Your Letters or Your Life?

Prospects often get confused with advisor credentials. How is a ChFC different from an RFC? Should they look for a CFP vs. a CFA? And what does a CSA have (other than the letter “s”) that a CAA does not?

If you have a lot of credentials, here’s a framework that can reduce confusion. Tell prospects there are three kinds to look for: knowledge-oriented, profession-based, and character-driven.

• Knowledge credentials, also known as designations, require a course of study (like CLU and CFP) and passing one or a series of exams. By passing, you tell the world you have enhanced your technical knowledge and presumably your ability to serve clients competently.
  
• Profession-based credentials, such as memberships in the National Association of Insurance and Financial Advisors (NAIFA) and the Society of Financial Service Professionals (SFSP), reflect your commitment to a profession. By joining such groups, you communicate your desire to act as a professional on behalf of your clients.
• Character-driven credentials, such as National Ethics Bureau membership, help prospects see what type of person you are. By passing NEB’s comprehensive nationwide background check, you show clients you stand for integrity and transparency and have been approved by an objective third-party organization.

So if you have all three credential types, make sure your prospects understand what you bring to the table: specialized knowledge, a commitment to your profession, and a belief in ethics and integrity. But encourage them to keep knowledge and professional credentials in perspective. Why? Because it’s the life (and character) behind a credential that matter most.