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Pain vs. Gain: Division Recruiting

From category Business Development
When selecting a broker-dealer, financial advisors will typically make a switch for one of two reasons: pain or gain.When selecting a broker-dealer, financial advisors will typically make a switch for one of two reasons: pain or gain.

Although the independent recruiting channel slowed in 2010, there are still an abundance of advisors around the country searching for the right fit. How do you target these advisors effectively, and how can you make your offer stand out? It is all about perception, and perception is reality. By using your broker-dealer’s available resources to “romance” your prospect, you can “court” those highly successful producers with an established book of business right into the arms of your firm.

Believe it or not, compensation is not the only factor when a prospect considers a new firm. There may be other variables that can sway their decision, such as firm reputation, distance, professional tone, office space and other minor but influential conveniences.

If you want to grow your Division but do not know where to start, consider soliciting assistance from your current broker-dealer.

Some broker-dealers, including NEXT Financial Group, Inc., have an established division recruiting program already set in place along with other valuable resources that can help reduce your marketing costs; such as up to 50 percent reimbursement for all approved recruiting efforts. The time and cost savings adds to the benefit, so your loss, if any, is minimal.

There are many different reasons why you want to expand your Division. You may want to find individuals that are similar or different than your own expertise.

Regardless of the reason, the first step should always be to develop a blueprint. The old adage states that ‘failing to plan is planning to fail,’ and it remains true even in today’s world. A solid plan does not have to be complicated, but it should list your goals. A plan can also help you pinpoint areas that may need improvement in case you suffer a setback or a delay.

Based on your plan, your next step is to have your broker-dealer generate qualified leads from a refined database filtered to your criteria. Once you have your list, there are different methods to reach your prospects.

Depending on your marketing budget, you may want to test more than one method and compare results.

Brian Grise, Vice-President of Business Development, NEXT Financial Group, Inc.

Brian Grise, Vice-President of Business Development, NEXT Financial Group, Inc.

No matter how in-depth your recruiting process is, your broker-dealer can help you every step of the way. They can help you verify FINRA history, credit reviews, product verification, book of business documentation and much more. Depending on the quality of your prospect, transition assistance may be available for you to use as a selling point.

Division recruiting is a great partnership that benefits both your organization and your broker-dealer. If you are interested in learning more about NEXT’s Division Recruiting Program, please call me at (877) 876-6398, ext. 4953.  If you are looking to grow your organization, I’d love to talk to you.

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