conference calls about how you’ve

created impact. The more you do, the more you can do. With the occasional gap that you might find on your calendar now that summer is here, maximize your time and opportunity for greater long-term career success by committing to being better at what you do and how you do it. Analyze what you love and do more of it! Improve upon where you are weak and increase your results. Last but not least, be sure to allow yourself room to create and innovate in your role. Don’t do things the same old way all the time. Shake things up and seek out better results. *Kathy Freeman Company’s annual research paper “Should I Stay or Should I Go,” which studies how a Troubling Confluence of Events is Affecting Sales and Marketing Executives in 2012, is accessible through her website www.kathyfreemanco.com

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(Part I)

Productivity Technology

By Kip Gregory

Q uestions Advisors Are Asking About LinkedIn and How to Answer Them

s more financial services firms announce formal social media launches, advisor interest in the practical business benefits of social networking is skyrocketing. Here are eight of the sixteen questions and comments advisors regularly raise with me about the tool they are most interested in: LinkedIn. We’ll cover the remainder of the list in next quarter’s column.

1. Are people making money with the site—actually closing business? I thought LinkedIn was a job search site. Newsflash: Prospecting for new clients is looking for work. One wire house advisor recently shared that almost 30% of his team’s new clients over the past year could be sourced to contacts made using LinkedIn, including a $70 million account. Other advisors have reported not only making sales, but also resurrecting lost opportunities after discovering connections with prospects that had initially declined to do business with them. The take away: your tech-savvy competitors are using the site right now to yank business out from under you. 2. How much time will it take? I’ve already got too much to do. The people who use LinkedIn most effectively will tell you it’s worth every second they spend on it. Some occasionally take a few minutes to scan home page updates to stay abreast of what’s happening in their network. Others invest an hour or more a day pouring through individual and company profiles, groups and status changes, ferreting out sales and networking opportunities. My suggestion: start small and schedule 10-15 minutes of review time into your daily routine; set an alarm on your watch, phone, or computer to remind you to move on when time’s up. 3. What’s the best way to expand my network? The goal of social networking isn’t to collect the most business cards; it’s to strengthen relationships with people you know by adding another dimension to how you interact with them. The quickest way to do that is to upload your Outlook address book and have LinkedIn analyze your contact names to flag those already enrolled on the site (Look for the “Add Connections” link at the top right of any page to get started.) Next, compliance rules permitting, reach out individually to those contacts already on LinkedIn with a personal message, rather than the default message that most users send. Finally, start networking; look for ways to help those you know accomplish what they are trying to achieve— connecting with a prospect, hiring a new employee, finding a job, etc.

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4. What do I do with invitations from people I don’t want to connect with? Ignore them. There’s no requirement that you have to respond to an invite, just like you’d never think of replying to every letter, postcard or catalog you receive in the mail. To move those unwanted invites out of your LinkedIn inbox, click on the Archive button. (You can still access those messages later if you eventually decide you want to take up someone’s invitation to connect.) 5. What about spam? I don’t want to get a lot of junk mail. LinkedIn has set up a very effective “self-policing” policy for minimizing the amount of unwanted email members receive, whether connection invitations or something else. In every piece of correspondence you receive, you have the option to flag that message as unwanted or inappropriate. If LinkedIn sees a number of those flags associated with a particular member, that person’s ability to send email—or even to use the site—can be restricted. 6. What’s the difference between a free and a paid subscription to the site? Is it worth it to pay? The differences depend on the level of subscription you are talking about. One of the biggest benefits with paying is the ability to create highly-targeted lists using additional criteria you can select on LinkedIn’s Advanced Search page. To see a detailed feature comparison, go to http://linkd.in/JLwG6q. To me, the first level of paid membership ($25 per month) is a no-brainer. That’s less than lunch at Panera and it’ll open up a host of features. But for those reluctant to invest on the come, I suggest they start with the free site and upgrade when they begin routinely bumping into “locked” features that LinkedIn tells them are only available to premium subscribers.

questions 7 & 8 continued page 27...

By Maribeth Kuzmeski

Communication Techniques

He’s Just Not That Into You! 4 Ways to Connect More Quickly with Prospects

f you’ve ever tried to get the attention of an advisor and feel you’re falling short of making your case, here are a few solutions. The advisor knows that you want to come in and sell them something. And, if you try to sell someone something, a typical reaction you may receive is that person immediately becomes not that into you. As the nation’s #1 sales expert Jeffrey Gitomer says, “People Don’t Like to Be Sold, But They Love To BUY!™” In businesses where the relationship between the sellers and the buyers matters, instead of focusing on the product, it seems to be smarter to incorporate more of the relationship and connecting. Here are 4 ways some of the nation’s top salespeople go from repelling prospects to attracting them to want to buy. 1. Research diligently before meeting an advisor. Sounds obvious, but top advisors often mention that many of the wholesalers they meet with haven’t done their research about them – and they expect it! Research potential advisor prospects even if you don’t know when you’ll meet them, as it may help get that first appointment. The more you know, the better the conversation will go. Today, no matter who the advisor is, it is easy to research online. If the advisor has put information online, it is there for you to find. It is not violating any personal space when you research about people online – it is smart.

2. Ask big questions. Building on #1, if you have researched you will be prepared to ask good, insightful questions that will engage the advisor. The key with engagement is interaction, and that happens most succinctly when THEY are talking, not you. Most (and I really mean most) people are focused on themselves, so they are more than ready to talk about themselves and their products. The reaction can be surprising when you ask big questions like, “I know your business has received a lot of awards – what was the most meaningful one to you?” Or, “What’s your biggest challenge?” Or, “What is the one thing you wish your current wholesaler would do?” The key is to ask a question that requires an answer. 3. Listen curiously for more than 50% of every conversation. If the interaction is focused on asking big questions and listening, you will immediately stand out. If you can get the advisor talking, you actually become unique – someone who is uniquely interested in them. The average attention span today is 17 seconds. Listening to another person intently is rarely done and may show more about who you are than if you had talked about yourself or your company. 4. Build a better story. The biggest mistake made in marketing yourself and your products is to not clearly message who you are and what you offer. When you are asked what your firm has to offer, how do you answer? Do you have the most compelling answer? Sometimes there is a need to have a refined story to assist in gaining the most attention in the distraction-filled world. A solution for compelling others to want to listen to you is to develop a 15-20 second Simple, Repeatable, Statement of Value (SRSV). An SRSV is a statement that is easy to remember and shares some value aimed directly at the person you are speaking with. Below is the 4-step formula for building your own SRSV. Your SRSV may not include the answer to every question, and it doesn’t have to be compiled in this order. SRSV Builder Questions: 1. What is unique about your firm? 2. Where do your products fit best? 3. What type of advisors do you work with? 4. What is unique about your expertise? The key is to have compelling opening comments prepared. How do you message yourself? Is it compelling? Of course you can transform an advisor from not being interested to wanting what you have. I believe the best way to get others to pay attention to you is through the way you pay attention to them. Maribeth Kuzmeski, MBA, is the author of 6 books including …And The Clients Went Wild! and The Connectors (John Wiley & Sons), and she is a frequent national media contributor and international speaker. Maribeth and her firm Red Zone Marketing, Inc., consult with some of the nation’s top advisors and agents, as well as broker dealers and insurance companies, on strategic marketing planning, recruiting, and business growth. www.RedZoneMarketing.com

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Building Connections

s y a 5W

n countless trips riding with wholesalers over the years, I have yet to have a single one mention to me that the financial advisors that he or she was calling upon were “too loyal.” Could you imagine that conversation? “I just have to tell you, Scott, once I get advisors to recommend our products to their clients, they just will not stop, no matter how hard I try!” There’s a reason for this. Many – perhaps most – of the conversations wholesalers have with clients and prospects revolve around product. However, in doing so we can often miss what generates loyalty. No one ever becomes loyal to a product, service, company, or person toward which they have zero emotional connectivity. In other words, we are only loyal towards those people or things about which we have feelings. If you aren’t generating emotional connectivity with the professionals you call upon, you aren’t creating loyalty.

Here are five steps you can take to increase connectivity with financial advisors, so that you can enhance their loyalty and engagement with you and the company you represent. 1. Become the “Fifth Beatle” Why were Billy Preston and Brian Epstein each often called the “Fifth Beatle”? Simply put, both brought something to John, Paul, George, and Ringo that the band didn’t personally or collectively possess. Preston’s wizardry on the keyboards and Epstein’s management prowess brought the great group more than they would’ve had without them. What could you bring to an

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Wholesalers Can Enhance Connectivity With Financial Advisors

advisor that they – or their team – wouldn’t be able to access themselves? If you can discover and deliver for them, you may be considered to be a part of their team as well.

2. Beware of Bias Everything we say, do, and believe will be filtered through the prism of our personal and professional preferences and point of view. However, it’s also quite possible that when we offer our ideas, suggestions, and positions, we can become so focused upon OUR needs that what we deliver doesn’t fit the needs of our customers and prospects. When we come across – usually unintentionally – as so biased about our own products that we are blind to other alternatives, we create an atmosphere where all of our recommendations may be discounted. It’s certainly not your job to tout your competition’s products. However, you aren’t going to build emotional connectivity or credibility if you act as if every problem the advisor faces

can be solved only with something available from your toolbox.

3. In Social Media – and Wholesaling – Quality of Connections Trumps Quantity of Connections “How many followers do YOU have on Twitter?” “Have you maxed out your ‘friends’ on Facebook?” “What’s the traffic on your blog?” Questions many are being asked these days — and they exemplify part of what has been wrong with our thinking about social media in financial services: More must be better. And, it’s NOT: More is just more. Better is better. In other words, having fewer followers and friends — and providing something so compelling that these people become “raving fans” — is superior to simply amassing numbers. What generates the “right fans” on social media? The very same aspect that will get you more “face time” with the right advisors: excellent content of extraordinary value.

4. Be Sold On What You’re Selling According to a case study by IMD and Professor of Strategy and Business Policy Jan Kubes, “BMW Portugal was in a difficult environment, had lots of competition, had lost about one-third of their market share, and was losing volume. So, what did the new CEO of BMW Portugal do? Klaus Kibsgaard shut down the entire business for several days and took everyone on the team to Munich for a tour of the

By Scott McKain BMW factory to see the precise and innovative engineering, the remarkable process by which the “Ultimate Driving Machine” is manufactured, and meet with corporate leaders. He got his team more emotionally connected with each other — and with BMW. In other words, he sold them on what they were selling. The results? According to the study, “For the first twelve months after this was implemented, sales of BMW went up 52 percent, compared to 14 for Audi and minus 11 for Mercedes Benz.” As simple as it sounds, why would an advisor become loyal and be sold on something you aren’t?

Pack Your Bag

5. Dig Wells Instead of Building Fences Following my recent keynote for telecommunications giant Telstra in Australia, Paul Geason – Managing Director for Enterprise and Government – related a story about farmers in nearby Tasmania. In the vast fields of Australia, erecting fencing to keep cows on your property and protect your investment is both exhausting from a labor perspective and expensive from a financial one. And, no matter how well your fence is constructed, sooner or later, cows will break through it – requiring an intense effort to track them down and bring them back. However, farmers discovered when they would dig wells on the property enabling cattle to drink fresh, cool water, the refreshment was so appealing to the cows they wouldn’t wander. Geason then drove home the powerful impact of his story. “Many times,” he commented, “I think companies do all they can to fence in their customers. We spend a lot of money to get them into our fields; then, we do all we can to confine them so they don’t get away.” “Wouldn’t it be preferable,” Geason asked the group, “if we made it so customers really wanted to stay with us, rather than force them to decide our price of departure was unbearable? Wouldn’t it be better, if instead of building stronger fences, we committed to dig more and deeper wells?” In our quest for customer connectivity with advisors, we may often forget that in any situation where loyalty is involved, it requires a reciprocal commitment. Australian farmers learned something all wholesalers should take to heart: When it comes to livestock — and clients and prospects – digging wells is infinitely superior to building fences. Scott McKain is an internationally known expert who helps organizations create distinction in every phase of business and teaches how to deliver an “Ultimate Customer Experience®.” His presentations benefit from three decades of experience, combined with his innate talent for articulating successful ideas. McKain has spoken before and consulted for the world’s most influential corporations. In his book, Collapse of Distinction, McKain takes a revolutionary approach by showing how organizations and individual professionals create differentiation in the marketplace. Collapse of Distinction was named one of the “Top 10 Business Books” of the year. http://ScottMcKain.com 800-838-6980

By Sara Keagle

A Flight Attendant’s Guide to Jet Lag When traveling across two or more time zones you become prone to jet lag. Though there is no quick fix for jet lag, here a few tips to get you through: 1.

Be in the best shape you can before your trip. If you have advanced notice, start eating healthy, take your vitamins and get plenty of sleep while you can.

2. Once on your flight, set your watch to the time zone where you will be arriving. 3. Plan to “be” on the time zone you will be arriving in. Once on your flight, try to sleep if it is night time at your arrival destination. Set an alarm to wake when it is morning at your arrival city. 4. Once you arrive, if you must take a nap try to limit yourself to 1-3 hours. This is difficult and you’ll want to sleep longer, (in fact you may want to shoot yourself, rather than get up) but if you sleep any longer you will have trouble going to sleep on time in your new time zone. 5. Try melatonin. It worked for me, but I had crazy dreams! I know many people that love it though. 6. Have a night cap! No, not the alcoholic version. As tempting as that may be, your sleep will be interrupted enough without adding alcohol. Stick with a nighttime tea, like chamomile. 7. Go to bed at the time of night you usually go to bed, in your new time zone. You may still feel groggy the next day and/or wake through the night, but this is the quickest way to be on the local time zone so you can make the most of your trip. You can find Sara Keagle’s blog at TheFlyingPinto.com and find her at facebook.com/theflyingpintoblog

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Trend Watch

Three Trends That Are

holesaling is not the same as it was. In fact, Rob Shore’s blog post Are You A Pre-Historic Wholesaler? artfully illustrates the evolution of wholesaling.

That evolution continues as baby boomers age, sovereign investors go sour, market volatility increases, regulations tighten, and technology advances at a breakneck speed. In this edition we focus on three trends that wholesalers should pay attention to: 1.

Need for increased product knowledge and consultative sales approach

2. Importance of learning how to leverage digital media for wholesaling 3. Dependence on predictive analytics to increase productivity and effectiveness 1. Wholesalers must be more consultative in their approach. The emergence of alternative investment products and outcome-oriented solutions over the past several years is forcing asset management firms and distributors to make several significant adjustments to their organizations. According to data from kasina’s FA Vision service, 33.4% of advisors currently use alternative products (alternatives to traditional stock and bond investments based on the fact that they tend to behave differently in a portfolio. For example, long/short strategies, commodities, hedge funds, private equity and real estate). We expect this proportion to increase. Growing demand for these products compels wholesalers to augment their product knowledge and develop a more sophisticated way of discussing them. Regardless of whether wholesalers are selling alternatives or not, they have to be able to compare, contrast, and position their own products vis-à-vis alternatives.

No adjustment will be more profound than the skills required of tomorrow’s wholesalers. Selling these emerging products to financial advisors not only requires a deeper understanding of retail investment portfolios by wholesalers, but it presumes special consultative skills. The abilities and personality traits of a strong consultative wholesaler go beyond the scope of this article. However, the shift from product-selling to solution-selling is a critical prerequisite to effectively market emerging products to advisor customers. Consultative wholesalers start by first clarifying the sales preferences and investment needs of their clients through open-ended and targeted questions, rather than by pushing one-size-fits-all products and solutions. However, highly effective consultative wholesalers deliver real value to their clients by connecting their investment needs with solutions and services offered by the asset manager. If the wholesaler cannot offer an appropriate product, they can still act as a valuable resource to their clients, thus building trust and future sales opportunities over the long term. We strongly recommend that Divisionals institute educational programs to boost the skill sets required for special consultative sales. 2. Digital Media is increasingly essential to successful wholesaling. kasina’s 2011 report on What Advisors Do Online revealed that 49.6 % of financial intermediaries expected wholesalers to be using tablets to facilitate meetings.

Additionally, all data reported in the kasina report, The Future of Marketing, points to the increasing dependency on digital media such as video, interactive graphics, tablets, apps, and social media. By 2015, a future not too far away, we expect wholesalers to seamlessly integrate digital capabilities into the conversation. Imagine a fairly routine meeting with an advisor: after the introductory banter, you bring up a few key points to share with the advisor. First, a tidbit about what your firm’s chief economist thinks about the economy, and then an idea for thinking about the product category du jour (which coincidentally includes your firm’s terrific products). It would make the conversation more engaging and interesting if you could pull up a video featuring the economist that is customized for meetings with advisors, which includes key takeaways for the advisor and an option to email him the video during the conversation. Then, as you switch the conversation to asset allocation and products, you could bring up an app that illustrates your ideas. And if the advisor unexpectedly has a question related to another product, you have the capabilities to look up and relay the answer immediately. Today, using an iPad (or other tablet) in a conversation like this is stiff and unnatural at best. In fact, our conversations with advisors, our data, and our executive discussions at kasina roundtables reveal a troubling trend; wholesalers still bring the iPad to the meeting but use hard-copy brochures for the discussion with advisors! Given the trend towards increased use of technology and digital media in sales

Source: kasina FA Vision and Horsesmouth 22 | SUMMER 2012 | I CARRY THE BAG

Trend Watch

By Rubesh Jacobs & kasina

Transforming Wholesaling Using predictive analytics, firms will be able to: •

Determine which advisors will be more profitable;

•

Predict which advisors provide more opportunity to gain wallet share (e.g., cross-sell, up-sell, next best offer); and

•

Illustrate which advisors will be likely to redeem.

While individuals will strike a pragmatic balance between analytics-driven decisions and their own judgment, wholesalers can expect that:

conversations, we recommend Divisionals and Wholesalers collaborate with their marketing, technology, and e-business teams to: •

Develop training to build wholesaler proficiency in effectively using tablets during conversations with advisors and NOT simply training on how to use a tablet;

•

Introduce goals and metrics on digital media use; and

•

Create content that is more digestible in digital media: short paragraphs, bulleted lists, interactive elements, colors and hyperlinks, charts and images to reinforce key points.

•

The profession will become laser-focused on specific advisors as determined by predictive analytics algorithms.

•

There will likely be an expectation for customized growth and profitability strategies for target advisors.

•

Analytics made available on tablets and smart phones will enable them to personalize the meeting objectives, agenda and talking points.

•

The yield from the time and effort they expend on advisors will dramatically improve.

No one will escape the effects of these trends. It is critical that managers and wholesalers take steps to evolve so they do not risk becoming “pre-historic wholesalers.”

3. Predictive analytics will dramatically improve the efficiency and productivity of wholesalers. Grocery chains have long used inventory data, individual purchase patterns (using the loyalty card we swipe before any purchase), demographic data about the geography they serve, and other data from third-party databases to predict the success of new product launches, create pricing strategy, build marketing campaigns to attract and retain customers, and provide extremely accurate seasonal demand patterns. Amazon.com’s “others who purchased book X, also purchased…” capabilities utilize historical purchase data to predict subjects, issues, and authors of interest to a client. Beginning with Progressive Insurance, credit scores are widely used by insurers to determine insurance premiums because they’ve discovered a strong relationship between a person’s ability to manage their personal finances and driving safety. Interestingly, asset managers have used predictive analytical models that use economic, market, and other data to predict and manage risk and investment strategies. While higher dependency on data and predictive analytics has gathered momentum in other industries and on the investment side of the asset management industry, it is only just beginning to permeate wholesaling and marketing. This trend will continue to play a larger role going forward and wholesalers must take notice. Asset managers and insurers own troves of data about their customers; everything from demographics and what products they’ve used to which email campaigns interest them and what marketing materials they use. In addition, Divisionals and Wholesalers also contribute a tremendous amount of data via Customer Relationship Management (CRM) systems.

Rubesh Jacobs is a senior managing consultant with kasina. He advises asset management and insurance executives on marketing, distribution, and digital strategy. Prior to joining kasina, Rubesh played senior strategy, IT, and business development roles at Nationwide and State Auto Insurance, interspersed with a stint at DiamondCluster. Rubesh is a magna cum laude graduate of Ohio Wesleyan University. He also earned an MBA from The Ohio State University Fisher College of Business. He sits on the board of The Ohio State University Veterinary School Campaign Committee and his church. He is an avid runner having completed numerous races, including four marathons.

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Lifestyle Balance

16 Tips to Find Balance

f you’re working harder than ever, with demanding schedules, demanding workloads and demanding ambitions, it may feel like there is little to no time to balance life out. The good news is it doesn’t have to take hours, days or weeks to minimize how overwhelmed you feel and allow yourself to refuel – almost instantly! Many of the proven tips I’ve outlined today only require a few minutes to reward yourself with a burst of energy that will pay you dividends. 1. Take a deep breath. It’s free. It’s easy. It takes a few short minutes. Take a deep breath in….. HOLD 1, 2, 3, 4…. and exhale …..ahhhhhhhhh, as you drop your shoulders. Repeat 4 times. One of the fastest and most effective ways to bring yourself back to the present moment. Since most people hold their breath unconsciously when they’re stressed, this is the perfect remedy. 2. Take mini-breaks. Stepping away from the computer or phone for as little as 5-10 minutes can be enough to balance your energy, and remind you that work isn’t the only priority in your life. This is especially effective if you’re feeling blocked on a project. The shift of attention often opens the space for answers to arrive after your mini-break. Get a snack. Step outside. See more ideas below. 3. Filter distractions. Personal phone calls, non-business or irrelevant email or office drama can zap energy and add stress to your already maxed out nervous system. The best remedy is to make a commitment and filter out the distractions that are sucking up your valuable time and energy. 4. Connect with loved ones. A quick text, phone call or hug from a loved one can be all you need to elicit those nourishing feelings of love and support. Even gazing at a picture of your spouse or children is effective. The most important part is really connecting with those feelings of affection, both in the giving and the receiving. 5. Engage the senses. Overwhelming feelings and the experience of chaos live in the mind. When you shift your attention to your senses, you’ll immediately experience relief. Stop and smell the roses. Indulge in a soothing Jacuzzi or hot shower. Enjoy watching a breath-taking sunset. Savor a glass of wine, a decadent piece of chocolate, or a delicious meal. With each of these experiences, the key is to s-l-o-w down, and really engage each of your senses. What are you seeing, hearing, smelling, tasting or touching? The more you practice engaging the senses, the faster you’ll become at finding instant relief. 6. Exercise. Even 12 minutes of cardio is enough to give you huge health benefits to boost energy and squash your feelings of being overwhelmed. 7. Nap. Just 5-10 of lying down with your eyes closed can help you instantly find fresh energy, wiping out being overwhelmed and exhausted. If you can take more, do it! Be sure and set your phone to wake yourself up before your next appointment. Sometimes I do this between coaching appointments or even at airports. The only thing people will notice is your refreshing attitude after the nap! 8. Meditate. If sleeping isn’t an option, meditate. Give yourself permission to not think for 5-10 minutes.

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By Mary Allen, CPCC, MCC

in the Wholesaling Chaos 9. Swap out your chair for an exercise ball. If you spend a lot of time at a desk, consider getting an exercise ball and put a little bounce in your day. One of my clients, an accountant, meets tax clients from his second chair. It becomes a great conversational piece while giving him an extra zip! 10. Get a massage. If you’re overworked, overloaded and overwhelmed, I guarantee your muscles are tight and filled with tension. Gift yourself with a deep tissue massage to support relaxation, as you give yourself a time-out. You deserve it! Schedule one for yourself today. 11. 10 minutes of sunshine and fresh air. Not only is this strategy simple, free and effective, it’s the perfect way to engage your senses and take in an extra dose of Vitamin D. 12. Hydrate. Water is your friend. How about taking a few healthy and balancing swigs right now? 13. Give yourself premium fuel. The brain consumes 20% of your body’s energy, so even working at a desk all day requires calories! A quick way to rebalance is with a high quality snack or meal. Junk food doesn’t count. 14. Hug your furry one. If you have a cat, dog or any other furry creature, you’ve got a built-in source of rejuvenation. Take a few minutes and pet, cuddle or receive kisses from your furry one. Allowing yourself to receive the unconditional love from your pet is underrated! 15. S-T-R-E-T-C-H. A few minutes of stretching does wonders for your body, and it provides the balance you’re craving. Join a yoga class. Or simply do 1-2 simple stretches for a quick break. Even gentle neck rolls calm the chaos. 16. Plan a vacation. As fabulous as quick balancing strategies are, it’s good to unplug completely 2-3 times a year. Take a few minutes and plan your next vacation. Knowing you’ve got a break coming up is a fabulous energizer. I invite you to select 5 or more of these simple strategies and commit to them! Target at least ONE each day, and make it a habit. You’ll quickly see which tips work best for you, and understand how even a few dedicated minutes away from work can build balance, even amidst the chaos. Mary Allen, CPCC, MCC is one of the most well-known life coaches worldwide, helping clients enjoy greater success with inner peace in all areas of life. For over 12 years, her clientele have included busy professionals and even a couple of billionaires. She is the author of the acclaimed book The Power of Inner Choice: 12 Weeks to Living a Life YOU Love and leads The Inner Peace Immersion Retreat annually. Receive 26 Inner Peace Tips & 2 Free Chapters from her book at www.lifecoachmary.com

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Outstanding Wholesalers Know “The Why” by John G. Miller continued:

She lowered her voice, leaned toward me a bit, and said, “Because if I don’t ask I get written up.” Now that’s purpose! Can you imagine a wholesaler saying in hushed tones, “If I don’t sell something today, I’ll be in hot water” or “My job is to fill out lots of forms so I can be in compliance with my firm and the government”? What if the wholesaler simply asked a prospective client “Stamps or ice?” using industry language: “Stocks or bonds, anyone?” No, an outstanding wholesaler does not think or act in that manner. Any rep who might, fails to possess clear purpose and the powerful passion that emanates from it. What too many managers don’t understand is that people will do practically anything—as long as it’s legal and ethical—if they understand why they are doing it, and they’ll do it joyfully, with their full heart. The truth is this: purpose powers passion. A clear mission excites people, giving them fuel, if you will, to do their jobs each day. It helps them feel like they are part of something larger than themselves, and wards off the “I owe, I owe, so off to work I go!” mentality which, sadly, is all too common. For an outstanding wholesaler, it’s all about purpose and passion. What we’ve discovered about top sales professionals is they know exactly why they’re calling on a prospect or sitting with a client. They fail to lose focus. In other words, they stay powerfully on track toward their goal of adding value, making a difference, being a cut above all the rest who’ve quit for the day and gone home to complain about their products, their boss, and the competition. The best and the brightest wholesalers are not peddlers of product and purveyors of paper, but pushers—yes, pushers—of their passion. It would always make me chuckle when a prospect would tell me “You’re pushy” as if that would offend me. Thank you! I’d want to scream. Because it’s the salespeople who don’t push who get in the car and go back to the office to rearrange their computer cables and have another cup of coffee in the break room. They lack the passion to help people solve their problems, bring peace of mind into their life, and put their financial house in order—not to mention increase their wealth. When colleagues and competition have fallen away for a Wednesday afternoon round of golf, “knocked off” at noon on Friday, or didn’t start their week till after 10am Monday, it’s the purpose-driven and passionpowered wholesaler who’s still making a difference—because they know it’s all about making a difference. At the end of the day, the wholesaler who knows why they do what they do is still working. John G. Miller has been in sales since 1986. He began his career selling sales management and selling skills training to corporations for nine years, achieving “Salesperson of the Year” the final five years. He is now the author of the best-selling book QBQ! The Question Behind the Question, as well as Flipping the Switch, Outstanding! 47 Ways to Make Your Organization Exceptional, and Parenting the QBQ Way. He and his wife since 1980, Karen, have seven children. The Millers live in Denver, CO. Learn more at www.QBQ.com. Email John at John@QBQ.com.

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3 Part Guide to Create A Captivating Opening by Ivy Naistadt continued:

2. Your Audience-Based Objective

Your audience-based objective is a statement that positions and frames your message from your audience’s perspective. I always suggest to people that whatever type of communication you are delivering, you want to focus your listeners early in the game with an idea that combines the purpose of the communication with the benefit to them. This may sound obvious but, believe me, presenters often leave it out. It could be as simple as: “Today we’re going to introduce you to 3 retirement plan solutions and show you why our products will do well for you whether the markets are up or take another downturn.”

3. The Preview Statement

Lastly, always include a preview of what you’ll be sharing. Summarize up front what you are going to talk about and how you intend to proceed in your discussion so that your listeners know where you’ll be taking them. An opening statement that grabs, an Audience Based Objective that demonstrates the value of listening to you, and a preview statement that points your audience toward the light at the end of the tunnel - these are the elements that set the stage properly for you and your audience. That’s a recipe for a Captivating Opening. Ivy Naistadt is known worldwide as an expert in helping clients reach their professional communication potential. As the author of the highly acclaimed book, “Speak Without Fear” (Harper Collins), nationally recognized speech coach and speaker, Ivy has taught the country’s top business leaders how to prepare and deliver successful public presentations for over 20 years. For information about how you can work with Ivy privately through her “Join The Ivy League” Coaching practice, invite her to speak at your next event or consult about conducting customized speaking programs for your organization, please contact her by email: Ivy@JoinTheIvyLeague.com, phone: (212) 736-3085, or her website: www.JoinTheIvyLeague.com.

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8 Questions Advisors Ars Asking About LinkedIn And How to Answer Them by Kip Gregory continued: 7.

How private is my data? I don’t want my name or my clients’ names splayed all over the internet. Unlike another recently-gone-public social networking site, LinkedIn has maintained a consistent privacy policy over the years. You can click on a privacy link at the bottom of any page to read it in detail. Yes, you will be sharing information… and LinkedIn will have access to it. You can’t avoid that if you’re trying to network with people using their platform. But the important thing is that you, the member, have control over how much if any, of your information is made visible and to whom.

8. How do I avoid getting crosswise with Compliance? The safest route is to check with your home office compliance department or your local branch/ complex risk manager for further information on your firm’s policy. You may also want to read through and familiarize yourself with the guidelines on using social networking published by the SEC and FINRA. Next month, we’ll take a look at etiquette do’s and don’ts, pros and cons of hiding connections, how to quietly disconnect from someone, dealing with duplicate accounts, and more. Kip Gregory is the founder of The Gregory Group, a Washington, D.C.-based consulting firm that helps wholesaling organizations and their distribution partners improve sales productivity and profitability by unleashing the power of resources they already own. You can reach him at kip@gregory-group.com or connect with him via LinkedIn at http://linkd.in/link2kip.

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by HikingArtist.com

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