There’s a secret to feeling comfortable and confident when you’re talking with someone about what a financial advisor does. The key is being well prepared to give great responses to simple questions.  But how can you be prepared for questions that haven’t been asked yet?

Think back over all of the conversations you’ve ever had during meetings with new potential clients. What’s one of the first questions that people ask?  Isn’t it…

Question #1: “What do you do?”  So, how can you respond simply to this question?

• Bad Answer:  “I’m a money manager.”  Since there is no clear definition of this term, you have no idea what your potential client will picture.  It’s too ambiguous.

• Good Answer:  “I help people make wise choices about their money so they can accomplish what’s important to them.”   In one sentence, you’ve explained what you do and the benefit of it.

Question #2:   “How do you do that?” How would you respond?

•  Bad Answer: “My clients are people who understand that they have the greatest potential to make a positive impact in the world, so I help them to make wise investments and I coach then in all areas of their lives so they can live transcendent lives.” It goes without saying that your clients are people and using words that don’t come up in normal conversation doesn’t impress anyone.  It’s unclear and too wordy.

• Good Answer:  “My job is to orchestrate the written plan that our team helps every client create. I hold everyone on your team accountable, including you, to ensure the greatest probability that the plan unfolds as it should.”  This gives a lot of information in a small amount of time in a conversational way.

Question #3:  “How do you charge?” Your answer?

•  Bad Answer:  “Well, that depends…” Doesn’t hedging like that raise a red flag with you?  It will to your potential client, too.

• Good Answer: “I charge a single simple fee which is a percentage of the assets under our management according to a schedule outlined in our Investment Advisory Agreement. It works out to X% per year. Our minimum fee is $XX per year, so the clients we serve the best have combined financial assets exceeding $XX.”  Not only is it a clear answer, but also you have given them a number that tells them whether they qualify or not to be a client without them having to ask.

A financial advisor must first have personal clarity about the services he or she provides.  Only then can you articulate – clearly and conversationally – answers to anyone who asks. 

Are you wondering what the 7 other pivotal questions are?  Check out The Trusted Advisor Toolkit’s Ten Pivotal Questions™.  If you aren’t already a member of the toolkit, you can register for a free membership now and gain access to the Ten Pivotal Questions™.