Celebrity advisor and New York Times bestselling author David Bach is on a mission to help advisors become celebrities in their marketplace.
The co-founder of AE Wealth Management recently assumed a new role in the firm as director of investor education, and is spearheading the firm’s ongoing initiative to offer educational and training seminars for independent advisors.
Speaking at the MarketCounsel Summit in Miami Beach Wednesday, Bach described a “paint-by-the-dot system” to help advisors grow their business.
“We’ve created a firm designed to help 1,000 RIAs become celebrities in their marketplace,” Bach said.
In a separate interview with ThinkAdvisor, Bach said “there are three principles and 11 things that we do for our advisors. We have a turnkey manufacturing plant right now basically to help these advisors grow their business; it’s primarily marketing first, but we’ve also created a turnkey system for asset management and a turnkey system for technology — basically a business in a box that an advisor can plug in to.”
What advisors really need, and the AE platform offers, is “turnkey marketing,” Bach said. “The biggest problem this business faces is that people don’t know how to market.”
AE Wealth, Bach said, is specifically targeting RIAs that are below $100 million to join its platform — advisors with between $25 million and $100 million in assets “that want to Five-X their business.” He noted that 50% of RIAs are below $100 million in assets, and that 20% of RIAs — or hybrid advisors — are below $10 million in assets.
“If you have a business today that is below $25 million in assets, which makes up nearly 35% of the industry, you will be out of business in five years,” Bach told ThinkAdvisor.
“We are in a world where fee compression, competition and DOL [fiduciary rule] is going to make the day of a solo practitioner with a $10 million RIA history. So we’re telling people with $25 to $50 million in assets: ‘If you’re new to the business and want to get growing faster and not take 20 years, we can show you how to do this in five’” years.