Advisor Today - July/August 2015 - (Page 16)

PRACTICE SPECIALTIES MANAGING YOUR PRACTICE By J. Leland "Lee" Davis, LUTCF How to Create the Million-Dollar-Plus Practice You do so by deciding, planning, executing and repeating the process. C reating a million-dollar revenue wealth-management practice is more achievable today than ever before. Today's determined advisor has exponentially more resources available than at any time in history. Those resources enable someone who is properly motivated to serve more people and to provide them with more value than ever. But the million-dollar practice isn't for the faint of heart or the casual advisor. It takes considerable effort and focus. Four steps are fundamental: Decide, Plan, Execute, and Repeat. Decide Do you want to be at the top? If so, why? Answering the "why" question is central to any thought you have of success. In our case, as a father and son team, it wasn't the money. It was the value we wanted to bring to our clients and to our community. Simply put, we wanted to serve. And we believed that a total and sincere commitment to helping our chosen clients achieve their most precious goals would result in success for us. We were right. What's your "Why"? Plan Next, we created a plan. In our case, we moved to a 100 percent planning and fee-based practice. Along the way, we've hired coaches, attended conferences and consistently purchased excellent equipment and software to manage the process. We also developed a six-step planning process that we stick to in every case: Introduction, discovery, planning, implementation, follow-up, and consistent review. Each client is required to have a comprehensive wealth-management plan. Our belief is that every financial plan should be made perfect and kept that way. 16 ADVISOR TODAY | July/August 2015 Most importantly, we developed a robust marketing plan, designed to generate constant referrals from professional advisors and from each client (see Table 1). Over 90 referrals were generated to our practice last year alone. If your goal is to be a milliondollar-plus practice, math is your friend. The math is that $100,000,000 of assets under management at a net rate of 1 percent equals $1,000,000. At that threshold, the ancillary transactions involving life, disability, long-term-care insurance, 401k plans, annuities and the like will generate substantial additional revenue all by themselves. But the goal is to get to $100,000,000 as soon as you can-and to get there with integrity and a focus on doing what is best for the client at all times. Execute Understanding that the volume of work is such that it can't be accomplished without great administrative professionals, we carefully hired just the right person for each job-one at a time. The titles of those jobs are Business Manager, Advisor Assistant, Service Manager, Schedule Manager and Director of First Impressions. They do what their titles imply and they are true, diligent professionals. As advisors, we focus solely on serving our clients and making sure they are progressing toward their goals. Everyone in our firm has a "Model Day," which contains specific blocks of time that they devote to each type of task they perform. Knowing that clients need to feel comfortable in order to make Month January February March Client Event Client Routines Open Weekly Email, Birthday Letters, 90-Day Contact $3,500 $0 Skiing Client Statement, Client Reviews, Birthday Cards $400 $0 Skiing Weekly Email, Birthday Letters, 90-Day Contact $400 $0 Golf Client Statement, Client Reviews, Birthday Cards $100 $0 Rockies Game Prep Weekly Email, Birthday Letters, 90-Day Contact $400 $0 Golf/Rockies Game Prep Weekly Email, Birthday Letters, 90-Day Contact $1,500 $0 Rockies Game Event/Golf/Client Appreciation Prep Weekly Email, Birthday Letters, 90-Day Contact $100 $0 Movie Event/ Client Golf Weekly Email, Birthday Letters, 90-Day Contact April May June July August September October November December $100 $0 Client Appreciation Event Funding/ Golf Weekly Email, Birthday Letters, 90-Day Contact $100 $0 Client Event/Golf Weekly Email, Birthday Letters, 90-Day Contact $350 $0 Client Referral Dinner Invite/ Compliance Prep Weekly Email, Birthday Letters, 90-Day Contact $0 $0 Client Referral Dinner Weekly Email, Birthday Letters, 90-Day Contact $1,500 $0 TOTAL MARKETING INVESTMENT

Table of Contents for the Digital Edition of Advisor Today - July/August 2015

From The Editor
Viewpoint
New Products
How Do You Create the Million-Dollar-Plus Practice?
Traits of Top Performers
The Business Benefits of a Pipeline Mentality
What Does It Mean to Act Ethically?
Variable Universal Life is Back
Sell More LTCI By Selling Less!
Overcoming the Most Common DI Objections
Divorce DI
Mitigating Retirement Risks with Life Insurance
Creating Irreplaceable Capital
Closing the Gap
Financial Future Less than Rosy for Boomers and GenX
Estate Planning and Annuities?
Ignite Your Sales Potential
A Closer Look at BTID
Upholding the Tradition
NAIFA’s Candidates for Election
NAIFA News
Addicted to Rejection
What is Keeping Your Senior Clients Up At Night?
Advertiser Index
Back Page

Advisor Today - July/August 2015

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