I have based my career on being able to sell and teaching others how to sell. While these might seem opposites I will discuss in this blog why I think combining each trait can make a good wealth advisor. Fortunately the industry is starting to believe this but they are not walking the talk yet. Social Media has given me the conch so I’ll explain why this concept should improve your life and increase you EQ.
Wall Street screens client representatives based on how much revenue they generated for their last firm. Recruiters ask candidates to provide them with a commission run and base their recruiting deals on “trailing 12” revenues. The message sent on day one is that revenues are important. Most blogs and the established financial press demonize commission based advisors. We believe that their leaders share some of the blame. The leaders compensation is based on how many high revenue producing advisors they hire and how many high revenue producing products they “sell” to their clients. I have attended several meetings with new advisors and their clients where the advisor fein ignorance. Doesn’t every defendant claim they are innocent?
LCD is an abbreviation that compliance officers love. It stands for the lowest common denominator. Why do they love it and why should we care? If all products and services are positioned in the same approved way (LCD) it makes a supervisor’s job easier. Supervisors only have one product or service to evaluate. This also opens the door for an easy answer of NO. This frustrates sophisticated advisors and makes sophisticated clients wonder if they have gone to a McDonalds instead of a Michelin rated restaurant. Both advisors and their clients want Michelin.
The good news is that EQ can be developed. One of the best advisory firms I have worked with helps advisors and their clients develop EQ through Conversations Around the Campfire. My first reaction to an invitation was to say thanks, but no thanks. However after several “conversations” I was hooked. I enjoyed the events because they allowed me to open up and share my thoughts with others. Their thoughts and fears sounded similar to mine. Our similarities improved our EQ and we felt better. Dr. Travis Bradberry provided further research on why. His best selling book Emotional Intelligence 2.0 is a must read for advisors and their clients.
EQ is a confusing concept that a Harvard graduate can’t take the test for you. This is bad news for Rick Singer and good news for people who have developed a high EQ.