The career of a financial advisor is not as easy as it looks, it is actually quite a competitive environment. In Singapore alone, the financial advisory industry has an estimate of about 20,000 to 30,000 agents in a population of around 5 million. This makes the financial advisory industry in Singapore more competitive than in other first-world countries like the USA, UK, Australia, and New Zealand. According to a recent survey, the most effective prospecting methods for financial advisors in Singapore are:
- Networking: 58% of respondents said that networking is their most effective prospecting method.
- Referrals: 35% of respondents said that referrals are their most effective prospecting method.
- Online prospecting: 27% of respondents said that online prospecting is their most effective prospecting method.
Overall, statistics show that prospecting is an essential activity for financial advisors in Singapore who want to succeed. By using a variety of prospecting methods and being persistent, financial advisors can generate leads and close deals.
That being said, the success of a financial advisor is usually based on the number of policies that they sell aka their number of clients. But how do you go about prospecting for these clients?
There are a few common methods used among financial advisors in Singapore to prospect potential clients, these include asking friends and family, roadshows, cold calling, Hardwarezone forums, Seedly, Blogs, and Facebook.
Let’s take a deeper look into each method so you can decide which method, or methods, are most suitable for you. Every method will have its own pros and cons, it just depends on what your situation is and what you’re comfortable with putting yourself through to potentially close a policy.
We will be considering these factors to determine the nature and effectiveness of each method:
- The amount of capital invested compared to the rate of closing a deal
- Time and effort spent compared to the rate of closing a deal
- Potential added value to your personal branding as an agent
- Potential added value to the potential client you are serving
Based on the above 4 criteria, we will be able to paint a better picture of which method/s are most suitable for you.
Friends and Family
One of the most convenient ways to seek out potential clients is by looking at what’s already right in front of you, your friends, and your family. You most probably already have their number and are comfortable with talking to them. And being someone that knows them on a more personal level, they can be assured that you will recommend whatever is best for them. This method is also a good starting point for financial advisors that are just starting out as you can use it as a practice to refine your sales pitch.
Pros and Cons:
- Little to no cost as you already have the contacts in your possession
- Little to no effort as you can just call them up and ask to meet
- If you’re just starting out and are able to sell, the new clients on your rooster will add value to you as a financial advisor
- If the appropriate policy is sold, value is added to the lives of the clients
Roadshows
We’ve all seen these, and we’ve all probably tried to avoid eye contact with them while walking past their vicinity. Roadshows can sometimes come off as annoying and intrusive to people who might just be trying to get their grocery shopping done, and it’s not an enjoyable time for the financial advisors that have to approach these shoppers either.
Pros and Cons:
- Must pay to secure a slot
- Spend long hours constantly approaching people and usually met with rejection
- If you’re lucky or charismatic enough, you might get leads
- Policies are usually sold to people in a rushed manner which doesn’t allow for proper advising
Cold calling
Although one of the oldest and most frequently used tactics for sales, cold calling might not be the most considerate or effective method for seeking out potential clients. You can never know what mood or situation the person on the other end of the line might be in, you could be walking right into a nasty scolding from a complete stranger. However, if done tastefully, it could result in a few good leads with the right amount of effort.
Pros and Cons:
- Cost is your phone bill, so, relatively low
- A high amount of time and effort to call number by number
- The majority of Singaporeans might be on the Do Not Call Registry
- High possibility of being met with angry rejection
Hardwarezone and other Forums
HardwareZone is the leading online tech portal in the region with monthly page views exceeding 35 million, making it one of the most visited sites in Singapore. The website has a thread in the forum that includes Money Mind, a thread catered especially for financial products and questions. This is basically Reddit but for financial advisory.
Pros and Cons:
- It’s free to use, so no cost
- By answering questions and inquiries on the website as a financial advisor, you’ll be adding value to the community
- It might be difficult to prove your validity just based on the username on the website when presenting your contributions to potential clients
- Potential clients might find it difficult to reach out to you through the website
- A lot of effort might be put into answering questions but won’t necessarily be rewarded with leads
Seedly
Similarly to HardwareZone, Seedly is a platform with online groups and communities that people can visit to find answers to their questions. The difference is that Seedly is solely dedicated to financial information, making it an ideal online platform for financial advisors to add to their lives.
Pros and Cons:
- It’s free to use, so no cost
- Same as Hardwarezone, by answering questions and inquiries on the website as a financial advisor, you’ll be adding value to the community
- The questions you answer will be displayed on the profile page
- Potential clients can easily reach out to you through your profile
- A lot of effort might be put into answering questions but won’t necessarily be rewarded with leads
Facebook Page or Blog
This method is sort of like creating a detailed resume for potential clients to view your credibility, allowing them to make the choice to reach out to you. You can create content that you feel will appropriately showcase yourself as a financial advisor,share your personal views, and promote the financial products or services you are offering.
Pros and Cons:
- Facebook is free, but certain blog domains might require you to purchase it
- You will need to spend quite a bit of time and effort generating content
- A great way of building your own personal brand and credentials
- An easy way for your potential clients to view your credentials
Candidates who are difficult to prospect
There are certain types of people who are not well-suited to being prospected. These include individuals who are not interested in what you’re selling, those who are already committed to a competitor, and individuals who don’t have the budget for your product or service. In addition, it’s often difficult to prospect those who are very busy or who have a lot of demands on their time. While insurance and endowment plans can provide financial protection and savings benefits for many people, there are some individuals who may not necessarily need to purchase these types of products. Here are a few examples:
- Those who are financially independent: Individuals who have enough savings and assets to support themselves and their dependents may not need to purchase insurance or endowment plans. This is because they already have sufficient financial resources to cover their expenses in the event of an unexpected event or loss of income.
- Those who have no dependents: If an individual has no dependents, such as children or elderly parents who rely on them for financial support, they may not need to purchase life insurance or other types of insurance that provide death benefits.
- Those with comprehensive employee benefits: If an individual has a comprehensive employee benefits package that includes health insurance, disability insurance, and other forms of coverage, they may not need to purchase additional insurance or endowment plans.
- Those with low-risk jobs: Individuals with low-risk jobs, such as office workers or professionals, may not need to purchase insurance or endowment plans that provide coverage for accidents or disabilities, as the risk of injury or illness is relatively low.
- Those with significant existing coverage: If an individual already has significant insurance coverage, such as through an existing life insurance policy or a health insurance plan, they may not need to purchase additional coverage or endowment plans.
How to prospect effectively
The most effective prospecting method for financial advisors in Singapore will vary depending on their individual situation and target market. However, some general tips for effective prospecting include:
- Define your ideal client: Before you start prospecting, it is important to define your ideal client. This will help you to target your prospecting efforts more effectively.
- Build a strong professional network: Networking is a great way to generate leads and meet potential clients. Attend industry events, connect with people on LinkedIn, and reach out to other professionals in your field.
- Use a variety of prospecting methods: Don’t rely on just one prospecting method. Use a variety of methods to reach a wider audience.
- Be persistent: Prospecting takes time and effort. Don’t get discouraged if you don’t see results immediately. Keep at it and you will eventually start to generate leads and close deals.
It’s important to note that while some individuals may not necessarily need to purchase insurance or endowment plans, it’s still important to evaluate their financial situation and potential risks carefully. Unexpected events can occur, and having insurance or endowment plans can provide financial protection and peace of mind.