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No one quarrels with the importance of establishing trust. The issue is not whether it’s critical, but how best to do it.

There’s a fundamental misunderstanding about creating trust. Too often, we conflate an air of confidence with building trust with a prospect.

An alluring power

Some advisors confuse demonstrating their expertise with creating trust. Their websites are filled with articles about investing and related subjects, often supplemented with an extensive “resources” section.

Their videos reflect supreme confidence as they effortlessly expound on technical subjects.

In person, they project a similar air of the all-knowing guru, ready to dispense wisdom fluently.

There’s some justification for the belief that exuding confidence has a positive impact on others.

One study found those who are overconfident tend to be overrated by others, while those who lack confidence are judged to be “worse than they are.”