As my friend Dan Sullivan would say: Facts are not trends and trends are not certainties but there are certain trends that are more certain than others. Here’re the big trends that I see that will affect the advisor community in the next couple of years. While we are dealing with clichés, bromides, and trite sayings, just remember that forewarned is forearmed, no one ever went broke taking a profit, and never interrupt your enemy while they are attempting to destroy themselves…
Trend 1: Commissions are gone or going- The Financial Services authority in Great Britain has outlawed all commissions on Financial Services products by the year 2012. This means that Advisors will have to negotiate their compensation with the clients directly. This will be perfect for Advisors who have packaged and branded themselves properly. For those who haven’t, start storing up those sleeping pills and vodka.
Trend 2: Regulation increases and freedom of self expression decreases in the US. The SEC becomes the new barrier to innovation and creativity under Mary’s leadership and FINRA becomes the new SS with enforcement powers that make the coming environment look like a developing republic. For the most part these bumbling morons do not understand how capital works, flows, or helps people get to their goals in life. Look for more meetings, more mandatory attendance at those boring meetings, and more compliance that has nothing to do with anything EXCEPT COMPLIANCE.
Trend 3: The Big Financial Services Companies look a lot more like GM and Chrysler and less like Apple. Run, do not walk from these monstrosities. You will need to be a part of their President’s Council or Top Producer Group going forward like you will need to have Herpes 4 to get a date. They are simply manufacturers of products and that’s it. Any relationship you have at the top or bottom of those organizations you can duplicate on a street corner in West L. A.
Trend 4: Consumers want partners to STRATEGIZE their future and not just vendors TO SELL THEM THINGS. In about two years, the APPS on the IPHONE will bring investment analytics that were only available to the financial elite a few years ago to every 11th grader’s cell phone. You can be smug and say they don’t know how to think about the future but trust me here, they will figure it out.
I think all of this is really positive news for creative advisors who see that the packaging of their wisdom and experience into Unique Processes is the key to increased income and freedom and deepening of client relationships. In order accomplish this new packaging, you will have to be involved in a program like The Strategic Coach (
www.strategiccoach.com) or hire someone who understands how to do this like Jon LoDuca at
www.thewisdomlink.com). Both these companies are excellent at training the new advisor and getting them focused.
My friend Lewis Walker (
www.lifetransitions.com) has come up with a platform that focuses an advisors attention on the life transitions that clients go through. His focus is helping them work through and create the experiences they want about changing jobs, spouses, children leaving home, disposing of property using money as the means to facilitate all that and not as the sole focal point. He’s got a real hit on his hands as I have watched him develop this over the past few years and if the BD’s can get their Future IQ above a number resembling tepid water, he will build a huge national movement.
So, with all that said, what are my recommendations for the top folks?
- Go INDEPENDENT: There’s nothing the big firms have that you can’t create for yourselves technologically, legally, financially, or organizationally. Just paint a picture of what you want, package it, staff it, structure it, and like the WHIZ, just get on down the road. In terms of the big firms, be like a good shepherd and get the flock out of there as soon as possible. If none of your clients come with you, you will have it all back again in less than three years. The risk of loss at starting over is about 1 millionth of the risk of loss of losing your business because your OSJ won’t stand up for you or because Mary and he Morons got a reg through you didn’t know about.
- PACKAGE AND BRAND YOUR WISDOM: Use Sullivan’s program to get a hold of your attention, time, and money and Jon’s program to take the packaging to a new level.
- WRITE AND PUBLISH ABOUT WHAT YOU BELIEVE AND WHAT YOU THINK PEOPLE SHOULD DO WITH THEIR LIVES AND MONEY. THEY ACTUALLY WANT TO HEAR FROM YOU ABOUT THAT.
Do not ask for permission to write a book. The first amendment to the Constitution gives you that right when you are born. Just write the book, publish it, and ask for forgiveness. If Mary gets mad let’s let the Constitution sort it out. Above all, do not collaborate on your life’s treatise with some 28 year old compliance officer team leader who read “Danny and the Steam Shovel” or “Olivia Saves the Circus as their last book”.
- CREATE THINGS THAT MAKE YOU MORE USEFUL AND MATTER TO THE PEOPLE YOU SERVE AND WHO HAVE HIRED YOU TO PROTECT THEM.
- NEVER LEAVE ANYONE BEHIND IN THE NAME OF BURAUCRATIC ADHERENCE, OBEDIENCE, OR COMPLIANCE. KNOW THAT THE ONLY EASY DAY WAS YESTERDAY AND THAT IT PAYS TO B A WINNER EVEN IF YOU HAVE TO DIE IN THE PROCESS.
If they ask you who told you to do these things, tell them I did. Also, tell them to FEAR THE DARKNESS FOR I AM IN IT.
