How to Convert Clients Who Already Have a Financial Advisor

Here’s a scenario most advisors can identify with: You connect with a prospect, and while your initial rapport seems good, the conversation ends with them saying, “Thanks, but I already have a financial advisor.” It’s a common objection that every savvy advisor should be prepared for. Converting clients who already have a financial advisor is not impossible, but it does require the right approach.

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Understanding the “I Already Have an Advisor” Objection

Learning that a prospect is already working with an advisor isn’t a reason to dismiss them. Just because they have an advisor, doesn’t mean they’re satisfied with the services or advice they’re receiving, or the fees they’re paying.

When someone tells you they have an advisor, that signals one thing straight away – they care about their finances enough to seek professional advice. If the prospect is comfortable continuing the conversation, that gives you an opening to position yourself as an alternative to their current financial advisor.

Understand that some prospects will never consider leaving their advisors, because they’re receiving exactly what they need. That’s okay, and you want clients like that for yourself. But consider this: 75% of clients switched or contemplated switching advisors in 2023.

Why do clients leave their advisors? There are a multitude of reasons, including:

High fees
Poor investment performance
Lack of communication
Lack of trust
Imbalance between expectations and results
Personality clashes

That means there’s a huge field of opportunity for you to grow your book of business by attracting clients who may be dissatisfied with their current advisor.

Converting Clients Who Already Have an Advisor

An advisor tries to convert clients who already have an advisor.

When a prospect says they already have an advisor, how you respond matters. If you start in with a sales pitch, they may automatically tune you out. The goal is to make them feel at ease and keep the conversation going.

For example, here’s a good way to steer the chat when someone tells you they have an advisor:

That’s great, I love to see people being proactive when it comes to their financial future. How do you feel about where you are now, versus where you were before you started working with your advisor?

You’ve set an encouraging tone and asked an open-ended question that requires them to think about the experience they’ve had with their advisor. Once they respond, you can follow up with these kinds of questions:

What kind of results are you getting with your portfolio? And do those results match up with your expectations?
Where are you with retirement planning? Do you feel that you’re on track or is there a gap that needs to be closed?
What kind of life changes do you anticipate that might affect you financially and is your advisor building contingencies into your plan to account for them?
How much value do you feel you’re getting back for the fees you’re paying?
Would you say you’re “all set” when it comes to your financial plan? And if so, what does that mean to you?

Here, you’re trying to gain insight into what is or isn’t working for the prospect with their current advisor. You can then move on to the next phase, which is positioning yourself as a second – but solid – option.

You could simply ask if they’ve ever considered having another advisor take a second look at their plan. If they say no, you can offer a free portfolio review.

That can get your foot in the door, but it doesn’t necessarily demonstrate your unique value. Following up with an example of what you’ve been able to do for your clients can help you hammer home what it is you do and, more importantly, why they should consider switching advisors to work with you.

For instance, say a prospect expresses concern that they’re behind with retirement planning. You might say something like:

It’s discouraging when you feel like you’re not where you need to be, but I can tell you from experience that it’s not too late to catch up. I have a client who came to me with the same problem five years ago, but here’s what we did to turn things around….”

When you’re trying to win clients, it’s important to show vs. tell as much as possible. If a prospect shows interest in the client story you’re sharing, you can follow up with something like this:

I know it might be hard to picture those same results for yourself. How about we run a few scenarios through a portfolio visualizer so you can get a sense of what your plan might look like if you were to do [xyz]?

You’re leaving the door open to demonstrate value to the prospect and giving them some tangible numbers to consider, instead of simply making statements about what you could do for them. At the end of the day, that could make a significant difference in persuading a client who already has an advisor to consider making a move.

When a Prospect Still Says “No”

If a client continues to insist that they have an advisor that they’re happy with, you may need to put your efforts to connect on pause. Keep their information in your CRM, and consider following up with them in six or 12 months.

It’s possible that their situation may change in that time and they’re now open to reconnecting with you and hearing what you have to say. Should they book a meeting, refer back to your notes to see what you discussed previously and use that as a guide to ask them what’s changed with their situation.

Frequently Asked Questions (FAQs)

What Do You Say to Someone Who Tells You They Already Have a Financial Advisor?

If a prospect tells you they already have an advisor, congratulate them on finding a financial professional to work with. Then follow up with an open-ended question to gauge how satisfied they are with the services they’re receiving and where they may be looking to improve.

Can Clients Outgrow Their Financial Advisors?

A client can outgrow their advisor if their financial needs change and they’re not getting the level of service they need. The best way to avoid shedding clients for that reason is to talk to them regularly about where they are financially, what’s changed for them and what’s needed to fill the gaps in their plan.

How Can You Buy an Advisor’s Book of Business?

Advisors may choose to sell their book of business if they decide to move into a different career path or retire. That’s an opportunity to add new clients to your rolls if they align with your current niche. Before buying an advisor’s book of business, it’s important to consider the type of clients they serve, the assets under management those clients might bring, and the level of service they expect to determine if it’s a good match for your business.

Bottom Line

Converting clients who already have financial advisors can be done with the right strategy.

Converting prospects who already have a financial advisor is not something to discount, despite the challenges that go along with it. Developing a playbook for encountering objections like this one can give you an advantage in growing your client base.

Tips for Growing Your Advisory Business

Successful advisors understand the value of marketing, and smart advisors know how to promote their brands without taking time away from their current clients. Working with an advisor marketing platform can help you get more eyes on your services, without tying up hours of your day. SmartAsset AMP helps you connect with leads and gives you the tools you need to follow up. Schedule a demo to learn how you can leverage it to grow your business.
Prospecting can help you gain more clients, but don’t overlook the power of referrals. If asking your clients for referrals feels uncomfortable, consider how you can encourage them indirectly. Providing superior service that exceeds expectations is an obvious choice, but you could also use client appreciation events or a loyalty program to generate more referrals.