Change is in the air.
In prior articles, I discussed changing affiliations (is now the time to go independent or find a new broker/dealer?) and growth through a merger or acquisition (is it time to buy or sell part of your practice?).
Now is also a great time to consider ways to expand your existing practice. One way to expand your existing practice is to target a market, which is what financial advisor Sammie Gatti did in Dallas by going after women working for Texas Instruments.
Here's another great example of how fellow advisors are gaining market share and thriving in challenging times.
MARKETING TO UTILITY EMPLOYEES
Scott Hanson and Pat McClain, co-founders of Hanson McClain Advisors, an RIA firm headquartered in Sacramento, Calif., have built their business by targeting employees of telecommunications and utilities companies.
The Hanson McClain approach is to develop relationships with employees and help them make decisions about their retirement plan investments and other personal financial affairs throughout the pre-retirement years.
While there may be incidental opportunities to help clients with product purchases along the way (e.g., insurance policies, mutual funds for IRA accounts, etc.), most of their pre-retirement counsel is provided at no cost to the employee.
They use a number of turnkey tools, such as their two-part IPRO "Independent Personal Retirement Overview" form, to collect information and efficiently deliver personalized advice.
This strategy has really paid off for them.
As a result of building this pre-retirement relationship, it's a natural transition for these employees to invest their rollover money – usually a significant amount – with Hanson McClain once they retire. Their marketing approach has been so successful that the two advisors founded the Hanson McClain Retirement Network to systematically bring their expertise and techniques to other advisors who join their network.
Sales through Hanson McClain, a registered broker/dealer (member FINRA/SIPC), is approximately $8 million a year, with another $5 million in revenue coming from the Hanson McClain Retirement Network.