The Fact:
Roughly 18% of financial advisors share responsibility for client management with a junior advisor. That number more than doubles for top producers.

The Implications:
Top producing advisors recognize that in order to grow their businesses they will need to delegate contact for some portion of their client base. For example, an advisor who devotes 12 hours a year to a top-end client, spends 40% of his or her time doing activities other than communicating with clients and works 50 hours a week for 46 weeks a year, can effectively manage a maximum of 113 high priority clients. The average advisor has 410 clients, with a median of 300. These businesses cannot maintain momentum without bringing in senior level support.

The Idea:
In a previous Business Success Tip, we focused on the need to assess your ability to meet client contact goals. Based on that analysis, you may need to expand your team and delegate contact for some clients. You can start that process by focusing on your lower priority clients and introduce the transfer with a simple letter. In that letter, reiterate your commitment to the relationship, map out your plans to enhance client contact, introduce your junior advisor or licensed assistant and reinforce the idea that you work as a team. Let these clients know that your associate will be the lead contact and have him or her follow-up directly to answer any questions. When you position the transfer in a positive light and then demonstrate, in practical terms, that the level of service will be improved, you should see little resistance from low priority clients.

The Next Step:
The Business Success Kit provides you with the tips, tools and templates that you’ll need to enhance practice productivity and profitability. It’s the most practical and comprehensive guidebook available for financial advisors. For more information, visit www.caifastore.com and click on the Business Success Kit.