How to Beat Your Competition as a Small Business Owner or Service Professional

Do It Yourself PR Tips

Based on a question I received on an association discussion board, I thought I would share this information here as well. The question was essentially: how can IFAs can post news releases online "for journalists to 'pick up'" and/or target specific media outlets and journalists.


D-Y-I STEPS USING THE WORLD WIDE WEB / BUILDING AN ONLINE PRESENCE

There are many different vendors that offer online news release distribution / posting services. Some are free. Some are low cost. Some are pricey. There's some wisdom to the old adage, "you get what you pay for."

Most of the online free and low cost options, such as http://www.prweb.com, are meant to be online visibility tools. In my experience, most "real journalists" don't pay much attention to online postings and RSS feeds from services like PR Web. The real value of something like PR Web is that you can create an online news room and bank of permanent online news releases. This can boost search engine ratings and create happy "just stumbled upon your news release online" type of business results.

Other free services (some with a premium / paid upgrade option) include:

24-7PressRelease.com – Free release distribution with ad-support

1888PressRelease.com – Free distribution, paid services gives you better placement and permanent archiving.

ClickPress.com – Distributs to sites like Google News and Topix.net, Gold level will also get you to sites like LexisNexis.

EcommWire.com – Focuses on ecommerece and requires you include an image, 3 keywords and links.

Express-Press-Release.com – Free distribution company with offices in 12 states.

Free-Press-Release.com – Easy press release distribution for free, more features for paid accounts.

Free-Press-Release-Center.info – Distributes your release, offers a web page with one keyword link to your site. Pro upgrade will give you three links, permanent archiving and more.

I-Newswire.com – Allows for free distribution to sites and search engines, premium membership differs only slightly in adding in graphics.

NewswireToday.com – All the usual free distribution tools, premium service includes logo, product picture and more.

PR.com – Not only will they distribute your press releases, but you can also set up a full company profile.

PR9.net – Ad supported press distribution site.

PR-Inside.com – European-based free press release distribution site.

PRBuzz.com – Completely free distribution to search engines, news sites, and blogs.

PRCompass.com – Distribute your press release with a free or paid version, others can vote it up ala Digg (Digg) style.

PRUrgent.com – Not only distributes your release, but attempts to teach you how to write one, and even offers downloadbale samples for you to work with.

Press-Base.com – Submit your release for free and get on their front page and the category of your choice.

PressAbout.com – A free press release service formatted as a blog.

PressMethod.com – Free press release distribution no matter what, but extra services based on the size of your contribution.

PRLeap.com – Free distribution to search engines, newswires, and RSS feeds. Fee based bumps get you better placement.

PRLog.org – Free distribution to Google News and other other search engines.

TheOpenPress.com – Gives free distribution for plain formatted releases, fees for HTML-coded releases.


IF YOU WANT BETTER RESULTS, YOU'LL NEED PROFESSIONAL HELP ...

If an organization or individual had a more specific goal of getting a news release in front of a select group of journalists, the best options are to work with a professional PR firm.

Working with a professional PR firm has the following advantages:

1. Relationships with real journalists. Any good PR firm will have cultivated and will constantly be cultivating relationships with a targeted group of media outlets and specific journalists.

2. Access to comprehensive media databases. Any good PR firm will subscribe to a media database so that they can quickly build targeted media distribution lists and glean specific pitching tips for specific journalists. For instance, at my firm, we subscribe to Media Atlas / PR Newswire.

3. Proprietary media lists. Any good PR firm will have developed their own proprietary distribution lists. They won't share this information with you at any cost.

4. Insights about when to use a news release, when to do a virtual or in-person media tour, when to do email or phone pitching, mass blasts or personal outreach, etc.

5. Strong ability to write a compelling news release that will get the attention of the targeted media list or news wire service.

6. Insights on when to use direct distribution to their proprietary list versus a news wire service versus a satellite feed (or a combination thereof).

- Most PR firms use a professional news wire service to supplement their direct email and fax distributions -- for instance BusinessWire or PRNewsWire. We use PRNewsWire and can thus target specific media distribution areas in the US, select the entire US, or opt for global distribution.

- A professionally written news release put out on a good news wire service will get picked up by news aggregation sites such as Yahoo! news, Google news, etc. and various online publications such as Forbes.com, Marketwatch.com, MSNMoney.com, etc. Real journalists watch and search these sites for items of interest and resources that pertain to their "beat." In addition, there is a credibility factor that occurs when a company/advisor links to what looks like a "news article" on a credible outlet such as Forbes.com versus

- Sometimes PR firms will also use an Associated Press satellite feed to ensure it goes right into media outlets and has a higher chance of hitting editors/producers desks.

7. Integration of Web 2.0 and viral marketing strategies with traditional PR tactics.

- For instance, submitting a news release in the most appropriate way(s) as described above. Then finding the top 10 bloggers on the topic and sending them an e-mail, linking to the release somewhere it was published.

- Another example: Blogging, tweeting, participating on social and business networking sites like Facebook, various Ning and/or subscriber-based communities, LinkedIn, etc.

- One last example: Using multi-media news releases and/or an electronic media blitz.

8. Ability track and measure results.

More tips and insights on why PR should be a big part of every independent financial advisor's marketing plan is available here:

www.impactcommunications.org - check the Advisor Resources tab and the In the News tab, which houses almost all of the past articles I've written.

WHAT TO DO IF YOU CAN'T AFFORD TO WORK WITH A PROFESSIONAL PR FIRM ...

1. Get some media training. If you are a member of FPA, NAPFA, IAFSCA, GPN or other professional associations you are probably offered live and virtual media training opportunities. Another option is Media Mastery University: http://tinyurl.com/cxqvje.

2. Practice small before you leap large. Talk to peers about what they have done and how they have been successful. Get into a PR Training and Empowerment group lead by a PR professional.

3. Build one success on another on another on another. Leverage your media successes so that you to become a "slightly famous" planner with your clients and strategic partners. Enjoy the crebility and take the next step as you improve your media skills (e.g., go from a local newspaper bylined column or TV appearances to national outlets and TV appearances, write a white paper then a book, etc.)

AdvisorPod - Fast, Fun and Informative Practice Management Tips for Financial Advisors

Since it's recent launch, AdvisorPod.com has provided podcasts and tools to hundreds of subscribers. Check out a few of the latest podcasts available:

- Client Segmentation and Analysis,
- Structuring Your Client Communications
- The Number One Non-Investment Service

AdvisorPod.com is an exciting new podcast subscription service for financial services professionals that provides relevant best practices for running an efficient, profitable and enjoyable practice.Advisorpod podcasts have been featured as "New and Notable" in the Podcasts/ Business/Management & Marketing section of iTunes. Find out why!

Tips for Controlling Costs in Recession

Small Businesses Struggle to Remain Competitive in the Recession: Financial Advisors Offer Tips for Controlling Costs

From corporate board rooms to the kitchen table, Americans are at work cutting the fat from over-extended budgets. This switch into survival mode is equally imperative in the small business arena where tight credit and the nation's newly adopted frugality have combined to create unprecedented financial challenges.

Listen to this helpful podcast now.

Financial Planning Gets Personal

Just wondering what the financial planning community thinks about some of the concerns posed in this article:

Financial Planning Gets Personal

More financial advisers are moving beyond money matters and playing counselor with their clients. Not everyone thinks that's a good idea.

http://www.smartmoney.com/investing/stocks/financial-planning-gets-personal

Please "comment" here in this blog. Should consumers be wary if their financial planner takes a more personal approach? What types of "best practices" to you embrace?

Bob Lindner on Managed Futures and Contemporary Portfolio Management

Guest Contribution from Dr. Edward A. Jacobson

Dr. Edward A. Jacobson is one of the most thoughtful and inspiring coaches I know. His insights and approach continually impress me.

This morning - as I was (once again) working the weekend shift to catch up with past due work - I took the time to slowly read and reflect on Ed's emailed communication below.

I hope you will slowly read and reflect in it too.

This Appreciative Hour
By Edward A. Jacobson, Ph.D.
August 13, 2009

© 2009 Edward Jacobson, Ph.D.

Highlights of the 8-13-09 Open Mic Call

A pleasant, meandering, yet substantial OM hour: just the kind of swinging-in-a-hammock time that you might spend on a steamy, August, Dog Day afternoon. We meditated for one minute to center ourselves, recalled summer High Points, said what we feel proud about as we looked back on The Year of Living Dangerously, listened to my recollections of NexGen in Moline and Garrett Planning Network Retreat in KC, and used a "Clearness Committee" to address a planner's dilemma about his next career move. That's quite a lot, actually.

Get the story below, and then read "Ed's Further Reflections" on the benefits of being in community. It takes a village, you know, to raise and support a planner.

NOTE: Open Mic will be on vacation until September 2nd, 2009. Catch the next Open Mic on Wednesday, September 2nd, Noon eastern. Call 1-219-509-8322, passcode 202779#. It's free and we always have a good conversation.

The Path of Appreciation and Positivity© group

Thank you for your response to my Department of Shameless Self-Promotion notices about the Path group. The September group is full, but if you're interested in the next one (which could begin before end of the year), let me know and I'll send info.

August 13 Open Mic Re-cap

Centering Practice: I created an impromptu meditation by focusing and building on strengths (areas of the body which are already relaxed and spacious), rather than fixing what's "broken" (trying directly to relax the tight, tense areas). I invited participants to make themselves comfortable (feet on floor, hand off computer mouse, eyes closed), and:

"Take a series of natural breaths; just let the breath enter your nose, go through the lungs and into the belly, and then out. Repeat this rhythm: in-breath, out-breath.

As you continue with this rhythm, locate an area in your body which is relaxed and calm. Focus on this area, get to know the sensations of calm and relaxation, and enjoy them.

As you do so, allow the area of relaxation and calm to expand slowly outward to other areas of your body. Enjoy watching this area spread outward, like ripples on a pond, til the sensation occupies your entire body.

If you encounter areas which remain tight, let them be, and watch the rest of the body slowly relax. The tight areas will catch up, at their own pace."

Several commented on how quickly they relaxed (and how beneficial, given how focused they have been on project deadlines).

I beat my usual drum about the value of such "One-Minute Drills" before (or between) appointments. From a business-case perspective, it allows us to bring our entire self to the conversation -- and our clients and collaborators have every right to expect our full presence. From a personal perspective, it allows the interaction to be more enjoyable and fuller, and allows us to use our creativity and skills more completely. It's a true Win-All-Around, but one that we often don't avail ourselves of. What can you do today, to give yourself a One-Minute-Drill between appointments?

"What's been a High Point of your summer, thus far?"

Several participants cited their summer high points, including: a recent, overdue Mexican vacation; a week on a windjammer in New England, during which a participant became an expert in photographing through fog (making lemons from lemonade, as it were); a weekend-with-wife-minus-the-kids in the Smokies (including seeing a rattlesnake up close, but not too personal); and finally getting a study group of six planners together in person, following NexGen in Moline.

I offered my own summer high point, feeling a little awkward at its lack of grandeur; it took place on the morning of the Open Mic, and consisted simply of our street's getting paved. Here's the back story: beginning on April 17 our street has been subject to an occupying army of construction equipment, piles of new water and sewer pipes, guys (and one woman) in bright yellow shirts, and a seven-foot berm of dirt spanning the entire length of our block. It got pretty old, long about July 10. Then suddenly -- in a matter of three hours -- a beautiful new street, and the occupiers and their materiel were gone! You could hear the denizens of Fox Avenue heave a collective sigh of relief: Aaaaahhhhhhhhhhhhhhhhh.

What's one thing you've done that you're proud of, in handling an aspect of your business or your personal life during this past year?"

• One participant's pride in facilitating the NexGen gathering in Moline. (Her pride is justified. I was there, shared some of the facilitation, and watched her do a wonderful job.)

• For another participant, it was the Art of Hosting event in Gold Lake six weeks before, as a great way to be immersed in important conversations. He was one of four planners who birthed the event, and so any pride he might feel in that role is fully justified, in my eyes.

• A planner offered his tale of adversity and resilience. "I let go my planner during the downturn, which led me to be closer to the 'actual work,' and got me more involved and directly accountable to the clients... It's been a blessing. My three biggest clients have all come in this year, far and away bigger than anything before. It must have something to do with how I am holding myself out." Since I know that he reads these Recaps, I'll take this opportunity to ask him a question: "Can you ask each of these clients, at the right time, their decision to retain you was based upon? It could be very informative, and could set the stage for you to request that they refer 'people like you, who I so enjoy serving.' "

• A fourth person noted his successful completion of the 18-month journey to become a Certified Life Coach. (Bravo, Sam!)

• Another planner noted, with pride, that he had actually taken a lunch break on a recent workday, for the first time in five or six years. (He must have been famished by the time he lunched, after all that time going without!) He sat under a large tree, ate his sandwich, and read a book: a rare indulgence for him, and one which I hope he will repeat often -- perhaps daily.

"Any Burning Questions?"

A planner has been on the fence about staying with his current firm, saying that "Clearly, I'm not in the right environment as a planner. What can I do to change my situation?" He feels somewhat 'trapped' by a comfortable level of salary and benefits, and would like to make a gradual transition to a new environment, rather than "jumping off the cliff" (his phrase). He would like an environment which supports his personal mission, "to help people live their lives on purpose."

Given the short amount of time available to us, and the complexity of his situation (which I have some knowledge of, from prior conversations), I explained the "Clearness Committee" process (which you may recall from a recent Open Mic recap) and offered him that option. He was game, and we offered him the following questions for his reflection. (Note that sometimes the Clearness Committee has the person respond to each question and sometimes, as in the Open Mic examples, the Qs are offered for internal consumption).

Clearness Committee Questions:

1. "What would be your ideal work week, when you're doing work you are meant to do?"

2. "What is your idea of 'comfortable'? What's that about?"

3. "How else might your life have to change, in order for you to have the desired focus of your work?"

4. "What's working well in your current life, that you want to keep in the act? What's working not-so-well, that you'd be up for trading in?"

5. "If you could put your fears in a leak-proof box so they wouldn't influence you, what would you then be free to do?"

6. "What are the specific fears?" (Someone added, "You can name each as you put it in the box.")

7. "What would you do, if you knew you couldn't fail at it?"

8. "What would be your advice to someone in your situation?"

9. "What's your objection to being uncomfortable?" (i.e., "You seem afraid to venture out past your comfort zone. Could you look at that fear more closely?")

10. "What question have we not asked you, that you want to ask?"

11. "What would someone who is fearless do in your situation?"

Following our question-asking, our planner-with-a-dilemma said that all the questions seem useful, adding that "some made me uncomfortable - not knowing the answer." In particular, some Qs introduced new thoughts and perspectives: "What's working well? What would I trade in?" "What's my thing about 'comfort' about?" Sounds like a typical Clearness Committee process, in which some questions penetrate more deeply (at first) than others. I urged him to let the questions work their magic with him, and see where it takes him.

One-word Checkouts: I asked participants to volunteer a one word description of how today's Open Mic was for them. Here's what came out:

"beautiful"
"challenging"
"curious"
"enlightening"
"calming, curious, fruitful"


Ed's Further Reflections: It Takes a Village (to Raise a Planner)

This has been a summer of bountiful community for me. First there was the Art of Hosting event in Gold Lake, CO at the end of June. Then there was the NexGen gathering in Moline several weekends ago, followed by the Garrett Planning Network Retreat in KC the next weekend. (There's also Open Mic, a kind of revolving community conversation with a shifting group composition every time.) Each setting was very different in some respects, yet with much in common, especially in the gifts they confer and some of the factors behind those gifts. This "veritable plethora" (to quote the late Howard Cosell) of community involvement has prompted me to reflect on (a) how important it is for each of us to have our own communities (I use the plural intentionally) to support our sanity, our personal and occupational effectiveness, and our continued development, and (b) how the lack of appropriate, supportive communities puts us at risk, both personally and professionally.

I have noticed some themes across these community gatherings. One is the degree of exhaustion and stress that attendees expressed at the beginning of each event. This was most pronounced and frequent during the initial months of Open Mic (which began on January 6). I heard the exhaustion theme at each of the other events, as planners came together to share experiences, raise questions and issues, move towards innovative answers -- and mainly commune, commiserate, and celebrate together. As each of these events has unfolded, the fatigue dissipated, often replaced with raucous laughter and joy; inevitably, creativity replaced stuckness. That has been my own experience as well, during these events. I have experienced a sense of renewed excitement, commitment, and engagement in my work, as each community event wound its way to a satisfying conclusion. "I have to (do X)" has been replaced by "I get to do X...and I can't wait!" I sense a similar outcome in other attendees, if our prolific email exchanges are a reliable gauge.

What makes my own experience of NexGen and the Garrett Retreat so striking is that in each event, I was in a facilitator, presenter, and/or workshop leader role - and I still reaped the same benefits as "real" community members did. Apparently it's contagious, which is very good news.

If, as I suspect, this summer's community gatherings are a fair sample, there's a similar recipe that leads to gratifying and often surprising outcomes. In each instance, the ingredients of (a) good will, (b) shared purpose in gathering together, (c) a skilled and experienced facilitator team, (d) a willingness to suspend judgment, and (e) allowing "answers" to arise at their own pace, result in a profound sense of connection between people, a renewed sense of individual and group purpose, a shared feeling that the world makes more sense and is more navigable, and a sense of being deeply replenished and newly fortified for the road ahead.

There was something else remarkable, especially at NexGen and the Garrett Retreat. In each of these two events, most of the attendees knew each other from prior meetings and hadn't seen each other since the last gathering. There was a palpable sense of sheer happiness and joy in each other's company, as though everyone had been waiting the entire year to re-convene, share stories of what a long strange trip it's been (thank you for the lyric, Grateful Dead), and celebrate that they'd all made it through. It was the adult version of kids frolicking with their favorite playmates in the park, and it was lovely to behold.

In terms of specific future directions, one stands out for me. There was a lot of talk about forming "accountability partnerships" between pairs or groups of people. I love the idea, though I think it's mislabeled. Perhaps they should be called something else, such as mutual support groups, because "holding each other accountable" can be best done in context of mutual respect, understanding, and caringly offering information, advice, and feedback. Only in such circumstances do we earn the right to "hold each other accountable." Without such a context, accountability becomes a feared obligation which stifles rather than promotes growth. As for myself, I've become involved in several such mutual support groupings following these gatherings, and I feel energized and excited about their prospects for all of us.

I hope my musings about community provide a useful backdrop for me to pose several questions for you to ponder, about your own communities:

• What kinds of communities have seen you through this past year? Family? Friends? A church group? A study group? An accountability partnership? Other forms of community?

• What have been your best experiences in community, prior to this last year? What kinds of lasting effects have they had, for you?

• What, if anything, has been missing for you this year, in your array of communities? What has been the cost to you, of not having what you have needed? How can you fill that gap?

• With summer winding down, and as you think about the year ahead: what are your needs for being in community, and how can you get these important needs met?

Once you answer these questions for yourself - especially the last one - I hope you'll go for it.

Appreciatively, Ed

Ed Jacobson, Ph.D.
Author of Appreciative Moments

Need an engaging speaker for your event? A skilled guide for a staff retreat, client appreciation event, or family meeting? Ready to join a group on The Path of Appreciation™? If so, please contact me to discuss the possibilities, or visit www.edwardjacobson.com.

2133 Fox Avenue
Madison, WI. 53711

(p) 608-274-9004
(f) 608-274-7695

LinkedIn? Twitter? Social Networking Tips for Advisors

I was happy to be a guest on Ed Klink's blogtalk radio show, sponsored by Horsesmouth, June 18, 2009. My segment is at the top of the second hour of his three hour show.

Click PLAY (the right-arrow) on the audio player controls below and it will queue right up for you. I'm on for a full hour.


LinkedIn? Twitter? Social Networking Tips for Advisors

Click here to download…

What is Twitter - and Why Should You Care?

If you haven’t heard of twitter, it’s a new “micro-blogging” platform that’s currently experiencing exponential growth. Micro-bloging means that your updates are limited to just 140 characters, so it’s more of a quick status update than a blog post.

Forget the technology, forget the weird terminology, forget the iphone applications. Twitter is just another way to keep in touch and build relationships.

And Twitter is one of the most convenient, easy, and FUN ways to make new friends and keep in touch with old ones.

Have you ever wanted to stay in touch with someone but weren’t sure exactly how to do so? You know what I mean, that “just wanted to say hi!” email or searching desperately for some kind of article that they would be interested in but haven’t seen already just for an excuse to touch base with them.

Twitter is THE solution for keeping in touch with thousands of people at once, and building authentic relationships at the same time.

So how does this all relate to business? First of all, people do business with those that they know, like, and trust. This will always be true and we’re lucky to be living an age where it’s easier than ever to build genuine rapport will people all over the world. Once people have gotten to know you via twitter, the transition to a business relationship is effortless. And the opportunity for collaboration with other entrepreneurs is huge.

If you’ve been scared or confused by twitter I want encourage you to give it a try.

You can start by following these entities on Twitter:

* http://www.twitter.com/t3fan
* http://www.twitter.com/edjacobson
* http://www.twitter.com/brettellen
* http://www.twitter.com/kinderinstitute
* http://www.twitter.com/markmagnacca
* http://www.twitter.com/marieswift

Check out who they are following to find more people to follow. I can guarantee that you will be surprised by how many people you know are already on Twitter!

Take your mind off the new technology, and instead put yourself in the mindset that you’re just at a big old party making friends. It's a great way to build buzz about yourself and the things that are important to you and your firm, too.

TIP
Before you post a "tweet" to tell your followers what you are doing, think about why they should care. Then post something that positions you as an interesting business professional doing fun and worthwhile things in the world.

Have fun - but think before you post! Make every tweet count...

Scenes from the Tiburon CEO Summit XVI in NYC - April 2009

I had the pleasure of chairing the semi-annual meeting of Tiburon Strategic Advisors' Consulting Fellows program in Manhattan, April 2009. Here's a look at one of the dinner gatherings. I was also honored to manage a portion of the onsite media relations efforts for the Tiburon CEO Summit XVI.

Time to Transition to Independence

With everything going on in the economy and the state of the financial services industry, is now the right time to make a transition to an independent business model? Whether you choose to affiliate with an established branch or build your own independent office, the benefits of independence may be more relevant than ever.

Listen to Is Now the Time to Go Independent?

Virtual roundtable with independent advisors Arthur Cooper, Bill Glubiak, Clyde Wyatt, Don Patrick and Kathy Goss

This podcast will let you hear what it really means to be independent – and provide information that can help you decide whether it's right for you.

Also ... Download the Going Independent Quiz! How do you rate?

So What? How to Communicate What Really Matters to Your Audience

If you’ve ever wondered why some advisors land their messages every time and consistently get better results than their peers, it’s due to this: They have refined their ability to listen for what their clients, prospects, staff members and strategic partners want. They have internalized this vital skill – it’s second nature to them.

It’s second nature to Mark Magnacca. Mark is a professional motivator, consultant and speaker who develops training programs and presentations for the financial services industry. A few years back, I heard him deliver his speech, The Product is You!, based on his first book by the same name, at a conference. Mark’s enthusiasm was contagious as he shared key concepts from his Results Accelerator Program, including how to develop, internalize and use a well-crafted positioning statement.

In January 2009, Mark sent me a copy of the manuscript for his second book, So What? How to Communicate What Really Matters to Your Audience. This book is a terrific resource for financial advisors.

In a subsequent conversation, I asked Mark to tell me about his motivations for writing the book and to give me his current thinking on surviving and thriving in tough times.

See and hear what Mark told me:

So What?
An interview with Mark Magnacca
Published in Garrett News and Views
Marketing Minute with Marie Swift






Listen to this Best Practices podcast:
So What?
An interview with Mark Magnacca

Read this article published by MorningStar Advisor:
Finding a Hook to Client Communications

Conquer Market Woes with Technology

This year's Technology Tools for Today (“T3”) Conference, put on by Virtual Office News in February, offered advisors guidance on how to use technology to deal with the economic crisis.

Since I attended the conference, I decided to write about it and share the high points. Here's my first article, published by Financial Advisor magazine on March 12, 2009:

http://www.fa-mag.com/online-extras/3952-conquering-your-market-woes-with-technolog.html

You can watch Video Interviews and glean other great information at www.t3Conference.blogspot.com.

Purposeful Planning System Helps Advisors Generate New Income Streams, Enhances Client Communication Skills and Legacy Planning

Barb Culver is offering a number of FREE webinars that will walk you through the layers of the Purposeful Planning Pyramid and/or introduce the Post-transition Planning Process.

Dates are ever evolving ... and seats fill up fast!
Reserve your seat now.

Also - don't miss this podcast!!

Listen to industry veteran Barb Culver as she shares how advisors can generate new revenue AND create meaningful legacies for their clients through the Purposeful Planning System:







Click the PODCAST graphic or this link below to listen:
http://prwebpodcast.com/releases/pod2199064.htm


Read Barb's comments in Financial Planning magazine:
http://www.financial-planning.com/fp_issues/2009_3/what-works-now2661118-1.html

Learn more about the Masters Level Intensive and Purposeful Planning at www.Purposeful-Planning.com.

Going Independent - Interview Transcript (Brackett, Hubbard, Chiara, Swift)

Marie: Hello and welcome to “Best Practices in the Financial Services Industry.” Today is December 22^nd, 2010 and you are joining me, your host, Marie Swift.  I have with me today three accomplished people in the financial services industry, and we’re going to be talking about “Going Independent, Things to Consider Before Making the Move.”

So let me introduce our guests today.We have three individuals with Financial Network, one of the largest independent broker/dealers in the United States.

John Bracket  |  Dave Hubbard  |  Cheryl Chiara

Listen to the 22 minute podcast instead of reading the transcript!

First we have John Bracket. John is a partner at Bar Financial, LLC. He’s based in Pleasant Hill, California just outside of San Francisco although Bar Financial is a national firm with offices across the country. As a regional director for Financial Network, John leads one of the largest regions with over five hundred representatives.

Next is Dave Hubbard, president of Exemplar Financial Network, located in Crystal Lake, Illinois just outside of Chicago. Now Dave is also a regional director with Financial Network and has over two hundred representatives in his region. Dave has also been recognized by On Wall Street magazine as one of the top branch managers in the nation, and there are offices throughout the Midwest under the Exemplar Financial Network name.

Cheryl Chiara is senior vice president and head of sales and business development for Financial Network at the corporate office in El Segundo, California. So welcome everyone and let’s get started.

You know, I’ve been doing a lot of speaking and writing in the industry and it’s no surprise that we’re here today talking about going independent and the things to consider before making the move. Due to all of the scandals on Wall Street, the big brand wire house names, the big brand name banks; they’ve experienced the slow leak and an erosion of trust. Tiburon Strategic Advisors do a lot of research in and around the industry and their research shows that the big brands are not gaining market share as rapidly as the independents are. In fact, they are showing that advisors affiliated with independent broker/dealers are growing. Their assets are growing at 14% annually on average ever since 1995, where the best estimate for growth for wire house assets is about 9% per year. We are seeing a slow leak from the wire houses and a movement toward independence.

Bob Veres who is also one of the leading prognosticators and visionaries in our industry says that that slow leak will continue and that independent advisors are well positioned to gain market share. In fact he says that there is evidence that more Americans will seek the advice of a financial advisor in the next 10 years than in any previous decade and that the next decade could offer the greatest marketing opportunity in the short history of the profession. Bob has written this white paper on the future of the profession and he talks about this dramatic increase of the number of clients who are going to be seeking an independent advisor.

So I’m very pleased that we have John and Dave and Cheryl here today to talk about what they have learned over the course of their careers working with and helping independents grow their business and also transition from more of a captive environment to an independent environment.

John, I would like to pose the first question to you. If you could just give us some of the high level points to consider when thinking of starting an independent advisory practice in order to optimize the opportunity for success.

John: Thanks Marie. At Bar Financial we have the advisors focus on what we perceive to be the two most important areas before they make the decision of whether to go independent or not. One of the most important things is to consider why. Why is the advisor considering going independent?

Second, is what will the advisor be giving up in both perceived and actual hurdles of obstruction?

The first area to think about is why. In the why, the answer generally is control. What does the word control mean? In the area of advising clients, control is the direction that the advisor is going to take for the client, the products that the advisor is going to use with the client, and the cost structure of how that advisor is going to bill for their time. In that last point, what we find at Bar Financial is one of the most troubling areas for an advisor. How much is the advisor worth? Typically, through that advisor’s career, some outside entity, whether it was the brokerage firm, the insurance company, or the mutual fund company have told the advisor what they are worth. We spend a tremendous amount of time at Bar Financial helping the advisor put that schedule together.

The last thing they consider as to the why, is the ownership and the legacy of their business. Typically what we find is that the advisor wants to own. The term you hear is controlled destiny. What we like to infuse into the thought process is the legacy of their business and what happens after that advisor reaches retirement and what happens with the business at that point; whether it transfers to another advisor, maybe it is a spouse, maybe it is a child of the advisor that has come into the business and now has reached the position where they are prepared to give financial advice to clients.

The perception of the hurdles that have to be considered are things such as the name that they will be giving up. Most of the time, the advisors believe that because they are using the big brand name, that’s why the clients are coming to them. In reality, the clients have chosen that advisor because they feel that advisor is most linked with them in the thought process as to how to reach goals.

The next is the cost and the cost is factored around many items, such as what kind of contract does that advisor presently have? Was there retention money paid to that advisor at the firm that they are presently at? What does rent cost? What does a phone system cost? How about support staff? So at Bar Financial we sit down with the advisor and discuss with them why they are doing it, where they are trying to go and how they’re going to get there.

Marie: So Dave, it can be pretty scary to jump off the luxury liner and start rowing in a boat all alone. What are some of the options for someone starting their own advisory practice?

Dave: Marie, you’re absolutely right. There can be a scary process and let me add that I agree with everything that John Bracket just said. I’ve been independent for 25 years.  The first five years I was in this business, I did work for a captive firm and in those 25 years I’ve learned a lot.  What I find is that a lot of the advisors I’ve talked to over the years about going independent, and I’ve talked to hundreds and hundreds of them, is that they don’t know what they don’t know.  And that’s a problem.  They decide they want to go independent, they want to run their own business, they want to control their own destiny and quite often, they don’t even know the questions to ask.  So they tend to seek out who is advertising in the magazines, who are the leading independent firms, who have the highest payout.  They pick up the phone, they call them and get their recorded materials and then they start to learn about what it’s going to be like to be independent.

Most of the big firms in our industry have a home office somewhere and all of the advisors are scattered across the country and they deal with that home office on a long distance basis.  And for some people, that’s fine.  They make their own way, they learn as they go, they don’t mind making a lot of mistakes, but at the end of the day, they are typically a little fish in a great big ocean.  Here at Financial Network, the one thing that I like, that brought me to Financial Network and has allowed me to grow our organization of about 200 advisors is that we’re really not a little fish in a big pond.  Financial Network is one of the largest broker/dealers in the country but it is divided up into regions and so John and I are two of thirty regions where we are really the in-between point, helping those advisors that want to be independent but they don’t want to be alone.  So we can act as their tour guide.  We can help them and counsel them on what it’s going to take to be an independent, to transition their business.  We have a staff at Exemplar that holds them by the hand and will help them through every step of the transition process for the first 6 months to a year and after that, we have a staff that is there at their beck and call to help them as crisis come up in their practice, or they need knowledge or education and I think that’s very important.  If someone is going to go independent, it’s like any other business.  If you decide you want to open up a hamburger stand, you can put your own name out there and be Joe Smith’s Hamburgers, or you can go with one of the big franchises and they will lead you by the hand and show you exactly what you ought to do to be a success in business.  Statistics show that those businesses that have a guide, that have somebody that will show them the way, will be far more successful.  So that’s what we try to do at Exemplar Financial Network is to be their guide and to help them in making their business decisions.

Quite often the advisor that wants to go independent is shopping firms and they get fixated on the payout.  What’s the payout?  What’s the payout?  Perhaps they felt they weren’t being paid enough at the wire house.  We try to focus them on not what the payout is, but who is going to be the firm that is going to provide them with the most amount of dollars, net after tax, for them and their family so they can achieve their own personal financial goals as well as growing their business.  You can’t spend a payout percentage, you can only spend dollars.  So once we get the advisor thinking about that, we then have them talk about their business and their goals.  And by the way, Financial Network is one of the highest payout firms in the country so we’re not talking about taking less payout, but it’s focusing on the right things where dollars will be spent.

At Exemplar Financial Network, we want to be our advisors’ partner; that their success will be our success.  So we’ll sit with them, we’ll help them with their marketing plan, we’ll help them with their business plan, we’ll talk about where they want to be in two years, in five years, in ten years down the road.  We’ll talk about, as John mentioned, what about their ultimate transition out of the business or transition to successors.  If they have children, that might be one game plan.  If they have junior partners, that’s another game plan.  Or perhaps they don’t even have junior partners, so right now we are working with half a dozen of our advisors that have said, “Hey Dave, I want to transition out of the business at some point in the next 3, 5, 10 years.  Can you help me get a junior partner?”  So we’re able to do the interviewing, deliver them people to talk to, hopefully make that fit and we’ve done that dozens of times in the past to help our advisors have a smooth transition as they leave the business.

The important thing to remember here is that not all independent practices are alike.  Each advisor is going to want to do things a certain way.  I think it’s good for them to have somebody that can help them avoid the pitfalls.  Quite often that’s our value, that we help them to avoid mistakes and some of those mistakes can be quite costly.  We can also be a voice for them, and both John and I have served on committees at Financial Network and voiced our concerns to management and made sure that the broker/dealer is in fact delivering a set of services to the independent advisor that will be beneficial to their practice.  We can help keep the ivory tower thinking away.  And we find that as we’ve talked with a lot of the advisors that are leaving the big brand name firms, that’s one of the things that’s frustrated them.  They don’t feel they have a voice in management; that management will make a decision that will be adverse to their business and they are just stuck with it.  It’s a like it or lump it type of scenario.

In our firm that doesn’t happen.  There’s always a lot of dialogue, there’s give and take.  I can tell you in twenty years I’ve been with Financial Network we’ve never had a single decision that’s been an abrupt left turn.  There’s always been dialogue, there’s always been advanced warning and basically, most of the decisions that are made benefit the advisor not detrimental to them.  So again, it’s a very good process that we have here and that’s why we decided to stay here.

Financial Network has gone through several ownership changes.  We’ve just become independent and we have 90 of our regional directors and field advisors that are part owners of the firm.  We’re in a good place, we believe, to grow and to represent our advisors and help our advisors grow their practice.

Marie:  John, would you like to underscore anything that Dave just said?

John:  I think that Dave did a great job in designing and explaining the Financial Network regional system.  In addition to everything that Dave did say, the focus from the region is not only helping put advisors in business, helping advisors stay in business and transitioning out of business, but through that process we utilize the training method and the leading method of helping the advisors move through the natural process of becoming that expert in their area of focus.  I think that Financial Network is uniquely positioned to provide that service base through the independent advisor.

Dave:  And Marie, if I could underscore some of what John is talking about.

Marie:  Sure.

Dave:  It’s very hard to be all things to all people and quite often financial advisors find themselves in that position.  They’ve got clients who are small business owners so they have to become an expert in everything small business, such as retirement plans, benefit plans, etc. as well as doing the asset management and the insurances and the whole nine yards.  And that’s a shame, because I think if we looked at the medical industry and if we said you can have one doctor that tried to do it all, we would probably say he is committing malpractice.  Here at Financial Network, within the regional system that we have, we can allow people to specialize.  For instance, I’ve got advisors that do nothing but qualify plan work, or advisors that do nothing but insurance and sophisticated executive compensation business, or advisors that just want to manage money, or advisors that are very good at marketing and they want to bring in the clients, but they want somebody else to service the clients.  So what we are able to do is put together teams of individuals each of whom are independent, they all run their own business, but we allow them to do joint work, we have that process smoothed out over twenty years of doing this, that at the end of the day, the client is best served because they are getting a complete set of services, they’re working with the best advisors that have the most knowledge, and the advisors work as a team and at the end of the day they are all successful.  Instead of being in competition with each other, they work cooperatively with each other.  I really believe that we are the firm that is unique in the industry that brings that set of services to the table.

Marie:  Well Cheryl, I want to get you talking here and I know you’re not sitting in an ivory tower in El Segundo.  I’ve been to your office and I know you’re out in the field a lot working with the advisors in the regions, so could you address the Financial Network perspective?  What are some of the additional benefits that Financial Network offers independent advisors from the corporate level?

Cheryl:  Sure Marie.  I would have to say that I think we offer the best of both worlds.  You know we have all the resources of a top-10 national firm, but they’re combined with the local teams like Bar Financial and Exemplar Financial Networks so that you get that local, hands-on support.  So of course we have a full wealth management platform with our research and advanced planning and advisory services, we’ve got marketing programs and resources; we’ve got the cutting edge technology and the paperless office system, professional development opportunities all year and of course practice management.  But these go completely hand in hand with all of the guidance you’re going to get with a regional system.  I will say that I do think we take a different take on practice management.  I think that here we consider the business of running a business and it really kind of supports the independent practice because we show advisors how to build, optimize and realize value in those businesses. 

So let me explain a little bit about that.  In terms of building that business, we show them how to business plan for it, conduct business development and also help them with sales skill development if necessary.  As it becomes a more mature enterprise, we want to show them how to streamline their operations and hire and manage good staff.  And then in that phase, we also find that sometimes they reach the limits of organic growth and perhaps a practice acquisition is more helpful to their business and so we can help them do that as well.  And then finally, probably one of the hallmarks of going independent is realizing the value in your business and we can help them do that in a variety of ways.  One of them of course is help with succession planning or the proper sale of their business.  So I think that’s probably what makes us unique in the independent space is our partnership with our regional structure in delivering all of those resources as well as providing hands on guidance.

I would say too, that once an advisor is ready to go independent, we are very skilled in helping them do the prep work for that.  There are a lot of considerations to be made in the time leading up to doing it, but once they are ready to go, we have a very tailored plan for them at that point.  I would say most importantly, we provide guidance in securing client relationships while remaining in compliance with employment agreements and privacy regulations.  You’ll need to honor all of the agreements you have, but we tailor a plan specific to your situation and we can provide for successful business transition. 

Marie:  Well this has been a wonderful conversation.  I know I’ve learned a few new things today and I’ve been in business for 23 years and I always enjoy listening to and hearing from accomplished people like you folks.  But in closing, I would like to just go around the table and ask for any final words of wisdom and let’s go in reverse order.  Let’s go Cheryl and then Dave and then John, and then I’ll close for today.  Cheryl?

Cheryl:  Sure, I would say, Marie, that in terms of being a financial advisor today, I think you are remiss if you are not looking for what value you can build in your business and how you can realize that whether that be leaving a legacy or that be realizing it in terms of dollars or in sale or value to you or your family.  So I think here between our regional system and our home office that we provide all that guidance and help you get there and reach that level of success you’re looking for.

Marie:  Dave?

Dave:  Yes, Marie.  I would just like to close by telling people that I understand that decision to go independent, to take the step out of the employee ranks can be quite daunting and quite scary.  My advice would be for people to do it.  I think that at the end of the day they will be happier, they will control their own destiny, their clients will be better served, they can focus all their attention on doing what’s right for the client and the advisor building their practice.  That being said, the thing that’s less scary I think is associating with a firm like Financial Network and one of our regions that can provide somebody the best platform to be independent but not be alone, avoid a lot of mistakes and have the best chance of success in the near term.

Marie:  And John?

John:  Thanks Marie.  I would like to echo just the things that Dave said and that Cheryl said.  Going independent is a worrying time; however, it is setting the ground for a legacy of your thought process and your vision on how a business should be run and how money should be managed for the benefit of the client to help them reach their legacy.  The regions within Financial Network such as Exemplar and Bar are the local hands-on support mechanism to help you establish goals and then reach those goals.

Marie:  In closing, let me just give some websites so that our listeners can learn more about the people who have been speaking today.  Cheryl Chiara, you can reach Cheryl through her website, www.FinancialNetwork.com. For Dave Hubbard, you can reach him through his website, www.Exemplarfnadvisor.com. And for John Bracket, you can reach him through his website, www.BarFinancial.net.

Well thank you everyone. I look forward to seeing you all in the New Year at our next opportunity for another round table. Goodbye now.

Visit www.MarieSwift.com for additional Thought Leader conversations!

David Drucker on Trends in the Financial Services Industry

David Drucker, CFP, is an expert on technology and other aspects of the financial-services industry. He spoke with me recently about important changes in the industry. Our discussion touches on practice management, the role of broker-dealers and the future of RIAs .

If you are interested in learning more about best practices and the use of technology in a financial advisory business, join me at the fourth annual T3 Technology Tools for Today conference in Dallas, Texas Feb. 26-28, 2009. Learn about the conference here: www.VirtualOfficeNews.com.

David Drucker and Marie Swift on Advisor Trends Listen to podcast now.

Shaping the News - Great Example of Advisor Leading the Way through Positive PR

Thank goodness the elections are over and we are now able to refocus as a nation on other important matters.

Case in point: Open Enrollment Season.

The average person spends more time planning Thanksgiving dinner than studying their employee benefits package. Many employees spend less than 10 minutes flipping through the glossy benefits brochures before pushing them aside.

Andy Smith, Senior Partner with Cornerstone Financial Partners, Inc., believes that workers may be leaving money on the table and putting their future at risk.

While the mainstream media may be focused on the Wall Street Melt Down and stock market gyrations, Andy Smith and Cornerstone stand out as a "Best Practice Firm."

They are shaping the news and, through a series of positive PR moves, hope to help people understand their options and make better decisions.

Tick tock. Watch the clock!

Read Andy's advice now.It's Open Season on Employee Benefits: Financial Professional Recommends Five Questions Every Employee Should Ask During Open Enrollment

Helping Your Clients Mitigate Their Money Fears

On October 22, 2008, just as I myself was beginning to feel some trepidation and fear about the fate of my own personal financial situation (and I thought I was immune to this type of worry!), I was blessed to speak with Deborah Price, founder of The Money Coaching Institute.

Deborah and I spoke at length about the two types of fear and what advisors can be doing to not only help their clients through these difficult "bad news" days but to also mitigate their own personal fears.

Listen to 17 minutes of pure insight from Deborah Price, on Helping Your Clients Mitigate Their Money Fears. Then put her suggestions into practice. You'll be glad you did!

Read the article on Morningstar Advisor:

Dealing with Fear in Uncertain Times

Learn about Deborah's book:

Proclaim your independence!

Navigating today’s financial markets and economic situation is difficult for any advisor. But it’s especially complex for financial consultants at the big-brand sales institutions.

Talk about uncertainty. Turmoil. Stress.

The truth of the matter is that there has never been a better time to be an independent advisor. The Wall Street Melt Down and Economic Mess was not created by Main Street Advisors. And now is a really good time to help the general public understand just that.

So, if you are currently an independent advisor, get out and spread the word!

A recently published article in the Wall Street Journal states that a whopping 83% of clients of the large Wall Street firms are considering changing advisors. Independent advisors who have planned and implemented a solid publicity campaign are in a good position to attract new clients.

“Disenchanted clients and big-brand reps are heading for the door,” says Mitch Vigeveno, President of Turning Point, Inc. (www.tpisearch.com), an executive recruiting and industry consulting firm that helps disgruntled (or, on the flip side, visionary) executives and advisors find a new home in the independent broker/dealer world. But according to Vigeveno, evaluating all the choices can be overwhelming. “Without good information and guidance, too many people end up hopping from the frying pan into the fire,” he says.

John Napolitano, CFP®, CPA, PFS, MST, RLP®, a long-time financial advisor who is also President of independent broker/dealer U.S. Wealth Management LLC (member FINRA/SIPC, www.uswealthcompanies.com) adds his advice for the big-brand brokers:

“I’ve been talking to a lot of people – people just like your clients and you know what they are saying? They are telling me that their advisor isn’t as smart as they once thought. ‘Doesn’t he read the headlines? Doesn’t she know that his firm is going down, or has gone down? Doesn’t he know that under new ownership everything will be different?’”

“Clients are really concerned that their advisor really doesn’t care about them,” Napolitano adds. “They think the most important thing to their advisor right now is the advisor’s trailing income – and, frankly, they might be right.”

So here’s the deal:

If you are thinking about going independent, now is a golden time. But, if you’ve been at a wirehouse or other big-name firm, going pure RIA is probably not the right choice.

“Most of the advisors who join us after having left a big firm appreciate the fact that my firm, which functions as a Securities America branch office (one of the nation’s largest, independent broker/dealers, member FINRA/SIPC, www.securitiesamerica.com), can provide more freedom and flexibility than they’ve had in the past along with a collaborative team environment and all of the big firm services they’ve grown to love,” says Bill Glubiak, managing principal of Cedar Brook Financial Partners LLC (www.cedarbrookfinancial.com).

Cedar Brook is a Private Wealth Management Firm established in July 2005 by 13 people with over 100 years of combined industry experience. With more than 50 financial professionals, Cedar Brook differs dramatically from other independent firms composed of only a few individuals.

“Hybrid advisors – those who are affiliated with an independent broker/dealer yet still licensed to offer fee-based services as either an RIA or an IAR – are going to come out ahead in the long run,” says David Drucker, CFP®, founder of Drucker Knowledge Systems (www.daviddrucker.com). Drucker is one of the most visible and best respected speaker/writers in the financial planning industry.

“Whatever your thinking may be, there has NEVER been a better time to change firms. When else do you think that your clients will welcome a stack of paper with ‘sign here’ sticky notes? The time is NOW,” Napolitano says.

So...What's "Going Independent" All About? According to Vigeveno:

• It's about CHOICE
• It's about FREEDOM
• It's about FLEXIBILTY
• It's about BUILDING EQUITY
• It's about LIFESTYLE

I'll "second" Vigeveno's list above and add:

• It's about TRANSPARENCY
• It's about PROFESSIONALISM
• It's about a BETTER BUSINESS MODEL
• It's about putting CLIENTS' NEEDS FIRST

LISTEN TO THIS PODCAST NOW

John Napolitano wrote the book The Complete Idiots Guide to Success as a Personal Financial Planner (Penguin, December 2007). A sought after speaker in financial planning circles, he delivers dozens of speeches to attentive financial advisor and CPA groups each and every year.

You can sign up for his free newsletter here www.theparagonadvisor.com and access his blog here www.theparagonadvisorblog.com.

I asked John to share some additional insights via a telephone interview I conducted September 26, 2008. John was once a fee-only (no commission) advisor, but returned to an independent broker/dealer model in due time.

Curious to know why?

Click the “play” button to hear our conversation now.