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Aug 19, 2008 11:32 am

This business has tossed me in many directions but it has recently became clear to me that the only thing that matters the first 5-7 years is ones ability to gather Assets. It doesn't matter what firm you work for, how you received the assets, what mutual funds you choose, who you are prospecting, how you are prospecting, what you are saying, what type of brokerage/bank/indy/credit union/insurance company you work for, what your background is, how old you are, etc etc etc. Everyone needs to put themselves in the best position possible to gather as many assets as possible their first 7 years. After that you can re evaluate where you want to take your business. Am I off base with this conclusion? Isn't all of this other BS that we worry about the first 7 yrs just irrelevant noise?

Aug 19, 2008 12:38 pm

"Everyone needs to put themselves in the best position possible to gather as many assets as possible their first 7 years."



Don't your comments preceding  this statement  provide the factors a
professional needs to take into consideration to place him/her in the
best position possible?  If you are saying most people are overly
analytical and need to spend less time "planning" and more "doing", I
agree.



 Are you saying that people need to get up, ignore the barriers, and plow away at selling, selling, selling?  If so, I
think there is a certain amount of relevancy to this position. 
However, I have seen an advisor that started out tremendously
successful and somehow ended up like Corey Haim overnight due to lack
of planning, self-awareness, and changes in the market (i.e.
recognizing better products, service, etc.)  Maybe it is my military background but I believe that one should measure twice and cut once, as another poster stated earlier.  I will admit I have very little experience in this industry, however, I believe ignoring the obstacles is not wise and the reason for so many advisors, especially new advisors, fail.  Wouldn't it be better to recognize the barriers, plan how to overcome these barriers and finally implement your plan, adjusting accordingly?   

Aug 19, 2008 1:17 pm

I am fairly new to the industry as well and obviously there always needs to be adjustments made to your business plan along the way. My main contention is that someone new needs to be in a place where assets can be accumulated and relationships can be built quickly. Where that may be will be different for everyone.

Aug 19, 2008 1:21 pm

GT Key,
I appreciate your response.  Could you read my posted topic, Entrance Strategy: Advice for a Novice, and give me your opinion?

Aug 19, 2008 1:50 pm

GT,

 
I think you are pretty on target.  Many newbies (including myself at times) spend too much time trying to find the perfect prospecting strategy, the perfect portfolio allocation, the perfect niche market, and the perfect busines plan, that we spend more time planning, and less time out talking with people.
 
As backwards as it sounds, this is exactly why you often see people that you consider a dumba$$ actually excel in this business - they are dumb enough to not worry about the other stuff, and smart enough to know that they don't know anything and just do what their B/D taught them to do - prospect!
 
The problem I have is that my background duped me into believing that I could "plan" my why to success.  Instead, I should have spent all that time jsut out cold walking businesses, doing seminars, etc.  I finally wised up....
Aug 19, 2008 2:21 pm

Like I always say "Just buy bonds!"

 
Do nothing more and the rest will take care of itself.
Aug 19, 2008 2:24 pm

Bondguy, That is perfect. A friend of mine told me a story of a guy who sold life insurance by just asking everyone he prospected, "You don't need life insurance, do you?" Over and Over and Over

Aug 19, 2008 5:55 pm

raising assets is important, but product mix is even more important. you better be placing assets in procucts that generate decent gdc, or you won't be around in 7years

Aug 19, 2008 9:34 pm

Actually, you might want to do whatever is best for your clients. Otherwise you'll be out earlier than that. There are plenty of people that sell only MFD's, only bonds, only stocks, only annuities, only managed accounts, or all of the above and do fine.



Unless you only sell CD's, you're probably fine.

Aug 19, 2008 9:42 pm
B24:

Unless you only sell CD's, you're probably fine.

 
Sounds like my business plan.  CD's make up 99% of my book.  Love em.
 
Whatever you sell, act like it's on a shelf and you need to get rid of what's on your shelf as soon as possible.
Aug 19, 2008 11:12 pm
GT Key:

This business has tossed me in many directions but it has recently became clear to me that the only thing that matters the first 5-7 years is ones ability to gather Assets. It doesn't matter what firm you work for, how you received the assets, what mutual funds you choose, who you are prospecting, how you are prospecting, what you are saying, what type of brokerage/bank/indy/credit union/insurance company you work for, what your background is, how old you are, etc etc etc. Everyone needs to put themselves in the best position possible to gather as many assets as possible their first 7 years. After that you can re evaluate where you want to take your business. Am I off base with this conclusion? Isn't all of this other BS that we worry about the first 7 yrs just irrelevant noise?

 
Really depends on who's best interest you are looking out for and what kind of advisor you want to be. 
 
If your entire goal is to gather as many assets as possible and get as big as you can as fast as you can.  Then yes, the ONLY thing that matters is your ability to get ACAT's signed that's it that's all.  Anything else you are doing is an absolute waste of time.  If, you are able to devote 100% of your time the first 5 years to gathering assets at the end of 5 years you will probably have a lot of assets.
 
If your entire goal is to succeed in this business, help others succeed financially and have a great career 20-30 years down the road, it might be wise to actually spend some time figuring out what you are doing.  You can have all the assets in the world and still not make yourself or any of your clients a dime if you don't know what you're doing. 
 
I think the very best advisors out there have found a happy medium between the two, and focus on putting the client first and their paycheck second.  If you do that you'll wake up one day with an amazing job, and a lifestyle that everyone is envious of, but most importantly you will be doing what is right for your clients. 
Aug 20, 2008 10:13 am

BB-

 
That is a great point in theory.  But to survive, you need to have some assets, as GT said.  I don't think he's saying that you gather assets at the expense of everything else.  He is exaggerating to make a point....don't fall into the trap of a lot of rookies by focusing on all of the peripheral stuff.
 
And very few people will gather gobs of assets without a good sense of what they are doing.  Too many prospects would see through that.