Category: Roulette
My posting last week focused on the results of PriceMetrix’s annual report on retail advisors. It included a number of criteria by which advisors can compare themselves to their peers as a way of introspectively evaluating their businesses. (Click here to see that posting.)
To recap the major finding of the PriceMetrix study – 1) advisors are increasingly migrating their books of business from smaller accounts to larger accounts; 2) advisors are increasing the percentage of fee-based accounts in their books; and 3) the average fee on fee-based accounts has been trending slightly downward over the past few years.
The study also outlined a number of opportunities that PriceMetrix feels exist for advisors. I want to take a look at, and give you my thoughts on, each of these opportunities:
1) 30% of the typical advisor’s book of business is comprised of accounts that produce less than 0 in revenue. Opportunity/Action:Review your book of business carefully, and identify accounts that you can transition out. Set a relationship minimum fee, and let this fee guide you. Of course, exceptions will be made, and you will keep certain accounts – but transitioning whatever smaller accounts that you can out of your business will help you leverage your time.
2) New fee-based accounts are being opened at an 11% discount to current relationships. Opportunity/Action: Ask yourself if this is the case with your business as well. Perhaps it’s time that you reviewed your value proposition and the way in which you approach prospects and describe your business. Even though times are tough, clients will pay for premium service and performance. Are you worth a premium?
3) More than 100 basis points separate premium and discount fee pricers.Opportunity/Action: Similar to (2) above, analyze the way in which you conduct business, and determine how you can elevate yourself to be a premium provider if you are not one today (according to the statistics). If you are at the top of the heap – don’t be complacent. Use this as an opportunity to improve what you are doing so that your business does not become vulnerable to the competition.
4) 44% of households have only one account. Opportunity/Action: Review the questions that you typically ask clients about themselves and their families, and review your referral process. If clients are happy with you and the services that you are providing, they should be amenable to moving more assets to you, bringing in related and family accounts and making referring. But you have to ask. And then you have to help them articulate your value proposition.
Opportunities abound for those advisors that evaluate them and act upon them.
You have killed more criminals than you can count.
Downloadplex.com – Mobile/Games – New Releases
Take your social gaming to a completely new level with Pirates of the Caribbean!
Downloadplex.com – Mobile/Games – New Releases
Android Sudoku by Ed Burnette is an Android port of the classic Sudoku puzzle game.
Downloadplex.com – Mobile/Games – New Releases
Anvestor is massive multi-player business game with real finance world mechanisms implemented.
Downloadplex.com – Mobile/Games – New Releases
Air Hockey: EM is an air hockey game with some original new features (bonus and penalties like in mario kart) and 4 different AI opponents you can play against (they are: Ellis, Markov, Claudia, Tamsin).
Downloadplex.com – Mobile/Games – New Releases
The seemingly endless discussion of whether advisors at Merrill Lynch are benefiting from their marriage with Bank of America continues; the most recent war of words was sparked by Merrill Chief John Thiel, who defended the partnership after his predecessor made disparaging comments on the subject upon leaving the firm.
Bottom line? Band of America just doesn’t get it. Ever heard the expression perception is reality? Well, in this case the perception has been – and will likelihood continue to be – that the negatives of this relationship outweigh the positives – certainly from the perspective of many advisors who have always been loathe to be told what to sell.
This mentality among advisors is unlikely to change – so why fight it? I’m not saying that Merrill Lynch should stop trying to help advisors cross-sell so that they can deepen their client relationships. And I’m not saying that Merrill clients won’t benefit from the broad range of banking services that Bank of America offers. But management – why do you have to be so vocal about it? A little defensive, maybe? Why not just do what you are doing and allow advisors to utilize the services that they want when they want? If you build it they may come; if you force feed it they will not.
Advisors prize their independence, and the sanctity of the client relationship to many advisors is based on proving unbiased advise and services at all times. That’s not to say that many won’t use Bank of America banking products – they will if they feel that a particular offering is in their clients best interest and that the actions of the bank won’t cost them their client relationship. Anyone remember the debit fee fiasco a few months ago?
The latest evidence of Merrill’s continued misreading of the situation was a Fundfire ( A Financial Times Service) survey last week. 41% of respondents (many presumably Merrill advisors) said that while the acquisition was good for the bank, it has not been good for the brokerage or advisors. This was the most popular answer. The second most popular answer, given by 30% or respondents, was the even more negative choice that the merger has proved bad for both parties, and is a bad fit with no lasting benefits. And just this week, Investment News reported that over the past three months, seven of the ten largest advisors moving firms left Merrill for greener pastures.
Hey John Thiel – stop talking about the benefits and let nature take its course. You can’t win this one in the press – win it quietly!
Slide: Super Hero is a classic slide puzzle which features DC comics characters like Batman, Flash, Superman, Enigma, Booster Gold, The Joker, Green Lantern Corps and more.
Downloadplex.com – Mobile/Games – New Releases
A \”tower defense\” game with online rating system and hours of exciting gameplay
Downloadplex.com – Mobile/Games – New Releases
Navigate challenging levels, building and upgrading towers to create mazes that leave enemy creeps marching to their death
Downloadplex.com – Mobile/Games – New Releases