The following case study is based on Jeff Allen, a Covenant Group client. All names and telling details have been changed to preserve client privacy. Special thanks to Graham McWaters of The ElderPlanning Solutions Group for providing the story included in the case.


Earlier this year, jeff Allen sought my help in trying to break into the seniors market.
After 15 years as a financial advisor, Jeff, 48, had built a practice that generated about $180,000 annually, but he’d been at that level for the past few years and wanted to break through his revenue ceiling. Two years ago, after attending a seminar on demographics that stressed the aging population, Jeff decided he could expand his practice by focusing on this market.

The statistics were impressive. By 2016, North America will have far more seniors than children aged 14 and under. We are not only living longer but also generally living healthier. In addition, it is estimated that trillions of dollars will pass from seniors now older than 55 to younger generations.

Excited about the opportunity, Jeff approached a number of his clients and asked for introductions to their parents and grandparents. He managed to create a number of opportunities, but after a year of working the market, Jeff was not impressed with the results. His income was still around the $180,000 mark and he was working harder than he had in years.

“I’m frustrated,” Jeff said when we met. “I know there is a lot of potential with these seniors. Many of them have seven-figure net worths. Furthermore, most of them have poor investment strategies or have done little to protect their estates. There are tons of unmet financial needs that should be addressed, but I can’t seem to make these people budge. And, what’s worse, because most of the seniors I’ve approached are related to my clients, in some cases it has put a strain on client relationships. I had one client who was frustrated that I couldn’t persuade her father to go ahead with my proposal. Another was upset to hear that his grandmother didn’t like me. Maybe the seniors market just isn’t for me. But I don’t want to give up on it — especially after seeing the potential that exists. I know that if I can make it work, I could easily double my income.”

Jeff was a successful advisor to the small-business market, so I asked him what he thought was the key to his success in that market.

“Easy. I used to own my own business, so I connect with small-business owners. I know the challenges they face. I know their issues down cold. I know most of them aren’t diversified. I know most of them sign personally for their corporate loans but don’t protect their debt. And I know how I can help them.”

I agreed, and then said, “A strategic partner of The Covenant Group, Graham McWaters of The ElderPlanning Solutions Group, is one of the world’s leading experts on the seniors market. And one of the first things he likes to do when working with advisors is to get a read on how well they know the seniors market. He has a series of 10 true or false questions, so let me ask you a few.

“Baby boomers are the fastest-growing
segment of the population.”

“True,” Jeff said.

“A person’s personality changes with age.”

“True.”

“Many older adults remain interested in and retain the capacity for sexual relations.”

“Looking at my parents as an example, I’m going to have to say ‘False’.”

“Lack of income is a major reason older persons don’t modify their homes.”

“True.”

“The older you get, the less sleep you need.”

“True.”

“And, last, pain is a natural part of the aging process.”

“I’m going to say, “True’.”

“Well, Jeff,” I said. “It’s no wonder to me why you’re not succeeding in the seniors market.
You didn’t get a single question right.”

Jeff looked shocked, as well as embarrassed.

“Jeff,” I said, “The seniors market is like any other market. You have to apply the same best practices. You’re a success in the small-business market because you know that market. You were a small-business owner yourself, plus you have studied their needs, their issues and their values. You have studied the tax laws and legal challenges they face. You’re intimately acquainted with the various products and services you can bring to bear to solve their problems.

@page_break@“But you’ve done none of that for the seniors market. You can’t just go lumbering into the seniors market on a hope and a prayer.
You’ll get pummelled. And that’s what has happened to you. Furthermore, you’re eroding the confidence of your existing clientele, and that’s dangerous. Your foray into the seniors market should be doing the opposite. Your existing clients should feel more attached to you, and doors should be flying open for you. So, let me ask you, Jeff:
are you really committed to this market or not?”

Somewhat chagrined, Jeff replied, “I want to make it work, yes.”

“Good, because you’re right. If you master the seniors market, you could easily double or triple your revenue in the next two to three years.”

“So, what should I do?”

“Harvey, an advisor I worked with recently, was in the same boat. He told me about a case that he blew. After chasing the former CEO of a giant engineering firm, he finally got the appointment. The client, Vern, and his wife, Lynn, both in their 70s, came to Harvey’s office. Ten minutes into the appointment, Vern and Lynn excused themselves and walked out.”

“What happened?”

“Harvey’s office is on a very busy street
downtown and they had trouble finding a
parking spot — which caused them to be 20
minutes late for the appointment. Harvey
forgot to tell them where to park. When they
finally found a spot, it was quite far from his office. Harvey could see by their faces that they were not happy when they arrived. They both have walking problems due to a recent hip operation for her and a bad knee for him.
And the long flight of stairs leading to his office didn’t help, either. Finally, when they sat down in Harvey’s office, Harvey had only regular coffee to offer and no artificial sweetener, which upset Vern since he can only drink decaf and can’t use regular sugar because he is a diabetic.

“Harvey figured they walked out because they thought that if he couldn’t meet their simple needs, he would not be able to manage their financial plans.”

Jeff admitted he had made similar mistakes.

I told Jeff that I sent Harvey to a workshop that McWaters was running. It was a revelation to Harvey. He continued with private coaching sessions and, within a few months, began conquering the seniors market. He moved his office to the ground floor, studied the unique needs of seniors, learned how to communicate with them and stocked his kitchen with water, decaf coffee and artificial sweeteners. He used to close one in every six elderly prospects. After working with McWaters, he began closing almost nine out of every 10.

Excited by Harvey’s example, Jeff took the same approach. He began working with The ElderPlanning Solutions Group and within a few months began to master the seniors market. What most impressed Jeff was the positive feedback he received from his younger clients, who were thrilled with the work Jeff was doing with their parents and grandparents. Jeff is now on target to reach the $300,000 revenue mark for the year.
IE

Norm Trainor is author of The Eight Best Practices of High-Performing Salespeople and a speaker and founder of The Covenant Group (www.covenantgroup.com), a company specializing in practice development. Graham McWaters is principal of The ElderPlanning Solutions Group, co-author of The Retirement Guide and The Canadian Retirement Guide, and a speaker and trainer specializing in mastering the seniors market.