The combination of client segmentation, service models, advisor retention, and technology represents the key to unlocking success in financial advisory. By striking the right balance between personalization and structure, firms can thrive in meeting their client's unique needs while fostering a team of dedicated and skilled advisors.
In this episode, George and Ryan talk with J.D. Bruce, Independent Consultant and President Emeritus at Abacus Wealth Partners. In his role, J.D. mentors many RIA entrepreneurs by facilitating study groups. He helps them open their minds and build confidence to charge appropriate fees, help more people, and grow their firms by adding staff. That effort has magnified the impact that he or Abacus could provide and allows the underserved to be aided by the right kind of financial advisor.
J.D. discusses how the firm segments its clients into three styles based on their complexity and net worth: builders, protectors, and changemakers. He also discusses the top challenges advisors face, the need for firms to focus on finding and retaining advisors, and the role of technology in creating capacity and efficiency.
Key Takeaways
[01:18] - J.D.'s career history and role at Abacus Wealth Partners.
[07:19] - Abacus' client segmentation and private investments.
[16:13] - Why paying advisors a percentage of the revenue they are servicing is a bad idea.
[19:23] - The benefits of consulting for both clients and advisors.
[20:44] - The difference between client segmentation and service models.
[27:23] - The top three challenges facing financial firms.
[30:04] - What it takes to attract advisors.
[36:10] - What tech companies need to know about consulting and attracting talents.
[42:12] - How different countries approach financial advice.
Quotes
[16:18] - "Paying a percentage of the revenue advisors are servicing is a bad way of paying them. Paying advisors a percentage of total firm revenue is a great way to compensate them." ~ J.D. Bruce
[20:48] - "Client segmentation is a detriment to anyone who tries it. Your clients are not a thing and they do not fit in a bucket. But if you offer service models and each service model has a particular way of working with clients, you're matchmaking." ~ J.D. Bruce
[34:32] - "If you have flexibility, autonomy, a demonstrated career path, and a good training program where you're devoted to helping people move through their careers and that they get involved in being an advisor from day one, then you'll get anyone you want to work for you." ~ J.D. Bruce
Links
J.D. Bruce on LinkedIn
J.D. Bruce on Twitter
Abacus Wealth Partners
Dr. Daniel Crosby
Connect with Us
Meet Ryan Donovan and George Svagera
Check Out All of Orion’s Podcasts
Power Your Growth with Orion
2094-OAT-7/31/2023
