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Converting Leads into Prospects

Best Practices Guide

Source: Paladin Digital Marketing

Paladin Registry Member Use Only – Not for Distribution

Financial advisors, who have used the Registry to grow their businesses for more than five years, provided the best practices in this Guide. Many of these members convert more than 80% of their Registry leads into prospects and more than 50% of their prospects into clients. This comprehensive document includes the following information:

• A Quick Guide for immediate implementation

• Background information about lead generation

• How the Internet impacts your marketing practices

• How Paladin produces and processes leads

• Recommended practices for converting leads into prospects Quick Guide Don’t have time to read the entire document? We suggest you read this Quick Guide in five minutes or less. Paladin and you are part of a complex marketing process that uses the Internet to produce leads, prospects, and clients:

• Paladin is responsible for producing leads

• You are responsible for converting leads into prospects

• Then you convert prospects into revenue producing clients Investors have four reasons why they use the Internet to find, screen, and contact financial advisors:

• They are seeking information about financial advisors

• They are seeking information about you and your firm

• They want to see who is available in their community

• They want to initiate contact with you or your firm Note, the first three reasons represent timing issues. They might not be ready to start interviewing advisors right away. Consequently, you should be using an effective CRM system to stay in touch and build a relationship.

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We recommend the following steps when you convert leads into qualified prospects:

• Call as soon as you receive the lead. We do not know whom else the investors are talking to or the timing of their decisions.

• If you do not reach the investor, leave a message* and make a follow-up telephone call the next day.

• If you do not reach the investor on the second call, leave another message* and follow-up with an email.

• If the investor does not respond to the first email send a second one.

• If the investor does not respond to the second email add them to your drip list and stay in touch – the issue could be timing. It happens a lot when investors use the Internet to learn more about advisors, research particular advisors, and determine who works in their communities.

*Telephone messages should be very similar to the content in the first email.

Recommended First Email Hi Name: You submitted your contact information to Paladin Registry to find a vetted, 5 star rated financial advisor in your community. Your information was forwarded to our firm by Paladin. Whether you have a financial question, need help developing a financial plan, or are seeking an investment advisor, we can help. It all starts with a brief conversation to determine if we meet your specific requirements. Please respond to this email to schedule a 15-minute telephone call - there is no cost or obligation. We look forward to hearing from you, Recommended Second Email Hi Name: You submitted your contact information to Paladin Registry to find a vetted, 5 star rated financial advisor in your community. Your information was forwarded to our firm by Paladin. We followed up by calling you twice and sending you a previous email. Since we have not heard back, we assume you obtained the information you were seeking or your needs have changed.

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If you don’t mind we will stay in touch by email in case you need additional financial information or services in the future. Best regards, End of Quick Guide! Want to learn more? Keep reading – Some of the best tips are at the end of the Guide! Types of Leads All leads are not the same. There can be substantial differences between leads that are based on what they are seeking and their timing.

• Dr. Smith used the Registry to find vetted, validated, documented financial advisors. He is in active search mode and wants to select an advisor in the next 30 days.

• Fred Jones used the Registry to identify Registry members in his community. He plans to talk to the advisors in a few months when he is closer to retirement.

• Barbara Brown has a current advisor and is researching potential replacements. At this point, she is in research mode looking for the ideal replacement. She will not be ready to talk to advisors until she has completed her research.

• Phil Allen is seeking information about financial advisors. He is not ready to talk to advisors until he has completed his learning curve. This is a frequent occurrence when investors hire advisors for the first time.

Some leads will result in immediate appointments. Some leads will require follow-up over various time periods. Leads that require follop-up should go into a high-quality CRM system that keeps your name in front of the lead. Outbound Versus Inbound Marketing In the past, financial advisors relied on Outbound Marketing to create new clients for their advice and services: Telemarketing, direct mail, seminars, and networking. The key characteristic of Outbound is the advisor initiates contact with investors, even when the investors do not want to be contacted. Consequently, Outbound has very high rejection rates, it is expensive and time consuming to execute, and it has been producing diminishing returns. Paladin does not use “Outbound” Marketing tactics. Paladin has spent the past 14 years developing and refining “Inbound” Marketing tactics to produce leads for members of its Registry. The key characteristic of Inbound is the investor initiates contact with financial advisors through the Paladin Registry.

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Just like Outbound Marketing has its challenges so does Inbound. Investors use the Registry to find, research, and initiate contact with financial advisors. However, what they see on the Internet (website content, Google name searches) may also impact their willingness to meet with certain advisors. Do Not Underestimate the Power of the Internet When investors use the Internet to find financial advisors (Paladin Registry), you should assume they will also use the Internet to learn more about them. In fact, more astute investors have figured out they can use the Internet to learn a lot about financial advisors before they talk to them. Older investors with larger asset amounts tend to be more cautious than younger investors with smaller assets amounts:

• They have had more experience with previous advisors

• There is a good chance the experiences were bad

• They have more to lose if they make a mistake

• Past experiences make them more suspicious They have learned to trust what they see more than what they hear from advisors. The Internet is a game-changer. It gives investors unparalleled access to substantial amounts of public information before they talk to or meet with financial advisors:

• Research reports published by Paladin Registry

• Financial advisor websites

• Name searches on Google and other search engines

• FINRA.org

• SEC.gov

• BBB.org What they see on the Internet forms their collective first impression of the advisor and that impression impacts who they interview and select. Connections Paladin connects investors to advisors four ways:

• Match Processing (Paladin selects advisors)

• Directory Application (Investors select advisors)

• Direct Contact (Investors initiate contact by telephone or email)

• Website Contact (Investors initiate contact through websites)

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The focus of this Guide is on investors who are matched to you by Paladin search consultants. Match Processing Most investors use our online match service. They submit information that we use to match them to you:

• Name

• Location

• Contact Information (telephone, email)

• Service requirements (planning, investing, other)

• Assets available for investment

• Comments We have a match when investor requirements “match” your requirements. For example, when available assets equal or exceed your minimum asset requirement. Screening Matches Before we match investors to you we screen the information that they submit to us. Electronic screening focuses on the accuracy of the information that is submitted to Paladin, for example name and contact information. In certain circumstances, Paladin will email or call investors to verify the information that is submitted to us. On average, Paladin processes 63% of the leads it receives and rejects 37% for various reasons. The screening process does not guarantee investors will respond to your telephone calls or emails. The issue may be timing or information they have viewed on the Internet. When the screening and match processes are complete, simultaneous emails are sent to the investor and you:

• The investor email introduces you with a link to your Registry research report

• The email to you introduces investors and includes all the information we have gathered from investors

Direct Contact Some investors use the Paladin Directory to find vetted, validated advisors in their communities. In this case, investors are selecting the advisors they want to talk to. They initiate contact three ways:

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• Telephone (least likely)

• Email (most likely)

• Website (Contact Us) When investors use the Directory, Paladin’s role is to connect them to you. Paladin does not screen investors who use the Directory. Paladin produces direct investor contact five ways:

• Your research report has a back link to your website

• Your researchreport displays your contact information

• Your Directory listing includes telephone, email, and website

• Paladin published articles have back links to your website

• We optimize your profile for the major search engines There is always the possibility you will be contacted by investors who do not meet your asset requirement. On the other hand, you may be contacted by investors with substantial assets and other financial needs that produce multiple revenue streams for you and your firm. Flexible Marketing Practices You have established marketing practices that are based on your experience and training. Some of these practices may not work the same when you market your services over the Internet. It pays to be flexible and open-minded about the marketing practices that are described in this Guide. We have enough feedback from long-term Registry members to know they work. However, you may have to make a few changes to maximize their effectiveness. Types of Follow-Up There can be three types of follow-up based on what investors are seeking and the timing of their need and/or decision-making processes:

• Telephone call (as soon as possible)

• Email (requested by investor)

• CRM (stay in touch with leads) Initial Contact You should have a five-part sales process for following-up leads that are produced by Paladin’s marketing efforts:

• Conduct your own screening process

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• Determine if you want to meet with the leads

• Provide compelling reasons why they should meet with you

• Schedule face-to-face or telephone appointments

• Answer any questions they may have First Meeting Location You should have a flexible approach for selecting the location of your FIRST marketing meeting with leads that is based on investor preference:

• Your location

• Investor location

• A neutral location You should not require referrals to meet for the first time at your location because:

• Referrals may not travel to meet advisors they do not know

• Referrals with larger sums may be less inclined to travel

• Older clients may not travel significant distances

• Employed investors may want to meet at their offices

• You may be willing to travel farther than investors

• Your competitors may not require office meetings

• A flexible approach shows interest - what is best for clients You should vary your approach based on distance and the size of the revenue opportunity. Some prospects may have reasons for meeting at your location:

• Visiting your office is part of their due diligence

• It is an opportunity to meet your staff

• Make sure you have a real office The location of the first meeting should not impact where you conduct subsequent meetings or client service meetings. You should select the location of client service meetings AFTER you convert prospects into clients. Remote Leads What if Paladin produced a lead who is more than 50 miles from your office? We try not to, but we may not have a choice. But, you do. What if the lead has a substantial asset amount? Would you be willing to talk to this person? Would you be willing to travel a longer distance to meet with the lead?

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Some of our members have won multi-million dollar relationships by being flexible – they will at least make a telephone call to determine the lead’s revenue potential. Local Competition How do you compete with local competition for more remote clients that are closer to them than they are to you? Consider the following strategies:

• Always meet with prospects at their locations

• Inform prospects you are in their city on a frequent basis

• Face-to-face service meetings will not be a problem

• Meetings are supplemented with calls, emails, and Skype

• Open an executive office to establish a local presence The distance between your respective locations is not the primary issue. Paladin research shows investors’ biggest concern is your accessibility. They believe local advisors are more accessible than advisors who are farther away. You may have to overcome this concern to be competitive. Ironically, when Paladin asked investors how they would communicate with advisors in more urgent situations, 84.7% said telephone or Internet. They would not wait to schedule a face-to-face meeting. Marketing Associates A significant number of senior advisors who are members of Paladin’s Registry utilize the services of in-house marketing professionals to set appointments for them. Marketing associates should modify the practices in this Guide to fit their situations. Make sure the associate references:

• The Paladin Registry early in the call

• Paladin in the subject line of an email

• The name of the profiled professional

• Vetted and validated (a differentiating characteristic)

• The reason for the call

• The marketing assistant is calling on behalf of the advisor who is profiled in the Registry Make sure investors know this is not a solicitation. Investors initiate contact when they complete Registry landing pages. Telephone Contact Unless the investor requests email follow-up, we strongly recommend telephone follow-up for the following reasons:

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• A telephone call is more personal

• Investors may have a short timeline

• Your competitors telephone investors

• Leads may not open your emails

• Emails can be caught in leads’ spam filters Email Contact Some leads require email contact. There is a good chance they had a bad experience with previous advisors and are concerned about high pressure sales tactics. You should honor this request. You risk alienating the lead if you do not comply with his or her preferred method of contact. FYI, investors may be talking to advisors outside the Registry. Some of these competitors may not honor the email request. Your email strategy is the same as your telephone strategy in a written format. Timely Follow-Up We recommend you contact leads within minutes, but no later than the same business day. The warmer the lead the better. Also, leads do not tell Paladin:

• Who they may be talking to outside of the Registry

• Their timing for making an advisor selection decision

• The number of websites they submitted data to

• How many advisors they are talking to You and Paladin have no idea how competitive each situation might be. This means quick follow-up is essential for getting appointments. Elapsed Time Our email notification tells you when leads used Paladin’s match processing service. There can be up to a three-day range in the elapsed time:

• The process can take minutes: The lead submits data and Paladin processes the information a few minutes later

• The process can take up to 2.5 days: The lead submits data Friday evening. We process the lead on Monday morning

• Most leads are processed in a few hours or the next morning

• Paladin lead processors are located in California 5 Methods of Contact

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We recommend a five-step process for establishing contact with prospective clients. Step one should always be a telephone call unless the prospect requested email only.

• You reach the prospect and have a conversation

• You do not reach the prospect and you leave message Step two is to repeat the process in step one the next business day.

• You reach the prospect and have a conversation

• You do not reach the prospect and you leave the same message Step three is an email communication.

• Your email states you called twice and have been unable to reach the prospect

• Your contact information is included in the email Step four is a second email communication.

• Your email states you called twice and emailed once

• This will be your last contact email

• You will stay in touch in case their needs change Step five is add the lead to your CRM system. There is a good chance they will contact you in the future when the timing is right. Telephone “Contact’ Techniques You place a call and you reach the prospect. You should always use a telephone script. Your effectiveness goes up when you know what you are going to say next. And, you listen better when you are not thinking about your next comment. You should have two scripts:

• A script when you talk to the referral

• A script when you leave a message on an answering machine Your talking script for messages should include a few Paladin comments that are taken from the first email: “You submitted your contact information to Paladin Registry to find a vetted, 5 star rated financial advisor in your community. Your information was forwarded to our firm by Paladin.”

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“Whether you have a financial question, need help developing a financial plan, or are seeking an investment advisor, we can help. It all starts with a brief conversation to determine if we meet your specific requirements.” “Please respond to this email to schedule a 15-minute telephone call - there is no cost or obligation.”

• We look forward to hearing from you,By referencing the day and Paladin you are telling investors this is not a solicitation. You are responding to their request to be contacted

• Name Paladin Registry one or more times because that will be the leads’ main reference point for your call

• Some members make the following comments about this Paladin service: o Paladin is the only SEC registered firm that vets, validates, and documents the

quality of financial advisors o The Registry has the highest minimum standards in the financial services

industry o The Registry only profiles advisors who achieve 5 star quality ratings o Paladin only refers investors to RIAs and IARs who are acknowledged financial

fiduciaries (you explain why this is important) o Paladin only refers investors to fee-only or fee-based advisors o Paladin has been matching investors to advisors since 2003 o Kiplinger rated Paladin the highest quality website that matches investors to

advisors o The Paladin Registry service is based on the principles in the highly regarded

book Who’s Watching Your Money? that was written by Paladin’s founder The remainder of your script is gathering information from the prospect so you can complete your screening process and set a mutually convenient appointment. Telephone “Leave a Message” Techniques You place a call and you do not reach the prospect. You leave a message. Your “leave a message” script should have many of the same features as your telephone techniques when you talk to investors. You want them to know:

• They initiated the contact through the Registry

• You are responding to their request

• Make them feel safe (brief, confidential conversation)

• Perhaps make a free offer

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Email Techniques Email techniques mirror telephone techniques in a written format.

• For example: “You used the Paladin Registry on Monday to find a 5-star rated financial advisor in your city. Your request has been forwarded to me for follow-up. I have called you twice and have not been able to reach you. Please respond to this email if you would like additional information about our services.”

Unresponsive Prospects We know some leads do not return phone calls or emails. It is difficult to explain why they would submit contact and financial information to Paladin and not respond to contact requests from members of the Registry. We do know some members of the Registry experience this phenomenon more than other members. Our investor surveys uncovered the following facts:

• Some Registry members wait days to follow-up

• Some prospects submit their data on multiple websites and are inundated with phone calls

• Sometimes it is a timing issue. They are gathering information about advisors, but they are not ready to talk to a professional

• Prospects make last minute decisions to select other advisors

• Prospects submit their contact data to websites that sell their information to hundreds of third parties

• The prospect starts the process and gets cold feet This is a problem for Registry members and Paladin. Members are frustrated when they cannot reach leads. Paladin is damaged because it spent substantial amounts of time and money producing and processing the leads. The reality is, all marketing programs are numbers games. There are leads who do not return telephone calls and there are leads that produce thousands of dollars of revenue. There is no way to differentiate the two in advance. What are Investors afraid of? At this point, you may be wondering why investors submit contact data to Paladin, but are not always responsive to calls or emails from members of the Registry. We believe there are two possible answers to this question.

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First, they saw something on the Internet that impacted their level of interest. It could be information in Paladin’s research report or content on your website. Or, perhaps they checked you out at FINRA.org. Second, there is a major concern that is expressed by a high percentage of investors who are seeking financial advice. Based on their past experiences and what they have read in the media, they are afraid of the high-pressure sales tactics that are used by some financial advisors. Your sales tactics and website content should try to mitigate the magnitude of this fear. Sales Consulting Email Jack@PaladinDigitalMarketing.com or call 916.253.3334 (Pacific) if you would like to discuss your marketing and sales strategies.