One of the biggest mistakes retirement plan providers make is believing that every prospect has to become a client.
They don’t.
Sometimes the best thing you can tell a prospect is that they don’t need you. Maybe their current provider is doing a perfectly good job. Maybe the service you’re offering isn’t appropriate for their plan. Maybe they’re looking for something you don’t do particularly well. There is nothing wrong with saying so.
I’ve turned away business during my career because I didn’t think I was the right fit. I’ve also told prospective clients that they didn’t need to hire me because there wasn’t anything wrong with what they were currently doing.
You would be surprised how much credibility that creates.
People remember the person who didn’t try to sell them something.
Too many providers approach every conversation with the same objective: close the sale. That’s when people start overselling services, criticizing competitors unnecessarily, or convincing plan sponsors that they have problems that don’t actually exist.
That may generate revenue today, but it’s a lousy way to build a reputation.
The retirement plan business is a very small world. Today’s prospect who doesn’t hire you may refer three clients to you later. The advisor whose client you told to stay with another TPA may remember your honesty when they actually have a client who needs help.
Not every opportunity needs to generate a check.
Sometimes the opportunity is simply demonstrating that you’re knowledgeable, trustworthy, and willing to put somebody else’s interests ahead of making a sale.
Providers spend enormous amounts of time trying to convince people that they’re trustworthy.
The easiest way to demonstrate trust is occasionally walking away from money.