Ask yourself this question: “Will investors contact you if they can’t find the information they seek on your website?” The answer is simple: Of course not. Investors use the information on the Internet to screen and compare financial advisors. What they see on websites impacts who they contact for introductory interviews.
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They will keep searching until they find financial advisors who provide the details they seek. Then they use this information to compare advisors (firms and professionals). This pivotal reality underscores the essential need for transparency on financial advisor websites.
Plus, transparency is a way to build trust, and trust is at the core of every successful advisor-investor relationship. This is especially crucial for investors who have more assets and are increasingly cautious. Whether seeking financial advice for the first time or replacing a previous advisor, their financial futures are on the line. Mistakes are costly, and selecting the wrong financial advisor is one of the most expensive mistakes they can make. Transparency rewards investors with the information they need to make better decisions and ensures advisors are selected for the right reasons.
This article explores the ten most important categories of information financial advisors should feature on their websites.
1. Sources of Expertise
Investors want to understand what qualifies your firm to manage their assets.
Key details include:
- Education: List your degrees, schools, and relevant majors. Relevant majors (business, finance, economics, portfolio management) are best. These credentials form the foundation of your expertise.
- Credentials like CFP®, CFA, or CPA signal your specialized knowledge and commitment to higher professional standards.
- Experience: Highlight the years of experience you’ve accumulated in the financial industry. Relevant planning and investment experience is best.
- Today, transparency is not just a nice-to-have feature—it’s an expectation. By providing the information investors seek, financial advisors can establish trust, demonstrate expertise, and ultimately convert website visitors into active prospects.
Transparency isn’t merely about sharing data; it’s about creating an open and honest relationship that starts when a prospective client visits your website for the first time. The more transparent you are, the more likely investors will feel confident contacting you to start a conversation.
2. Trustworthiness
Everyone claims to be trustworthy, which makes trust the toughest characteristic to prove on a website. This makes transparency a significant step in the right direction. Here’s how you can convey it:
- Willingness to practice transparency: Clearly share your firm’s policies, methodologies, fees, business practices, and fiduciary status.
- Financial Fiduciaries: Emphasize that you provide fee-only advice that puts your client’s best interests first.
- Ethical Standards: Certifications with ethical components, such as CFP®, add credibility.
Transparency produces trust, and trust creates client engagement.
3. Types of Services
Investors want to know what you offer and how those services align with their needs. Be specific:
- Planning Services: Highlight services like retirement, estate, or college planning.
- Investment Services: Detail your approach to portfolio management.
- Risk Management: Clarify your role in offering insurance products or strategies.
- Tax-Related Services and Legal Documents: Demonstrate how you provide comprehensive financial solutions.
A well-documented list of services reassures investors that you can address their unique needs and challenges.
4. Types of Clients
Investors often look for advisors who specialize in serving people like themselves. Transparency about your ideal types of clients can help you stand out:
- Specialization: Are you a generalist or a specialist?
- Client Circumstances: Do you work with retirees, business owners, or individuals in transition (working to retirement)?
- Special Situations: Highlight niches like widows, divorcees, or individuals receiving inheritances.
Clarifying your ideal types of clients ensures investors know whether they fit your expertise.
5. Teams of Professionals
It’s difficult to convince investors that a single advisor can be an expert in every financial discipline. Transparency about your team’s structure can build confidence:
- Team Dynamics: Outline who is responsible for specific services, such as planning, investing, or tax strategies.
- Collaboration: Emphasize your team’s collective expertise versus relying on one individual.
- Affiliation: Smaller firms may want to affiliate with local professionals (CPAs, estate planning attorneys, business brokers).
Investors appreciate knowing they’ll benefit from the combined knowledge of a team.
6. Who is Making the Investment Decisions?
Investment decision-making is a critical area where transparency can build trust. Address these key questions:
- Investment Philosophy: What principles guide your investment strategies?
- Decision-Makers: Is it you, a team within your firm, or outsourced to a third party?
- Third-Party Solutions: If applicable, Explain the role of TAMPs (Turnkey Asset Management Programs) or OCIOs (Outsourced Chief Investment Officers).
Investors want clarity on how their money will be managed and who is responsible for those decisions.
7. Fees or Commissions
Transparency in compensation is one of the most critical factors in building trust. Include these details:
- Fee Structures: Are fees deducted from client assets? Is it a single fee, a wrap fee, or are there layers of fees?
- Commissions: Be upfront about any commissions received from third parties.
- Are there any potential conflicts of interest in how your firm is compensated for its knowledge, advice, and services?
An important form of transparency is explaining how your methods and sources of compensation impact your services.
8. Proof of Results
While advisors do not publish performance track records, there are other ways to demonstrate results:
- Testimonials: Share “approved” client testimonials that reflect your expertise.
- Case Studies: Provide anonymized examples of how you’ve helped clients achieve their goals.
- Ratings and Reviews: Feature independent reviews or ratings where permitted.
- References: Indicate references are available upon request.
These elements give prospective clients confidence in your capabilities.
9. Content That Increases Credibility
Investors often have questions about complex financial topics. High-quality content can position you as a thought leader:
- Blog Articles: Regular posts about relevant topics show you stay abreast of current events.
- Pillar Pages: Comprehensive guides demonstrate your depth of expertise.
- eBooks and Infographics: Offer downloadable resources that educate and engage.
- Videos: Personalized video content helps build a connection with viewers.
Providing educational content adds value and helps build trust with prospective clients.
10. Business Practices That Benefit Investors
Transparency should be the foundation of your business practices. Highlight policies and practices that prioritize the client experience:
- Reports and Reviews: Offer quarterly or monthly updates.
- Personal Meetings: Schedule regular one-on-one consultations.
- Full Disclosure: Be upfront about any factors impacting your clients.
- Educational Content: Provide resources that accelerate investors’ learning curves.
Investors want to know that you’re not just managing their money but also actively working to keep them informed about what is happening and why.
Conclusion
Would you buy a $75,000 car without all the facts? Of course not. Similarly, would you entrust a financial advisor with $1 million of your assets without full disclosure of all the more important details? It’s highly unlikely.
Would you rely on verbal information or put more value on documentation, such as information on a website that can be copied and retained?
For decades, financial advisors controlled the information that investors relied on to make their selection decisions. The Internet has already changed the game, and Artificial Intelligence will take the game to another level.
