6 days ago
Revisiting the advisor class of 2024
At the one- to two-year mark in an advisor's career, they're often busy fielding inquiries. That is the fruit of their labors paying off, said Kindred.
'Occasionally, they get so busy that they don't have that opportunity to keep working on their business,' she said.
It's important to focus on marketing, lead generation, balancing communication and staying in touch with their existing client list, she added. Working on time management can be key to keeping advisors afloat.
'I try to teach our advisors the concept of discipline, because that's really going to help you be successful and also stay focused,' Kindred said.
That often means saying no to things that don't fit in with a business model, are unrealistic or that an advisor doesn't have time for. Kindred has seen some advisors have success with implementing budget parameters, like only working with clients whose budgets are $5,000, $10,000 or more. That can help protect the advisor's time.
Charging a fee can also help with time management, as it often weeds out tire-kickers.
'If you haven't already done it, convert into a fee-based model,' Adriano said. 'A lot of people get into the industry doing things for free, selling to friends and family, and they just don't know how to showcase their value.'
He said he believes charging fees is key to growing and scaling a business, especially one that's been operating for a few years. It helps agents showcase a higher level of advising while also providing another revenue stream.
Also key, he said, is ensuring advisors understand their responsibilities as business owners, something that ASTA's educational offerings focus on. That encompasses accounting, financial stability and legal duties.
'Once you get to that two-, three-year [point] where you know that you've got some momentum going behind you, this is where advisors should start looking at ways to solidify their business and making sure that it's future-proof,' Adriano said.
Petras agreed that understanding the financial model of owning an agency is important to success. Advisors should capitalize on the bookings they're making, whether it's by selling add-ons like pre- and post-cruise trips or insurance, or specializing.
'They need to focus on consistent revenue,' she said. 'Where do I have a greater opportunity?'
Another part of that is repeat business. Advisors should do everything to keep their existing client base in place, Petras said. Focusing on client communication, being there for them and keeping them loyal will equate to a regularly recurring revenue stream.
