Advanced Persuasion & Sales Techniques for Financial Advisors Flashcards
What is the ‘Loss Aversion’ technique, and how can you use it in financial planning?
People fear losses more than they value gains. Frame your pitch in terms of what they risk losing by not taking action. Example: ‘Every year you delay, you’re potentially leaving $X in returns on the table.’
How does the ‘Anchoring’ technique influence financial decisions?
Start with a high number to set a reference point. Example: ‘Many of our clients invest $2M+ in this strategy, but we can tailor a $500K approach for you.’
How can you use ‘Reframing’ to handle a prospect’s objection?
Take their concern and turn it into an advantage. Example: ‘I see you’re cautious about fees—that’s great. The smartest investors we work with always focus on cost efficiency while maximizing gains.’
What is the ‘Contrast Principle,’ and how can you apply it?
Present a high-priced option first, so the actual offer seems more reasonable. Example: Show a $2M investment example before offering a $500K alternative.
What is the power of strategic silence in a negotiation?
After stating your offer, stay silent. The prospect will feel pressure to fill the gap, often by revealing key information or moving toward agreement.
What are ‘Mirroring’ and ‘Labeling’ in sales psychology?
- Mirroring: Repeat the last few words they say to encourage more dialogue.
Example:
Client: ‘I’m worried about risk.’
You: ‘You’re worried about risk?’ - Labeling: Name their emotions to build trust.
Example: ‘It sounds like you’re looking for strong returns but need security too.’
What is the ‘Ben Franklin Effect,’ and how can you use it?
People like those they do favors for. Ask a small favor before making your ask. Example: ‘Could you share your thoughts on this strategy before we proceed?’
How can you create urgency without using pressure?
Use Scarcity & Exclusivity:
- ‘We’re only accepting 5 more clients this quarter.’
- ‘We typically work with ultra-high-net-worth investors, but I think you’d be a great fit for this strategy.’
How do you use the ‘Yes Ladder’ technique in sales conversations?
Start with small yeses that lead to a bigger commitment.
Example:
1. ‘Would you agree that markets are uncertain?’
2. ‘Would it make sense to have a plan in place?’
3. ‘Would you be open to seeing how our clients navigate this successfully?’
What is ‘Pre-Suasion,’ and how can you use it?
Set the stage before making an ask by priming their mindset. Example: Talk about trust and long-term thinking before presenting an investment.
How can you leverage social proof to close deals?
Mention similar clients’ success stories. Example: ‘A hedge fund executive we work with had the same concerns and saw X% growth in 6 months after implementing this.’
What is the best way to close a high-value deal?
Use Assumptive Closing:
- ‘Which option makes the most sense for you?’
- ‘What’s the best way for us to move forward today?’
