The Blue Roof

We discussed lawyers and advisors. So let’s discuss the ideal client.

The worst client by far is Mr-Know-It-All. The guy who thinks he knows everything but does not. It is simply impossible to help him, because he is forever telling you what you must do. And nothing you do or say will convince him differently. My feeling about this guy is always: “Why do you want to pay me if you know better? Just do it yourself.”

Just a few steps behind is the sceptical client. This is the one who thinks that everybody is out to take him for a ride. He is distrustful, does not volunteer information, gives information in round about ways. And invariably they are taken for a ride, either because they trust untrustworthy individuals, or because their own scepticism led them down the garden path because of bad information.

What does the ideal client look like?

Everybody is always complaining about dishonest advisors. The ideal client is honest. Obviously being in short term insurance it is extremely important to me, but it does not matter what you do, if you are going to help a client, he must be honest. Without honesty the advisor will never have the right info to do a proper job. And I hate anything that is second rate.

Ideal clients are knowledgeable or at least teachable. My best clients have read Rich Dad Poor Dad and Cash flow Quadrant (it was a client who asked if I had read Rich Dad, “because the things you say are the same”. I immediately bought and read it). My best clients know about short term insurance. It is not difficult to be knowledgeable. How difficult is it to read THEBLEUROOF or other blogs? How difficult is it to visit a library and borrow books? How difficult is it to rather buy a financial magazine than some gossip-about-popstars-trash? How difficult is it to listen to the advisor and ask him questions? As long as you are teachable, the knowledge and opportunities to learn will always be there.

One of my best short term insurance clients knows his policy, sometimes I think even better than I do. What a pleasure dealing with him – and he keeps me on my toes!

Why is this important? Because a client like this has a feeling for what information is needed, is critical, but not sceptical, of the advice you give and it is the foundation for what follows.

A good client, following from the above takes interest in his own affairs. He is interested in results, he is interested in alternatives, he asks “why” and “how” a lot, but in a positive way. “How does this work?” “Why do you think option A is better than B”. “Have you considered this and how do you allow for it.” “What will happen if we rather do that?” Hey, just thinking of this client makes me excited and motivates me to try even harder! A client who takes interest is involved, and that puts the process on a different level.

A client who is informed, teachable and takes an interest, works with the advisor to make the process successful. And the end result is always better.

I have a very uninterested client who is a huge frustration. You have to beg for information. With the downturn in the economy I thought I could save him some money, so I suggested we adjust some values on his policy to allow for reduced stock-holding and turnover. I have a “sent items” full of e-mails asking for information and co-operation, with no replies or action. And I think I can save him more than a R1000 per month. That is a frustration – and eventually he will blame me.

Tomorrow I will continue …