The advisory business is changing rapidly. Your fees will be a subject of continuing scrutiny. Here are five reasons why the asset-based fee model won’t survive.
Advisor Perspectives Article Archive
Article archive for Dan Solin's weekly Advisor Perspectives articles. All of these articles are also available on AdvisorPerspectives.com
For some advisors, a key problem is generating inquiries. In my experience, marketing efforts tend to be a hodge-podge of activities. They often include social media, videos, print advertisements, referral programs, podcasts, events and radio programs.
Our brains are basically lazy. When you evoke images, you engage others. If your words don’t generate powerful images, the brain has to work hard to “decode” what you are trying to convey.
There’s a quote attributed to Sean Lennon (the son of John Lennon) that reflects my current thinking about the future of the advisory business: “We live in a pretty bleak time. I feel that in the air. Everything is uncertain. Everything feels like it’s on the precipice of some major transformation, whether we like it or not.”
Here’s the uncomfortable reality missing from the discussion about differentiating based on value: There may be no way for advisors whose primary value is investing in index funds and coordinating with other service providers to justify their asset-based fees.
Being aware of your personality type and recognizing the personality of your prospect is very helpful if you want to maximize the possibility of converting that prospect into a client.