Chapter 13

Formalizing Your Client Due Diligence Process


Bullet Distinguishing consumers from clients

Bullet Focusing on the most important stuff

Bullet Taking a four-step approach to due diligence

How do you decide whether to work with a particular person, household, or business and in which capacity (broker or advisor) will you serve them to maximize value? I know plenty of advisors who say they want to work with high-net-worth clients or business owners. However, determining a client market characteristic isn’t the same as developing a repeatable client acquisition process. The most successful financial advisors are those who seek opportunities that enable them to deliver real economic value to the client or consumer, regardless of potential revenues to be earned from fees or commissions.

Remember A consumer is someone who shops for and buys products, whereas a client is someone who seeks guidance or wants to outsource more of the decision-making to a specialist.

In this chapter, I explain the difference between acquiring a new consumer versus a new client and how to make sure you’re prioritizing ...

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