How often have we told clients to “Buy the dip, dollar cost average in, or rebalance the portfolio to take advantage of volatility”?
These are more or less generally accepted truths about investing that we all subscribe to. Each of these strategies, however, goes against our human nature, which is why we have to keep reminding people to do them. After all, who among us doesn’t want to just spend all the money we earn and not save, not invest during scary times, and just run for the hills when we’re under pressure?
We’re experiencing some scary economic times again. With inflation and interest rates rising very quickly, the stock markets have not responded favorably. As advisors, how are we to respond to it all? Well, naturally, we tell people to buy the dip, dollar cost average in, and rebalance the portfolio to take advantage of volatility. But what about us? Are we practicing in our businesses what we preach to others? With our own revenues being threatened by the declines, are we ‘buying the dip’?
What am I getting at here? To put it bluntly, we must keep marketing. People are hurting and looking for leadership. When we look fear in the face and keep investing in our marketing, we’re not only serving people when they need us the most, but we’re effectively buying the dip. We’re investing the same dollars but finding people more open to a change, which is one way to get really great new clients at a lower acquisition cost. After all, if they’re more willing than they had been to meet with a new advisor, doesn’t it stand that our marketing will likely be more effective than it had been?
Investing aggressively in marketing now is an advisor’s way to ‘buy the dip’.
Are you practicing what you preach?
In this newsletter, I’m challenging you to do two things: 1. Remain committed to finding new people to serve when they need the most help, and 2. Take a moment to rethink your business. By thinking like a hypercar builder, you may find ways to reshape your business for the better. And what better time to consider positive change when the world is changing around you anyway.
I hope you thrive during these unique times, and I hope you’ll allow us to work with you to build a better business.