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The word ‘selling’ has become taboo in financial services circles, but why? A group of advisers is now encouraging peers to get out there again and push the products they believe in
A little over a week ago, in front of an audience of financial advisers, Jon Pittham, director of marketing agency ClientsFirst, said something controversial.
Advisers should not avoid selling, Pittham said, but embrace it.
Reaction to his remarks, made at a meeting of members of the Institute of Financial Planning (IFP), was far from negative.
During his talk, Pittham stressed the need for advisers to get out to clients and advertise both themselves and the products they believe in. The feeling in the room, he later observed, was that he “had touched on something”.
Dennis Hall, chairman of the meeting and managing director of financial planning business Yellowtail, said: “We were seen for a long time as one of those industries that just sells a product, so a lot of us are rebelling against the title.
“There is nothing wrong with selling, provided what you are selling is not centred around transactions.”
The concept of how a product is ‘sold’ has been fundamentally misunderstood, said Ian Green, IFA at Green Financial.
“If you go into a bank, it is probably selling investment bonds with 7% commission. What is being mis-sold is the 7% commission. The product might be – and probably is – suitable for the client. Most RDR-ready IFAs are far more focussed on the financial advice process, not the commission.”
The Retail Distribution Review (RDR) will make a big difference, according to Pittham.
Financial planning has arguably never been more client-centric: advisers have developed strong business propositions, and a clear marketing strategy. But Pittham said: “Without sales, it isn’t enough”.
However, Pittham argued advisers should forget about trying to sell financial planning or their expertise. The most important thing advisers can sell, he said, is themselves.
His presentation at the IFP meeting seems to be vocalising something that advisers believe, but are too scared to admit to, said Green. The belief is cultural as much as anything else: “There is fear around the word ‘sales’ in this country, whereas in other nations, notably America, the salesman is far more revered.”
Perhaps if organisations like the IFP get behind the initiative, said Hall, others will follow.
Advisers further behind in preparing for RDR and a fee-based model are unlikely to want to associate with ‘selling’ – at least in a traditional sense.
There is, however, a caveat, Green adds: “Selling isn’t a dirty word – but mis-selling is.”
How to sellThree tips from ClientsFirst:• Advisers who target niche markets deliver “huge” value to clients. Make yourself the first port of call. • The internet has made everyone an ‘expert’, but the most powerful tool is you, in person. • Unfair fees and commissions make up mis-selling, not the products themselves. |
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Advising?
If the objective is to advise clients, sales may happen or they may not. If the objective is to sell, sales will always happen if appropriate or not. Just my opinion...
Posted by: Dave B
Selling = good advice
Most of our clients have fairly good sized pension funds. The reason for this is that many years ago an insurance agent sold them a pension and then a few years later he topped it up. He probably had targets to meet and was paid a good amount of commission. These poor "victims" will now have a far better retirement than those that were not sold to and i very much douibt they haver reason to complain. The simple thing is those that the government say need simplified advice in theory need to be sold to otherwise they will do nothing and later on have nothing. Then they will be the ones that spend their retirement complaining that the government treats them unfairly as they are not be handed out enough free cash to live off. Has anyone produced any figures showing how much is paid into pensions via regular premiums since selling stopped compared to when it was rife? Selling is just a way of getting the point accross to those that would otherwise not save, not insure, not protect etc etc. As long as it's the right thing for the client whats wrong with it. How many have got an I told you so story when the client didn't do as advised?
Posted by: everyifa
Selling Advice
Surely the RDR should be teaching us one thing - what we are selling is advice (or service / solutions / problems / confidence as per an earlier comment). If we, as an Industry, move away from being remunerated by a fee or commission on a transaction, we "sell" when we successfully pitch our proposition and we are paid (at least at a basic level) for our advice. IMHO
Posted by: Steve Hilton
Selling
I sell. It's nothing to be ashamed of. I sell good products to my clients that are in keeping with their needs, affordability, risk etc. I don't hard sell or use fear tactics like I was taught to 20 years ago when I entered the industry by sales trainers who are long gone. I treat my clients as I would like to be treated myself, but I sell pensions, investments and protection - and lots of it.
Posted by: Barry
Selling: not a dirty word
A company can manufacture the best product of its kind and be able to produce it at the lowest price possible, but unless you have a saleman to find potential customers and sell it, then the company will go bust. Good salespeople are worth their weight in gold and are paid accordingly in America and many other countries - here in the UK they're castigated and treated like lepers. As for the world of financial services, salespeople are needed to help the 'great unwashed' understand why they need to protect their familes (the State bloody won't) and save for their retirement (unless they want to live 20 years in extreme poverty)and then SELL them the solution ! If, on occasion, that means a little cajoling then so be it. If only the FSA and the government would realise it, financial advisers (by selling life assurance, pensions, mortgages and other products), are actually performing a valuable social service and helping to encourage the public to aim for self-reliance (and not to be dependent on the State if bad times should strike or when they reach old age). Of course, the government has spent the last 40 years encouraging dependancy on the State and dis-incentivising people from looking after themselves so why would we expect the FSA to understand the important role IFAs play and how the FSA (together with the FSCS and the surrounding blame culture) is all but castrating us in trying to do the good work we do.
Posted by: Bill Wells
selling: not a dirty word
Dennis Hall says “There is nothing wrong with selling, provided what you are selling is not centred around transactions.” WHY NOT ? Provided the product meets the client's needs and requirements, what's the problem. I suspect Dennis Hall is a quangocrat who has never sold anything in his life !
Posted by: Bill Wells
Flogit & Run
It is actually the word itself that has bad connotations. To many selling means persuading someone to spend money on something they didn’t know they wanted in the first place. There are so many different definitions and connotations. True we ‘we sell ourselves’, but for me it isn’t only that “The word ‘selling’ has become taboo in financial services circles” I have never liked it. Even when in industry I felt antipathetic to the concept. It is precisely the American model which has been referred to that I find most objectionable. I actually hate being ‘sold’ to; in which case I try to avoid subjecting anyone else. Who enjoys being rung up out of the blue by a cheerful voice trying to flog you goodness knows what. When I go to buy I ask for the facts. I don’t want a spiel. Recently my wife and I bought a new car and nothing was guaranteed to chase us out of the showroom quicker than being subjected to a sales pitch. So like everything else it’s a matter of definition and I empathise with those who just don’t like the word ‘sell’. Agreed it’s all a matter of semantics.
Posted by: Harry Katz
Bill Wells - Research?
Agree with lots of these comments. But Dennis a Quangocrat who has never sold? You may want to Google him! Hope your client research is better?
Posted by: Phil Billingham
quangocrat
Bill, agree with some of what you say and am very impressed with the new word but having known Dennis since his first days in the industry and seen him helping to turn it into a profession I'm afraid you have picked the wrong person to use it about.
Posted by: David Ingram
Phil, Bill and David
As a practising financial planner, IFA, business owner and everything that comes with tied up with that, I really do understand how frustrating it is working in an environment of continuous change and uncertainty. I'm sorry that Bill got the wrong end of the stick with my comments, though I stand by them 100%. By that I mean I maintain my stance that transaction based selling should be banished to room 101. What we do sell are often intangible things, like peace of mind and common sense, as well as time, service, expertise and advice. We sell solutions to client's problems and, as Alan Lakey says, sometimes we have to sell the fact that there is a problem that they are unaware of. The end result might look like the product sale, but it becomes the final part of the process. The 'transaction' isn't the focus of our attention, and it shouldn't be the bit that determines what we're worth. If you insist on basing your remuneration on transactional selling, you'll be out of business sooner rather than later as more and more of the transactional work becomes commoditised. Bill, I have been in financial sevrices for over 25 years, starting life as a commission only adviser - quangocrat, hardly, though it's a nice word. I'm sorry that you're angry about so many things. I'm not the cause of your frustration, though if it helped for me to be vent for your anger, then it's not all bad. At least you didn't hide behind anonimity like so many others do. Phil and David, thanks guys for your kind words. I appreciate you going to the time and effort to say them.
Posted by: Dennis Hall
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Selling Solutions
Surely, this is what we all do, sell solutions. Whether it be a mortgage, income protection, pension plan we are in the business of selling solutions. Also, to be quite blunt, we are also in the business of selling problems. Explaining to a client that he has a problem that maybe he didn't even know about. Finally, we are selling confidence. Because unless we seem capable and intereste din solving the clients problem he won't remain with us long.
Posted by: Alan Lakey