What a wonderful working conference on non-qualified deferred compensation plans with the erstwhile crew fromNational Association of Plan Advisors. One question raised was whether the advisors in the audience are selling or solving. Certainly a fair question and one worth ruminating on.
Taking a page from the film, Glengarry Glen Ross, one might think "selling" is the answer as the film advocates the need to "Always Be Closing". And yet that model has never really resonated with me. As a 401k advisor with 34 years under my belt, I find myself more leaning towards a listening/ consultative/ advisory mode.
Selling has its place, don't get me wrong. The two kids who showed up at my office this afternoon were selling a variety of products in support of their school fundraiser. They were not there to consult but rather to sell. And yes, I bought more candles to go with the large stock I have in my shoe closet. Might I be running out of storage space?
Selling is fine when the "relationship" is transactional and one-off. It certainly works when the item being purchased is not complex. I am not looking for a deep consultation when I am at the grocery store. "Sell me the items I need and let me get out of there" is my thinking.
Having said that, solving is more my go-to style. I prefer to listen to a prospective client describe a problem and see if I might be able to help them. Following this path lets me focus more on and better understand the prospective client's needs. This is where the emphasis should be in the 401k space at least. Leading with and selling a one-size-fits-all solution is a recipe for disaster.
Once I have understood the problem to the prospective client's satisfaction, I can then educate on possible solutions. The conversation becomes consultative. The solution or right path will likely present itself. And I pride myself on the number of times the solution is to work with a company other than mine. By listening and understanding, the prospective client and I can see if we are a proper fit for each other. Best to discover that ahead of time before engaging.
I do believe solving is best when the situation is complex and the relationship deep. Trust is earned over time and deepened. Comprehensive problem solving with the client's best interests at heart is key to that.