Financial Advisors Live In a Meritocracy

Financial Advisors Live In a Meritocracy

We live in a time where consumers have an abundance of options, all of which are fighting for their attention and commitment. This also gives the consumer the advantage in purchasing power.

Our profession is fast becoming a meritocracy. I often mention this term in speaking with advisors all over the country and have come to realize not many understand how this translates to their business. Let me start by explaining a meritocracy: a philosophy which holds that power should be vested in individuals or, specifically our in our case, advisors, almost exclusively according to their merit. In other words, if you’re out there not adding value to your clients you’ll most definitely be replaced.

We live in a time where consumers have an abundance of options, all of which are fighting for their attention and commitment. This also gives the consumer the advantage in purchasing power. This may sound a little frightening but should only be the case if you are an advisor who can’t readily demonstrate your value or worth. Merit is a cornerstone in developing a relationship with your clients and, more importantly, keeping those clients with you for a lifetime. The sooner you realize this shift in our profession, the better your chances for success in competing with all the noise out there.

In 2015, I plan to do three separate advisory councils with my clients to fully tap into where I can provide merit for several demographics: one consisting of young professionals, one with female clients (they control more than 50% of assets out there today and this will only increase), and one with the traditional clients (as I always have).

Understand your clients’ needs, demonstrate your value, explain why you’re different, and this meritocracy is yours to rule.

What do you think? Please add your insights below.

 

Ron Carson is Founder and CEO of Carson Wealth Management Group, a wealth planning firm in Omaha.

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