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When is it OK for a Financial Advisor to Walk Away From a Client?

Posted by BSMG on 10 Aug 2017

You've probably received considerable advice on how to find the right client and which clients are the best prospects. Have you heard anyone talk about when it's OK to walk away from a client? For most financial advisors, this is something they hope to avoid. However, every now and then you'll come across a client that may not be a great fit. Here are some tips on how you can spot them and when to walk away.

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When is it OK to walk away from a client?

  1. They're Just Not Listening
    For a Financial Advisor, building trust with their clients is a top priority. You may find that you meet with a client and everything you say seems to be met with a subsequent nod. You soon realize it's going right over their head. It's important to differentiate here whether the information is going over their head or if they are just uninterested. If you find the information is too high level, make sure you take the time to walk them through your suggestions. However, if you find that your client is simply not heeding your advice, it may be time to let them go. You're spending valuable time advising each client and if you have one that chooses to go against your suggestions, it doesn't make sense to keep the relationship going. 

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  2. Your Skill Set is Not a Match for Them
    You may come across a client that is looking for advice that is just not in your wheel house. If you find this to be the case, the best course of action is to refer that client to someone better suited to assist them. This move is truly in the best interest of the client and will save time for both of you in the long run. 

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  3. They Are Not Truthful
    If you come across a client who is dishonest about their medical history or financial past, it should be a huge red flag for you. Spending time and resources on someone who lies about their medical history will be frustrating for everyone when the truth comes out. You're likely to take the brunt of the client's anger when their underwriting class changes. The same can be said when a client lies about their finances. 

  4. Something Just Does Not Feel Right
    You have every right to walk away from a client if the situation just doesn't feel right. If a client is rude or disrespectful, you don't have to stick around or try to win them over. A polite decline to work with them is all you need. Another reason to walk away is if a client discloses information in your client meeting that makes you uncomfortable or doesn't align with your values. 

We want to hear from you! 

Have you ever walked away from a client? Why?
Are there any other red flags you look for when meeting new clients? 

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Topics: Advisor Marketing Tips, Life Insurance, Sales & Prospecting Tools for Advisors, Communication Tips for Advisors, Insurance for Small Business Owners

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