When growing their teams, some owners of advisors firms seem confused about what they need to look for in an advisor candidate. The confusion is understandable, though, considering the ever-evolving job descriptions of a rapidly changing wealth management industry.
No matter what a firm actually needs, the default prospect across the board almost always fits the same description: the rainmaker — an advisor who can bring in new business.
When adding to their team, owners understandably want to add a rainmaker, because they are seen as a profit center, rather than expense. Who wouldn’t want a growth-oriented employee, especially given that hiring and salaries overtime can be expensive?
But it’s best to resist this temptation. Instead, it’s likely much better for the health of your firm to hire a service advisor — a workhorse, rather than a unicorn.
The key difference between a rainmaker and a service advisor is that the former wants to go out and produce new business, while the latter wants to service existing business. Both are essential to the health of an advisory firm, but the service advisor is often more valuable.
Why You Don’t Need Another Rainmaker
Keep in mind, if you’re an owner, then you are likely the rainmaker. Unless you have more advisors than clients, you probably don’t need much help growing your client list.
While rainmakers can be a blessing to your AUM, they also come with their own unique set of problems. Here’s are three:
1. They don’t really need you.
A true rainmaker can bring in their own business all day long, which means you need them more than they need you that creates imbalance from the start.
2. They’re more likely to leave and start their own business someday.
Every rainmakers’ tenure on a team is ticking down to the moment they gain the confidence to strike out on their own. It’s often inevitable with the rainmaker’s personality type, once they realize they can do what you did and start their own business.
3. They think they’re more important than service advisors.