“By seizing the opportunities that disruption presents and leveraging hard times into greater success through outworking/outinnovating/outthinking and outworking everyone around you, this just might be the richest time of your life so far.”
— Robin S. Sharma, Global Leadership Expert, Bestselling Author
In the financial services industry, the age of the sole practitioner advisor is a business model with many inherent challenges. The sole practitioner has been replaced by financial advisor teams that provide leverage to client relationships and can provide more than a commodity client experience. The key differentiating factor is for advisors to provide a service model that is unique and that focuses on the client first. Let's examine some of the trends and/or threats to the industry as well as an advisor's practice that fully support the rationale for creating effective teams.
So how did we get here? A little history is in order. In May 1975, brokerage industry commissions were deregulated. It brought new competitors into the market and basically broke up the monopoly on securities pricing. The downside to this free market pricing scenario is that the industry has not been able to raise prices since that time frame. Innovative firms adjusted by creating proprietary products that, for quite some time, eliminated any reason to raise prices. This was, in large part, because proprietary products had considerably higher fees or ...