The ONE WORD you should NEVER use

I see it all the time. Advisers everywhere.

Using this word...

I see it in their LinkedIn bios. On their 'About Us' page on their websites...

This word...

They may express how they have all the right qualifications...

They may even communicate what it is they really do for people....

And then they use this word...

....

It's disgusting...

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The word?

....

Are you ready?

....

Get ready to wash your mouth out... ??

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It makes me feel sick ??

....

....

The word?

'Industry'

In my opinion, this is how you ruin what might otherwise be a great bio!

"I joined the industry in..." "I have worked in the industry for...."

But it's part of the 'advisor lingo' that I'm sure gets clients thinking "If you work in/for the Industry, whose side are you on then?"

Here's an excerpt from my 'Financial Advisors Survival Guide' written a few years ago, but as true today as then...

Who’s been pulling your strings?

Here’s a quick question: Are we an Industry or a Profession?

Someone I have immense respect for recently tweeted the following:

"A clear & consistent message from everyone in our industry is essential for consumers taking the next step in planning their financial future."

Aaargh! Although I agree with the sentiment, why, why, why do we keep using this word: ‘Industry’?

Time for a quick dictionary definition:

Industry: Economic activity concerned with the processing of raw materials and manufacture and distribution of goods

Profession: A paid occupation, esp. one that involves prolonged training and a formal qualification.

Can you see the difference?

The financial services 'Industry' got us into the mess we are in: STILL untrusted.

The 'Industry' is to blame.

Hey! Let's have some fun for a minute. Hold on to your seatbelt. I want you to come fly with me for a while. Let's fly up high, and look down on this thing called 'Financial Services'.

Can you see what I can see?

An 'Industry' that consists of Product Providers and Investment Houses ‘manufacturing’ mostly unnecessary and expensive financial products that the vast majority of people do not need or want.

Can you see it?

Every week, a new fund here, a new fund there. From my perspective, I'm thinking "We don't need any more new funds thank you! We've got enough funds already! Besides, whose looking after all of the old ‘new’ funds?!!"

Sorry, I digress….

In the past, these products were 'sold' by Financial Advisors in return for this thing called 'commission'.

In the past, the 'Industry' conveniently provided a regular supply of 'new' products, new allocation rates, new funds, blah, blah, blah, which conveniently gave Advisors a regular flow of ‘something else’ to talk about at annual review meetings - and an opportunity to earn some more commission. Perfect. Everyone is happy. It worked.

Egged on by the ‘Industry’ Advisors called this 'product conversation' their ‘service’.

The result being - in the past - that no matter how good or how BAD an Advisor’s 'service', clients were probably happy with it - because they thought it was free.

They didn’t really know how (or how much) they were paying for it.

Unfortunately, thanks to the persuasive power and big budgets of the 'Industry', the sad end result of this system - that THEY controlled - was miss-selling scandal after miss-selling scandal.

And it’s us Advisors (and our reputation) that still carries the can, every time.

Want some proof ? Now, where shall we start...?

But it's all changing now I hear you say.

Is it?

Post Retail Distribution Review (RDR), the 'Industry' will continue to manufacture 'products' that still require Advisors to go out and distribute on ITs behalf. (It used to be called 'sell', now it’s called 'distribute' - same end result).

These big boys (Providers, Investment Houses) will continue to keep advisors focus on the money and AUM will be the focus - the be all and end all - and the only thing that matters to the money focused advisor and, certainly, to the 'Industry'.

The 'Industry' has a powerful ally: the 'trade' press. The financial porn - you know who they are - all happily making vast sums of money advertising countless products and investments, with their full page ads, their wrap around sleeves, their REALLY annoying pop ups and banner ads and their 'sponsored' emails. They want your attention! The truth is THEY don't care about your clients. And they don't want you to stop focusing on products!

Advisors fall prey to the marketing methods and 'sponsorships' and free lunches and free umbrellas intended to keep them focused on the distribution of the 'Industry's' products. Many Advisors don't even realise they're falling for it. It's what they've always done.

"The very first step in de-hypnotising yourself, is to realise you've been hypnotised in the first place"

Richard Bach ~ Author of Illusions: The Adventures of a Reluctant Messiah.

The worse part though, is the distraction. There's only so many hours in the day.

There's only so much space in our heads - and while they grab your attention, it leaves little time, if any, for what REALLY matters: your clients LIFE!

But now it’s wake up time.

The simple fact is this: although this approach may have worked in the past, it won't work in the future.

We are now moving to a Profession. One where we get paid EXPLICIT FEES in return for which we must deliver a demonstratable and valuable SERVICE.

And be warned, that’s going to make all the difference....

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Ummm. I wrote that in 2013. As relevant today as it was then.

So here's the thing... in the past you may have been part of the 'industry'. Let's not deny it. We were all being paid, by the 'industry', to distribute its products.

But not any more (certainly not in the UK!)

The fact is, through no fault of their own, the majority of financial advisors still have a money focused, 'industry' led service proposition. One that primarily revolves around products and investments and distributing, arranging, switching, rebalancing, churning, thereof.

Here's the thing....

The industry isn't paying you now. Your client IS.

This means one thing:

You need to STEP OUT OF THE INDUSTRY!

You need to demonstrate that you are on your clients side - not the 'industry's side.

You need to demonstrate that your service is focused on helping your client get WHAT THEY WANT (a life well lived) - not what the industry wants (distribution).

So here's a tip for you.

Remove the word 'industry' from your vocabulary when talking about your role. Talk about the 'industry' as being 'over there', where you look, if and when necessary, for the right financial product, or investment - should one be needed. Make it clear that you are NOT part of the industry. That you are part of the growing profession that is PROPER financial planning; that you are on your clients side, NOT the industry's side.

Better still, get yourself a swear box. And every time you or a colleague utters that word, stick some money in that f*$#*&* swear box and give it to your favourite charity.

NEED HELP?

If you want to find out how to differentiate yourself by 'stepping out of the industry' by communicating and delivering a service that clients can FEEL is all about them, check out my Lifestyle Financial Planning 7 Step Success System . You can get a month's access to my online training and my two books, for free, here .

Not for the faint hearted. Nor losers. Nor wimps.