Top 10 Errors Made by Financial Agents and How to Prevent Them
Financial Agents can have great opportunities and be real assets to their communities, but they can fall prey to avoidable errors. Mistakes one through six cover moral concerns and 7 through 10 cover business strategy and personal concerns.
1. Making uninformed judgments.
In order to eliminate errors, be sure to double check proper rates and facts about the product(s) you are selling.
In order to prevent fraud, go into your consultations with the attitude that you are going to do what is right for the customer whether or not you make the sale.
3. Signing an application with fields left blank.
Make sure that the application is totally filled out before signing it.
4. Asking for a check in the adviser's name.
This should never be done, because premiums or payments from clients belong to the firm under which the adviser works and should never be intermingled with the adviser's personal records.
5. Putting unneeded pressure on the client.
Good sales agents can close a sale without using coercion. Always look out for the client's best interest.
6. Failing to disclose potential risks of an investment product
The advisor is always obligated to disclose all aspects of a financial product, regardless of whether the client chooses to buy it.
7. Forgetting to learn
Financial agents should always be learning more about their assignments and how to serve the community better. Good ways to do this are by reading books and attending conventions.
8. Forgetting to seek out new business
Even when financial agents are successful, they should always be making partnerships with potential new customers so that their business will succeed in the long run. Ways to do this are through testimonials and participating in trade shows.
9. Forgetting that a good perspective is vital
Even when financial advisers are active in seeking out new clients, they must have a can-do attitude that will help sustain them during dry periods. Ways to foster a good attitude are to read motivational books and to set aside time to do things they find enjoyable.
10. Neglecting to find a mentor.
Financial advisers need a good support system in place, because oftentimes they work on it's own. A good coach can act as a instructor and a sounding board with whom younger financial advisers can share their joys and worries. Financial advisers should contact their supervisors for ideas on how to find a mentor.
So you? What are the top mistakes made by financial advisors?
About the author: A. Mulvey blogs for financial advisor career her pastime blog she uses to share her knowledge to assist people manage the facets of financial advisory.