You're listening to “Financial Advisor Marketing”—the best show on the planet for financial advisors who want to get more clients, without all the stress. You're about to get the real scoop on everything from lead generation to closing the deal.
James is the founder of TheAdvisorCoach.com, where you can find an entire suite of products designed to help financial advisors grow their businesses more rapidly than ever before. Now, here is your host, James Pollard.
James: Financial advisors, can you believe that it's 2025 already? It’s not 2025 when I'm recording this, but it'll be 2025 when you listen to it, so that's kind of cool. I figured this would be a great episode topic for the beginning of the year, especially because I've been talking with my Inner Circle members lately about increasing their fees and qualifying their clients even more than ever, and I have practically been begging financial advisors to increase their fees, charge more, charge what they're worth. And, actually, you know what? Charge what you're worth, actually, in some cases can mean charging less because you're not worth what you charge, but that's a story for another podcast episode. [01:08.7]
One of the reasons why my marketing approaches tend to work extremely well for financial advisors is because I emphasize that qualification. Basically, that means you're filtering out all of the bad prospective clients until you're left with nothing but the good ones. It's like gold prospecting, where you're filtering out the dirt and the sediment and the water until you're only left with the gold.
I'm not deceived by all of the marketing hype out there, all of the promises that say you can get a bunch of booked appointments or whatever, because a lot of those booked appointments aren't even qualified. Let me just level with you. It's very easy to set appointments, extremely easy, especially with something like online ads, where you just run an ad, send people to a calendar page. You have a little bit of copy on there. It's enticing. You can set appointments. That is easy. [01:56.4]
It is much harder to set qualified appointments where people know, like and trust you. That requires a little bit more finesse, a little bit more expertise, and I'm so grateful that there are smart financial advisors out there who can see the difference, and that it's just wonderful for me, because I explain the difference and I focus on the qualification and filtering, because it makes them better.
I've actually trained myself to spot red flags and filter people out before they can become problems. Do I always get it right? No, but I have a remarkably high success rate. Also, I don't think I've ever heard a financial advisor complain that he or she was too quick to get rid of a potential client, like, Oh man, I really should have stayed with that person longer. However, I've heard many complaints from financial advisors who accepted clients and potential clients who weren't good fits, and accepting a bad client can cost you an enormous amount of time, energy and money.
Plus, if you think about it from an efficiency perspective, you can begin to see how accepting low-quality clients and prospective clients it reduces your business' efficiency, because you have proportionately fewer resources to dedicate to marketing and business building, and servicing your other clients, because the bad ones, they take up so much time, so they're disproportionately bad. [03:12.7]
In this episode, I'm going to try my best to list 10 red flags that someone will be a terrible client so you know what to look for. I might talk about more than 10, because there might be two or three wrapped into one. Who knows? Let's begin with No. 1: they project their insecurities onto you.
In a nutshell, this is psychological projection. That's what it's called, and it occurs when people attribute their feelings, their thoughts or their motives to other people, so whatever they're feeling, whatever they're experiencing, they say you're experiencing it. Once you know how psychological projection works, you'll begin seeing it everywhere.
Perhaps the easiest way to identify psychological projection is to pay close attention whenever people accuse you of something, especially if they barely know you, because if they barely know you, then they really don't have any basis for an accusation. [04:05.7]
For example, if someone says, “Financial advisors are only in it for themselves. I need you to prove to me that you're not like the rest of them,” that is a red flag, because that person is projecting. Again, this is psychological projection. The person is projecting a lack of trust, and truthfully, that he or she is extremely selfish, because if people accuse you of something when they barely know you, chances are they are the very thing that they see in you. So, if someone says financial advisors are just in it for themselves, then you can bet dollars to donuts that that person goes through life for himself or herself, just extremely selfishly.
I'll give you an example of projection that I see in the marketing world. Sometimes financial advisors will tell me something like this: “Your strategies probably work for other financial advisors, but my situation is different. My market is way harder to reach than what you're used to.” What they're really saying when they say this is “I desperately want to feel unique. I also feel overwhelmed because this is harder than I expected it to be.” [05:06.0]
So, financial advisors who say things like they're different and their situations are more complex, they're really saying that they feel inadequate. They feel frustrated about their past marketing efforts and they're upset that they didn't produce any results. Instead of admitting that they're struggling with execution or that they don't fully understand how to market their services, they comfort themselves by saying my strategies don't apply to them. They focus on me instead of themselves.
I have a lot more to say about psychological projection, but I have nine more red flags to go through. Red flag No.2 is they have unrealistic expectations, and this mindset leads to constant dissatisfaction, micromanagement and frustration for everyone involved.
Candidly, one of the best marketing moves I've ever made was intentionally downplaying the results financial advisors can and should expect to get from my materials. For example, back in 2023, I emailed Inner Circle members and asked a simple question. That question was, “How much money do you estimate you have made as a result of your Inner Circle Newsletter subscription?” [06:13.6]
I received 349 responses. Three people said $0 and they messaged me later to tell me they were new subscribers, so that's kind of cool. It made me feel better. Forty-four said between $1 and $9,999, so also new subscribers. I did not get 44 messages from these people saying, “Oh, I'm new,” but chances are they were new. A hundred and sixty-eight said between $10,000 and $49,999. Eighty-seven said between $50,000 and $99,999, and 47 said 100,000 or more.
Now, I am in no way suggesting you will get similar results, because I don't know your specific situation. Also, I want to make it extremely clear that these numbers were self-reported from an anonymous survey, so I have no way of verifying or substantiating them. I didn't want to put people on the spot. [07:04.1]
Looking back, I should have. I should have put them on the spot. I should have said, like, volunteer to share your numbers. That way, I could really substantiate it and make it real and share it in my marketing, because it's really tricky to share unsubstantiated stuff. You have to put disclaimers. So, here's my disclaimer. I sent an anonymous survey to my Inner Circle members. This is simply what they told me. I am merely presenting the survey results, so take that for what you will.
Anyway, when I did that survey, I was on cloud nine. I was like, Wow, this is really cool. This is amazing. I'm so thankful that these are the results, because I work super hard on the newsletter and I really care about newsletter subscribers and want to help them. So, I began sharing those results in my emails and social media posts and online ads. I was like, Look at this, look how cool it is.
That was a big mistake, because I began attracting people who, for some reason or another, believed they could achieve those results with a single newsletter issue or two, or three, and it boggles my mind that some people think this way, but they do. They have these wild and crazy, unrealistic expectations. [08:08.6]
This also applies to financial advisors, because some prospective clients have ridiculous expectations from financial planning or investments, and that sets them up for disappointment. A prospective client might think something like this: Why aren't I getting higher returns after a month? Or why aren't I beating the S&P 500 by at least double your fee? Or why can't you give me any guarantees that I'll retire with $2 million when I'm 64 years old, and I only have $359,000? They have these crazy expectations.
As a financial advisor, one of the best things you can do is to set clear expectations up front. But the truth is, some people will not respond to those clear expectations. I am living proof of that. I've got people in my world who don't read, we'll talk about that later, and they have these wild expectations. If they still have them after you have tried your best to explain and tell them straight up what to expect, let them go. Fly away, little birdie. Be free. Go bother some other financial advisor. [09:07.5]
No.3. Red flag No.3 is they talk about how they’ve tried different financial advisors or financial planning strategies in the past. I see this sometimes in the marketing world, too. I will encounter financial advisors who talk about how they hire different consultants or try different programs and things, but the truth is that marketing isn't something you just try. As Yoda said, do or do not. There is no try.
The same applies to financial planning. When a prospective client starts rattling off a list of all of the advisors and the strategies and the programs that they've, quote-unquote, “tried” in the past, it's often a red flag for deeper issues. The deeper issues are they're unwilling to take accountability. Instead of acknowledging their own role in the process, they may blame every advisor or strategy for their lack of results. [09:59.0]
I see this with some of my training materials and even my newsletter, when a few bad apples slip through the cracks, because let's say that 1,483 financial advisors in a row all got amazing results with a particular strategy, and now Financial Advisor 1,484 doesn't get the same result, so that advisor believes the whole thing is invalid. Is the strategy invalid or is it just you, that particular advisor? I'm just being honest. I'm just telling you what I see.
Another problem with it, with this red flag and the way it signals deeper issues is it tells you that they're difficult to satisfy. If no one has been able to meet their expectations in the past, what makes you think that you're going to be the one to change that? This is closely related to Red flag No.4, which is they complain about other people they've hired in the past.
I consider it a red flag if people say they've tried a whole bunch of other things, even if they don't complain about them, so if someone says they've tried A, B, C, D, E, F, G, then that's still a red flag. But when someone complains even one time, if someone gives you one complaint about a previous financial advisor, that's enough to qualify as a red flag for me. [11:12.1]
Clients who bad mouth other service providers—it doesn't have to be a financial advisor. It could be anyone—they often have unrealistic expectations. They're often difficult to please, and you are probably next on their list. They're probably going to complain about you to the next person once they give you the boot. It turns out that these people are the common denominators in all of their bad experiences, so, hmm, maybe it's them, not you.
Red flag No. 5: they have an excessive focus on prices and fees. It's reasonable to care about fees. People want to know what they're paying, what they're getting. I get it, we live in a capitalistic society. People want more than what they give up. I understand. I totally get it. I am in favor of that system. However, people who are obsessed with every penny you charge often overlook the value you provide. They tend to nickel and dime you. They tend to demand more. They scope creep. They want discounts. [12:07.1]
Here's the problem. When someone's mindset revolves entirely around cost in a scarcity mindset—like, Give me, give me, give me, I gotta get more. Oh no, I can't give up—it's a sign they don't fully understand or appreciate the results that your expertise can deliver. They're not looking for a trusted advisor. They're just shopping for the cheapest deal. Don't try to change these people's minds. Don't try to make yourself appear more than you are. Don't do it. Just let them go.
This is why my marketing philosophy works so much better than nearly all of the stuff out there, because it positions the financial advisor as a premium service provider who attracts premium clients. I also help them position their fees as investments instead of mere expenses, so it’s like a double whammy or a triple whammy, really, if you think about it. [12:52.5]
I do this all the time in my marketing. I want to point this out, especially with something like the Inner Circle Newsletter, which is now $199 per month by the time you're listening to this. That works out to be roughly $6.55 per day, and I've got news for you. If you are going out into the world claiming to give financial advice for a living, and you try to tell other people—or you do, I guess. There is no try, right? You tell other people—that you can help them achieve financial independence and retire and all that, and you can't invest a mere $6.55 per day into your business, then you really aren't serious. I mean that politely. I mean that sincerely. I know that offends some people when I say that, but it's okay. It's just the truth. If you want to be a premium service for premium clients, then you need to treat yourself accordingly. That is just what it is. [13:43.8]
Listen up, financial advisors. This is something special I'm doing exclusively for people who listen to this podcast. If you subscribe to the Inner Circle Newsletter over at TheAdvisorCoach.com/coaching, I will send you a collection of seven copyright-free emails, personally written by me, that you can use right away to begin getting more clients.
I call these my “objection-busting” emails, because they are designed to overcome the biggest objections financial advisors face. All you have to do is send me an email letting me know you’ve subscribed and I will reply with a link where you can download them for free.
I originally offered these in the May 2024 Inner Circle Newsletter issue, and it was one of the most popular bonuses I've ever given away. Today, these seven objection-busting, copyright-free emails are only available to listeners of this podcast, because I'm not mentioning them anywhere else. Go to TheAdvisorCoach.com/coaching to subscribe today. Now, back to the show.
No.6: they don't respect your time. Clients who are consistently late for meetings, cancel at the last minute or expect immediate responses to their emails and calls, they show a lack of respect for boundaries. [14:57.1]
They love to say things like this: “I know it's Saturday at 6:55 a.m., but can you jump on a quick call right now?” No, Karen, I am not going to drop my family time to talk to you about why your neighbor's investment strategy is outperforming yours. And here's a little hint, Karen. Your neighbor is taking on way more risk. Your neighbor has a whole bunch of investments that are subject to a lot more loss than you and they're very volatile, and so on and so forth.
People who don't respect your time are likely to constantly interrupt your work day. They are non-urgent requests. They expect you to accommodate their schedule, no matter how disruptive it is to you, and they fail to plan for their meetings. They fail to prepare for their meetings. Remember how I said at the beginning of the episode that qualifying your clients can make your business more efficient? This is a perfect example. Any prospective client who doesn't respect your time needs to make sure the doors don't hit them on the way out. [15:56.6]
Red flag No.7: they constantly second-guess you. Clients who frequently question your recommendations or compare you to advice from Google or friends or online forums, they are just demonstrating a lack of trust in your expertise. They require excessive hand-holding. They undermine your strategies, and they ultimately fail to see the value of your advice. It goes back to the value thing, just like the price shoppers.
You can easily spot this red flag, though, when people say things like, “But-but I read an article that said the market is about to crash. Are you sure that staying invested is the right move?” or “My neighbor said his advisor is doing this. Why can't we do that?” or “I saw a tick tock where a guy said, I should invest in such and such. What do you think?”
The reason this is a major red flag is because if they don't trust your expertise, then the relationship will always feel strained. You need that trust. No matter how much effort you put in, it will always feel that way. It also hurts both of you, because always defending your recommendations, it shifts the focus away from achieving long-term goals. It shifts the focus away from client service. You can't help them as much as you can help someone else. This is an efficiency thing. Again, you spend more time justifying your approach than actually implementing strategies that benefit them, so let them go. [17:16.5]
Red flag No.8: they don't read and/or follow simple instructions. Let's say I post something like this on social media. I want you to listen carefully to what I'm about to tell you. “On January 10, at 9:00 a.m., I will sell 10 apples. I will sell them at 123, Main Street, and they will be $1 each.” I guarantee you, if I posted something like that on social media, people will either think to themselves or outright ask questions like, Ooh, apples. How much are they? Where can I get one? Where? When are you selling them? It’s wild that stuff like this happens, but it does, because a percentage of the population either cannot or will not read and follow simple instructions. [18:02.7]
I'll give you an example with this email I received about a year ago from a financial advisor. I'll read it to you right now. “I signed up for your Inner Circle Newsletter, and I have still not received anything in the mail. I read every email you send, and truthfully, I have had interest in purchasing nearly everything you've written. However, it worries me that my trial run for $99”—it used to be $99. Now it's $199—“hasn't arrived, and it's already the ninth. So, where do we go from here? I am willing to spend money on your products, but have inhibitions now that I have seen it isn't delivered punctually.” What's next?
We have two major red flags here, not just one. First newsletter subscribers are taken to a thank you page immediately after joining. On that thank you page, it clearly says that U.S. subscribers should expect their newsletters to arrive around the 10th of every month. This guy subscribed at the beginning of the month, right? I don't remember, but it was the third or fourth. [18:58.0]
So, if you subscribe on the third or fourth of the month, then you are locked in for the next mailing on the first of next month. So, if you subscribe January 4, then you are on the list for February 1. That is clear on every page throughout the entire process. Also, on the actual newsletter signup page, it says five different times, yes, five times that each newsletter issue ships on the first of the every month, and if you subscribe, it's the following month. If the guy, gee, I don't know, actually read the page, he would have known that.
Second, there is no such thing as a trial run with the newsletter. The word “trial”, and I looked—I did Ctrl+F and I looked—the word “trial” is nowhere to be found in any of my marketing materials, on the signup page, on the checkout page, on the thank you page. It doesn't exist.
So, this guy is actively filling in whatever he wants to see and that's what these people do. They are delusional. They have delusions. They are seeing things that are legitimately not there. That is what delusion is, because the newsletter signup pages actually say that it requires hard work, effort and dedication. That's not something you can try for one month, two months, or even three months. [20:12.2]
If you approach the newsletter as a short-term thing with a short-term mindset, you're just wasting your time. I say that all the time. I make that as clear as I possibly can, not just for my sake, but for other people's sake, to save people the hassle. If they're not willing to buckle down and do the work, it legitimately will be a waste.
Listen to me when I tell you that not reading and/or following instructions is a humongous red flag. Nearly every time I've made the mistake of catering to non-readers, it has bitten me in the butt. You can choose to listen to what I'm telling you here or not, but I've done my good deed for the day by attempting to help you. I am telling you, make sure that the people you attract read and follow instructions. They follow directions. If they don't, it is a humongous red flag, please hear me. [21:01.6]
Red flag No.9: they speak in contradictions. This one is a little tricky to explain and I'm not sure I will explain it well enough, but I will try my best. There's that word “try” again. I will do my best. Sometimes people will say things back to back or at least near each other that are straight up contradictions.
For example, a prospective client might tell you that he or she isn't comfortable with risk, but also wants massive returns. A prospective client might tell you that his goal is to have millions of dollars in a retirement account, but he's worried that he can't maximize his IRA contributions each year. Those are contradictions, because if something like that was the goal, then that person would do it, provided he has the means to do so. See? You see how it's a contradiction? I can't say, “Oh, I really want to have six pack abs,” and then eat cake every single day. That is a contradiction. [21:53.6]
I've become highly attuned to spotting these contradictions, because, truth be told, financial advisors drop a lot of contradictions. I'll give you one. A while back, I received this email from a financial advisor who went on this rant about how his time was so valuable and how it needed to be respected, but then, literally, I'm not even kidding you, one sentence later, said that he only wanted to receive free content. That is a contradiction. That is a red flag, because if your time is truly valuable, then free resources should not be your go-to.
That includes this podcast, by the way. I just want to make that super-duper abundantly clear, paid resources, which are often more structured and more actionable, would save you time and help you achieve your goals faster.
Red flag No. 1, this is a big one, too. This is a doozy. They expect you to fix everything. This is related to the unrealistic expectations red flag. Plus, it's mixed with the refusal to accept accountability, plus, a little bit of delusion, the delusion that you're a miracle worker in the first place. Oh, and throw in a little bit of a refusal to do things themselves. [23:03.2]
It's a cocktail of red flags actually, and I've noticed this in the marketing realm, too, because there is a small segment of the financial advisor population who believes that it's possible to completely outsource marketing or that they can just hire someone to “do” marketing for them, as if that's all it takes to build successful marketing campaigns. Yep, that's right, you got it, big companies like Amazon and Tesla and Walmart and Bain Capital, they're all super successful because they hired someone to just do marketing. It's just a goofy, delusional belief. If you really sit back and think, Hmm, would that be possible? Is that what people do?”
There are three main reasons why expecting a financial advisor to fix everything is a red flag. Reason No. 1: it signals a lack of commitment. Clients with this mindset of wanting you to fix everything, they often fail to provide necessary information at all. They can't give you everything that you need because they want you to fix everything, so they're not going to do this stuff. They want results without contributing much effort, and that stalls progress. That actually hinders progress. You can't even really get started. [24:09.3]
Reason No.2: if their financial goals aren't met as quickly as they want or as completely as they imagine, they're likely to blame you. Remember, we talked about blaming and complaining? Those are red flags, too. You are likely next on the chopping block for this. They don't take responsibility for their role in the process.
Reason No.3: it just limits their success. Clients who disengage from the process often fall back into their bad habits. They undo any progress that has been made. If you believe like I do, that it is your moral and ethical duty to use your gifts to help people, then you can do that best by helping people who actually want to be involved in the process, people who are willing and able to accept your help and implement it. That is where you can shine. That is where you can make the biggest difference in the world.
All right, I threw a lot of stuff at you in this podcast episode and I hope it helps you. This is one of the most valuable episodes I've ever done because it can save you so much trouble. I hope you take it to heart—and I will catch you next week. [25:09.5]
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