Your 401(k) Business Brand: Vital Importance

I recently spoke with a finance executive of a large company with over 1,000 employees and annual revenue of over $100 million. He told me he was involved with the 401(k) and the committee from the beginning and mentioned it changed advisor firms recently. I responded with, “Oh, that’s cool. Who did you end up working with?”

His response has been on my mind since: “I don’t remember.”

I realize very few are as 401k-obsessed as me. However, I was surprised. It’s the reason I continue to push our industry to understand what a brand is and why it’s so important.

Let’s start with the classic example of what brand means. Look at your feet. I expect a huge percentage of you are wearing Nikes.

Did this happen because Nike targeted you with an ad on your Instagram? Did you get a coupon in the mail? Did you see a commercial on TV and add a trip to the store just for those shoes? Or did someone call you out of the blue from Nike and tell you your current shoes had four big issues and they could fix them all? Maybe you got them just because your brother-in-law works for Nike?

You bought them because their shoes are usually comfortable, help you with hobbies you love, or you like the status it gives you with friends. In other words, the brand is strong, and they don’t have to sell you on their value.

Now stop and think through your 401k business. How many of your clients have a clear understanding of your brand? Do you provide enough value they would demand your services no matter what company they work for? If they are asked about their 401k by a stranger, would they remember your name?

Now one of the shifts we have seen over the past few years is your personal brand taking the lead over your firm. I would attribute this to a reduction in trust since the 2009 mortgage meltdown, but this is merely my opinion. Before this, we would leverage a big wirehouse name, and it would usually be a help to close more deals. This power has now shifted to the individual more than ever before. People want to do business with the real authentic you.

So, what can you do to take advantage of this change? Here are three steps to get you started in the right direction:

NICHE DOWN. Saying you help 401k’s with assets of $5 to $20 million is not a niche. Choose a specific industry on which to focus. You can narrow your target to a size of the plan after. This step will help you provide a much more sustainable service model, make content creation easier, and give others a clear idea of who you help the most.
DEFINE SERVICES TO GET RESULTS. Pull out your last proposal and see if you have any content related to a result the client is looking for. Did it with your company history, team size, and a huge overwhelming list of tasks you will do to make you appear more valuable than you are? Change it to lead with results the client wants, not what the industry says you should do.
DON’T CONFORM. I’m not saying you should drop your professionalism; however, work hard to merge the “work you” with the “real you.” You know, the person you are with your friends and hopefully your favorite clients. Be this real person on your social media content and other communications. It will attract the right clients who want to be with you and weed out those who don’t like you. You must understand it’s okay if you don’t win every deal. Your brand will be stronger if you are a happy 401k advisor who looks forward to client calls, texts, and emails.

A brand is more important than ever and will be one of your largest personal assets. Start now and make an impact. Millions of American families need us to step up and do more than the minimum. You got this; go execute.