Unnecessary Pressure
Proprietary products can put unnecessary pressure on the advisory relationship.
This pressure might not force your hand or go against your client's goals, it might be manageable and, in a well-run practice, almost imperceptible, but there's no denying it is there. You can promise that the best interests of your client is at the heart of all your recommendations, and even demonstrate it. But you know that some firms will never remove that pressure altogether.
It's a shadow that won't go away, and it sits between you and your client every time you make a recommendation. Everyone knows about it, but what you have to ask yourself is, given the environment and your goals for growing your practice, are you comfortable with it being there?
Key Strategies from the 53rd
- Whether or not your practice involves proprietary products, state the relationship clearly so that your clients understand
- Explore opportunities for independence of choice
- Evaluate your goals to determine if this is a minor or major roadblock to your growth efforts
- Look for client engagement tools that help build trust and demonstrate your commitment to each client's needs
