Is it just my imagination, or is it getting harder to open up new investment advice relationships with new clients?
With the stock market near all-time highs and interest rates at record lows, investment advice prospects aren’t easy to find. And they are even harder to move.
I have found an easy way around this current prospecting problem: I prospect individual company 401(k) retirement plan participants who work at the same companies as my current clients.
Every investment advisor has clients who interact with others in the workplace. Plus, these clients often have spouses who work. There’s no excuse for not having new investment advice prospects to talk to.
It’s becoming increasingly more difficult to be a general investment advice provider. But there’s a dramatically underserved investment advice niche in today’s marketplace: helping individual investors navigate their company 401(k) retirement plan menu of options.
I prospect every day to solve the individual company 401(k) retirement plan investment management problems of individual investors.
Over the last 15 years, I’ve developed expertise providing individual company 401(k) retirement plan participants with customized investment advice on their default company retirement plan menu.
Step One: Niche Focus
I began my work in this niche by offering a free company 401(k) retirement plan analysis to my existing clients. It took me about two years to gather the company retirement plan names, company retirement plan providers, and the default list of menu options.
But I now have a complete understanding of the company 401(k) retirement plan menu of options. I don’t think it’s an exaggeration to say that I have a deeper knowledge of the company retirement plan menu than many of those working in human resources or employee benefits departments.
I provide a disciplined tactical asset-allocation game plan where none exists. I also provide a stock market risk management game plan instead of the “buy-and-hold” that company 401(k) retirement plan providers have promoted for generations.
Step Two: Pick Up the Phone
The true test for my company 401(k) investment advice offering has not come from the existing investment advice relationships I have with clients; it’s come from individual company 401(k) retirement plan participants, who I cold-call by phone.
To overcome any current prospecting slump, find an underserved niche in which you have a very distinct marketing advantage. The fact that you know the company 401(k) retirement plan menu of the individual prospects before you prospect them makes this prospecting niche idea a can’t-lose strategy.
I have found that individual company 401(k) retirement plan participants are happy to talk about proposed solutions to one of their greatest investment management problems and challenges.
The individual company 401(k) retirement plan advice niche drops you squarely, and immediately, into the middle of a great prospecting niche.
Step Three: Drill Down
Most individual company 401(k) retirement plan account balances are near all-time highs. What do you think the biggest investment management concern now is for individual company 401(k) retirement plan participants?
The answer to that question should be the theme of your individual company 401(k) retirement plan participant investment advice prospecting campaign.
Just being a good investment advisor is not going to provide you enough new client relationship opportunities. That service offering is not enough to attract individual investors who don’t know you.
Get more focused on the individual company 401(k) retirement plan investment advice niche. Start with your clients. Your prospecting list will grow from there.
You can easily become the most specialized investment advice provider in your local market area. You just need to develop an investment advice product niche based on your knowledge and understanding of specific company 401(k) retirement plan menus.