New Breakout Growth™ Practice Management
Program Series Helps Investment Advisors Implement a Plan that Can
Fuel Expansion Now and Over Time
Registered investment advisors (RIAs) devote their careers to
helping investors plan for their long-term financial needs, but
only a small minority have taken time to map out the future
expansion of their own firms.
Pursuing growth that’s sustainable over time requires a
thoughtful plan featuring innovative business development
approaches and, sometimes, a willingness to do things differently.
It’s also about connecting with the right people. To help RIAs
implement such a plan, TD Ameritrade Institutional1 has unveiled
Breakout GrowthTM, a comprehensive, integrated practice management
program that gives advisors the tools and guidance they need plus
ongoing support.
The latest installment in the Breakout Growth program series,
Advanced Strategies to Attract the Right Clients, features
strategies and tactics RIAs can pursue to forge strategic
relationships: attracting clients who not only bring in assets but
strongly recommend the advisor to peers. Advisors can make their
firms indispensable to a well-defined community of investors by
using strategies across five key categories:
- Niche Marketing – Define ideal clients
and tailor their marketing to that niche
- Branding – Create a brand that
differentiates their firm
- Pricing – Develop a fee model that
reflects the value advisors deliver
- Strategic Relationships – Cultivate
clients who generate quality client introductions
- High-Impact Events – Host unique,
engaging events that please clients and attract prospects
But it all starts with a plan. FA Insight in a recent study
found that standout firms spent twice as much time on business
development activities as those from firms facing growth
challenges.2 The research firm said only a third of advisors
achieved sustainable growth, and avoided growing pains, by
following a well-designed plan.
“Over the years we’ve found the best firms had detailed plans
for expansion, with strategies to increase assets in any
environment. We encourage other RIAs to follow their example by
creating a plan that can drive growth now and into the future,”
said Jim Dario, managing director, TD Ameritrade Institutional
Products and Strategy. “With our Breakout Growth strategies and the
support of our solutions consultants, we believe advisors can
achieve tremendous results.”
To mark this year’s Breakout Growth program launch, TD
Ameritrade Institutional has highlighted five strategies to help
advisors kick-start their growth.
1) Define your ideal client
Advisors who focus on a well-defined niche can pursue faster,
and more profitable growth while also deepening client
relationships. By focusing on a specialized group, RIAs may become
an established source within that niche and position themselves to
receive more rewarding client introductions. A true niche is more
specialized than just “women” or “executives,” but rather
sub-groups – say, orthodontists in Orange County or dentists in
Miami – with whom RIAs have a personal connection.
2) Create a brand that resonates with your ideal
clients
A great brand shows what makes a firm unique and communicates
its values in ways that evoke positive emotions and strengthen
client connections. Branding is the “special sauce” that attracts
clients. Without it, advisors miss an opportunity to emphasize
their strengths.
3) Cultivate more rewarding client relationships
Advisors can cultivate rewarding relationships by taking a
planned approach to generating client introductions. Referrals are
not enough. Rather RIAs should cultivate strategic introductions,
which means the client introduces a prospect to the advisor
personally. An Oechsli Institute study found 70 percent of affluent
investors will offer unsolicited personal introductions to their
primary financial advisor “if they like, trust and respect” the
advisor. But advisors must be proactive in orchestrating these
introductions and referrals.3
4) Deliver Engaging Experiences
Creating high-impact events is one of the most effective
strategies by which RIAs can personally connect with clients,
attract prospects and raise their profile within a niche. Events
don’t have to be large or complicated — they can be as simple as
inviting an author to speak to a group or hosting a wine-tasting —
just so long as advisors create a social environment that also
feels special. Some 72 percent of wealthy investors said they were
more likely to introduce friends to an advisor if that advisor
relationship were both business and social.4
5) Price services to reflect value
Pricing should reflect the value delivered by advisors and
generate suitable margins for the firm. At 71 percent of firms,
asset-based management fees cover a range of services beyond money
management. So while this model is clear and easy to understand,
“bundled” pricing can lead clients to undervalue services they
don’t pay for explicitly. Among standout firms, 56 percent have
introduced a minimum fee, versus less than half of
growth-challenged firms.2 Advisors, though, must clearly
communicate reasons for price changes to clients.
To Learn More
The Breakout Growth program features a wealth of resources and
content, including modular tools and guidebooks, a series of live
webcasts and in-person workshops, plus ongoing access to TD
Ameritrade Institutional solutions consultants.
TD Ameritrade Institutional clients can access Breakout Growth
program resources through TD Ameritrade Institutional Education
Center or through their Veo® account. Other advisors can call (800)
934-6124 for more information, click here to watch an introductory
video or visit www.tdainstitutional.com.
TD Ameritrade, Inc., is separate from and not affiliated with FA
Insight, The Oechsli Institute or Horsesmouth LLC, and is not
responsible their policies, services or products.
The information in the Breakout Growth program is intended to
provide a general overview about the topics covered and to help you
identify opportunities in your practice and important issues you
may wish to consider in developing a strategy to pursue growth.
Because TD Ameritrade Institutional does not provide legal, tax or
compliance advice, this information is not intended to be relied
upon as such. While TD Ameritrade Institutional hopes that you find
this information educational and thought-provoking, you need to
determine whether the information is appropriate and applicable to
you and your firm. You should consult with attorneys or compliance
experts that understand your particular circumstances before
utilizing any of the ideas presented here in your practice.
1 TD Ameritrade Institutional is a division of TD Ameritrade,
Inc., a brokerage subsidiary of TD Ameritrade Holding Corporation.2
2014 FA Insight Study of Advisory Firms: Growth By Design. To learn
more, visit www.fainsight.com or call (206)-826-43823 The Oechsli
Institute, 2010: Affluent Investor Study4 The Oechsli Institute,
2011: The Secrets of Successful Intimate Client Events
About TD Ameritrade InstitutionalTD Ameritrade
Institutional is a leading provider of comprehensive brokerage and
custody services to over 4,500 fee-based, independent registered
investment advisors and their clients. Our advanced technology
platform, coupled with personal support from our dedicated service
teams, allows investment advisors to run their practices more
efficiently and effectively while optimizing time with clients. TD
Ameritrade Institutional is a division of TD Ameritrade, Inc., a
brokerage subsidiary of TD Ameritrade Holding Corporation.
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(www.FINRA.org) /SIPC (www.SIPC.org)
Source: TD Ameritrade Holding Corporation
TD Ameritrade Holding CorporationJoseph A. Giannone,
201-369-8705Communications & Public
Affairsjoseph.giannone@tdameritrade.com
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