the catalytic conversation

FOR INSTITUTIONAL INVESTOR USE ONLY - NOT FOR USE WITH THE PUBLICFOR INSTITUTIONAL INVESTOR USE ONLY - NOT FOR USE WITH THE PUBLICIGC-WMM-MOD4-PPT-1I

The Catalytic

Conversation

Converting prospects

into clients today

FOR INSTITUTIONAL INVESTOR USE ONLY - NOT FOR USE WITH THE PUBLIC2

Today’s goal

Help grow your business

with a fresh approach to

generating referrals in

today’s marketsFOR INSTITUTIONAL INVESTOR USE ONLY - NOT FOR USE WITH THE PUBLIC

FOR INSTITUTIONAL INVESTOR USE ONLY - NOT FOR USE WITH THE PUBLIC3FOR ILLUSTRATIVE PURPOSES ONLY

FOR INSTITUTIONAL INVESTOR USE ONLY - NOT FOR USE WITH THE PUBLIC


Catalytic event observations

Rare and

short-lived

Increases client

dissatisfaction

Provides client

acquisition

opportunities



Rare and

short-lived

7 FOR INSTITUTIONAL INVESTOR USE ONLY - NOT FOR USE WITH THE PUBLIC


Rare and short-lived

1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

5,000

10,000

15,000

20,000

25,000

Black Monday

1987

22.60% DROPDotcom Bubble

2002

26.29% DROP

Great Recession

2009

42.97% DROP

COVID-19

2020

22.73%

DROP

DJIA

Source: Invesco. Investors cannot invest directly in an index. Index returns do not reflect any fees, expenses, or sales charges. This chart is for illustrative purposes only and not indicative of any actual

investment. These returns were the result of certain market factors and events which may not be repeated in the future. Past performance is no guarantee of future results.



Increases client

dissatisfaction



LOOKING FOR A

NEW ADVISOR29.0%

Source: February 2015 study conducted by R.A. Prince & Associates, Inc. of 405 affluent investors with $1-5M in investable assets.

Increases client dissatisfaction

“Historically, when markets drop,

client dissatisfaction rises.”- Russ Alan Prince, President, R.A. Prince & Associates,

Inc. Used with permission.



Provides client

acquisition

opportunities



Provides client acquisition opportunities

Clients that had a conversation with

their advisor in the last 5 weeks…

Willing to refer

their advisors

82.1%

Source: April 2020 study commissioned by Invesco Global Consulting of 160 investors with investable assets between $200K and $2M.


The Catalytic Converter

FOR ILLUSTRATIVE PURPOSES ONLY


______________________

Word specialist on

finding the emotional

response to language

Research basis

14

______________________

International researcher

specializing in the private

wealth industry and advisor-

client relationships

______________________

The largest professional

development organization in

the financial services

industry1

"What Matters Most Right Now: The Catalytic Conversation' is based partially on Invesco Global Consulting's work with R.A. Prince & Associates, Inc. and Maslansky + Partners. Invesco Distributors, Inc.

is affiliated with neither R.A. Prince & Associates, Inc. nor Maslansky + Partners. The R.A. Prince & Associates, Inc. and Maslansky + Patners logos are used with permission.1Source: R.A. Prince & Associates, Inc. as of 3/31/20


1

The block to

referral

generation

2

Research-

proven effective

method

3

Building your

Catalytic

Conversation

15

Agenda



1 THE BLOCK TO REFERRAL GENERATION

Agenda



1. The block to referral generation

WHERE DO YOU GET YOUR GROWTH?

Seminars

Cold calling

Walk-ins

Referrals from clients

Referrals from attorneys & CPAs

Advertising

Community sponsorships

Social media

Networking events

Direct mail

#1 source of new clients

77.5%Referrals from clients

Source: R.A. Prince & Associates, Inc. January 2013 study of 338 advisors with an income between $200k and $500K after expenses and before taxes.


ASKED ZERO TIMES 88.1%

“How often do you ask for referrals?”


Source: R.A. Prince & Associates, Inc. January 2013 study of 338 advisors with an income between $200k and $500K after expenses and before taxes.



ASKING CREATES IMBALANCE

WITH CLIENT RELATIONSHIPS

What is the block?

19



ASKING CREATES IMBALANCE

20 FOR ILLUSTRATIVE PURPOSES ONLY


Equilibrium is established by the mutual

understanding of each other’s roles

ADVISOR CLIENT




Do you know anyone…?




Do you know anyone…?

WHOA!




Write down the main things you do not want to do or be when

asking for a referral.

Exercise #1


A. _____________________________________________________

_____________________________________________________

B. _____________________________________________________

_____________________________________________________

C. _____________________________________________________

_____________________________________________________

I never want to make my client feel obligated.

I don’t want to put my client on the spot.

EXAMPLES SHOWN ARE FOR ILLUSTRATIVE PURPOSES ONLY


2 RESEARCH-PROVEN EFFECTIVE METHOD

Agenda



2. Research-proven effective method

100

90

80

70

60

50

40

30

20

10

0

Testing

HNW clients’

EMOTIONAL

REACTION

to referral

requests

Sales threshold: Where “yes” becomes probable

Damage threshold: Where relationship is at risk




Example: CONVENTIONAL

“Now that we are through for today, let me ask you for your help with my business. I mentioned in our first

meeting that I am compensated in several ways. Commissions are one way; I also get compensated by

‘introductions’ to other people by my satisfied customers.

Can you think of any family, friends or associates who might benefit from my services? I am really

interested in meeting people who run their own successful businesses. Whom do you know that fits that

description?”

50

45

47

Source: 2013 dial session by Invesco Global Consulting and Maslansky + Partners.


Example: EXCLUSIVITY


“One of the services I offer to you, a preferred client of mine, is the opportunity to introduce me to your

friends, family and associates so that they may also take advantage of the same type of service that has

benefited you. When you are speaking with someone whom you feel might benefit from working with me,

share with them what you like about working with me. This summary sheet will remind you of the steps

to follow when you want to introduce people to me.” (bullet-pointed sheet provided to client)

40

50

35

33



Conventional: 45

Exclusivity: 33


100

90

80

70

60

50

40

30

20

10

0

Sales threshold: Where “yes” becomes probable

Damage threshold: Where relationship is at risk

Convictions create connections




Example: CATALYTIC CONVERSATION

“You have probably noticed that I don’t often ask you for introductions. That’s because I never want

you to feel obligated to refer to me or put you on the spot.

50

66

71

72

At the same time, given all of the volatility in the markets, I see some things that concern me. I see

clients that were not contacted by their advisors to discuss their concerns and situations. I see clients

that had much more exposure to downside risk than they realized, putting their retirements at risk.

And I see many advisors that merely talk about markets, not about the individual client’s situation.

For these reasons, if there is anyone that you care about who you think could benefit from a fresh

perspective, I would be glad to help them.”



Conventional: 45

Exclusivity: 33


100

90

80

70

60

50

40

30

20

10

0

CATALYTIC

CONVERSATION: 72

1. Preservingclient equilibrium.

2. Sharingyour concerns

3. Your genuinecontent withinan offer to help

“You have probably

noticed that I don’t

often ask you for

introductions. That’s

because I never want

you to feel obligated

to refer to me or put

you on the spot.

“At the same time, given all of the

volatility in the markets, I see

some things that concern me. I

see clients that were not contacted

by their advisors to discuss their

concerns and situation. I see

clients that had much more

exposure to downside risk than

they realized, putting their

retirement at risk. And I see many

advisors that merely talk about

markets, not about the individual

client’s situation.

“For these reasons,

if there is anyone

that you care about

who you think could

benefit from a fresh

perspective, I would

be glad to help

them.”



3 BUILDING YOUR CATALYTIC CONVERSATION

Agenda



What are your biggest concerns that you see amongst clients

that are not being served well today?

Exercise #2

3. Building your Catalytic Conversation

A. _____________________________________________________

_____________________________________________________

B. _____________________________________________________

_____________________________________________________

C. _____________________________________________________

_____________________________________________________

I see clients who were not contacted by their advisors to

discuss their concerns and situation.

I see clients who had much more exposure to downside risk

than they realized, putting their retirement at risk.

And I see many advisors who merely talk about markets,

not about the individual client’s situation.EXAMPLES SHOWN ARE FOR ILLUSTRATIVE PURPOSES ONLY


Integrate your content into “Catalytic Conversation” framework.

STEP #3

3. Building your Catalytic Conversation

“You have probably noticed that I don’t often ask you for introductions. That’s because I___________

______________________________________________________________________________________.

At the same time, given all of the upheaval in the industry the last few years, I see some things that

concern me. I see________________________________________________________________________

_______________________________________________________________________________________

______________________________________________________________________________________.

For those reasons, if there is anyone about whom you care that might benefit from another pair of

eyes, I would be glad to help him/her.”

never want

to make you feel obligated or put you on the spot.

clients who were not contacted by their advisors to discuss their concerns and situation.

I see clients who had much more exposure to downside risk than they realized, putting their retirement at

risk. And I see many advisors who merely talk about markets, not about the individual client’s situation.

1. Preserve

client

equilibrium

2. Share

your

convictions

3. Close

with

an offer–

no asking

EXAMPLES SHOWN ARE FOR ILLUSTRATIVE PURPOSES ONLY


1 2 3

Blocks to

referral

generation

Research-

proven effective

method

Building your

Catalytic

Conversation

36

Review



The Catalytic Conversation: Taking Action

BUILD

YOUR

TARGET

CLIENT

LISTTOP

CLIENTS

OBSERVABLE

ADVOCACYCONNECTORS

TARGET

CLIENTS



Next steps

If you like what

you heard today…



REVIEW

REHEARSE

REACH OUT

The Catalytic Conversation: Taking Action


FOR INSTITUTIONAL INVESTOR USE ONLY - NOT FOR USE WITH THE PUBLICFOR INSTITUTIONAL INVESTOR USE ONLY - NOT FOR USE WITH THE PUBLICIGC-WMM-MOD4-PPT-1I

The Catalytic

Conversation

Converting prospects

into clients today


Footnotes and disclosure

“What Matters Most Right Now: The Catalytic Conversation” is based on Invesco Global Consulting’s work with Maslansky + Partners, Advantage Coaching & Training, Tim Ursiny, Heidi Hanna and R.A. Prince & Associates, Inc. Invesco Distributors,

Inc. is affiliated with none of the aforementioned. The R.A. Prince & Associates, Inc. and Maslansky + Partners logos are used with permission.

This material is for illustrative, informational and educational purposes. If the illustrations herein are used outside of the designated audience, it is the respective user’s responsibility to ensure that such material complies with all applicable regulations

and is filed with the appropriate regulatory bodies if so required. We make no guarantee that participation in this program or utilization of any of its content will result in increased business.

This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.

All data is created and produced by Invesco Global Consulting unless otherwise noted.

Stock and other equity securities values fluctuate in response to activities specific to the company as well as general market, economic and political conditions.

The opinions expressed are those of the author and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.


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