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Consider giving referral thank-you gifts that aren’t ‘things’

Sales & Marketing

Advisors who take on a new client based on a referral justifiably want to thank the person who made the referral, but selecting the right gift (and adhering to regulatory rules) can present a quandary. Michael Kitces, in a post at his Nerd’s Eye View blog, points out that research shows the best gifts aren’t actually “things,” but gifts of experiences or the chance to give to others. Online experience-buying sites like Excitations and Experience Days, or donation sites like DonorsChoose, can provide this “thank-you” opportunity, he notes. See the details in his post below. Also, advisors need to take time to think through what they say to clients and prospects on their websites and in their marketing materials because much of it comes across as jargon – and meaningless. Financial writer Sara Grillo notes in a column at Advisor Perspectives that “Most financial advisor websites, brochures, and social media campaigns are generic” and implores advisors to get rid of phrases such as “comprehensive financial planning.” See a link to her column below.

Giving Referral Thank-You Gifts That Actually Make Someone Happier

By Michael Kitces

Source: Nerd’s Eye View blog

Receiving a new client referral has a substantial value for a financial advisor – so much that advisors often provide “thank-you” gifts, either as a simple expression of gratitude, or even as a means to encourage more referrals. Of course, regulators want to be certain that advisors don’t inappropriately “buy” prospective client referrals – in a conflicted or undisclosed manner – and consequently FINRA Rule 3220 limits client gifts to just $100 per year, and the SEC similarly expects RIAs to establish their own gift-giving (and gift-limiting) policies. Nonetheless, the fact remains that referral “thank-you” gifts are relatively common.


Six Phrases Advisors Should Never Use

By Sara Grillo

Source: Advisor Perspectives

Virtually all financial advisors are saying the same thing, have no real brand, and are relegated to relying on word of mouth or referrals to get leads. That’s a sorry, miserable way to run a business. Most financial advisor websites, brochures, and social media campaigns are generic. Their jargon is meaningless. If you’re using any of these six terms then kick them to the curb.