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How many client relationships is optimum for an elite financial advisor?
a) 1,000
b) 500
c) 100
If you guessed 1,000 or 500, you may need to adjust your thinking. Don’t make the mistake of confusing quantity with success.
While it may seem counter-intuitive to limit the number of clients in your practice, top financial advisors find 100 is the magic number. So how do you increase your income once you’ve reached that level?
You focus on growing the size of each of those client relationships.Continually upgrade your investor base by replacing smaller, less productive clients with larger, more productive ones. Over time, you can set higher minimums for new clients, always keeping your total number of clients at around 100.
Be Selective in Choosing Clients
Consider the case of Dana. For the first three years of her career as a financial advisor, Dana cold-called her way to success, opening many small accounts. She worked long hours to keep up with the demands of those clients, many of whom required excessive hand-holding for the small amount they’d invested with her.
In an effort to improve her business, Dana asked a top advisor to mentor her. First, he told her to identify her top 10 clients and to think of ways she could increase her value to them.
Next, her mentor told her to identify her bottom 10 clients. She was to give those small accounts to other associiates who were just starting out.
While releasing clients initially reduced her income, it freed up her days, giving her time she used to increase business from her top 10 clients and to aggressively pursue even larger prospects.
Dana soon realized that the best way to grow her business was not to increase the number of clients in her practice. Rather, it was to work more closely with a small, select group of extremely affluent clients.
Take Action
1) Identify 10 clients who have done less than $100 in annual revenue with you yet require excessive hand-holding. Delegate those small accounts to other associates.
2) Identify 10 clients who have done at least $1,000 in annual revenue with you yet required little or no handholding. Contact each one within the next 10 days to remind them of your many services and discuss opportunities that could result in them bringing more assets under management.
Learn More
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Altius Learning
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