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Rewind
to the year 2000. When JoEllen began the Effort-Less Advisor
Coaching Program, she worked with her spouse and a staff
of four employees. She had about 400 clients and was charging
an average of $750 for a comprehensive financial plan.
Her average account size was $180,000.
Today,
in the most difficult market in 70 years, her revenue
is up about 20% over last year, she cut her expenses significantly
and her net income is up substantially. Meanwhile, she
works fewer hours every week and is taking an additional
week vacation each year. How did she transform her business
and become an Effort-Less Advisor? This is JoEllen's story.
LAYING
THE GROUNDWORK
JoEllen's path to success began by creating a clear vision
of success both personally and professionally. Then she
restructured her client base, her fees and her service
processes. She began her journey by examining one of the
most important parts of her business: her ideal clients.
During the Effort-Less Advisor Coaching Program, JoEllen
segmented her clients into "A", "B",
"C" and "D" segments. Systematically,
she transferred her "C" and "D" clients
to other, more appropriate advisors - and this cut her
client base from 400 to roughly 280.
She
kept the clients who valued her and were willing to pay
for her services and those she truly enjoyed working with.
In addition she landed the two best clients she has ever
had. They both fit her ideal client profile and had multimillion
dollar accounts. As a result of these changes, her average
account size rose from $180,000 to $240,000-while the
market was dropping like a rock.
JoEllen
raised her asset management fees as well. Based on feedback
from her client research interviews, she decided to increase
her asset management fees by 25 percent, from 100 basis
points to 125 basis points. And she raised her financial
planning fees to $1,500 minimum, with an extra $500 for
each additional financial goal. The result: she boosted
the average planning fee for a new client from $750 to
between $2,000 and $3,000.
"No
one expressed reluctance to the fee increase," JoEllen
told me. "The transition was easier than I thought
it would be." This is a common theme for Effort-Less
Advisors. The best clients are willing to pay more, if
you provide more value.
JoEllen says these changes have not only generated outstanding
financial results, they have "made work easier."
She now has fewer appointments, but the appointments she
does have are with are more profitable for her and more
valuable for her clients.
Her
standard procedure is to schedule three meetings per year
with each client. Each appointment now has a clearly defined
purpose. "We used to schedule meetings just to check
on a client's portfolio, but now we're much more strategic,"
says JoEllen. "We are very clear about the value
we provide in each meeting. We rebalance the portfolio,
proactively manage tax issues and plan for upcoming goals."
The increased contact and value has generated a side benefit,
she has consolidated a number of her client's accounts
who had been with other advisors.
One
key to this process is pre-planning. Before each meeting,
her office sends out a confirmation letter and a summary
of the last meeting, including any open to-do items. JoEllen
has set up a postcard appointment-confirmation system,
much like the dentist. While she's meeting with the client,
she gets her palm pilot out and schedules the next two
meetings for the year. Then she gives the client a card
with the dates, so they can mark the meetings on their
calendar. Two weeks before the next meeting, her assistant
mails the postcard to remind them of the meeting.
Details
of each client meeting is dictated and transcribed into
a letter and sent to the client. A copy of the letter
and all phone conversations are recorded in Act!. This
allows JoEllen and her team to stay on top of each client's
unique situation and to complete any needed follow up.
This highly organized system impresses her clients - and
reinforces the great value they receive for their fees.
With
fewer clients to service and this systemized approach,
her team can add more value for the remaining clients,
in less time. Her husband decided to take another very
well paying job and a team member, who was writing financial
plans moved to another state. JoEllen decided to outsource
the plan writing - a strategy that substantially cut her
fixed overhead. And her smaller staff is highly motivated
to work efficiently. She set up a bonus plan that allows
employees to share in the company's profits. With fewer
people to share it with, each one will receive a bigger
check.
Equally
important, JoEllen changed her own work schedule. "I
was making myself available for evening appointments on
Tuesdays and Thursdays and I was working every Saturday
morning," she told me. "Now I no longer work
Saturdays and my last appointment is at 6:30 in the evening.
We're finding that clients are just fine with that."
Everyone
in the office has a flexible schedule, working 80 hours
in nine days so they can take every other Friday or Monday
off. In addition to the flexible hours, JoEllen's office
is able to accommodate personal needs. For example, her
business partner, Brian, stays home Wednesdays until 1:30
to take care of his children while his wife works. And
JoEllen is now able to take seven weeks off every year
- a full week more than her previous vacation schedule.
ENJOYING
THE FRUITS OF SUCCESS
JoEllen's changes have paid off in numerous ways, both
large and small. One telling example of her achievement
is the company's financial performance. In 2001, a major
year of restructuring, her income was up 5% over 2000.
And by October of this year, revenue had already outpaced
figures from 2001. She expects to finish the year with
a 20 percent increase in revenue over 2001. With the substantial
costs cut, her net income will increase substantially
more than 20 percent - all in the face of very difficult
market conditions.
JoEllen
also managed to land a great client who referred her to
two other "A" clients. She says the experience
has "transformed her idea of an "A" client."
This success can be directly tied to the lessons she learned
in the Effort-Less Advisor Coaching Program and Bill Bachrach's
Values Based Selling Academy.
"I
had spoken to this prospect in the past, but I was not
able to secure him as a client," she told me. "This
changed when I started to merge my values with my work."
After restructuring her business to add more value and
taking Bacharach's weekend workshop, JoEllen called him
and suggested they get together. The timing couldn't have
been better - he was in the process of interviewing advisors.
But when JoEllen told him that he should bring his wife
to the meeting, the prospect resisted.
"I'm
not like other brokers you've met," JoEllen told
him. "Our work will be a journey. We're going to
create a roadmap for this journey to help you clarify
your vision and your values so we can help you create
your ideal future. I don't think you want to leave your
wife behind."
She
told him that the only way she would meet him is if his
wife came along. Then she sent him a document checklist
and a confirmation letter, and her assistant followed
up three times to make sure they had all their documents
organized. During the meeting, JoEllen followed Bill Bachrach's
Values-Based Selling process. The business owner's reaction?
"He
told me that he and his wife had never had this conversation,"
said JoEllen. "They hired me on the spot, then they
referred me to his father, who is 50 percent owner of
his company."
The
father and son each net $3.5 million per year from their
firm, and JoEllen is investing over $3 million each year
for the two of them. In addition, the owner's brother,
who manages the company, has also become JoEllen's client.
"Working
with these three great clients has convinced me that I
can add value in a high net-worth market," JoEllen
told me. "It has totally changed my perception of
what this business can be about. Now, rather than chasing
potential clients, I actively pre-screen and pre-qualify
them."
Another
success JoEllen cites is the fact that, despite difficult
market conditions, she has not lost one client. This is
a clear testament of how well her restructured business
model matches the needs of her ideal clients.
MORE
ACHIEVEMENT AHEAD
When I asked JoEllen about the future, she was optimistic.
Building on the principles she learned in the Effort-Less
Advisor Coaching Program, she has created a solid foundation
for her company. "I'm excited about the continued
growth for the future," she told me. "I can't
even imagine working in a commission-based transaction
world today."
She
recognizes that she has a well received value proposition
and the foundation of a great client base. Now she is
on a mission to find more clients that fit her ideal profile.
To generate referrals and introductions, she has planned
an event in December with a particularly active segment
of her clients: widows.
"I'm
going to ask them for their help in generating referrals
and introductions," JoEllen said. "I know my
business can be a great value to people - now I just want
to find even more wealthy, appreciative clients to serve."
JoEllen's
vision for the future is "seeing myself and my team
living our lives based on what's most important to us,
and having the financial support to meet our goals."
One of her most important goals is to identify $100 million
that her clients have earmarked to give to charity, either
during their lifetimes or at their death.
"This
goal gives me such a sense of purpose," she told
me. "We have the infrastructure in place to support
significant growth, so now I want to work toward a more
meaningful purpose. I just think that in this society
we're not giving enough back."
ADVICE
TO READERS
I asked JoEllen to recount the most significant benefits
of the Effort-Less Advisor Coaching Program. She identified
six key results that have transformed her business:
1.
Creating a clear "ideal client" profile
2. Thinking big
3. Conducting interviews to understand her clients' wants
and needs
4. Restructuring her business to add more value for her
"A" and "B" clients
5. Transferring her "C" and "D" clients
to another advisor
6. Raising planning and management fees significantly--with
confidence
"I
recommend that advisors think about what they want in
their business and their life," JoEllen told me.
"I don't think a lot of advisors define a vision
for their business, so they don't know what types of clients
they want or where they want to go in the future. Without
a vision of what they want, they end up reacting to their
clients and the market. That's not a good way to build
a great business or a wonderful life."
JoEllen
says that it is also important to run a financial planning
practice like a business. This includes making up-front
investments that will pay off in the future. "Too
many advisors are unwilling to invest in more staff or
in training and coaching for themselves," she says.
One
tactic she recommends is identifying a role model in the
industry - someone who has a successful business and a
high quality life. Find out what they're doing and follow
their lead. Soon, you may be the one people are looking
up to.
Clearly,
JoEllen was able to tap into her client's wants and needs,
then design her services to deliver the most value. This
clear focus on value allowed her to increase her income
across the board. Now, she earns more, works less and
enjoys life more - this is the essence of becoming an
Effort-Less Advisor.
By
restructuring her business, JoEllen was also able to create
more time for herself and pursue goals that are closely
tied to her values. This has made her more content with
her work/life balance, and it has elevated the mood of
her entire office.
"We are really happy here," she told me. "No
one is afraid they're going to lose their job, and we're
all looking forward to an even more prosperous future.
Our overall goal is to build a life of abundance, and
it seems to be happening. We just want to create more
and enjoy even more."
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