How should you deal with clients.

Let me tell you something different from what you normally hear!

1. Tell the clients the full truth: well I am sure you have heard this before. Sadly ‘truth’ is not so easy to understand. At various stages of our lives we look at truth differently. There was a time when I believed that ULIP could earn money for you. I am still not sure about whether this is the truth today. I would prefer taking a term insurance. I have been saying you should invest in mutual fund and not invest directly. Is that the truth? I am not sure. There is also a risk about saying the truth to people who are not ready for the truth. For example if a 73 year old man with inadequate money wants to “help” his unemployed son start a business, I bluntly say “NO”. I am sure he did not like it. Sadly My Truth is not His Truth.
2. Tell lies to clients who WANT the truth: This can be a disaster. If you do not know what you are saying (or rather you have not bothered to learn about what you are talking about) the client will drive you out. You have to say the “client’s truth” exactly as he or she want to hear. This is difficult – and it is your job to find out at what level the client is, if you want to do a good job!
3. Tell lies to the clients who want to hear lies: There are many people who will welcome lies. They want to hear “market will give you 24% p.a. for the next 30 years”. You have very little choice if you want to collect the cheque. How I would deal with him is of no use to you. I am not looking for clients – YOU ARE. So you will have to tell some moderate lies..and collect the cheque!!
4. Tell truth to those who want want the truth. If you are sure that the client is ready for the truth as you understand the truth as it is today, tell him. Also tell him that the ‘truth’ can change. Take a simple example – for many centuries we believed that the earth is flat. Now the truth is different. Similarly the client has to be prepared for the change in the truth – as your experience, learning, reading make you a better adviser/ doctor or whatever.

Go out there and make a choice! Some will make you money in the short run, some will take you to the poor house, some will make you rich….depends on how well you know your client on day one.