The Value of Appreciation and Acknowledgement
You might be shocked to know how significant acknowledgement and appreciation can be in someone’s life.
For all our talk of money being a motivating factor for people I would contend that we’re even more driven by the desire to be acknowledged and appreciated. In fact, I think that in many ways a salary is just an indicator to a part of our brain, that we are being acknowledged and appreciated. But there’s another level…
Recently a client wrote this to me:
“Why don’t you go ahead and contact him – I trust you.”
Did you catch that? “I. Trust. You.”
There is virtually no amount of money that can replace THAT. Trust is something you can’t buy (though some politicians might argue). Trust is something earned and what you can do with trust, in many ways far exceeds that which you can do with money.
This morning I awoke to this message in my inbox:
“Love your work!!! … Keep writing inspiring pieces”
I won’t ask you the rhetorical question of “how do you think that makes me feel about writing?” I’ll just tell you: it validates every word that I have ever written.
There will always be people that are purely motivated by money, and in truth I find that sad. I don’t think any amount of money can replace purpose, and when you are driven by purpose, acknowledgement and appreciation is what makes you rich.
As I build my company, I am keenly aware that how I pay my partners is important, but because the people I work with were brought on to do work that they love, I make sure that they always know how much I appreciate the work that they do, and acknowledge the skill and professionalism that they bring to the table.
As you go forth today and interact with people, try and make it a point to really acknowledge and appreciate someone for something. You might just change their entire day.
Advisors Will Be Extinct in 5 Years Unless…
I’ve had financial advisors for more than 40 years. Not once in those years have I called my advisor to find out what stock/funds I should buy or sell. But I have called to find out where I should get my first mortgage, when to sell my house, or how much income I could get in retirement.
In short -- and I think I’m pretty typical – I was looking for financial advice, as it relates to my life.
Here’s the disconnect, what most advisors do is simply manage their clients’ assets. They determine what to buy, and what to sell, they think about risk management, about growing their practice by finding new clients and about getting paid.
Historically that has been the business model. But as more women take control over financial assets, they, like me, will be looking for a different experience. And unless the financial community is willing to change ….. advisors, as they are today will be extinct in five years.
Advisors who want to survive will have to do a lot more than just manage money – they will have to provide genuine “advice”. That means doing what’s right for the client, not pushing product and pretending it’s advice.
Women especially, but all investors generally, are becoming more and more cynical. They says, “If I want advice about reducing my debt, that’s what I want and not ‘here’s more debt’ because that’s what my advisor gets paid for! And if saving taxes is what I want then saving taxes should take precedent over selling me a product.”
You may be thinking that spending your time providing advice isn’t lucrative but the reality is that in the long run – it pays off in spades. The advisors who take the time to build real relationships with clients, who provide advice as it relates to their clients’ lives, even when there is no immediate financial benefit to themselves, those who don’t simply push product – are the ones who over time have the most successful practices.
Generally women understand and value service, but they will say, “If I’m paying, I want to know what I’m paying for: Is it for returns? Is it for advice? Is it for administration? I want to know. Then I can make up my mind what’s worth it and what isn’t.”
Investing is becoming a commoditized business and technology is replacing research that no one else can find. Today the average advisor is hard pressed to consistently beat the markets, and with women emerging as the client of the future, unless they start providing real advice, their jobs will likely be extinct in five years.
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