How a Pitchbook Delivers New Clients

Mark Smith is a top-flight advisor who heads a flourishing practice. Why, then, is a financial professional who ranks 24th on Registered Rep's list of the Top 100 Independent Advisors tinkering with how he and his firm generate new business?

"Lately, the closing rate on prospective clients has not been at nearly the level it used to be," he explains. "We easily used to close three out of four prospects who came through the door. But in the past couple years it's been more like one in three. And interestingly enough, other advisors are experiencing the same kind of thing."

It was time, Smith concluded, to develop a pitchbook for his Englewood, Colo., firm, M.J. Smith and Associates. Now that decision is paying dividends, he says. "Basically it shows the prospect who we are, what we do and how we're different. It's a very effective way to attract a lot of clients and gather a lot of assets."

What's more, according to Smith, there's nothing stopping other advisors from crafting a similar storyline themselves. For Smith, the pitchbook has largely replaced the whiteboard presentation to prospects, serving as a strategic blueprint designed not only to show them the capabilities of he and his practice, but to demonstrate how those distinct capabilities can work on the prospect's behalf, in his or her specific circumstances.

Three main elements comprise the M.J. Smith and Associates pitchbook. One is the risk profile, where Smith and his team demonstrate how their proprietary, proven approach to portfolio diversification and risk minimization can make "an astounding difference in their total wealth."

Second are the extra cost-containment measures Smith and his advisory team take, with a detailed discussion of the fees, hidden and otherwise, that often accompany a managed portfolio. "We can't control the market, but we can control costs," says Smith. "We help people understand the food chain and show them how using top-performing funds with lower management fees can make a major difference for a portfolio long-term."

Portfolio performance reporting represents the third key aspect of Smith's pitchbook. The difference-maker, he says, is going beyond reporting results for individual components of a portfolio. "It's about the bottom line — a consolidated rate of return that shows how we're doing, what we're delivering across the entire portfolio. That's something not a lot of financial advisors do."

To find out more about Smith's pitchbook and how to adapt his highly successful approach to your business, attend his Top Advisor Session, Tuesday starting at 3:20 p.m. in Delfino 01-03.