Insights

How many times have we heard that advisors aren’t growing? Year in and year out we hear the stats about the lack of organic growth in the industry. We’re told that most advisors aren’t bringing on new clients with any kind of velocity or consistency; instead, they’re growing AUM by virtue of rising markets, or leveraging M&A strategies to drive inorganic growth. While the numbers certainly don’t lie when you’re looking at the industry as a whole, my perspective is skewed. I spend almost all of my time with advisors who, like me, are students of the industry with a deep passion for practice management. These advisors are committed to working on themselves and are obsessed with getting better for the sake of their clients. They are ever evolving as practitioners, with total conviction over their value propositions. It’s no surprise then that these advisors are in fact growing. And by a lot. Unlike the rest of the industry they are wildly successful at sustainable organic growth, acquiring new clients year over year without sacrificing experience or retention. The Four Key Organic Growth Characteristics So what makes these advisors different then the rest? I’ve worked with thousands of advisors, and I’ve found that there are five key characteristics that separate those who are organically growing from those who aren’t. 1. They spend the majority of their time on business development. I know this one seems obvious. But there is something unique here about how they manage to find time to do this that is worth noting. These advisors don’t typically find themselves “stuck” in non-revenue producing roles for an extended period of time. The minute they start to feel like their capacity is filling up or they’re spending too much time on operational tasks, they make a change. They hire talent, even if it means reducing their cash flow. They delegate and outsource, even if they know that the work won’t get done “as good as they would do it.” They adjust their business model - leave their back office, merge with another firm, raise capital  - no matter how painful or daunting the notion of “change” seems at the time. The fastest growing advisors are not dealing with custodians or compliance, processing paperwork, managing payroll, fixing the tech, negotiating with vendors, inputting data.  The list goes on and on. My point is: if you follow the pattern of business decisions made by the leaders of growing practices, you’ll find that those leaders are comfortable making (temporarily) uncomfortable or hard decisions. I’ve witnessed this firsthand at Journey. Advisors typically join us after realizing they are at a critical crossroads and need to make a change so that they can have the role, practice, life and future they want. So, how do you become someone who is comfortable being uncomfortable? The first step is being honest with yourself about what you really want, and who you want to be in the business. These are the two most important questions you could ever ask yourself as the leader of the practice.  You cannot simultaneously grow the practice, run the practice, manage the team and operations, and serve as an advisor to all your clients. Realistically, you could probably do one and a half of those well. And if growing the brand and bringing in new relationships is your strong suit, then all of your efforts (and business decisions) need to be shifted towards giving you more space and time to do that. On the flip side, if you hate the idea of being responsible for revenue growth, then you’ll either need to fill that gap by hiring someone to lead your growth efforts, or by joining forces with others who can alleviate the pressure. Either way, having conviction in what you want, and what you are willing to do and/or give up, is key to establishing your business development strategy. 2.  Business development isn’t a job, it is the fabric of their persona. If you talk to advisors who are consistently growing, they don’t think about business development as “sales.” They’re never afraid that they’re appearing salesy.. They don’t shy away from making a call to action. They follow up with prospects and check in with COIs.  They talk about the business and ask for the business, unafraid and unashamed. Why? Because they believe so deeply in their own value proposition that they feel it is their duty and obligation, as a steward of this profession, to tell more people about what they do. I call this the “relentless prospector” mindset. Think of it this way. Instead of dreading following up with a prospect, imagine feeling “excited” at the opportunity to change someone’s life. That is what the relentless prospector feels. With this mindset comes an ease in which one can weave their value proposition into conversations. Relentless prospectors wear their brand like a badge of honor, and get great joy out of spreading the word about all the great work they are doing. If you’re reading this thinking, “This is so not me,” I have two pieces of advice. The first is to self reflect. Every successful person suffers from imposter syndrome at some point. But for the best in the business, the desire to be great, to help more people, to build the practice, supersede those moments in time.  If imposter syndrome or a lack of conviction are holding you back, it's important to explore where there is misalignment. I have seen SO many advisors subconsciously hold themselves back because they no longer felt aligned with the firm they were at, or because they felt they were in the wrong partnership. Focus on making the necessary adjustments, and the mindset will follow. Second, spend as much time as you can during the work week engaging in activities that increase dopamine. (There is a reason why I don’t believe advisors should spend any time on the phone with the custodial service center, or fixing a broken tech aggregation.) Call your favorite COI. Talk to your best clients. Talk to clients and business partners who you know will validate you and reinforce your value proposition. Connect with people who you have helped and share that positive feedback and praise with your team.  Use the momentum to build your confidence… and then immediately call or email the prospect or COI you’ve been procrastinating. 3. They deliver an exceptional client experience. You’d be hard pressed to find a growing practice that was just … mediocre. Top teams are exceptional at delivering client service and consistently delighting clients. Typically these teams are extraordinarily consistent across each department and role in the practice. Everyone in the practice speaks the same language. They describe the value proposition the same way and can easily articulate what makes them special. More importantly, everyone in the practice recognizes that their best use of time is to either create the capacity for business developers to bring in new clients, OR focus on delivering exceptional service that turns new clients into raving fans. The specifics of “exceptional client service” can vary from client base to client base, but the best advisors in the business all get these aspects right: They are proactive. They’re scheduling reviews before clients have to ask to meet. They’re uploading quarterly performance reports automatically to their client vaults.  They’re reaching out to “nervous nelly” clients when markets are skittish. They deliver across the value chain. They are not just managing an investment portfolio. They are helping clients answer questions about insurance, mortgages, tax savings, budgeting, goals, health insurance, etc. They know their stuff and have built a network of professionals around them who also know their stuff. They care deeply about their profession and continue to educate themselves about the topics that are relevant to clients, so that clients don’t have to wait days or weeks for an answer to a question. There is cohesion among all the staff. The client can expect a similar (great) experience no matter who they are dealing with at the firm – fast response times, clear pre- and post-meeting communications, and proactive ongoing updates around their financial plan and progress. Their value proposition manifests in their engagement with clients. This is arguably the most important point. The best in the business recognize that what they say has to align with what they do. Here is a great example: If you cannot very quickly and clearly articulate what your team does to deliver exceptional client service (or differentiated service), spend time working on this. From enhancing firm retention to driving referrals to evangelizing your brand and its reputation, your existing clients are central to sustainable organic growth. Treat them that way. 4.  The brand - and marketing - transcends beyond the individual rainmaker. I’ve spent a lot of time talking about the solopreneur advisor-rainmakers who sit at the center of the fastest-growing practices in the industry. While it’s true that these firms typically have at least one PERSON driving the brand forward in the marketplace, it’s also true that the brand transcends beyond that one person. This may seem like another obvious point, but it is impossible to grow a brand without making a long-term investment in marketing. I talk to so many advisors who have little patience as it relates to marketing initiatives, especially those related to social media. They’ll post a few ghost written posts on LinkedIn,  or make some adjustments to their website and immediately get frustrated. “Why isn’t my SEO better?” “Why don’t I have more “likes” on my comments? “Why aren’t any leads coming in through my site?”  These advisors typically are trying to do it themselves or have an administrative assistant moonlighting as their marketing person. As sales and relationship people, we are driven by instant gratification. The idea of waiting years to build a following seems… unnatural. And for many advisors, it literally is unnatural to go on social media and post personal updates about their lives and practices. (For the record, I totally understand the frustration with how long it takes to see results and how much of a waste it can feel like to spend $10, $20, $30k on marketing only to realize that all your new clients are still coming from your personal relationships and referrals.) The key for the best in the business, though, is that they understand that an investment in marketing is simply a necessity for the business. And that results need to be measured over the course of months and years, not days. Here is what I’ve seen these folks do well as it related to marketing: Find a marketing firm that will actually execute on their behalf. While it’s important to talk strategy, it’s also important to have professionals “doing the things” that advisors are not trained to do, nor should be spending their time doing (editing videos, writing blogs, creating graphics, etc.) Identify their “marketing edge” by correctly aligning what they want to produce with what their ideal consumer is looking for. If your clients are retired, LinkedIn isn’t where you should be posting (although you may find COIs there).  If your clients are Gen X female divorcees, posting generic financial planning tips probably won’t catch their attention. But creating customized, highly specific content – the top three financial moves to make immediately after a divorce, for example – will. They create authentic content in different formats, consistently and relentlessly.  It almost feels as if they are “following” the prospect along their life’s journey, day in and day out providing helpful tips and valuable information. They steer clear of the red shiny objects. No need to make a TikTok account or pay for a radio ad if your ideal clients are not consuming content on either of those media. They aren’t afraid to spend the money or the time. Statistics tell us firms spend anywhere from 2-10% of revenue on marketing.  As far as time, my rule of thumb is six months. Give an idea or new strategy a solid six months to see if you can get into a rhythm. They have realistic expectations with regard to both budget and timing. The more you’re willing to spend on marketing, the more opportunities you’ll have to get in front of your ideal clients, which translates to more qualified at-bats for an average lower cost. And while marketing can definitely produce short-term wins, it is by nature a long game. Implementing an SEO strategy, for example, might not yield measurable results for up to a year. It is also far more expensive than advisors realize. Think of marketing, good marketing, like your always-on brand evangelist. Once you get the engine running repeatably and sustainably, it’s going to keep working to drive growth for your firm. The Road to Organic Growth Starts Here So where do you start? I’d start with reflecting on what you’re prepared to do - or not do – in order to grow  practice. Allow your vision, even if it’s a short term vision, to guide you on your next steps. Next, I’d construct a game plan for creating enough capacity in the practice for you to be able to forge ahead.

Planning to leave your firm but worried about the process of transitioning?  You’re not alone.   60% of Advisors say they have put off their transition because they “fear of the unknown”, with concerns about client attrition and the scale of administrative duties making the process feel too challenging for many.  But it doesn’t have to be this way.  There are a series of proven steps you can take to make the process simpler and more successful – and this article reveals them all. Whether you are joining a new firm or starting your own, setting aside six months to organize your client data will enable you to hand in your notice with confidence – knowing that everything is in place for a seamless transition.  Six Steps to Prepare Your Client Data for Transition  1. Check Your Employment Agreement   The first step to transitioning is to extract client data, but first you need to have a lawyer check your employment agreement. Can you legally download copies of your client’s financial plans? Are you allowed to export client data from the CRM? And do you have to disclose what you’re doing?  There are two broad possibilities:  The best-case scenario: You have no obligations and can leave freely whenever you want. While you will still need to notify your current firm and agree on when your last day will be, there will typically not be any restrictions around what information you can take with you on the way out.   The worst-case scenario: You are contracted to take a 30-day “garden leave”, during which time you are not allowed to contact clients or ask them to join your new firm.   It is important to have plans in place for both the best and worst-case scenarios. This could save you a lot of legal trouble: if your firm owns the data and compliance notices you are illegally extracting information from the CRM, they could start monitoring your activity and ultimately prepare a nasty lawsuit.  2. Get Familiar with Your Tech Stack  The ideal outcome of your transition would be to seamlessly switch your client data into your new tech stack. But to make that a reality, you must become familiar with that tech stack and assess how the data will transfer – which can take some time.  We recommend you start by identifying the system you will be using – whether it’s proprietary tech from your new firm or a solution you chose for yourself. This will give you plenty of time to learn how it works and assess its interoperability with other software. However, even moving data within the same software can cause friction and not allow a complete transfer.    For example, let’s say you have a financial planning software license with your current firm and intend on using the same financial planning software at your new firm. Your current license might be owned by your current firm, or it might be a customized license that offers fewer features than a traditional license; you’ll want to check with each software vendor.    In some instances, the vendor will offer services, for a fee, to help you recreate each financial plan. As for portfolio management and reporting software, if you are moving to a new vendor, expect the process of retrieving or recreating all your old performance data to be clunky and in some cases, simply not worth the attempt.   Remember that the firm you are joining should be able to help you with these conversations and in many cases will also pick up the cost associated with transferring data.   You will need to ascertain:  What software you plan to keep or change  What data is and isn’t transferrable given your contract and the vendors you are dealing with  How and who will transfer the data to the new system  What support is available, if you are moving to a new firm or using a transitioning support service  When you will transfer data and how long it will take  This should all be stored in a checklist that enables you to plan and execute the transition as smoothly as possible.  3. Gather Your Spreadsheets Once you have the all-clear to extract data, you will need the following data compiled into a master spreadsheet:   Client demographic data: Your clients’ names, household info, birthdates, addresses, emails, phone numbers, social security numbers, etc.   Client account data: All your clients’ accounts, including registration types and beneficiary information. It is also important to have your clients’ asset allocation, tax budgets, etc.  You will likely derive all this information from two primary sources: your CRM and the custodian. If you are moving to a firm that provides transition services and support, they will likely provide the configured spreadsheets for you so that you don’t need to worry about creating them yourself.   Important to note: Take this opportunity to rigorously inspect the data for gaps or errors. Even a single typo on an email address, such as “.con”, can cause significant delays during the transition process – and will be much harder to identify later in the process.    Now, unfortunately, there are some instances where you will not be able to take client data with you, specifically when you are leaving a captive firm. In those instances, you will want to consult with an attorney on your rights:  Are you allowed to publicly source client information?  Are you allowed to simply promote on social media that you have left your firm and provide generic contact information so clients can contact you?  There are other instances where you may be leaving a firm that adheres to a policy called Broker Protocol, which dictates that advisors leaving are only allowed to take a few key pieces of client data with them, typically the clients’ names, addresses and telephone numbers.   4. Prioritize Your Households  You cannot feasibly transition all clients simultaneously, which means you need to prioritize how you will contact clients and move accounts. Organize your client account spreadsheet into three categories:  1st tier: The most valued and important clients 2nd tier: Important clients but not as important as your top  3rd tier: The people you are either certain will follow you when transitioning, or you do not want to bring to your new firm  This list will help you and/or your transition team stay organized around who will be personally contacted and will receive paperwork, immediately on the first day, and then on the days that follow.  This is especially important if your contract with your former states that you cannot contact clients before the transition date or end-of-garden leave date.   5. Optimize Your Book  The next step is to plan how you will charge clients at your new firm. Enlist the help of the firm you are joining to do this analysis. Create two columns in a spreadsheet:  Current fees: What your clients are currently being charged   New fees: What your clients would pay if you moved them to a new fee schedule (either your firm’s recommended schedule or one that you introduce on your own)  This is a big opportunity for advisors transitioning away from captive institutions, b/ds or hybrids. Firms often have large mandatory platform fees that are tacked on to an advisor’s fee.   As a result of the transition, there might be an opportunity to actually reduce client fees and still generate the same or more revenue; equally, you might be able to keep fees where they are but generate additional revenue.    Advisors also should never shy away from increasing fees after a transition if there is solid justification for it. For example, you might have been undercharging previously and will now be adding a lot of resources and capabilities that you didn’t have access to before. Either way, getting a sense of where you are now and where you could be post-transition will help set you up for long-term success.   6. Prepare Your Communications  The final step is to prepare messaging templates for your transition announcement. Advisors should not be drafting emails the night before their transition; these messages should be planned and optimized in advance.   Once you leave, you should:  Send a mass communication to all clients explaining that you have left your firm, the new firm you are joining and what they should expect over the coming days. (You will want to be careful if you are maintaining a broker-dealer affiliation. B/ds have their own guidelines and rules; in some cases, they will not approve the use of common marketing communication tools like Hubspot.)  Some advisors choose to embed a pre-recorded video or voice note in the communication, explaining the reason for the change.  Reach out to individual clients letting them know about the change and setting expectations about what will happen if and once they agree to come along.   Deliver a templated email to each client once they agree to join you. This should explain that they will be receiving an email from your contract management system such as Docusign in the next few days, and what they should do as the next steps.  This is your opportunity to “control the narrative” and show clients the benefits of following you. Focus on factors such as better and more robust resources and services, fewer restrictions from your firm and more frequent communication – all of which will increase clients’ trust.   Find the Best Path to Independence for Your Practice Financial advisors that follow these steps have dramatically increased their client retention and reduced the stress of transition. But there is another key part of the puzzle: choosing exactly which RIA model you transition to.  That’s why we created A Straightforward Guide to Choosing an RIA. It condenses more than a decades’ experience into a five-minute read, helping you navigate the complicated world of RIAs and find the path that will best serve your goals.  

By: Penny Phillips, President, Partner, Journey Strategic WealthHow many times have we heard that advisors aren’t growing? Year in and year out we hear the stats about the lack of organic growth in the industry. We’re told that most advisors aren’t bringing on new clients with any kind of velocity or consistency; instead, they’re growing AUM by virtue of rising markets, or leveraging M&A strategies to drive inorganic growth. While the numbers certainly don’t lie when you’re looking at the industry as a whole, my perspective is skewed. I spend almost all of my time with advisors who, like me, are students of the industry with a deep passion for practice management. These advisors are committed to working on themselves and are obsessed with getting better for the sake of their clients. They are ever-evolving as practitioners, with total conviction over their value propositions. It’s no surprise then that these advisors are in fact growing. And by a lot. Unlike the rest of the industry, they are wildly successful at sustainable organic growth, acquiring new clients year over year without sacrificing experience or retention.The Four Key Organic Growth CharacteristicsSo what makes these advisors different then the rest? I’ve worked with thousands of advisors, and I’ve found that there are five key characteristics that separate those who are organically growing from those who aren’t. 1. They spend the majority of their time on business development I know this one seems obvious. But there is something unique here about how they manage to find time to do this that is worth noting. These advisors don’t typically find themselves “stuck” in non-revenue-producing roles for an extended period of time. The minute they start to feel like their capacity is filling up or they’re spending too much time on operational tasks, they make a change. They hire talent, even if it means reducing their cash flow. They delegate and outsource, even if they know that the work won’t get done “as good as they would do it.” They adjust their business model – leave their back office, merge with another firm, raise capital  – no matter how painful or daunting the notion of “change” seems at the time. The fastest-growing advisors are not dealing with custodians or compliance, processing paperwork, managing payroll, fixing the tech, negotiating with vendors, inputting data. The list goes on and on. My point is: if you follow the pattern of business decisions made by the leaders of growing practices, you’ll find that those leaders are comfortable making (temporarily) uncomfortable or hard decisions. I’ve witnessed this firsthand at Journey. Advisors typically join us after realizing they are at a critical crossroads and need to make a change so that they can have the role, practice, life and future they want. So, how do you become someone who is comfortable being uncomfortable? The first step is being honest with yourself about what you really want, and who you want to be in the business. These are the two most important questions you could ever ask yourself as the leader of the practice.  You cannot simultaneously grow the practice, run the practice, manage the team and operations, and serve as an advisor to all your clients. Realistically, you could probably do one and a half of those well. And if growing the brand and bringing in new relationships is your strong suit, then all of your efforts (and business decisions) need to be shifted towards giving you more space and time to do that. On the flip side, if you hate the idea of being responsible for revenue growth, then you’ll either need to fill that gap by hiring someone to lead your growth efforts, or by joining forces with others who can alleviate the pressure. Either way, having conviction in what you want, and what you are willing to do and/or give up, is key to establishing your business development strategy. 2. Business development isn’t a job, it is the fabric of their persona If you talk to advisors who are consistently growing, they don’t think about business development as “sales.” They’re never afraid that they’re appearing salesy. They don’t shy away from making a call to action. They follow up with prospects and check in with COIs.  They talk about the business and ask for the business, unafraid and unashamed. Why? Because they believe so deeply in their own value proposition that they feel it is their duty and obligation, as a steward of this profession, to tell more people about what they do. I call this the “relentless prospector” mindset. Think of it this way. Instead of dreading following up with a prospect, imagine feeling “excited” at the opportunity to change someone’s life. That is what the relentless prospector feels. With this mindset comes an ease in which one can weave their value proposition into conversations. Relentless prospectors wear their brand like a badge of honor, and get great joy out of spreading the word about all the great work they are doing. If you’re reading this thinking, “This is so not me,” I have two pieces of advice. The first is to self-reflect. Every successful person suffers from imposter syndrome at some point. But for the best in the business, the desire to be great, to help more people, to build the practice, supersede those moments in time. If imposter syndrome or a lack of conviction are holding you back, it’s important to explore where there is misalignment. I have seen SO many advisors subconsciously hold themselves back because they no longer felt aligned with the firm they were at, or because they felt they were in the wrong partnership. Focus on making the necessary adjustments, and the mindset will follow. Second, spend as much time as you can during the work week engaging in activities that increase dopamine. (There is a reason why I don’t believe advisors should spend any time on the phone with the custodial service center, or fixing a broken tech aggregation.) Call your favorite COI. Talk to your best clients. Talk to clients and business partners who you know will validate you and reinforce your value proposition. Connect with people who you have helped and share that positive feedback and praise with your team.  Use the momentum to build your confidence… and then immediately call or email the prospect or COI you’ve been procrastinating. 3. They deliver an exceptional client experience You’d be hard-pressed to find a growing practice that was just … mediocre. Top teams are exceptional at delivering client service and consistently delighting clients. Typically these teams are extraordinarily consistent across each department and role in the practice. Everyone in the practice speaks the same language. They describe the value proposition the same way and can easily articulate what makes them special. More importantly, everyone in the practice recognizes that their best use of time is to either create the capacity for business developers to bring in new clients, OR focus on delivering exceptional service that turns new clients into raving fans. The specifics of “exceptional client service” can vary from client base to client base, but the best advisors in the business all get these aspects right: They are proactive. They’re scheduling reviews before clients have to ask to meet. They’re uploading quarterly performance reports automatically to their client vaults. They’re reaching out to “nervous nelly” clients when markets are skittish. They deliver across the value chain. They are not just managing an investment portfolio. They are helping clients answer questions about insurance, mortgages, tax savings, budgeting, goals, health insurance, etc. They know their stuff and have built a network of professionals around them who also know their stuff. They care deeply about their profession and continue to educate themselves about the topics that are relevant to clients so that clients don’t have to wait days or weeks for an answer to a question. There is cohesion among all the staff. The client can expect a similar (great) experience no matter who they are dealing with at the firm – fast response times, clear pre- and post-meeting communications, and proactive ongoing updates around their financial plan and progress. Their value proposition manifests in their engagement with clients. This is arguably the most important point. The best in the business recognize that what they say has to align with what they do. Here is a great example: A firm that touts its “deep care and intent listening” as one of its core value proposition tenets would ensure that they’re practicing active listening in every meeting, engaging in ongoing E.Q. training and development, and providing a communication assessment to all new clients. If you cannot very quickly and clearly articulate what your team does to deliver exceptional client service (or differentiated service), spend time working on this. From enhancing firm retention to driving referrals to evangelizing your brand and its reputation, your existing clients are central to sustainable organic growth. Treat them that way. 4. The brand – and marketing – transcends beyond the individual rainmaker I’ve spent a lot of time talking about the solopreneur advisor-rainmakers who sit at the center of the fastest-growing practices in the industry. While it’s true that these firms typically have at least one PERSON driving the brand forward in the marketplace, it’s also true that the brand transcends beyond that one person. This may seem like another obvious point, but it is impossible to grow a brand without making a long-term investment in marketing. I talk to so many advisors who have little patience as it relates to marketing initiatives, especially those related to social media. They’ll post a few ghost-written posts on LinkedIn, or make some adjustments to their website and immediately get frustrated. “Why isn’t my SEO better?” “Why don’t I have more “likes” on my comments? “Why aren’t any leads coming in through my site?” These advisors typically are trying to do it themselves or have an administrative assistant moonlighting as their marketing person. As sales and relationship people, we are driven by instant gratification. The idea of waiting years to build a following seems… unnatural. And for many advisors, it literally is unnatural to go on social media and post personal updates about their lives and practices. (For the record, I totally understand the frustration with how long it takes to see results and how much of a waste it can feel like to spend $10, $20, $30k on marketing only to realize that all your new clients are still coming from your personal relationships and referrals.) The key for the best in the business, though, is that they understand that an investment in marketing is simply a necessity for the business. And that results need to be measured over the course of months and years, not days. Here is what I’ve seen these folks do well as it related to marketing: Find a marketing firm that will actually execute on their behalf. While it’s important to talk strategy, it’s also important to have professionals “doing the things” that advisors are not trained to do, nor should be spending their time doing (editing videos, writing blogs, creating graphics, etc.) Identify their “marketing edge” by correctly aligning what they want to produce with what their ideal consumer is looking for. If your clients are retired, LinkedIn isn’t where you should be posting (although you may find COIs there). If your clients are Gen X female divorcees, posting generic financial planning tips probably won’t catch their attention. But creating customized, highly specific content – the top three financial moves to make immediately after a divorce, for example – will. They create authentic content in different formats, consistently and relentlessly. It almost feels as if they are “following” the prospect along their life’s journey, day in and day out providing helpful tips and valuable information. They steer clear of the red shiny objects. No need to make a TikTok account or pay for a radio ad if your ideal clients are not consuming content on either of those media. They aren’t afraid to spend the money or the time. Statistics tell us firms spend anywhere from 2-10% of revenue on marketing. As far as time, my rule of thumb is six months. Give an idea or new strategy a solid six months to see if you can get into a rhythm. They have realistic expectations with regard to both budget and timing. The more you’re willing to spend on marketing, the more opportunities you’ll have to get in front of your ideal clients, which translates to more qualified at-bats for an average lower cost. And while marketing can definitely produce short-term wins, it is by nature a long game. Implementing an SEO strategy, for example, might not yield measurable results for up to a year. It is also far more expensive than advisors realize. Think of marketing, good marketing, like your always-on brand evangelist. Once you get the engine running repeatably and sustainably, it’s going to keep working to drive growth for your firm. The Road to Organic Growth Starts Here So where do you start? I’d start with reflecting on what you’re prepared to do – or not do – in order to grow practice. Allow your vision, even if it’s a short-term vision, to guide you on your next steps. Next, I’d construct a game plan for creating enough capacity in the practice for you to be able to forge ahead. I have worked with thousands of advisors as an independent industry coach and now, in my role as Journey’s President and co-founder, I can say I’ve personally witnessed our advisors grow at above-average rates year after year. I am always willing to lend an ear to advisors looking to achieve the next level of success. Feel free to send me a message or get in touch with our team here.BIO: Penny Phillips has spent most of her career coaching and consulting financial advisors and institutions. She is the co-founder and President of Journey Strategic Wealth, a Registered Investment Adviser built for advisors seeking independence and hands-on practice management support. Prior to founding Journey, Penny founded Thrivos Consulting, a practice management coaching company. She has worked in various leadership positions across the financial services industry and has authored multiple practice management training programs focused on helping financial advisors prepare for the next generation of wealth holder.

MDL Wealth represents the eighth team to join Journey since its inception and establishes its presence in the Tampa area.Click here to read the full article

MDL Wealth, led by founder Michael LaBarbera, has joined Journey's Form 1099 affiliation model.Click here to read the full article

Journey adds advisory team led by Michael LaBarbera and launches new Tampa office.Click here to read the full article

RISR, which launched in January, is designed to give advisors actionable insights on their business owner clients. Click here to read the full article

To build powerful—and reciprocal—relationships with centers of influence, be highly intentional about who you are choosing to partner with, what information you’re sharing with them and how you’re nurturing the relationship.It’s possible you’ve found yourself in one of two scenarios as it relates to the centers of influence (COIs) in your network. Perhaps you’ve had a casual professional relationship with an estate attorney or accountant for several years. You may have had one or two conversations with them about referring business to one another. Over this time, you’ve provided them with a consistent stream of referrals, and they have provided no one in return. Or you’ve had a relationship with a COI who has consistently referred business, but most of the referrals don’t fit your ideal client type. To build powerful—and reciprocal—relationships with COIs, you must be highly intentional about who you are choosing to partner with, what information you’re sharing with them and how you’re nurturing the relationship. Here are three ideas that can help you get off to a fresh start with a new or existing COI. Explain what you do in a way that is memorable ... and makes sense.One reason why COIs don’t refer business to advisors is simply because they don’t know how and when to leverage the financial advisor. It is easy for an advisor to refer business to an attorney or accountant because they offer services that fit specific needs that are easy to identify (e.g., to file taxes, to handle an estate issue, to get divorced, etc.) On the other hand, the services of financial advisory firms are not always easily understood. To differentiate the modern financial advisors from the stockbrokers of yesteryear, the industry has been using the terms “holistic wealth management” and “comprehensive financial planning” to describe what advisors do. The problem is those terms are confusing and do little to educate people on the client needs advisors help solve for. Keeping this in mind, when explaining your services to a COI, do not use industry jargon. Instead use language that closely aligns with the way an ideal client might be articulating their needs and challenges to another professional. Here are a few examples: “We help people who are about to sell a business save money in taxes and ultimately make sure the money they receive lasts for their retirement and their kids’ retirement.” We invest money for people and help them understand how much more they’ll need—and what steps they’ll need to take moving forward—to retire when they want. We help people ensure that they’re maximizing their retirement accounts and saving enough for retirement and for their estate planning goals. Make sure that whatever language you are using matches the language on your website and in your marketing materials. Consider creating a one-pager that clearly explains how you help clients. Include a brief case study or success story as well and make the PDF downloadable on your site and below your email signature. Have a direct and intentional conversation.Another common reason potential COIs don’t refer business is because they’ve never been directly asked. When was the last time you had a conversation with an attorney or accountant in your network, and directly asked them if they’d be open to referring business to your firm? Whether you’ve had that conversation in the past, or never at all, prepare to have that conversation now. If you are worried about coming off “salesy,” shift your thinking. You play a critical role in the life of each family you serve. There is nothing salesy or wrong about telling others that you want to help more people secure their retirement and master their financial situation. Remember that the professionals you are speaking to are in the same position as you in terms of needing to grow their business through referrals and introductions. When you are speaking with the COI, make sure you clearly articulate the following: That you have had great success over the past few years and are looking to deepen your reach and serve more families, and focus more attention on a few niche groups of clients (i.e., the clientele that you and they both serve). That you are looking to build a small network of trusted professionals who can serve as your go-to resources for your top clients. That you are only looking to build this network with professionals who can see themselves working with you and referring you business too. That you are looking to bring on a specific number of new households each year from your trusted partners so that you can maintain the boutique, family-oriented feel of your firm. That you would be happy to create and deliver a financial plan for them, free of charge, so that they can fully understand the value of what you do. Make sure when you are having this conversation you are also clearly explaining the types of clients you work with and the ways they would be able to leverage your work during their engagements with similar clients. Not every “COI” is actually a COI.Just because someone fits the traditional professional profile of a COI and has worked with clients of yours in the past, doesn’t mean they are going to be an ideal referral source for you. If you refer business to someone consistently, and you have had many conversations with them about who you serve, and they are not referring anyone in return, it’s time to stop considering them a COI. A COI, by definition, is a person who has access to and influence within your ideal client circle and has the power to refer, promote and advocate for you. If you are realizing that perhaps you don’t have any strong COIs right now, consider the professionals who your best clients are currently working with. Conduct an audit of your best clients’ accountants, attorneys, real estate agents etc. Ask for introductions to them. Be open and transparent with clients, letting them know that you are looking to add professionals to your network and would be interested in building relationships with their go-to people. Additionally, start thinking outside the box about who you consider to be a COI. Consider the people—both personally and professionally—who have influence over your ideal clients. And especially those who have influence over your ideal clients during a time of transition or high emotion, such as when money is in motion, or when clients need to confide in someone over a difficult decision. There are lots of people who might fit the bill. Review the following list and add some examples of your own: Mortgage brokers Real estate brokers Business or career coaches Doctors Local politicians House of worship leaders Funeral home directors Divorce attorneys Event planners The key when building relationships with these individuals is to teach them how to find opportunities to refer you For example, wedding planners are in the business of helping clients plan large-scale events that typically cost a significant amount of money. They routinely are in conversations with clients about their budgets. A savvy, influential event planner with strong communication skills might easily be able to say the following to a client: “I have a friend who is an awesome financial planner and would be really helpful to the two of you as you continue to think about your budget and merging your finances before the wedding. Do you want an introduction?” On a final note, once you have identified your potential COIs and have properly set expectations with them, start treating them like an A+ client. Set reminders for yourself to call and check in “randomly” each month. Provide them with value-add material throughout the year. Co-host events with them. Spend time with them just like you would your very best clients. In no time you will find that all you really needed was one or two strong connections to help you move the needle. Read on Wealth Management: Why COIs Don’t Refer Business[/et_pb_text][/et_pb_column]

Set expectations, understand it takes time and be prepared for anything. The process of integrating a next-gen advisor into a practice is challenging and time consuming yet completely necessary for any advisor who wants to avoid hitting the proverbial capacity ceiling and wants an in-house succession plan. Advisors should expect to spend at least the first year just getting the new advisor acclimated to the practice and the role; helping them with their language and approach, teaching them about the clients you serve, and ultimately helping them co-create and execute a plan for what success looks like in their role. Here, I explore the most common mistakes I have seen advisors make when onboarding and developing young advisors and provide examples for how to avoid them. Looking for the Unicorn Every advisor wants to hire a young worker who can come into the practice and quickly generate revenue for the practice, either by cultivating opportunities in the book of business or by finding new clients. This type of hire is extremely rare, not just because it takes a certain amount of skill, experience and talent to be a producer, but because many young advisors entering the business today want to advise without the responsibility of growing the business. Advisors need to reset their own expectations about the role they are looking to fill. Rather than looking for another “producer,” advisors should look to bring in someone who can slowly and sustainably create capacity for them over time, first by taking over meeting prep and follow up, and eventually by delivering advice and handling client relationships. It is much easier (and arguably more important) to train someone to preserve current revenue for you, so you can grow the business, than it is to train someone to create new revenue. Not Setting Proper Expectations Before a new advisor starts at your firm, it’s important they understand how to measure success within their role. Within the first month, they should be able to answer the following questions: How will I know I have successfully integrated into the practice? An example might include “being able to clearly articulate the firm's value proposition” or “being able to put together a review meeting agenda for a top client meeting.” What should I be aiming to achieve on an ongoing basis in my role? An example might be “creating capacity for the senior advisor by handling all review prep and follow up” or “building rapport with current clients by texting, emailing or calling all A+ clients once a month to check in.” How will I know if I have had a successful week? An example might be "clients are proactively reaching out to me instead of the senior advisor.” How will I know if I am progressing in my role? An example might be “being able to handle client service requests without intervention from the senior advisor.” Expectation-setting doesn’t end at onboarding, however. As the next-gen advisor develops, it will be critical to set expectations about how you are handing off work and relationships to them: what language you will use to introduce them to clients, how you will make the hand-off for certain tasks, etc. Clear expectations help foster a culture of total transparency and mutual accountability between you, the new hire and the entire team. Underestimating How Long and How Much it Takes How long does it take to develop a next gen advisor into a self-sufficient advisor who can manage lower tier relationships without your support? The honest answer is it depends, but you must be willing to play the long (years) game and you must be willing to train them. Assuming you have the right person in the role, there are certain things you can do to speed up the development process. The first is introducing a three-phase approach to training: Phase 1: Shadowing lead advisors in as many meetings and conversations as possible. You should be debriefing after each conversation and asking the new hire questions about what they learned and observed. Phase 2: Practicing skills in a controlled environment. An example of this might be forwarding them a client email and coaching them on how to respond. Stay in the background while providing feedback and positive reinforcement along the way. Phase 3: Leading initiatives. Eventually, the new hire will be ready to work with a lower tier household on their own, or even handle a new prospect discussion. The time it takes to move through each phase is less important than knowing when to know its right to graduate to the next phase. Co-create the key metrics for each phase with the new hire. These may include things like: Provided great ideas for how they would’ve added value in a meeting they shadowed. Asked pointed questions and as able to pivot during the meeting rather than just “sticking to the agenda.” Clients are comfortable asking the hire a question directly. If you are comfortable with the key metrics and have proper expectations about what development should look like, you will find yourself more quickly able to identify whether a new hire is or is not developing. Ignoring Generational Differences There are very specific differences between baby boomer advisors and Gen Y and Z advisors. While there are exceptions, especially with first-generation millennials and Gen Z, the younger generations have grown up in a participation-trophy, positive reinforcement-oriented society. Their confidence has been built on the number of “likes” they get on social media. They’ve grown accustomed to getting recognized for showing up, but not necessarily for outperforming. They want to have an impact on the world and want to feel like they are part of something bigger than themselves.  All of this must be considered when leading next-gen hires.  Always aim to: Provide positive reinforcement instead of negative reinforcement. Foster a culture of collaboration and teamwork. Constantly remind the team of the greater mission and vision. On a final note, its important to always “expect the unexpected.” There are many advisors who have successfully developed their successor, only to realize that he or she doesn’t actually want to be a successor. I am finding this trend is growing more and more common in our industry. The young advisor, now a Gen Xer, loves their job and loves advising, but doesn’t have the desire or risk-appetite to buy-out the senior advisor and “take over the business.” Meet quarterly with your younger advisors—and everyone on your team—and stay in tune with what they want personally and professionally, so there are no surprises for you, or for them in the end.