As many of you are aware, the producing TPA that I worked for was folded into a sister company TPA because of an ongoing Department of Labor investigation into its practices of steering clients to revenue sharing funds without disclosing that the money was being pocketed and a nefarious relationship between the managing directors of the TPA and an auditing firm referred to prepare audits for the biggest clients. Google \u201cGeller Group\u201d for further details.<\/p>\n
I recently met an advisor and he told me that he spoke to one of their clients, who happened to be a former client of mine because I drafted the plan document as Director of ERISA Legal Services. He claimed that the client was being inundated by advisors and brokers who were informing this client about the TPA\/RIA\u2019s transgressions. This advisor sat down with the client and talked about his attributes as an advisor and didn\u2019t feel the need to lambast the TPA\/RIA, which has been the scorn of the industry since the story broke last February.<\/p>\n
I have been working in this retirement plan business for 12 years and quite honestly, I don\u2019t recall anyone ever getting a new client by being negative on the current providers. Clients ultimately hire you as a plan provider on what you have to offer them as a plan advisor, not as to the shortcomings of the current advisor. At the end of the day, retirement plan sponsors that are fully happy with their current providers don\u2019t seek to speak with another provider, unhappy sponsors do. Heck, I was unhappy working at Geller after about two months working there and the reason I stayed for almost 5 years because I didn\u2019t want to go to another place to work to leave Geller, I wanted to go to another place because I wanted to go to another place.\u00a0 So if you are speaking with a current prospect, it\u2019s because they are somewhat unhappy with their current arrangement.\u00a0 Talking about the positives of your practices will net a client, constantly dwelling on the negatives of the current providers won\u2019t.<\/p>\n
Just proof positive, you should never go negative in the pursuit of getting a new client.<\/p>\n
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