People seeking advice in our complex financial environment don’t expect any one advisor, agent, or planner to know it all. In fact, any single professional that holds one’s self out as a “one-stop-shop” is a bit suspect. No one can be an expert in everything these days.
That’s why forming a team of ethical financial service specialists makes sense and inspires confidence in clients. Studies show that while fees and commissions may be shared among a team, overall production increases.
According to a recently released study by management consulting firm McKinsey & Co. and LIMRA, an industry-funded research group, the most productive advisers are those that utilize this “best practice” in one form or another. The findings showed that advisors who team up regularly with other advisers have the potential to
- Increase their individual annual production by 15%,
- Those that target specific client segments can boost their annual productivity by 13%,
- Teams that create formal retirement plans for their clients experienced a 5% productivity growth,
- Increasing their knowledge of client life events can increase productivity by 3.5%.
Employing all four best practices can increase advisor productivity by more than 30%.