Do Away with Tradition
A dirty little secret of the financial services industry is that more than half of the clients at the larger financial firms are assigned to senior advisors. --Mitch Kramer
A dirty little secret of the financial services industry is that more than half of the clients at the larger financial firms are assigned to senior advisors, says Mitch Kramer, principal of Fluent Financial in Dallas. The reason? First year advisors have a high failure rate, and their employers don’t want to lose the assets they brought into the firm. “They get their friends and family to…open accounts, and if they don’t make it, the big wirehouses will do anything in their power to keep those assets on the books,” explains Kramer. The Catch-22 is that the senior advisors who inherit these clients rely on the reassignment coordinator for all of their marketing, rather than developing a good referral network, he says.
-Mitch Kramer, principal of Fluent Financial in Dallas, in Strategies for Developing a Referral-Only Practice
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