I know you’ve probably read, heard, seen, and said this time and time again, but it is true: we are living in some crazy and unpredictable times.
This time is especially uncertain for my friends in the financial services industry who are wondering:
- Will my clients sell their stocks?
- How will lending be affected?
- Will my clients be able to afford insurance?
- Will clients continue to look at retirement planning?
I’m not trying to stoke any fear here, but I want to address how valid these concerns are. During the financial crisis of 2007-2008, the financial sector was one of the hardest hit.
Still, that doesn’t mean all hope is lost. In fact, I think we’re all due for some good news and some encouragement.
That’s why I want to brainstorm some ways that financial planners, insurance brokers, wealth managers, and other financial service professionals can pivot. By giving your clients a little added value, and offering a service that is needed NOW, you can keep your business afloat — and even thriving — during a potential economic downturn.
When Revenues Are Down It's Time to Diversify Your Income
In my opinion, the most effective way to prepare for a recession is to strengthen the way your business operates IMMEDIATELY.
You should be asking yourself, “How can I serve my clients differently?” And, “Is there a new revenue stream I can tap into?”
My idea is to consider adding credit services like credit education and credit repair to boost your business income.
When I was at my personal financial low, I needed help. I didn’t know where to turn. At the time, anyone willing to lend me a helping hand (or a slice of their financial knowledge) was critical to my survival.
That’s why I think financial services professionals who already balance portfolios, discuss investments, or work with client finances in any capacity have been overlooking a major industry enhancement. Teaching your clients the foundations of personal finance, including credit education!
Now, in times of financial uncertainty, your clients are desperate to know the basics of credit, and what they can do to protect or improve their score as they brace for potential financial turbulence. And, now is your chance to give it to them!
Why Credit Repair is a Perfect Fit for Your Financial Services Business
You already have a great relationship with your clients. They already trust you with their most sensitive personal information. So entering into credit repair, which can be a sensitive topic for your clients to open up about, is a natural fit.
When analyzing your client’s financial portfolios to look for investment opportunities or to create a retirement plan, add on an option to create credit stability, too.
Look at clients’ financial statements with the following questions in mind:
- Are there negative marks on your client’s credit score? You might not know this, but 79% of all credit reports have errors on them. If you spot an error, that is an easy target for flagging with the credit bureaus via a dispute letter. By getting errors removed from your client’s credit report, you can have an immediate impact on raising their score!
- Does COVID-19 count as a hardship? A hardship letter is used when your client’s debts are spiraling out of control due to unusual circumstances. By sending a hardship letter you can ask lenders for requests like loan modifications, adjusted interest rates, lower monthly payments, lower fees, and updated payment schedules. In these tough times, you can help represent your clients when they need you the most.
- Are there unique ways your clients can build positive credit? Our clients may need advice for improving their score beyond the basics of disputing negative marks. For example, should your client sign up for an unsecured credit card on a site like MyJewelers Club, to rebuild positive credit? A card to MyJewelers Club is low risk because your clients are not as likely to spend on their card given a slim (but mid-range priced) inventory, and a 50% down payment requirement. Curbing temptation while earning a credit line is a strategic way to earn points back on a credit score.
- How high are your client’s credit balances? Another way you can help your clients learn about credit is to teach them about the credit score mix. What makes a credit score poor, good, great, or excellent? And, can you teach them about utilization rate, while making a plan for your clients to pay off their outstanding balances?
When your clients suffer from poor credit, they might not be able to work with you in any other aspect of your financial services menu. So, by helping clients build a strong framework for finances, you can remain an ally for when times turn around and they are ready to invest in other financial products.
Getting Started is Easy, No Certification Required
You might be thinking, “I don’t have time to study for another financial certification.” The best part about credit repair is you don’t have to spend a lot of time (or money) to become trained and licensed. In fact, there are a number of free and super easy resources you can take advantage of to get up to speed. And, you don’t actually need to be certified to get started.
If you’re interested in learning how to get started, take the first step and check out our Credit Hero Challenge! It’s a great way to dip your toes into the industry and start earning recurring revenue regardless of the current economic state.