3 ways to tell clients they’re too small

June 3, 2013 | Last updated on June 3, 2013
1 min read

You’ve got a young client who doesn’t meet your asset minimum. Here’s how to gently tell him he’s too small, while keeping the door open so he comes back when he’s built his wealth.

  • Be honest and transparent about fees, commission structure, products and services. The benefit of full disclosure allows new clients to compare you to your peers and determine the best fit.
  • Briefly discuss the client’s short- and long-term goals. Explain you may be a better fit for his long-term goals, like when he decides to downsize his home or sell a family cottage and needs an estate or retirement plan.
  • Show your value so he feels like coming back. Do this by answering questions or pointing him to a referral (e.g. accountant, lawyer, realtor).

And if there’s no way he’ll ever fit, tell him the minimum amounts the firm requires and the dollar limit for orders, such as GICs or mutual funds.

Read more: How to tell clients they’re too small> Rosemary Smyth is a Victoria-based coach with Rosemary Smyth & Associates and author of 101 Success Tips and Strategies for Financial Advisors