Why Advisors Sometimes Talk Themselves Out of Business
The Hidden Cost of Overexplaining
Many Financial Advisors believe they lose business because they didn’t explain enough.
The prospect didn’t fully understand the strategy.
The investment process wasn’t clear.
The planning concepts were too complex.
The Advisor should have spent more time educating.
Maybe.
But after spending more than four decades observing Advisors in client meetings, I’ve come to a different conclusion.
Many Advisors don’t lose business because they explain too little.
They lose business because they explain too much.
The Prospect Was Already Leaning Toward Yes
Think about what often happens before the meeting even begins.
The prospect has agreed to meet.
They’ve likely been referred by someone they trust.
They’ve looked at your website.
They’ve read your biography.
They’ve heard positive things about you.
In many cases, they walk into the meeting already inclined to like you.
They want to find a reason to trust you.
They hope you’re the person who can help them.
In other words, you’re often starting the meeting with the wind at your back.
Then something happens.
You start explaining.
And explaining.
And explaining.
The Moment the Meeting Changes
At first, the prospect is evaluating you.
Do I like this person?
Can I trust this person?
Do I feel comfortable with this person?
Then the meeting takes a subtle turn.
Instead of evaluating you, the prospect begins evaluating themselves.
They start thinking:
“Am I supposed to understand all this?”
“Did I miss something?”
“This seems more complicated than I thought.”
“What if I make a mistake?”
The Advisor believes he is building confidence.
The prospect is quietly losing it.
More Information Doesn’t Always Create More Clarity
This may be one of the most misunderstood concepts in our profession.
Advisors often assume:
More explanation = More understanding.
But that’s not always true.
Sometimes more explanation simply creates more information.
And information is not the same thing as understanding.
In fact, every additional explanation carries risk.
Every new chart.
Every new concept.
Every new acronym.
Every new “one more thing.”
Each one creates another opportunity for confusion.
The simple becomes complex.
The clear becomes cloudy.
The comfortable becomes overwhelming.
Smart Advisors Are Especially Vulnerable
Ironically, the Advisors most likely to make this mistake are often the smartest ones.
Why?
Because they know so much.
They’ve spent years mastering investments, taxes, retirement planning, estate strategies, insurance solutions, and market behavior.
Their knowledge is impressive.
The problem is that they forget what it feels like not to know what they know.
This is the Curse of Knowledge.
Once you understand something deeply, it’s difficult to remember what it’s like to encounter it for the first time.
As a result, Advisors often explain things at a level that makes perfect sense to them but leaves prospects struggling to keep up.
Prospects Don’t Need a Seminar
Years ago, I heard a Financial Advisor give a presentation that was technically brilliant.
The problem?
Nobody could repeat what he said.
Not because they weren’t intelligent.
Because they were overwhelmed.
When clients leave a meeting, they don’t need to remember everything.
They need to remember the things that matter most.
They need clarity.
They need confidence.
They need direction.
Prospects don’t need a seminar.
They need understanding.
The Desire to Prove Expertise
Let’s be honest.
Part of the problem comes from good intentions.
Advisors want prospects to recognize their expertise.
They want prospects to appreciate the depth of their knowledge.
They want prospects to see that they’re capable.
Nothing is wrong with that.
But there is a fine line between demonstrating expertise and displaying expertise.
One builds confidence.
The other often creates distance.
Clients don’t hire Advisors because they know everything.
Clients hire Advisors because they can make complicated things understandable.
The Best Advisors Simplify
Think about the Advisors who are most successful.
Many of them are not the most technical people in the room.
They’re the clearest.
They explain complicated ideas using simple language.
They use stories.
They use analogies.
They focus on what matters most.
Most importantly, they make clients feel smart.
That last point is critical.
People enjoy being around those who make them feel intelligent.
They avoid people who make them feel inadequate.
The Kitchen Table Test
I’ve often said that clients should be able to leave your office and explain your recommendations at the dinner table.
Not perfectly.
Not in technical language.
But accurately enough that a spouse, friend, or family member can understand.
If clients can’t explain what you do, they probably don’t understand it.
And if they don’t understand it, they’re less likely to act on it.
Understanding creates confidence.
Confidence creates action.
The Goal of the First Meeting
Many Advisors approach a first meeting with the wrong objective.
They think:
“I need to show them how much I know.”
A better objective is:
“I need to help them understand what matters.”
Those are very different goals.
One focuses on the Advisor.
The other focuses on the client.
One is about demonstrating knowledge.
The other is about creating clarity.
Guess which one is more persuasive.
Sometimes the Prospect Was Already Sold
This may be the hardest truth of all.
Sometimes the prospect walked into the meeting already prepared to move forward.
They liked you.
They trusted you.
They felt comfortable.
They were looking for reassurance.
Instead, they received an hour-long masterclass.
The meeting became more complicated than it needed to be.
Questions multiplied.
Confidence declined.
Momentum disappeared.
The Advisor left believing he had delivered tremendous value.
The prospect left feeling overwhelmed.
Final Thoughts
The goal of a meeting is not to impress people with what you know.
The goal is to help people understand what matters.
There is a difference.
The most persuasive Advisors aren’t necessarily the most knowledgeable.
They’re the most understandable.
They know when to stop explaining.
They know when enough is enough.
And they recognize that simplicity is not the absence of intelligence.
It is the highest expression of it.
Connellyism
Sometimes the prospect is ready to move ahead. They just need reassurance. Instead, they get a seminar.
Thank You for Reading
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For years, I’ve believed that our profession succeeds not because of products or performance alone, but because Advisors help people make better decisions and live better lives. My goal is to share ideas that help Advisors do exactly that.
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Until next week,
Don Connelly
“Say it so it makes a difference.”