Beverly Flaxington is a practice management consultant. She answers questions from advisors facing human resource issues. To submit yours, email us here.
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Dear Bev,
I have been with a mid-sized RIA for almost 13 years. I’ve been working with very loyal clients who often refer or invest additional funds with me and I’m happy about the AUM I manage.
Our founder, who is a smart person and very motivated to succeed, has decided to turn us into a sales operation. He has hired a consultant to work with us, has put goals in place for new sales and is turning those of us who are investment experts into nothing more than sales agents.
This isn’t the work I have enjoyed for these years and the clients are starting to get a sense of it. I don’t want to quit but I am starting to believe there is no other option for me. I know this is a trend in the business with new sales numbers being down for many firms. Is there a way for me to continue to do what I am good at and still be a team player in this new environment or do you think it’s time for me to move on and find another firm where the owner isn’t quite so obsessed with new sales?
S. D.
Dear S.D.,
It’s not prudent of me to make a recommendation advising you to quit your position after 13 years of success in protest of a situation you find untenable. And yes, your observation is correct that this trend is common across the industry. I see it in firms small and large. The search for organic growth is not an easy one and many firms recognize their own portfolio/wealth managers with direct access to clients, and potentially with friends and family who have money, might be their best bet for uncovering assets.
Most firms grow by referrals, not by direct sales activities. It’s a hard business to pick up the phone and cold call someone with millions of dollars and ask if you can pitch your process! But, referrals do come and new business does come through the door so there is something to be said for being focused and diligent about it. We have found that even the most ardent anti-sales advisors learn how to “sell” effectively when given the right tools and approach.
This all said, there are a few things I’d ask you to consider:
- Is the new sales effort really a pushy “sales agent” type effort, or is it your founder simply trying to bring awareness to growth and hoping to measure success? I ask this because there are shades of sales activities, some much more pushy and direct than others. If you are being asked to go out and canvass everyone you know and sell your services on a regular basis, that’s one thing. But, if you are being asked to find referrals from existing clients and get better at uncovering opportunities that might be sitting in your client base already, that’s entirely another thing. It could be important to normalize what you are being asked to do. You might be in a reactive mode right now seeing all of this as negative, but, if you look at it objectively, perhaps it isn’t as dramatic as you might think. I don’t know if it is one or the other, I’m just suggesting you evaluate the situation before you respond to it.
- Have you spoken to colleagues or recruiters about other advisory firms and what they are doing vis-à-vis the growth objective? It might be helpful for you to get information about what’s happening at other, similar, firms you might consider joining. Before you embark on an active job search, I’d just try to get information about what’s happening elsewhere. The grass isn’t always greener, but sometimes it is so do some informational interviewing and background work to find out what your options might look like.
- Consider having a conversation with the leader of your firm. I find sometimes people get overzealous about a new idea and want to jump in with both feet when dipping their toe in might be the better response. Perhaps he/she doesn’t realize the impact this request is having on you. I suggest you not be negative about it, but rather explore the reasoning with curiosity. You might find the firm really needs new revenue to continue to grow and thrive and that your leader is under pressure. Maybe there is a more moderate view somewhere between what you believe is happening, and what really needs to happen.
- Participate in the meetings with the consultant and explain your style and approach. There really is no one-size-fits-all when it comes to selling acumen so make sure you are learning a style and a process that works for you. I find I often have to modify language when working with one advisor to another because what would sound fine coming from one person’s mouth, falls flat from another. The individuality is part of the charm (in my opinion) of this business but it means having a customized approach to success. You may want to explore different forms of support with the consultant and see if you can’t hone skills that will serve you well whether in this firm or another.
If after taking all of these steps, you still believe you are no longer a fit for your present employer, make sure when you search for your next role you put a focus on culture. Ask a lot of questions about their sales philosophy, expectations, etc. The grass could be greener, or there is also the saying about going from the fire pan right into the fire so tread carefully with whatever steps you take next.
Dear Bev,
We are revamping our website after many years of letting it languish. Do you have a recommendation for the best company out there to work with financial advisors?
Lee P.
Dear Lee,
Rather than give you names of specific companies, let me suggest a few things you want to ask prospective vendors, or generally consider, in going through a website RFP process.
- What do you want to accomplish with the website? Is it brochureware? A place for someone to become intrigued by what you do but then need to learn more? A client-oriented site? An educational platform? It may seem obvious, “We just need a website,” but first you want to think about what you want the site to do.
- What kind of information do you want to share on the site? Some advisors post newsletters, blogs, videos, etc., and others just want to convey a few key points so that a prospective client needs to follow up for more information. There isn’t a real right or wrong, but answers to #1 should inform the answers to #2.
- How much flash and animation do you want on your site? In today’s technology world you can have a website do most anything except reach out of the computer/phone screen and grab your prospects by the neck! That said, it doesn’t mean you need to have a lot, but if you want it, think about this in advance.
- What is your timing on launching the site?
- Who will manage the site for you to do updates? If someone internally, think about what platform will be best for easy management.
- Do you want a refresher or an entire revamp/rewrite of the existing site?
- Do you need a refresher on your story, or the copywriting? And, if so, do you need a firm that can do both writing and graphics? Or, will you have internal people who can help with the copywriting and the storytelling aspect?
- What is your budget?
Once you’ve answered these questions, you will be in a good position to talk to a few firms. I’d recommend narrowing it down to 2-3 and asking for examples of their work. One of the challenges in the advisory space is that most firms look alike and that’s because they are alike, in many ways! Ask for examples to see the variation and whether you like any of the past work that’s been done. Along those lines, find a site or two that you really like to give to the vendors so they can get a sense of your likes and dislikes.
Beverly Flaxington co-founded The Collaborative, a consulting firm devoted to business building for the financial services industry in 1995. In 2008, she co-founded Advisors Trusted Advisor to offer dedicated practice management resources to advisors, planners and wealth managers. She is currently an adjunct professor at Suffolk University teaching undergraduate students Leadership & Social Responsibility. Beverly is a Certified Professional Behavioral Analyst (CPBA) and Certified Professional Values Analyst (CPVA).
She has spent over 25 years in the investment industry and has been featured in Selling Power Magazine and quoted in hundreds of media outlets, including The Wall Street Journal, MSNBC.com, Investment News and Solutions Magazine for the FPA. She speaks frequently at investment industry conferences and is a speaker for the CFA Institute.