Financial advisors who attain a high level of success in the business often appear to get a corner on the market when it comes to acquiring and keeping clients and raising revenues. People who snore the rest of the pack frequently have a somewhat different way to the way they do things versus the many newer or smaller advisers.
People that are trying to obtain their practices to the next level might benefit by using some of the following strategies. (For more, visit: Why Advisors Should Focus on the Emerging Affluent. )
Many financial advisors come to depend on a referral network so as to generate new business. But elite advisors often take their networks into another level, where they promise greater rewards for increased loyalty from lawyers, CPAs or other legal or financial service suppliers. Those who receive a real percentage of revenue as opposed to mere finder’s fee or another nominal form of compensation are obviously more likely to send their clients to an advisor who can competently meet their needs.
Revenue sharing may also help other professionals to develop a better understanding and appreciate what the adviser can provide. For instance, a CPA who gets a life insurance license so as to talk about commissions from customers he refers will probably become better at recognizing when a customer is a candidate for a particular product or service due to the training required for the license. )
Many elite advisors also decide to either give and get referrals by way of a private introduction instead of leaving a client to go find or contact whoever they’ve been told to see. This personal touch can also help to clarify the nature of the referral and also prevent potential misunderstandings.
Another tactic that some of them use would be to present a complimentary consultation where they will provide an honest second opinion to prospective customers on how well their existing advisers are meeting their needs. Of course, the key to this is that the advisor will tell those who seem to be in good shape where they are he or she cannot materially improve their situations. But this honest, no-cost form of interaction could make others who seek a different perspective considerably more inclined to find them out. )
Go Broad, But Move Narrow
Nearly all elite advisors also often choose one of two paths when it concerns the scope of goods and services that they provide. Some advisers decide to concentrate on either one or a small handful of high-end solutions, such as nonqualified plans, employee stock options or other investments. Other people decide to provide comprehensive wealth management that encircles all asset classes such as debt, equities, real estate, precious metals, derivatives, business ownership and partnerships, alternative offerings and tax credits.
Obviously, elite advisors try to be complete masters of the craft irrespective of which road they select. Some advisors also choose to concentrate on a particular kind of customer that demands a greater degree of knowledge or proficiency, for example, medical professionals or company executives.
Concentrate Your Clientele
Several of the most successful advisors also attempt to construct and maintain smaller customer bases which have a higher net worth as a substitute for a wide base of midrange clients. They get to know their customers on a far more intimate level and provide a type of personalized service that is not possible for retail firms to coincide. (For more, see: How to Attract High-Net-Worth Customers. )
Their advertising efforts will also be usually more focused and monitored so as to maximize their results. Many of them employ computer applications that closely monitor all of their marketing activities and results and show them that methods of generating clients are the most effective. And very few elite advisory companies now use methods like cold calling, mass mailings or perhaps conferences; these have given way to electronic marketing and advertising campaigns and simple word of mouth that comes from what they can do for their customers. Elite advisers who do use conferences also generally make these small, casual affairs that don’t contain any kind of particular sales pitch and are often purely informative in character.