Hardly a day goes by that I don't read an article questioning the value of hiring an advisor. Headlines such as "Anyone Can Call Themselves an Advisor" are unfair to the many high-quality professionals in the field.
The constant barrage of negative publicity puts many advisors on the defensive. But rather than get defensive, why not fight back and proactively show clients (and prospects) exactly how you can help them?
It's important to highlight your educational credentials up front as evidence of your commitment to bringing clients the most up-to-date services and products. Highlighting your experience is a differentiating factor as well.
As further evidence, I recently saw a study by Dalbar Analytics, a well-respected industry research firm, that attempted to quantify the annual value added of providing certain services:
- Portfolio re-balancing = 0.35%
- Asset allocation = 0.75%
The study also concluded that "Behavioral coaching" can add up to 1.50% per year. While these numbers may not be exact for everyone, they do provide empirical evidence that your value-added as an advisor can and should easily surpass any addition fees (if any) the client is paying for your services.
Now, like in any business there are advisors who are not adding value and you should be upfront about this as well. But by proactively "promoting" yourself and distinguishing yourself, you are turning a potential negative into a positive.