How Fee Based Financial Planners Can Break Through The Invisible Ceiling That Is Holding Them Hostage!



Can your financial planning business thrive without you?  I mean really – WITHOUT YOU.

Ouch, that hurts.  I know the feeling.  You need to show up each day, otherwise your business revenue will suffer.  It’s that harsh reality that opens most financial planners eyes to the difference between creating a business and creating a job.

I would say that 99% (if not more) of the financial advisory businesses in the world today who’s revenues are less than $1M a year fall victim to the same harsh reality.  If the key business owner stopped showing up, the business would quickly run into the red – and then die.  They created a business that is so reliant on them, that any event that requires the key planner to step away from the business for over a month, causes a huge negative impact on their profitability.

And, the longer you stay in business, the worse the problem gets.  I know, I’ve been there.

Then, you hit what a mentor of mine (Dan Sullivan) calls “the ceiling of complexity” or as John Warrillow calls it “the ceiling of control”.  Two terms that mean essentially the same thing.  You can’t grow.

It is a very frustrating place to be.  And, it can last for years.  You begin to exist in a place of “going nowhere”.

Fatigue begins to set in.  Your zest for what you do begins to wane.  The new and exciting cases you used to look forward to become an extra burden because the more work you get, the more work there is for you to do and the less time you’re going to have for other, really important things.  Like your family and friends.

It seems illogical, but is very real.

Growth has always been possible through a process of  adding new products and services to your practice.  If you were a mutual fund salesperson, you got insurance licensed.  If you were on the insurance side of the business, you got your investment license.  If you were already dual-licensed, you got your Certified Financial Planner license.  All in an effort to build your business.  But, in actual fact, you just made things more complicated.

You added more compliance problems.  You had to learn about the ever changing new products that came with your new license.  You have just trapped yourself.  You have hit the invisible ceiling.

So, what’s the answer?

Although you sometimes feel like locking the doors to your business at night and just walking away from the challenges, it is worth the effort to make it right again.  Making it right will make it fun again.

The answer is simple, yet complex at the same time.  The answer is to move to a fee-based financial planning model and outsource what you don’t absolutely love to do.

Here is a brief listing of the specialists I outsource to:

  • life insurance
  • living benefits insurance
  • group benefits
  • mortgages
  • investment counseling / portfolio management
  • executive compensation arrangements
  • private health service plans
  • financial plan review meetings

What this does is it allows you to offer everything and more of what you used to offer but not overburden yourself with the extra time and effort it takes to properly deal with each specialty.

I charge an annual fee to a new client to work with my firm and my team of specialists.  They can’t find this team anywhere else.  My overhead is kept to a minimum as I’m not adding to my payroll.  My revenue goes up and is more diversified as a result of the revenue generated from my team of specialists.

Put this into practice and you will find you will blast through your invisible ceiling, your revenues will increase and your passion will be reignited.  And, you’ll be able to command a much higher multiple for you business, should you ever wish to sell it.

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