There seems to be a split perception on how “good” it is to be in the business right now. The strongest advisors are getting more successful, and the weakest advisors are getting out.
More than 65 million baby boomers are or will be retiring, and trillions of dollars in cash will be flowing back into the financial markets. I’ve found most industry experts believe that, in the next 10 years, the remaining advisors may generate double the revenues they enjoyed for the previous 20 years.
On the flip side, the credo now ruling the minds of many investors is “don’t lose my money.” Because of this, most are incredibly reluctant to trust their assets to a relatively inexperienced advisor who has yet to prove himself or herself.
I would initiate the following strategies if I were to enter the business today.
Obviously, you can’t call consumers on the Do Not Call list, so the remaining options are business owners and executives of public companies. This strategy should only be attempted if you are very competent, confident and resilient. Crushing rejections and voicemails are likely to occupy your time.
Knock on every residential and business door. Introduce yourself as the local advisor who will be there for them whether they want to open an IRA, trade a stock or purchase term life insurance.
I’m very fortunate in that I have strong speaking skills, so I would hope I could build enough credibility to convert prospects into clients. However, it would cost between $5,000 and $10,000 per seminar—and the room may not fill in the current financial environment.
Hold an event each week that connects you with the community, such as a free child fingerprinting for parents or workshops on identity theft protection. The challenge in this strategy is coming up with a system to then convert attendees into clients.