You Are Different, But in a Way You Don’t Realize

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The most common request I receive from advisors is how to differentiate them from their competitors.

They don’t need my assistance if they are fee-only and competing with wirehouses. But often that’s not the case.

My firm serves only evidence-based advisors. They want to demonstrate how they are different from other evidence-based advisors.

That’s challenging.

A false premise

My clients offer various services, including portfolio management, retirement planning, and tax-efficient investing. They use similar terminology, tout their expertise, and promise exceptional service to their clients.

Sometimes, I joke that the website menu item that states “how we are different” could be changed to “how we are the same” without altering the text of the corresponding landing page.

The first step in differentiating yourself is accepting that you and other evidence-based advisors often provide the same (or similar) services, have a similar investment philosophy, offer comparable financial plans, and are equally committed to the well-being of your clients.

Exceptions

There are exceptions.

Advisors who have unique qualifications can more easily differentiate themselves. As a CPA and an advisor, you can offer expertise and services that distinguish you from the competition.

The same applies if you have a Ph.D. in finance or other exceptional qualifications.

A unique background is another differentiator. A physician or a former pilot who is a financial advisor has a special appeal to their respective demographics.

For the rest, it comes down to your personality.

The overlooked differentiator

Every advisor has unique characteristics, values, and interpersonal skills. These traits can be a game-changer in building trust and establishing strong client relationships.

While others may offer similar financial solutions, no one can replicate your individuality.

Trust is the foundation of any successful advisor-client relationship. Your personality plays a pivotal role in building trust. Clients are more likely to trust and confide in relatable and likable advisors. Your authenticity and genuine care for your clients go a long way in establishing trust.

Engaged clients are more likely to stick with you for the long haul. When clients connect with you as a person, not just a financial professional, they are more likely to stay engaged and committed to your services.

Your personality influences how you communicate complex financial concepts and strategies to your clients. Advisors with strong interpersonal skills can simplify the complex, making it more understandable and relatable.

Marketing your personality

Once you accept that your personality is your brand and your differentiator, how does that alter your marketing?

Shift your focus to creating marketing materials that permit prospects to get to know you better.

A key component of your new marketing strategy should be videos.

According to video marketing statistics from Wyzowl:

91% of businesses use video as a marketing tool.
71% created social media videos.
95% say video marketing has helped them increase brand awareness.
90% say video marketing has helped them generate leads.
87% say video marketing has helped them increase sales.
Consumers, on average, watch 17 hours of online video content per week.

Videos are an effective way to showcase your unique personality. They allow you to connect with prospects and clients on a personal level and build trust.

Videos can be easily shared on social media and other online platforms, making them a cost-effective marketing tool.

AI and video creation

Advisors underutilize the power of video. But AI has made video content more accessible and less expensive.

If you are looking for a New Year’s resolution, it should be to post at least two videos a month. One of them should showcase your personality.

Video editing is a crucial aspect of producing engaging and professional-looking content. But it can be time-consuming and require specialized skills. AI-powered video editing tools, like Magisto and Lumen5, automate the editing process, making it more efficient and cost-effective.

Magisto is an AI-driven video editing platform that uses machine learning algorithms to analyze raw video footage and automatically generate polished, attention-grabbing videos. It can add music, captions, and effects to enhance the overall quality of the content.

Lumen5 is another AI-powered tool that turns text-based content, like blog posts or articles, into engaging video presentations. It uses natural language processing to convert text into video scripts and matches them with relevant visuals and animations.

Personalize your videos

Personalized videos are more impactful than generic ones. My firm shoots b-rolls (footage that is not part of the main action) of our clients, which are edited into short clips. We then use AI to create videos incorporating the b-roll showing the advisor in different contexts. We can use the b-roll clips in many other videos.

We use AI to create a voice avatar of our clients so they don’t have to narrate the videos.

Invest in yourself

Advisors aren’t allocating sufficient resources to marketing. Most advisors spend only 1%-3% of revenues. Many don’t even spend that much.

Whatever your budget, make it count.

Don’t waste it on lead-generation programs, white-label content, or consultants who overpromise and fail to deliver.

Instead, focus on marketing with a demonstrable track record of working, like videos, SEO, and creating original, high-quality content.

As you plan your marketing for 2024, remember to highlight your personality.

It’s what makes you different.

Dan coaches evidence-based financial advisors on how to convert more prospects into clients. His digital marketing firm is a leading provider of SEO, website design, branding, content marketing, and video production services to financial advisors worldwide.

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