Specialization vs "jack-of-all-trades"

Also, I forgot to mention about ten life insurance policies and 1 LTC.

reits's - reits

I think that although generalists have greater opportunity, people prefer to work with a specialist.  The danger is that you leave money on the table that they'll take to another advisor.  The best scenario would probably be to form strategic alliances with other specialists who you can refer clients to and who will refer cases to you.

Try and find both ethical and trustworthy people.  Good luck!

I’m making much better money now that I specialize…plus my stress load has dropped exponentially.  It goes against my basic nature (I really like the broad based planning approach) to specialize but I’m liking it.

I prefer, and I don't think I'm alone here, to be a jack of many (but not all) trades.  I don't like the idea of my clients having to go elsewhere to fill a need that I could have easily filled myself with a little effort.  As Freedom referenced, sending them to another advisor to fill a need that you don't specialize in gets someone else's foot in the door and if that person does everything you do, plus a couple of things you don't, you may very well lose the client.

My rule of thumb is, if it's important to at least 5% of my clients (or to one of my top five clients) and other investment advisors in my market can offer it, I do my best to cover it.  Yes, that means doing life insurance, which is far from my favorite thing, but it beats sending clients to the local insurance agent who also happens to manage investments.  I do, however, refuse to do any new tax returns.  It's a low margin business and I'm in an office where I can send them down the hall to another CPA who is not in this business.  I do a few tax returns for old clients and am looking for a way to, in time, gracefully pass them along to my CPA friend.

I'm going to mildly disagree with Freedom on this point...I think most people prefer one trusted advisor to ten product specialists for convenience, if nothing else.  The only exception that I've come across is the $20 million client who wants to spread it between 2-3 trusted advisors to "diversify".  If it's important to your clients and done by your competitors, you'd better find a way to do it also or risk losing clients.

[quote=Indyone]

I'm going to mildly disagree with Freedom on this point...I think most people prefer one trusted advisor to ten product specialists for convenience, if nothing else.  The only exception that I've come across is the $20 million client who wants to spread it between 2-3 trusted advisors to "diversify".  If it's important to your clients and done by your competitors, you'd better find a way to do it also or risk losing clients.

[/quote]

That's definitely a good point.  If you make it too inconvenient for the client they're more likely to go somewhere else.

[quote=Indyone]

I prefer, and I don't think I'm alone here, to be a jack of many (but not all) trades.  I don't like the idea of my clients having to go elsewhere to fill a need that I could have easily filled myself with a little effort.  As Freedom referenced, sending them to another advisor to fill a need that you don't specialize in gets someone else's foot in the door and if that person does everything you do, plus a couple of things you don't, you may very well lose the client.

My rule of thumb is, if it's important to at least 5% of my clients (or to one of my top five clients) and other investment advisors in my market can offer it, I do my best to cover it.  Yes, that means doing life insurance, which is far from my favorite thing, but it beats sending clients to the local insurance agent who also happens to manage investments.  I do, however, refuse to do any new tax returns.  It's a low margin business and I'm in an office where I can send them down the hall to another CPA who is not in this business.  I do a few tax returns for old clients and am looking for a way to, in time, gracefully pass them along to my CPA friend.

I'm going to mildly disagree with Freedom on this point...I think most people prefer one trusted advisor to ten product specialists for convenience, if nothing else.  The only exception that I've come across is the $20 million client who wants to spread it between 2-3 trusted advisors to "diversify".  If it's important to your clients and done by your competitors, you'd better find a way to do it also or risk losing clients.

[/quote]

I agree with what you are saying.  It would be just about impossible for me to see an opportunity, say a 401K rollover, and pass on it because I have decided to focus on insurance.

[quote=dude]I'm making much better money now that I specialize...plus my stress load has dropped exponentially.  It goes against my basic nature (I really like the broad based planning approach) to specialize but I'm liking it.[/quote]

Just curious...what is your area of expertise?

[quote=BankFC][quote=Indyone]

I prefer, and I don't think I'm alone here, to be a jack of many (but not all) trades.  I don't like the idea of my clients having to go elsewhere to fill a need that I could have easily filled myself with a little effort.  As Freedom referenced, sending them to another advisor to fill a need that you don't specialize in gets someone else's foot in the door and if that person does everything you do, plus a couple of things you don't, you may very well lose the client.

My rule of thumb is, if it's important to at least 5% of my clients (or to one of my top five clients) and other investment advisors in my market can offer it, I do my best to cover it.  Yes, that means doing life insurance, which is far from my favorite thing, but it beats sending clients to the local insurance agent who also happens to manage investments.  I do, however, refuse to do any new tax returns.  It's a low margin business and I'm in an office where I can send them down the hall to another CPA who is not in this business.  I do a few tax returns for old clients and am looking for a way to, in time, gracefully pass them along to my CPA friend.

I'm going to mildly disagree with Freedom on this point...I think most people prefer one trusted advisor to ten product specialists for convenience, if nothing else.  The only exception that I've come across is the $20 million client who wants to spread it between 2-3 trusted advisors to "diversify".  If it's important to your clients and done by your competitors, you'd better find a way to do it also or risk losing clients.

[/quote]

I agree with what you are saying.  It would be just about impossible for me to see an opportunity, say a 401K rollover, and pass on it because I have decided to focus on insurance.

[/quote]

It takes guts to draw a line in the sand. You don't have the guts. Nothing wrong with that. It just happens to be your truth.

[quote=My Inner Child]

[quote=dude]I'm making much better money now that I specialize...plus my stress load has dropped exponentially.  It goes against my basic nature (I really like the broad based planning approach) to specialize but I'm liking it.[/quote]

Just curious...what is your area of expertise?

[/quote]

Fixed Annuities (including EIA's).

There are advantages and disadvantages to both. Specialists do leave money on the table. I prefer having 50 clients that I've cross-sold the heck out of than 100 clients with only one or two products. I'm all about building relationships and keeping clients for the long run. The more they are vested in me, the less likely they will give another guy a shot at earning their business.

[quote=dude][quote=My Inner Child]

[quote=dude]I'm making much better money now that I specialize...plus my stress load has dropped exponentially.  It goes against my basic nature (I really like the broad based planning approach) to specialize but I'm liking it.[/quote]

Just curious...what is your area of expertise?

[/quote]

Fixed Annuities (including EIA's).

[/quote]

Cool. Isn't it nice to NEVER have to worry about losing your client's money?

[quote=insurproducer]

There are advantages and disadvantages to both. Specialists do leave money on the table. I prefer having 50 clients that I've cross-sold the heck out of than 100 clients with only one or two products. I'm all about building relationships and keeping clients for the long run. The more they are vested in me, the less likely they will give another guy a shot at earning their business.

[/quote]

I wouldn't be assuming that I leave a lot of money on the table.

[quote=My Inner Child][quote=BankFC]I agree with what you are saying.  It would be just about impossible for me to see an opportunity, say a 401K rollover, and pass on it because I have decided to focus on insurance.[/quote] It takes guts to draw a line in the sand. You don't have the guts. Nothing wrong with that. It just happens to be your truth. [/quote]

You can say it's brave to specialize in on product and I could say that it's lazy.  Neither of us is necessarily right.  You've chosen the "get it all right now" path and I've chosen to defer a significant part of my income into future years.  There may come a day when your pipeline slows significantly or even dries up...either through demographics or legislation.  I prefer to have an ongoing stream of income from current clients when that day comes, rather than scratch from zero each month.  Chacun à son goût.

Here’s something that’s worked well for me: try specializing, but rather

than specializing in a product, specialize in a type of client. That is, find

whatever group of people you have an easy in with, and become the go-

to person in that group. (Apprentice and JTR seem to follow this approach

also).

The goal is to a) become well known in that circle of people and b)gain

the efficiencies of specialization (you’ll be dealing with multiple products

of course, but if your clients are similar enough, you’ll become very

efficient at helping these types of people).

Just a different way of approaching the issue, for what it’s worth.

[quote=My Inner Child][quote=insurproducer]

There are advantages and disadvantages to both. Specialists do leave money on the table. I prefer having 50 clients that I've cross-sold the heck out of than 100 clients with only one or two products. I'm all about building relationships and keeping clients for the long run. The more they are vested in me, the less likely they will give another guy a shot at earning their business.

[/quote]

I wouldn't be assuming that I leave a lot of money on the table.

[/quote]

You may not be leaving "a lot" of money on the table, but I bet I could find something or someway to earn one of your client's relationships.

Have any of you read THE WEDGE by Randy Schwantz? It's targeted mainly at the P&C industry, but it is very good for anyone in financial services. 

[quote=insurproducer][quote=My Inner Child][quote=insurproducer]

There are advantages and disadvantages to both. Specialists do leave money on the table. I prefer having 50 clients that I've cross-sold the heck out of than 100 clients with only one or two products. I'm all about building relationships and keeping clients for the long run. The more they are vested in me, the less likely they will give another guy a shot at earning their business.

[/quote]

I wouldn't be assuming that I leave a lot of money on the table.

[/quote]

You may not be leaving "a lot" of money on the table, but I bet I could find something or someway to earn one of your client's relationships.

Have any of you read THE WEDGE by Randy Schwantz? It's targeted mainly at the P&C industry, but it is very good for anyone in financial services. 

[/quote]

I'm very familiar with the wedge. I also have a copy of "the wedge for financial advisors" that he wrote, but never published.  Anyone who wants to churn one of my clients out of their VA can be my guest. I've already made my money. I don't mind getting paid and letting you do the work.

[quote=Indyone]

[quote=My Inner Child][quote=BankFC]I agree with what you are saying.  It would be just about impossible for me to see an opportunity, say a 401K rollover, and pass on it because I have decided to focus on insurance.[/quote] It takes guts to draw a line in the sand. You don't have the guts. Nothing wrong with that. It just happens to be your truth. [/quote]

You can say it's brave to specialize in on product and I could say that it's lazy.  Neither of us is necessarily right.  You've chosen the "get it all right now" path and I've chosen to defer a significant part of my income into future years.  There may come a day when your pipeline slows significantly or even dries up...either through demographics or legislation.  I prefer to have an ongoing stream of income from current clients when that day comes, rather than scratch from zero each month.  Chacun à son goût.

[/quote]

I know that there are more and more insurance carriers offering a smaller up-front and perpetual trails on their fixed and indexed annuities now, Indy.  An insurance agent could definitely build themself a recurring revenue practice these days.

[quote=My Inner Child][quote=insurproducer][quote=My Inner Child][quote=insurproducer]

There are advantages and disadvantages to both. Specialists do leave money on the table. I prefer having 50 clients that I've cross-sold the heck out of than 100 clients with only one or two products. I'm all about building relationships and keeping clients for the long run. The more they are vested in me, the less likely they will give another guy a shot at earning their business.

[/quote]

I wouldn't be assuming that I leave a lot of money on the table.

[/quote]

You may not be leaving "a lot" of money on the table, but I bet I could find something or someway to earn one of your client's relationships.

Have any of you read THE WEDGE by Randy Schwantz? It's targeted mainly at the P&C industry, but it is very good for anyone in financial services. 

[/quote]

I'm very familiar with the wedge. I also have a copy of "the wedge for financial advisors" that he wrote, but never published.  Anyone who wants to churn one of my clients out of their VA can be my guest. I've already made my money. I don't mind getting paid and letting you do the work.

[/quote]

I could care less about your client's $100,000 VA you made $4,000 commission on a year ago. I'm talking about small to middle market business owners, employee benefits and retirement plans, commercial insurance, and their own personal insurance and investments. That's where I flourish. Most of these prospects are spread out over a 4 or 5 different agents or advisors. I come in and help them consolidate everything with me. Win-Win situation. After that, all I have to worry about are policy renewals and birthday/christmas cards.

Good

[quote=My Inner Child][quote=dude][quote=My Inner Child]

[quote=dude]I'm making much better money now that I specialize...plus my stress load has dropped exponentially.  It goes against my basic nature (I really like the broad based planning approach) to specialize but I'm liking it.[/quote]

Just curious...what is your area of expertise?

[/quote]

Fixed Annuities (including EIA's).

[/quote]

Cool. Isn't it nice to NEVER have to worry about losing your client's money?

[/quote]

You know My Inner Child (and prior incarnates), at first I was pretty judgemental towards your business model...as some here might be.

Boy was I wrong.  There are a couple things I'll say concerning my transition to specialist:

1)  My life has improved since I have more time

2)  My thoughts are much less busy (and therefore I am more at peace) since I'm following less information

3)  My income has increased significantly in a relatively short period of time

4)  I have a better command of facts concerning my products

5)  I (generally) only talk to people who have an interest in what I'm selling and have the $$$ to buy...I waste much much less time on non qualified prospects

6)  Did I mention I'm making more $$$?

Finally....to answer your question, YES!!!  I no longer feel that slight guilt that comes when the markets don't perform as expected or hoped.  I don't have to field calls trying to explain the unexplainable any longer. 

So in summary, for what it's worth, I feel pretty stupid for being so narrow in earlier conversations.  My ethics are intact and my clients are happier along with me.  Who would have thought? 

[quote=insurproducer][quote=My Inner Child][quote=insurproducer][quote=My Inner Child][quote=insurproducer]

There are advantages and disadvantages to both. Specialists do leave money on the table. I prefer having 50 clients that I've cross-sold the heck out of than 100 clients with only one or two products. I'm all about building relationships and keeping clients for the long run. The more they are vested in me, the less likely they will give another guy a shot at earning their business.

[/quote]

I wouldn't be assuming that I leave a lot of money on the table.

[/quote]

You may not be leaving "a lot" of money on the table, but I bet I could find something or someway to earn one of your client's relationships.

Have any of you read THE WEDGE by Randy Schwantz? It's targeted mainly at the P&C industry, but it is very good for anyone in financial services. 

[/quote]

I'm very familiar with the wedge. I also have a copy of "the wedge for financial advisors" that he wrote, but never published.  Anyone who wants to churn one of my clients out of their VA can be my guest. I've already made my money. I don't mind getting paid and letting you do the work.

[/quote]

I could care less about your client's $100,000 VA you made $4,000 commission on a year ago. I'm talking about small to middle market business owners, employee benefits and retirement plans, commercial insurance, and their own personal insurance and investments. That's where I flourish. Most of these prospects are spread out over a 4 or 5 different agents or advisors. I come in and help them consolidate everything with me. Win-Win situation. After that, all I have to worry about are policy renewals and birthday/christmas cards.

[/quote]

The commission was $7500. I kept $6750 of that.

[quote=dude][quote=My Inner Child][quote=dude][quote=My Inner Child]

[quote=dude]I'm making much better money now that I specialize...plus my stress load has dropped exponentially.  It goes against my basic nature (I really like the broad based planning approach) to specialize but I'm liking it.[/quote]

Just curious...what is your area of expertise?

[/quote]

Fixed Annuities (including EIA's).

[/quote]

Cool. Isn't it nice to NEVER have to worry about losing your client's money?

[/quote]

You know My Inner Child (and prior incarnates), at first I was pretty judgemental towards your business model...as some here might be.

Boy was I wrong.  There are a couple things I'll say concerning my transition to specialist:

1)  My life has improved since I have more time

2)  My thoughts are much less busy (and therefore I am more at peace) since I'm following less information

3)  My income has increased significantly in a relatively short period of time

4)  I have a better command of facts concerning my products

5)  I (generally) only talk to people who have an interest in what I'm selling and have the $$$ to buy...I waste much much less time on non qualified prospects

6)  Did I mention I'm making more $$$?

Finally....to answer your question, YES!!!  I no longer feel that slight guilt that comes when the markets don't perform as expected or hoped.  I don't have to field calls trying to explain the unexplainable any longer. 

So in summary, for what it's worth, I feel pretty stupid for being so narrow in earlier conversations.  My ethics are intact and my clients are happier along with me.  Who would have thought? 

[/quote]

I admire your honesty and your courage for taking the risk to do what others don't have the guts to do. If you do what everyone does, you'll get what everyone gets.

[quote=My Inner Child][quote=insurproducer][quote=My Inner Child][quote=insurproducer][quote=My Inner Child][quote=insurproducer]

There are advantages and disadvantages to both. Specialists do leave money on the table. I prefer having 50 clients that I've cross-sold the heck out of than 100 clients with only one or two products. I'm all about building relationships and keeping clients for the long run. The more they are vested in me, the less likely they will give another guy a shot at earning their business.

[/quote]

I wouldn't be assuming that I leave a lot of money on the table.

[/quote]

You may not be leaving "a lot" of money on the table, but I bet I could find something or someway to earn one of your client's relationships.

Have any of you read THE WEDGE by Randy Schwantz? It's targeted mainly at the P&C industry, but it is very good for anyone in financial services. 

[/quote]

I'm very familiar with the wedge. I also have a copy of "the wedge for financial advisors" that he wrote, but never published.  Anyone who wants to churn one of my clients out of their VA can be my guest. I've already made my money. I don't mind getting paid and letting you do the work.

[/quote]

I could care less about your client's $100,000 VA you made $4,000 commission on a year ago. I'm talking about small to middle market business owners, employee benefits and retirement plans, commercial insurance, and their own personal insurance and investments. That's where I flourish. Most of these prospects are spread out over a 4 or 5 different agents or advisors. I come in and help them consolidate everything with me. Win-Win situation. After that, all I have to worry about are policy renewals and birthday/christmas cards.

[/quote]

The commission was $7500. I kept $6750 of that.

[/quote]

Not bad. Imagine making that same commision every year as long as they keep that account with you... That's why I became a P&C insurance producer. 

[quote=insurproducer][quote=My Inner Child][quote=insurproducer][quote=My Inner Child][quote=insurproducer][quote=My Inner Child][quote=insurproducer]

There are advantages and disadvantages to both. Specialists do leave money on the table. I prefer having 50 clients that I've cross-sold the heck out of than 100 clients with only one or two products. I'm all about building relationships and keeping clients for the long run. The more they are vested in me, the less likely they will give another guy a shot at earning their business.

[/quote]

I wouldn't be assuming that I leave a lot of money on the table.

[/quote]

You may not be leaving "a lot" of money on the table, but I bet I could find something or someway to earn one of your client's relationships.

Have any of you read THE WEDGE by Randy Schwantz? It's targeted mainly at the P&C industry, but it is very good for anyone in financial services. 

[/quote]

I'm very familiar with the wedge. I also have a copy of "the wedge for financial advisors" that he wrote, but never published.  Anyone who wants to churn one of my clients out of their VA can be my guest. I've already made my money. I don't mind getting paid and letting you do the work.

[/quote]

I could care less about your client's $100,000 VA you made $4,000 commission on a year ago. I'm talking about small to middle market business owners, employee benefits and retirement plans, commercial insurance, and their own personal insurance and investments. That's where I flourish. Most of these prospects are spread out over a 4 or 5 different agents or advisors. I come in and help them consolidate everything with me. Win-Win situation. After that, all I have to worry about are policy renewals and birthday/christmas cards.

[/quote]

The commission was $7500. I kept $6750 of that.

[/quote]

Not bad. Imagine making that same commision every year as long as they keep that account with you... That's why I became a P&C insurance producer. 

[/quote]

Are $100,000 premiums, that pay 7.5% every year, pretty common for you? I spend about $6,000/year for the cars and house. I don't think my insurance guy is making $6750 off of my $6,000.

$6750 from a $6000 premium?  Has Enron morphed into a P&C company?

[quote=Starka]$6750 from a $6000 premium?  Has Enron morphed into a P&C company?[/quote]

Ask insurproducer to pull her foot our of her mouth and explain herself.

[quote=My Inner Child]

Are $100,000 premiums, that pay 7.5% every year, pretty common for you? I spend about $6,000/year for the cars and house. I don’t think my insurance guy is making $6750 off of my $6,000.

Bank, I don’t think that is what IC is saying. I think he’s asking, in light of

what insuranceproducer posted, if insuranceproducer is getting recurring

renewals of 750bps on P&C business.

[quote=BankFC] [quote=My Inner Child]

Are $100,000 premiums, that pay 7.5% every year, pretty common for you? I spend about $6,000/year for the cars and house. I don't think my insurance guy is making $6750 off of my $6,000.

[/quote]


Sorry Inner Child, but I think it's you who needs to pull her foot out of her mouth.

If you sell something that pays you 750 basis points a year, please, do tell... 

Moron. 

[/quote]

Young lady, I would suggest you read the post that I responded to before you open your mouth and remove all doubt about your status as an idiot.

Moron.

I know what you said, and I know what you meant...and they weren't the same.  The point is maybe you should read YOUR OWN posts before commenting about mine. 

Calm down ladies.....

This is how it works. On any standard insurance policy, personal or commercial, you pay a premium right? The agency you went through to purchase that policy gets anywhere from 5-18% of the annual premium you pay to the carrier every year. As a producer, under my contract, I get 60% of what the agency gets that first year and %40 every year after that the policy stays with us.

Now, you do the math... My average is right about 12% on every policy. On a $100,000 annual premium policy, the agency makes $12,000 every year. The year I sell it, I make $7,200 and continue to make $4,800 every year following that the policy stays with us. No, $100,000 annual premium policies are not the norm, but I do have about 7 or 8 of them. My bread and butter is with contractors, auto dealers, and small to middle market retail businesses with an average premium in that group being around $20,000 a year. Anymore information and I might as well show you guys my tax returns.

[quote=BankFC] [quote=My Inner Child]

Are $100,000 premiums, that pay 7.5% every year, pretty common for you? I spend about $6,000/year for the cars and house. I don't think my insurance guy is making $6750 off of my $6,000.

[/quote]


Sorry Inner Child, but I think it's you who needs to pull her foot out of her mouth.

If you sell something that pays you 750 basis points a year, please, do tell... 

Moron. 

[/quote]

I know of some indexed VA products that are paying anywhere from 8-10% first year com. I don't recommend them... but they are out there.

[quote=BankFC]

I know what you said, and I know what you meant...and they weren't the same.  The point is maybe you should read YOUR OWN posts before commenting about mine. 

[/quote]

WHat did I say and what did I mean,  young lady?

Man…there’s too much gender confusion going on around here.  A whole bunch of nagging women.  Sheesh.

Inner Child has gender confusion…he (I presume) is mad because I called him a girl.  Another sign of his insecurity.

[quote=BankFC]Inner Child has gender confusion...he (I presume) is mad because I called him a girl.  Another sign of his insecurity.[/quote]

I think the gender confusion is universal on this thread....everyone's a lady it seems.

It’s funny to see how most of these threads start off as a discussion, then gradually build and end with insults and name calling. Almost feels like I’m back in high school again.

[quote=insurproducer]It’s funny to see how most of these threads start off as a discussion, then gradually build and end with insults and name calling. Almost feels like I’m back in high school again.[/quote]

Kinda sad really.  I am going to make a concerted effort not to participate in such activity going forward.

Then again there are certain idiots who deserve to be called out…