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Whether your leads are “hot,” “warm,” or “cold,” converting them into prospects can be a long, drawn-out process, which can range from weeks to months.

“You must have the discipline to gradually deepen and strengthen your relationships with leads,” says Prem Malik, financial advisor with Queensbury Securities Inc.in Toronto.

There is a tendency among financial advisors to see all leads as prospects. “But,” he says, “you might find that some leads are not worth pursuing because they do not meet your qualification criteria.”

Nonetheless, you can make that assessment only if you initiate contact with them, he says.

You can end up with a large number of leads through various initiatives such as advertising, direct mail, email and events such as seminars, says Raymond Yates, financial advisor and senior partner with Save Right Financial Inc. in Brampton, Ont. Leads can also come from referrals.

However, Yates says, after you have initiated contact with leads, you should be able to come up with a list of those who meet your preferred client profile.

Leads you acquire through referrals, Yates says, usually have the best chance of being qualified.

Adds Malik: “Leads obtained from client events that target your market segment generally [also] have a good chance of being converted to prospects.” That is why you should focus on hosting client events that target segments from which you would like to attract leads.

Here are some considerations for converting leads to prospects:

> Contact your leads
Initiate contact with leads using personalized letters, telephone calls or e-mails, rather than mass mailings, to assess their interest in what you offer and to learn a little more about them, Malik says. (Be sure to remain compliant with Canada’s Anti-Spam Law and National Do Not Call List regulations.)

In your communication, tell them about the services you offer, your values and how you can help them achieve their objectives. You may offer to send them additional material and indicate that you would like to follow up with them.

“You may find that some leads go ‘cold’ and you never hear back from them,” Yates says.

> Qualify your leads
Once you have followed up with your leads, create a list of qualified leads who appear to have genuine interest in working with you and whom you believe meet your preferred-client profile.

“Some leads may require additional information before deciding to work with you,” Yates says.

At this stage, you should be able to eliminate unqualified leads. Sort your list by short- and long-term prospects. “Prospects who already have a relationship with a financial advisor would probably take a longer time to convert,” Yates says.

> Nurture your prospects
Malik recommends seeking the permission of prospects to periodically send them additional information, newsletters and articles of interest.

“Do not overwhelm them with information,” he says, “but offer them ideas that might be appropriate to their needs. Leave the door open for them to call you with any questions and for you to check in with them every now and then.”

Remaining in contact helps keep the prospect “warm,” says Yates: “You may also wish to invite them to special events to get to know them.”

This is the first part in a two-part series on prospecting. Next: Turning prospects into clients.

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