As a leader at a financial services firm, you face all kinds of challenges. Your financial advisors are competing with a slew of low-cost providers focused on attracting mass-affluent clients (those with less than $1 million in assets) as well as providers to the ultra-affluent who are expanding down market, which is putting further fee pressure on services and products for wealthier clients. And you’re competing with other firms vying to recruit top advisors—and willing to spend significant amounts to sign on those advisors.
But perhaps your biggest challenge lies with the advisors working with you now. After years of robust market growth, many have grown complacent. With their incomes and assets under management growing every year with relatively little effort on their part, many financial advisors are unsure about how to consistently grow their practices and choose not to prioritize business development. And many are not prepared for—and have not prepared their clients for—a major market downturn.
You know that if you could motivate these advisors to focus on building their practices now, they would be much better positioned to deal with the inevitable sideways or downward turn in the market. Even more important, they would be even more profitable right now.
Your firm stands to enjoy substantial benefits if you can inspire your advisors to act and equip them with strategies and tools that will help them grow and thrive without working harder. Specifically:
Increased sales from existing advisor relationships. When advisors take part in programs offered by your firm that they see are worthwhile, they are more likely to do more business with your firm. And when, as a result of their participation in those programs, these advisors succeed in capturing additional assets under management and attracting new affluent clients, a significant portion of that increased revenue goes to your firm.
Greater advisor loyalty and retention. When your firm helps advisors succeed, it is much more likely that you will retain those advisors in good times and bad. And they will remain with your firm even through quarters when the firm’s products may underperform.
Acquisition of additional advisors. When your firm has a proven track record and reputation with advisors for providing quality business development support, attracting new advisors becomes a much easier task.
In short, if you can inspire informed and effective action, you can gain a huge competitive advantage, spur major organic growth and win marketing advocates for your recruiting efforts.
The question then become this: How do you tap this enormous potential?