Financial advisors aren’t immune from the ravages of the pandemic. Many were surprised to learn some prominent firms took PPP loans. Others cut salaries and considered laying off advisors.
I see this as an opportunity to assess the risk of being employed at a firm owned by others.
Here’s a conversation that’s not occurring among partners in advisory firms: Mary is responsible for a boatload of business. Let’s start our cost-cutting by reducing her compensation.
Bringing in business is the most powerful thing you can do to protect your position in your firm. Unfortunately, given the length of the bull market, many younger advisors have had business handed down to them. They have no incentive – and often lack the skill – to generate new business on their own.
Consider the pandemic your wake-up call. Now is the time to hone your rainmaking skills and refocus your efforts.
A rare skill
Being able to generate new business is a rare skill. Like other skills in short supply, it’s very much valued. Those who have it are well compensated.
I recently posted on LinkedIn asking for recommendations for a WordPress developer. I received over 300 responses.
What if my request had been this? I’m seeking a marketing person who can generate 10-30 new website projects each year from evidence-based advisors. High compensation for those who are successful.
I’d be waiting a long time for a single response.
People who can process work are also valuable. But they can replaced quite easily.
Those who generate business are in a much different category. That’s where you want to be.
Challenging but doable
Generating new business is challenging, but doable, at any stage in your career.
Technology makes prospecting so much easier. Almost everyone is willing to videoconference. Your potential clients can be located anywhere.
Social media is open to everyone. So are podcasts and YouTube channels.
You can write content directed to a niche market, post it on your website, reposition it on social media and use targeted ads to insure your demographic sees it.
You can build up a newsletter database, and become a mini media mogul.
You can use Google Analytics to understand how your website is performing and make adjustments when you uncover issues.
It’s never been easier to make rain.
But first you have to make it your goal.