By David Scranton
January 7, 2025
https://www.fa-mag.com/news/from-advisor-to-ceo–building-the-team-to-get-you-there-80893.html
Most financial advisors are like me. They pursued a career in the industry because they wanted to help people create and manage wealth. While I initially targeted business owners and affluent individuals in my early years as a financial advisor, I soon realized I wanted to help the “average” investor who may never earn a six-figure salary but had enough modest savings in a retirement plan to benefit from financial guidance.
While this work can be gratifying, it can lead to a desire to do more. This manifested in my need to run a business and build something bigger instead of meeting with clients. I wanted to trade my financial advisor title for CEO, but that meant expanding my team by adding other advisors.
It’s hard work with a lot of trial and error, but eventually, I grew my solo practice to a team of eight advisors in two states. Building such a cadre is much like coaching a sports team—you must identify the star players and the reliable members. Here’s how I optimized my approach and created a team that helped turbocharge my practice:
Finding Prospectors
Prospectors are the first contact for potential clients. They don’t have to be a financial advisor but should create touchpoints through marketing initiatives or financial education seminars. The prospector’s role is to generate interest in engaging with the firm. They ensure the appointment book is always full. This role is crucial to engaging the process of converting a prospect to a client.
Identifying Acquisition Advisors
Conversion is key for the role of acquisition advisor. Having a team member dedicated to meeting with potential clients and converting them into clients is critical to business growth. This role is ideal for someone who enjoys meeting prospects but lacks the vision or cash flow to build their organization.
People with less than five years of experience may excel in this role, especially if they are receptive to coaching. Collaborating with someone who already has an established method may be challenging and may resist your business approach.
I have seen acquisition advisors start off earning $165,000 a year and make significant gains by improving conversion rates, which in turn drives profitability for the firm.
Hiring Service Advisors
If the prospector role identifies potential clients and the acquisition advisor converts them to a client, the service advisor is the person who maintains and supports the client relationship. Service advisors should have at least 10 years of financial services experience and, ideally, a CFP designation. Clients transitioning from the acquisition advisor to the service advisor should feel like they are being handed up to someone with more experience.
It sounds simple enough—hire three key roles, and business should skyrocket, but motivation is one key factor to making it work. I have watched many advisor/owners make those hires and expect near-overnight success only to experience turnover because those individuals found no value in staying.
However, execution and a well-defined business structure can lead to success. It took my firm two years to grow from three to more than 20, including seven acquisition advisors. Only two of our acquisition advisors are based in our home office; the rest operate out of branch offices. This setup ensures that everyone focuses on their niche.
Gradually, as you make good decisions day after day, these will compound to catapult you, your team and your business.
David Scranton is the founder and CEO of Sound Income Group, a financial services firm, and author of the upcoming book Attract & Grow.
