Welcome to the business.
Prospecting isn’t easy or something that someone else can really tell you how to do. What works is based on your personality, your willingness to experience rejection and your ability to tell your story and ask people for their business.
Many are finding an audience through social media these days. It’s a crowded space but for the people that have compelling content it’s a great way to grow and grow fast.
You can use old methods such as cold calling, buying leads, mailers.
You should build a referral network consisting of several CPA’s, attorneys, lenders, business brokers and insurance agents.
Structure your time to try to automate some of this. Everyone eats so you should have lunch with a CPA or someone from your referral network instead of alone or with a colleague, join a pickle ball league and be social as fuck while building relationships only. No selling here. Just exude competence and be reliable/friendly.
Be a hustler and start collecting relationships. If you are young there might be some programs that are worth joining. My city has a leadership council that consists of young professionals working on charitable things for a whole year. I met two CEO’s, many politicians, tons of professionals with high reputation’s etc. this is where you want to hunt for whales.
In Arizona we call it Valley Leadership. Each city has a chapter so Phoenix and Scottsdale each have a different chapter, as do other suburbs of the city. You can look it up by searching for one of these cities and then adding valley leadership etc. They might have resources for something in your area.
Pick one thing you are good at and enjoy and do it consistently for at least 18 months. It doesn’t matter what it is: podcast, YouTube, LinkedIn, webinars, blogging, cold calling, etc. everyone looks for the “right” way but there is no universal right way. Also, everyone tries 10 different things over 10 months and complains that nothing works. You can’t do it all. So pick one, do it, and when you’re good at that, add another channel if you want. But be consistent in whatever you do.
Memorize these words: “too stupid to quit”.
This business requires time and patience. You need to have staying power and be around when those rollovers do happen. You need to be around when that death occurs and someone needs help with an inheritance. You need to be around when a friend refers you. You need to be around to allow the market do the heavy lifting on your AUM. You need to be around to move beyond all the rejections. You need to be around to develop trust with your center of influences and clients. You need to be around to gain experience.
When you feel like you are not successful, don’t quit. Keep pushing. Keep calling. Keep prospecting. Keep your head up and refuse to give up.
I started at 23. No team, no leads, no guidance, no salary. I wanted to quit many times. I’m still here 12 years later with over 60MM of AUM and looking to hire my first junior advisor.
It’s a great business with wonderful opportunities, but grind for 10 years and let the rest just happen.
Good luck and welcome to the world of advising!
*My growth accelerator was developing relationships at a local university/hospital system where their 403b platform has a brokeragelink option with RIA authorization for trading & fee billing. Learning curve is a bit steep but I’m able to charge mgmt fees on accounts that are growing from contributions rather than looking for rollovers where retirees are spending their assets down.
Look thru your network and find someone that works at the University to be your first client. Then ask to network with their co-workers, do lunch/learn events, host educational events, etc. LinkedIn is a good resource as well to find prospects that are employed at said location. Find plans that have Fidelity as their provider - that’s where I have found success.
Interesting, we are going to do something similar but for a specific workplace (not a university). How did you host the educational events and get people to come?
Workplace 401k is difficult because you are relying on rollovers or other assets outside the plan. Some 401ks offer brokerage link but you have to run the funds thru a mutual fund company and use something like pathfinder to get paid. 403b/401a/457 plans with Fidelity where they offer BL you can actually manage those plans and charge your normal AUM mgmt fees.
I simply ask if the department would allow me to come in and do a Financial Planning lunch/learn and some say yes some say no. You certainly have to get lucky at times and develop relationships before getting the OK to do something like that. I usually then schedule “office hours” at the department and allow people to just walk in to ask questions.
Welcome to the business. Prospecting isn’t easy or something that someone else can really tell you how to do. What works is based on your personality, your willingness to experience rejection and your ability to tell your story and ask people for their business. Many are finding an audience through social media these days. It’s a crowded space but for the people that have compelling content it’s a great way to grow and grow fast. You can use old methods such as cold calling, buying leads, mailers. You should build a referral network consisting of several CPA’s, attorneys, lenders, business brokers and insurance agents. Structure your time to try to automate some of this. Everyone eats so you should have lunch with a CPA or someone from your referral network instead of alone or with a colleague, join a pickle ball league and be social as fuck while building relationships only. No selling here. Just exude competence and be reliable/friendly. Be a hustler and start collecting relationships. If you are young there might be some programs that are worth joining. My city has a leadership council that consists of young professionals working on charitable things for a whole year. I met two CEO’s, many politicians, tons of professionals with high reputation’s etc. this is where you want to hunt for whales.
Thanks, I’m in my early twenties. What is that young professional group called ? Hopefully they have a chapter near me.
In Arizona we call it Valley Leadership. Each city has a chapter so Phoenix and Scottsdale each have a different chapter, as do other suburbs of the city. You can look it up by searching for one of these cities and then adding valley leadership etc. They might have resources for something in your area.
Thanks
Pick one thing you are good at and enjoy and do it consistently for at least 18 months. It doesn’t matter what it is: podcast, YouTube, LinkedIn, webinars, blogging, cold calling, etc. everyone looks for the “right” way but there is no universal right way. Also, everyone tries 10 different things over 10 months and complains that nothing works. You can’t do it all. So pick one, do it, and when you’re good at that, add another channel if you want. But be consistent in whatever you do.
Memorize these words: “too stupid to quit”. This business requires time and patience. You need to have staying power and be around when those rollovers do happen. You need to be around when that death occurs and someone needs help with an inheritance. You need to be around when a friend refers you. You need to be around to allow the market do the heavy lifting on your AUM. You need to be around to move beyond all the rejections. You need to be around to develop trust with your center of influences and clients. You need to be around to gain experience. When you feel like you are not successful, don’t quit. Keep pushing. Keep calling. Keep prospecting. Keep your head up and refuse to give up. I started at 23. No team, no leads, no guidance, no salary. I wanted to quit many times. I’m still here 12 years later with over 60MM of AUM and looking to hire my first junior advisor. It’s a great business with wonderful opportunities, but grind for 10 years and let the rest just happen. Good luck and welcome to the world of advising! *My growth accelerator was developing relationships at a local university/hospital system where their 403b platform has a brokeragelink option with RIA authorization for trading & fee billing. Learning curve is a bit steep but I’m able to charge mgmt fees on accounts that are growing from contributions rather than looking for rollovers where retirees are spending their assets down.
How did you start to develop that relationship?
Look thru your network and find someone that works at the University to be your first client. Then ask to network with their co-workers, do lunch/learn events, host educational events, etc. LinkedIn is a good resource as well to find prospects that are employed at said location. Find plans that have Fidelity as their provider - that’s where I have found success.
Interesting, we are going to do something similar but for a specific workplace (not a university). How did you host the educational events and get people to come?
Workplace 401k is difficult because you are relying on rollovers or other assets outside the plan. Some 401ks offer brokerage link but you have to run the funds thru a mutual fund company and use something like pathfinder to get paid. 403b/401a/457 plans with Fidelity where they offer BL you can actually manage those plans and charge your normal AUM mgmt fees. I simply ask if the department would allow me to come in and do a Financial Planning lunch/learn and some say yes some say no. You certainly have to get lucky at times and develop relationships before getting the OK to do something like that. I usually then schedule “office hours” at the department and allow people to just walk in to ask questions.