You know who you are (if you missed blog one of this series, read it here). That was the easy part. No one knows you better than you. Now it’s time to understand your potential client. Think of it as dating, but rather than spending weeks, or even months, trying to get to get to the nitty gritty, cut to the chase by asking these key questions upfront:
- How have you spent your money in the last three months? On necessities, pleasure, a mix of both?
- Are you a saver or a spender?
- What are your spending triggers?
- Where do you want to be, financially, in 10 years? 20 years?
Once your potential client has answered the questions, not only can you identify if you share similarities, but also you can begin to pinpoint which financial personality your client exemplifies. In It’s Not About the Money: Unlock Your Money Type to Achieve Spiritual and Financial Abundance, author Brent Kessel proposes that people fall into eight unique financial archetypes: Guardian, Pleasure Seeker, Idealist, Saver, Star, Innocent, Caretaker and Empire Builder. While you can view Kessel’s descriptions on his webpage, here is a summary of each and some describing features:
- Guardian – Take decisions seriously and make decisions cautiously. Worry about having enough money, but are excellent savers and very prudent.
- Pleasure Seeker – Define more money as equating to more pleasures. Save very little, and debt often exceeds assets. Have saved little, if any, for retirement.
- Idealist – Believe strongly in specific topics, which drive purchases and investments. Often are artists, writers, or teachers. Most likely interested in socially-responsible investment opportunities.
- Saver – Diligent savers and have more stowed away than can possibly use. Reluctant to spend money at all, and when times get tough save even more.
- Star – Use money to exemplify status. Spend, invest and give to show their prominence in the world.
- Innocent – Believe that all will work out in the end, which results in paying little attention to money. Constantly struggle to make ends meet.
- Caretaker – Provide for others before themselves, even if it means running out of money.
- Empire Builder – Yearn to grow through their money. Wise investors with extremely high expectations.
While you characterize your potential client into one of the archetypes, also identify which profile you model. Perhaps your client is a Star but you are a Guardian. By recognizing the strengths and weaknesses of each archetype, you will be better able to understand your potential client and her financial needs.
Homework: Study the eight financial archetypes and identify which one best characterizes you. Also, create a list of financial services and investments that would be appropriate for each archetype so that you are better prepared to learn about and understand your potential client. Once your homework is complete, you will be ready for the third and final step in the 1, 2, 3 Learn How Easy Sales Can Be Process, which will be posted early next week.